news Dan.com to increase comission from 9% to 15% effective Feb 1st 2023

[MadAboutDomains]

Just received this email from Dan.com about commission increases (snippet of email):

Thoughts?

 

[AEProgram]

p

It's not emotion, when you sell more through paypal, sedo, escrow, dan, (landers) compared with afternic/godaddy, that's not emotion, that's reality. Do you have an idea what % of the total are the namepros reports? We are not even talking about afternic fan boys, reporting just to pump afternic numbers. A better view of reality will be to check the afternic turnover at the end of the year and compare them to sedo, dan or others and you will be surprised. Again, between casual reports and reality is a big difference.

Sorry but you are wrong. Domainers that will remove themselves from afternic will lose a lot of sales. Your emotions and the emotions of others are important, but losing money will only hurt peoples emotional state. I don't like the changes either, but I am in this to make money.

 

[Dane]

Yeah me too. They quadrupled the price (at least) since I left. If people go there en masse Efty will be the next acquisition

Yeah, I seem to remember a price of $12 if I'm not mistaken. Long time ago.

 

[NigelD]

Well I've just logged into our sedo account for the first time in ages. We only switched to dan because commission was much lower. Yes dan gave great service but before that we were with sedo from 2003 - so we'll start pricing up domains and get a 10% commission rate. That makes sense

 

[Ostrados]

How do you compete with other businesses?

In the past: you make better products or services.

In the preset: you buy your competitors, and keep same old bad qualittly of service.

 

[boker]

Sorry but you are wrong. Domainers that will remove themselves from afternic will lose a lot of sales. Your emotions and the emotions of others are important, but losing money will only hurt peoples emotional state. I don't like the changes either, but I am in this to make money.

Probably not to many of us will delete names from afternic, but they will choose other landers, they will rise the prices of domains listed at godaddy and co or they will use afternic as make offer, to make sure to accept a price to cover their fees. So, they will be 25% -35% more exempensive than the prices of competitors or private landers, the end users can pay the extra fee if they want to use afternic.

 

[rh2000]

Kind of expensive, though. $432 per year for 50 - 1500 names seems a bit high, doesn't it?

Yes it is. Especially, if you don't make a sale.

 

[domaindevil]

Kind of expensive, though. $432 per year for 50 - 1500 names seems a bit high, doesn't it?

Very expensive. I get that they want to earn money but the business model is just off imo. They def need to add more value in order to justify that price point.

 

[markfromslo]

I just made a test and it is true Afternic BIN ns5/Ns6 does not load on private Firefox

Oh wow

So we are basically cornered to use GD landers, but the landers themselves are broken!

I just tested this with mine, and it works for me.

 

[BigTree]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

 

[markfromslo]

Sorry but you are wrong. Domainers that will remove themselves from afternic will lose a lot of sales. Your emotions and the emotions of others are important, but losing money will only hurt peoples emotional state. I don't like the changes either, but I am in this to make money.

I agree. I don't like the changes for a variety of reasons, but Afternic sells tons of my names. There is no competition that equals the Godaddy network. Like you, I can complain about some of the changes, but I'm not going anywhere just to make a point. I prefer to make money.

 

[bmugford]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

I fully expect them to honor the original terms that were agreed to.

I have some domains currently under payment plans.

If they try to arbitrarily change the terms of an existing contract, it goes down the path of becoming a contract of adhesion.

Brad

 

[markfromslo]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

I just turned off installments for all 4,500 of my Dan names. So many are canceled, it's a pain. Simple BIN now, no installment options.

 

[James Iles]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

Can confirm that only new Lease to Own transactions will be subject to the new rates.

 

[411domains]

Yes. That's the only "drop" they can claim in this price jacking "alignment," from 20% to 15%.

Edit: I just now received the "Commission Model" emails from Afternic & Godaddy auctions.

It would've been nice to have this yesterday!

It's ridiculous that I have ask these questions, but if they had actually thought long and hard about this and spoke human, their notification wouldn't have caused so much confusion.

Yet here we are just over 24 hours later with 9K views and 450 replies totaling 18 pages here at NP...

I almost feel bad for James, who's now working overtime reading & responding to all the comments along with dealing with all the other issues with the platforms.

Although @James Iles confirmed it replaced the previous commission structure, there seemed to be so much focus on nameservers that it created suspicion that the 15% only applies to the landers and not purchase path sales.

Since I direct the majority of my leads to the purchase path, this obviously concerned me.

I have no problem paying a 15% commission. In fact, when they rolled out the tiered commission structure, I rallied for a flat rate 15%, so with the exception of the everything over 30K, this will be a bonus for me.

I'm just trying to get all the facts that were clearly left out in all the notifications, so that there aren't any surprises when it goes into affect. That's all.

No question is a stupid question.

 

[Mister Funsky]

I almost feel bad for James, who's now working overtime reading & responding to all the comments along with dealing with all the other issues with the platforms.

I agree...sometimes the messenger gets the bad end of the stick.

However, more than likely the information about price hikes has been circulating within gddy for a while so it was probably not a surprise to him. Perhaps they let him know well ahead and are compensating him accordingly.

One of the failures in this fiasco is the roll out. All the basic questions being asked here should have been thought out...and somewhere in the plethora of emails we received 'they' should have spelled thing out better...much better.

 

[internext]

they will keep 9% because those transactions were initiated before February

Its a contract

 

[Nuno Casimiro]

This move is a checkmate to all domainers, and domain companies

The biggest affected will be the big companies

Buydomains -> (766k) lose 5% in sales
DomainMarket -> (236k) same
Hugedomains -> (9 million domains ?) Might have an exception.
If they remove the millions of domains from the network, it affects Godaddy's results.

For the brandable market , i think won't have much impact. SH and BB have only ~300k domains and probably don't sell many of them through Godaddy network.
The best move is retire all domains from and lose some sales.

It will be bad for all help services for domainers

I was wrong not to use the Godaddy network to give exposure to my domains.
In the past i tried and didn't sell any. (I am in the brandable space)
Yesterday put 600 domains via Dan with markup, if any sell is great, and pay more 5% from the old 20%

 

[domaindevil]

I am sure that Huge Domains are able to negotiate nice custom deals.

 

[internext]

I have used Dan pretty much exclusively. I have never used Afternic.

I am confused about one aspect of this proposal.

If I add Afternic to my network and make a sale on Dan, my commission is 15%, right? But if the sale is made at Afternic I pay TWO 15% commissions? One commission to Dan because that's where my nameservers are and one commission to Afternic for a total 30% total commission?? Or just 15% because it's just one network??

Please explain how using Dan AND Afternic commissions work. Are there any situations in which you would be expected to pay stacked commissions ie 30%?
@James Iles

 

[markfromslo]

This move is a checkmate to all domainers, and domain companies

The biggest affected will be the big companies

Buydomains -> (766k) lose 5% in sales
DomainMarket -> (236k) same
Hugedomains -> (9 million domains ?) Might have an exception.
If they remove the millions of domains from the network, it affects Godaddy's results.

Huge Domains will get huge discounts. They are already treated favorably, as most who use Godaddy Expired Domains Auctions probably know. They have use of an API that lets them "snipe" names the microsecond after a name auction ends and it goes to $50. A human just cannot beat Huge Domains. If there is no buyer for the name at auction, and Huge Domains wants it, they will get it. period. Completely unfair practice.