Domain Marketplace 3% commission?

[Sirbigman]

Hi NP,

Me and my team are thinking of getting a new domain marketplace (ie. Undeveloped, Brandbucket, Brandpa) which would work in the favour of the seller and buyer by charging a small fee of 3% per sale with escrow fees included. The marketplace would be very simple but effective, user account for buyers and sellers, auctions and websites for sale. To keep the scammers away we would verify each seller and a monthly fee of $30 would be required. My company would use those money to advertise the website in Google AdWords.

The golden question is, would you sign up for something like that?

 

[xynames]

The only appreciable traffic Undeveloped gets is direct lands on specific landing pages. Almost no one is going to Undeveloped to then search for domains in its database.

The indirect proof of this is that I have about 1500 domains listed at Afternic, Sedo, DomainAgents and Undeveloped - at the first three I get offers and closed sales all the time, and at Undeveloped - nothing. I added my domains to Afternic, Sedo only last year.

It's just a plain fact, nothing to be ashamed or upset about.

Has ANYONE on the earth who has domains listed at Undeveloped (but NOT using its landing pages), sold a single domain? Bring me such a person. If you're getting millions of SEARCHES for domains monthly using your database (you are not), then there should be thousands of such people.

Actually you should be happy about my posts. No press is bad press. Maybe someone will stumble on my posts and think, ummm, maybe I should try searching for domains at Undeveloped.

 

[frank-germany]

I am t

The only appreciable traffic Undeveloped gets is direct lands on specific landing pages. Almost no one is going to Undeveloped to then search for domains in its database.

The indirect proof of this is that I have about 1500 domains listed at Afternic, Sedo, DomainAgents and Undeveloped - at the first three I get offers and closed sales all the time, and at Undeveloped - nothing. I added my domains to Afternic, Sedo only last year.

It's just a plain fact, nothing to be ashamed or upset about.

Has ANYONE on the earth who has domains listed at Undeveloped (but NOT using its landing pages), sold a single domain? Bring me such a person. If you're getting millions of SEARCHES for domains monthly using your database (you are not), then there should be thousands of such people.

Actually you should be happy about my posts. No press is bad press. Maybe someone will stumble on my posts and think, ummm, maybe I should try searching for domains at Undeveloped.

I am that person
But I didn't sell it for the 500 usd offered


Just to be clear:
At that point none of my domains
Were landing on undeveloped

I got 2 offers on 1 domain
Of 300 / 500 from the same person negotiating

And another domain
I didn't sell as I want 100 k for it

So 2 serious leads this year

1 of them I know is a german domainer
The other lead is an end user

 

[Sirbigman]

Show attachment 85101

Coincidentally, weekly I come across the same references from you about Undeveloped. The same you also shared in our review thread to which I replied extensively.

If it was once or twice I wouldn’t even have noticed it but its always you as if you’re on a mission to always include us in a negative sense.

What you’re now saying again is false again. Undeveloped brings in 1,7M uniques a month. As we grow our channels more and more non-parked names are also selling due to the continuous improvements we implement to drive more liquidity on our market.

Even though sites like Similarweb don't have 100% accurate data just look at the traffic trend: https://www.similarweb.com/website/undeveloped.com#overview

Show attachment 85102

And that's why I react the way I do on your posts. I have an allergy to people spreading information that's false about Undeveloped. I'm sorry if I don't sound friendly but I'm just reacting to your actions.

You have zero insights about the sales on our marketplace and how they are closed but still act as if you do. That's what keeps bothering me about your posts about us. That's it.

Damn, 46% increase? Very strange, unless you’re driving traffic through ads or other methods, that looks like an anomaly.
I already checked your organic traffic and I realised that it comes from type ins mostly, I assume it comes from domains parked. Nobody is trying to demote your business, we’re just discussing a new and more affordable option.

 

[Chris Wright]

What isn't talked about very often, is that most of us don't have a cash flow business.

The market inefficiencies that allow us the space to practice our craft, also prevent business building.

While we call it "domain investing," there are no industry standards, or accepted formulas for appraising values.
Therefore financing is almost non-existent.
Which keeps domain liquidity frozen for the most part.

So, while it technically qualifies as speculative investing, it has the dynamics of gambling.

Most domainers are either losing money, or making less than minimum wages.
But we won't tell you that. It's like a gambler's boast...
One might brag about winning $1200 at the casino last weekend.
What they won't tell you is that they lost $1800 the time before that.

We are forced to buy low, and sell high. Not because of greed.
Only about 2-3% of one's domain portfolio is sold annually. (Even for the big shots who are selling super-premium names.)
The other 98% of domains are either dropped or renewed. Some renewed for 10 or 15 years.

Sporadic sales, along with rolling renewal expenses, force domainers to keep overhead expenses cut to the bone.

That's why we'd rather pay a higher commission than a monthly fee.
Any disuptor that can change that fact, will probably change our entire industry.

 

[xynames]

<<Has ANYONE on the earth who has domains listed at Undeveloped (but NOT using its landing pages), sold a single domain?>>

I am that person
But I didn't sell it for the 500 usd offered

Thanks for your post...but you are not that person.

I already checked your organic traffic and I realised that it comes from type ins mostly, I assume it comes from domains parked.

Exactly.

The only appreciable traffic Undeveloped gets is direct lands on specific landing pages. Almost no one is going to Undeveloped to then search for domains in its database.

 

[frank-germany]

<<Has ANYONE on the earth who has domains listed at Undeveloped (but NOT using its landing pages), sold a single domain?>>




Thanks for your post...but you are not that person.

as I did decided not to sell it for the amount offered
you can't blame undeveloped for that

 

[frank-germany]

as I did decided not to sell it for the amount offered
you can't blame undeveloped for that

 

[frank-germany]

as I did decided not to sell it for the amount offered
you can't blame undeveloped for that

 

[xynames]

The question stands:

Has ANYONE on the earth who has domains listed at Undeveloped (but NOT using its landing pages), sold a single domain? Bring me such a person.

 

[frank-germany]

The question stands:

what is the purpose of that question?

if you think that there will be no additional leads
other then from your own traffic

you are wrong
as I have proven

 

[DAN.COM]

what is the purpose of that question?

if you think that there will be no additional leads
other then from your own traffic

you are wrong
as I have proven

Hi Frank,

He's not interested in answers and clearly doesn't read them. It's hard to talk to a wall.

Let's get productive again and sell some domains!

PS: on your second lead. I'm not sure if they have the budget to purchase the name but if you want one of our brokers to reach out to them to see if we can strike an installed deal, shoot me a message!

Take care,

Reza

 

[BrandMart]

This thread went from 'Hey, I am starting Domain marketplace, will you signup?" to "Questions about Undeveloped's domain selling capability".

Can we get back to the topic at hand and help / advice @Sirbigman with his project?

 

[xynames]

Well the reason we brought up Undeveloped is just to show that even with all their “might” they can’t even muster a single sale other than via landing pages which shows how hard it will be to crack this domain sales market with an even newer platform. Sirbigman recognizes this with his mentioned research on the very low amount of traffic going to Undeveloped for domain name searches (which is backed up by the lack of sales). So it is quite germaine to the discussion.

 

[AuctionBio]

Hi NP,

Me and my team are thinking of getting a new domain marketplace (ie. Undeveloped, Brandbucket, Brandpa) which would work in the favour of the seller and buyer by charging a small fee of 3% per sale with escrow fees included. The marketplace would be very simple but effective, user account for buyers and sellers, auctions and websites for sale. To keep the scammers away we would verify each seller and a monthly fee of $30 would be required. My company would use those money to advertise the website in Google AdWords.

The golden question is, would you sign up for something like that?

Hmmm, nice man, but noooooo....
You still did not start your business.
No body knows about your upcoming website,
you will start marketing from zero.
Why would someone use your platform when you do not cover any target market?
Your idea is not bad, but
first start your business,
ask domainers to have free listings, and if any one gets sale you charge 3%.
Let it work for a year or two and see your performance.
than come with your second $30/month fee, otherwise you yourself use others platform..
but do not try to market you with domainers money.

 

[frank-germany]

So it is quite germaine to the discussion.

maybe its german
or germane ?

 

[xynames]

 

[namelancer]

germane (adj.)
mid-14c., "having the same parents," a doublet of german (adj.) but directly from Latin germanus instead of via French (compare urbane/urban). Main modern sense of "closely connected, relevant" (c. 1600) derives from use in "Hamlet" Act V, Scene ii: "The phrase would bee more Germaine to the matter: If we could carry Cannon by our sides," which is a figurative use of the word in the now-obsolete loosened sense of "closely related, akin" (late 15c.) in reference to things, not persons.

 

[namemarket]

...Perhaps a solution would be $100-$500+ / month for a combo domain plus website...

Can you please go into more detail on that idea which sounds interesting and something new to explore.

 

[namelancer]

As much as I would like to give everything for free, the costs of advertising can be quite high, I'm thinking 100 members per month, $3k in advertising budget, it would really help with exposure.

You seem to have missed the bit out about the $360 yearly membership cost

Individual costs can be cut by simply increasing the membership count. If the goal is to collect at least 3k per month from all platform users, then:

1. by tripling the pool of sellers to 300 from the initially proposed 100 a monthly charge decreases to 10 usd per user;
2. a more ambitious proliferation of marketplace users to 1000 members would bring additional reduction in fees to just 3 usd per month per user;
3. the total number of domains retained under the above changes would depend onthe type of advertsing adopted by the site for listings and whether it'd be structured en masse or per each domain (jointly with or separately from others)

 

[Foskaay]

I think its better on commission than monthly charges.
What if such sale was not eventually executed on the platform but via other platform the seller listed on. Or it takes about 2-6months to sell a domain which is not upto 5figures.

 

[Foskaay]

personally might not go with it except it could guarantee sale in due time

 

[DBurn]

I think its better on commission than monthly charges.
What if such sale was not eventually executed on the platform but via other platform the seller listed on. Or it takes about 2-6months to sell a domain which is not upto 5figures.

He is trying something different other than the larger commission charges. Otherwise, his platform is like the others.

 

[Foskaay]

He is trying something different other than the larger commission charges. Otherwise, his platform is like the others.

Yeah but could reconsider the percentage then could also offer the $30 or more as premium ads plans .....so, it could be ordered at will not mandatory...Though, just my view.

 

[toughdomains]

I understand, it really sounds like hidden costs. In my defence, it does say commission next to the 3%. I apologise. As much as I would like to give everything for free, the costs of advertising can be quite high, I'm thinking 100 members per month, $3k in advertising budget, it would really help with exposure.

why would you want members to pay for your marketing...there are too many marketplaces that are free and at the end of the day you want to try to get to that 1 million name mark...will be hard to do if you charge 30 per month...also if you use an escrow service for larger amounts (over 10k) it will eat up your 3% otherwise you take the full risk...even if you verify users they can still refund the charge on cc or paypal after 30 days...
i mention these points because we are about to launch our own marketplace and there is a ton to think about...mainly how will you get amazing names and how will you make it eaiser to buyers to find them?

 

[ben pedri]

Not much of a domainer myself, amateur at best, I only sold 5 domains so far, I do read this forum a lot but I'm more passionate about creating solutions where there's a need. The main thing that I would like to focus on is low commission and maximum exposure through SEO and advertising. I'm not trying to earn money on someone else's work, more like trying to help and also be transparent. In the 3% I also calculated transaction fees, 1.4 % for EU and 2.9 % for international so in the end, the margin is very slim but still enough to cover the running costs and development. The best part is that a lot of people would benefit from it.

Ok if you believe in your model than Make it 5%