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tips I'm really happy to pay 20% or even 30% commission to good platforms. Here's why.

Dynadot

twiki

Top Contributor
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20,467
I just got a comment today, that 30% SquadHelp commission is an insane amount. (It's not the first time I get such a comment though). And I know it's a judgement error, so here's my response and some advice for other NP members here.

In domaining, there is a mindset of scarcity, and also a mindset of abundance. I choose the latter. Why? Because it's the only one that works. And in business in general.

When someone tells me that 20% commission (Afternic) is too much, or 30% at SquadHelp, well, I know this is a actually a fair percentage. That's also why it is accepted by sellers. And here's the reason.

I don't care how much the other guy gets. What I care about is, how much I am left with. And what do I get out of it. So should you.

This sale I just got, for A/d/a/p/t/y/v/e/ .com would probably have never been made outside of SH as this is a brandable. Unless listed at SH or another brandable marketplace with a lot of traffic, chances would have been nil. Why? Because with Afternic network or Sedo, if your domain is not a searchable one (this isn't), chances are nobody will ever buy the domain. Also the landers don't generally help at all because such domains don't get search engine traffic. They're in a black zone, unless brought to light by a brandable marketplace.

So I just got 70% of the $2299, instead of 100% of nothing.

The same thing applies with Afternic fees which are the highest in the non-brandable marketplaces zone.

I pay 20% at Afternic, and less than 10% elsewhere (e.g. 9% at Dan). Yet all my landers are currently pointing either at Afternic (20% commission; searchables) and some at SH (30%; brandables). Why? Because this brings me the most money overall. Even after deducting all those extra % fees.

With NS5/NS6 at Afternic , that GoDaddy name + a phone where anybody can call means I get a LOT of good sales which otherwise won't be accomplished. The GD name brings trust; many domain buyers are quite wary of online buys.

Also the phone number improve conversions a lot. This is why 20% commission here actually means more money in the pocket for me, rather than say 9% or 10% at another platform where I only get a lander sale, but the buyer never heard of that platform and also there is no phone to call. Side note Afternic brokers are also very good = more sales.

Now with SH what I get is an entire tier of domain sales that would never have existed. (Or with any other brandable marketplace you'd like). SH has a lot of AI and merchandising behind their platform; stats; category based sales; great logo designers; classification experts bringing best categories and descriptions for your domain; contests pushing your domain sales and more. Plus instant support.

All this costs money, much more than yet another lander. But it brings sales - ton of extra sales, and high value sales for domains because of all that merchandising. That's why it is worth it. I can for example double my sales for the same portfolio size, by paying a measly 10% extra. That's quite cheap if you do the math. Even if I get just one more sale at each say 7-8 domains sold elsewhere, it IS worth it. It means profit.

Also, about scarcity.

I've seen a lot of people losing in this business because they're not flexible enough, they value their domains too much or are too attached to them. Al these choices are bad ones.

If you're not willing to give out another 10% of your commission in exchange for far better sales, you're losing, not winning this game.

Because in domaining the most important factor is sales ratio. I'm gonna say this again, just to make sure you understand it. In domaining, the most important factor is sales ratio. Keep this in mind. Do everything you can to improve that factor. Do the math. Your platform choice is a very important factor that can make the difference between success and failure with domain selling.

Say a given platform like Afternic has 10% more commission. But if, again, they bring 20% more sales, you're in profit because overall you sold more and you're left with more money. Use the difference to buy a few more great names, or - why not? Pocket the profit and spend it as you'd like.

This is why you should always test and measure such things. Math on paper.

And yet another thing about scarcity:

"I'm selling too many of my names and too much % goes to others" etc. Many inexperienced domainers apply this kind of scarcity thinking to their names. Well - did you ever do the math properly? Did you A/B test platforms? Is it good to choose selling LESS names instead of giving out a larger % but for much more sales, which, in turn, will leave you with far more in the pocket?

What many less experienced domainers also forget, is that domain sales ratio usually ranges at 1...2% per year in case of 4-fig domains for example which make the bulk of the market. This means that your feeling of "giving out too may of your names or too much %" is just... a scarcity mindset that actually works against you.

That means, say in one year if you have 100 names and sold 2, you have 98 domains. And you might have made some money, or not - because you have to pay for renewal of 98 names, which costs a lot (98x$10 = $980 for example). But if you sold 4 names, your profit skyrockets because you have DOUBLED your income, and all those extra sales will be 100% profit. And you still have 96 names left to sell, which means, you sold 2% of your portfolio for a multiple-fold profit. With the extra profit you got, you can easily pay for a few more names to cover the few you sold AND still have a lot more in your pocket.

Those extra SH sales will bring me at least a solid extra 5-fig over this year. That's why I use Afternic, SH and would use any other decent but perhaps high priced marketplace. Because without them, overall I'd be at a loss.

Do the math, guys. Always do the math. And avoid the scarcity mindset.

Happy domaining!
 
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okaydomains

Upgraded Member
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303
Note, I have about 13% approval rate but the actual rate on brandables is much higher - because I had an offer from them and submitted everything to them, just in case some might still be picked (a few did).

Should I have only submitted the proper brandables, above 30% at least, estimated.

I've wondered if at some point I'll hit a threshold and they'll offer me such an opportunity. I have a decent sense of what they might accept but clearly I'm still wrong > 50% of the time. They have given me a fair number of free coins.

Its only $1/domain which is trivial of course and I'm not sure $1 would even cover the cost of mturk to evaluate the domains, but it has still kept me from submitting a big list.
 

okaydomains

Upgraded Member
Impact
303
Oh wow, congratulations! Okay I need to get better :)

Btw if your domains get rejected you resubmit them again at least once or do you just move forward with something else?

I don't resubmit. They have a tool in the dashboard (insights I believe) which you can also use to see if they've rejected the name in the past. In my experience if they have already rejected the name in the past (when someone else submitted it) its not worth resubmitting either.

I tried to sign-up for BB a few times, just to try them. The confirmation emails never come through so I moved on.

I sell everything else through Afternic, except for a handful of names in weird TLDs that Afternic doesn't support in which case I use Bodis.
 
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Recons.Com

Top Contributor
Impact
16,229
Sorry I'm not following you.

How can your average sale is 3/3.5k and your average price is 2500$?

"Most typical" basically means that majority of my names are priced at that. The average is heavily influenced by bigger sales. For instance, one 15k sale can bring 25 2.5k sales up to 3k average.
 
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