Is GoDaddy adding 5% on top of its Afternic 15% commission?

[Recons.Com]

I was up for very unpleasant surprise today.

The names that I, for example, have priced for $2499 are showing as $2724.11 at Godaddy. Apparently, this change might be experimental for now as it is not showing the same for all, but it will have very adverse effect on all domain investment community. And it is grossly unfair too.

GD announced with lots of fanfare that it is reducing the Afternic commission from 20% to 15% to justify raising Dan commission from 9% to 15%. Apparently, there have been plans to recoup that and more, as 5% on the gross is more than 5% on the original price.

So what will be the impact on all of us? If GD does go ahead with it (and for the period and scope of the experiment) we will lose at least 5% of our sales if the price elasticity is straight line. But, we all know that it is not and there are psychological thresholds. E.g. 2499 to 2724, from my experience, will result in 10-20% loss for two reasons: a) again, it crosses 2500$ limit; b) the "magic" endings like 00, 99, 88, 50 are ruined for someing like 24.11 ending. GD itself in its blog had published an experiment involving namefind names that showed 8% increase in sales from going to 2499 from 2500, so this changes are meaningful.

See also the attached slide by Darpan (SH founder) showing how important those thresholds can be. Crossing $5k barrier, e.g., can result in 35% loss in sales numbers.

Now couple this with the upcoming 7%-10% increase in .com pricing, and loss of 10%-20% in sales so that GD can make extra 5% can be devastating to all of us.

If GD does go ahead with this, we should all look for an alternative to both Afternic and Godaddy, as they will eventually squeeze us all out of the business. If Godaddy does implement this, I will look into moving my 34000 .com domains out of Godaddy and will stop using Afternic landers.

This is just getting ridiculous. Godaddy, decide already, if we are your partners in the business or the competition.

 

[equity78]

I pointed it out to GoDaddy and they are looking at it, but not seeing anything immediately abnormal. The change in price is likely attributed to a country + currency combination.

I know I have gone to GoDaddy and maybe something to do with my browser had me showing that I was in India. I just clicked the right location and it was fixed.

 

[D Haynes]

I assumed this was common knowledge? It's always been my understanding that different members of the AN network were free to list names with whatever mark up they wanted. I've certainly heard this being mention multiple times over the years. It's quite possible you'll find your names listed for different prices at different network members. I certainly don't agree with it (it's essentially front running) but I'm surprised people are surprised. It's definitely not something new.

 

[Recons.Com]

I assumed this was common knowledge? It's always been my understanding that different members of the AN network were free to list names with whatever mark up they wanted. I've certainly heard this being mention multiple times over the years. It's quite possible you'll find your names listed for different prices at different network members. I certainly don't agree with it (it's essentially front running) but I'm surprised people are surprised. It's definitely not something new.

While partners can do it, GD is not a partner, it is the owner of Afternic.

Again, hopefully, it is a glitch, like attributing me to a country with 9% surcharge, but even that is troubling if GD has problem correctly identifying its customer's country. Regardless for what reason the wrong price is shown, that is a lost sale with 10% to 30% chance.

Just few weeks ago every time I visited GD auctions, it would put me into GD Ireland. I would switch back to US and in few minutes I was back in "Ireland". So, possibly, GD has put me into another country this time, which, again, is a serious glitch in itself. USA is your bread and butter and it shouldn't be hard to get an accurate DB and also fix your software so that it is clear which country the client has been identified from and also the change persists instead of being reset. For info, I don't use any vpns, blockers, proxies etc. and my ip/location is easily identified even by free services on the net just by visiting them.

 

[forge]

Just few weeks ago every time I visited GD auctions, it would put me into GD Ireland. I would switch back to US and in few minutes I was back in "Ireland".

This happened to me just last week after browsing GD auctions, having set me for US currency but South Africa location. Instead of 2,000 for example I would see 2 000.

Actually I think it was language default (English, S.A.) instead of (English, US) so it didn't affect the numbers.

 

[JB Lions]

I'm seeing this too now, they added 9% to the price.

Added some names today to Afternic Fast Transfer at $1500, they show at Godaddy at $1635.

Ok, $1500 again.

For some reason it was Singapore - English. Put it back to United States - English and it shows the $1500.

No idea why it was on Singapore English

 

[forge]

No idea why it was on Singapore English

You might want to get rid of that chewing gum.

Not related to Singapore, but there must be a thread somewhere about GD's "protection racket" and the growing number of upsells at registration?

Subscriptions... that's another bugaboo.

 

[spikedo]

Where's the guy who developed DAN.com? If there ever has been a need for another GoDaddy/Afternic alternative, there is one now.

 

[silentg]

Any updates on this?

Checked my names and the price is the same and no markups.

 

[Acroplex]

Looks like this f*ckery continues:

https://twitter.com/x/status/1773513376754503690

 

[GoDaddy]

We appreciate the community’s patience as we thoroughly looked into this.

To be clear, GoDaddy/Afternic are not quietly adding commission to these purchases. In territories where we are required to collect VAT or local taxes, they are added to the displayed price in the search result automatically.

A final validation is performed in the cart at the time of purchase and these fees are paid in full to the relevant authority.

This can be made clearer to the purchaser, and it is something we will look into doing. We’ll also continue to closely monitor our sale landers, search results, and cart, where premium domains are displayed in local currencies, for areas to adjust and improve.

 

[Acroplex]

We appreciate the community’s patience as we thoroughly looked into this.

To be clear, GoDaddy/Afternic are not quietly adding commission to these purchases. In territories where we are required to collect VAT or local taxes, they are added to the displayed price in the search result automatically.

A final validation is performed in the cart at the time of purchase and these fees are paid in full to the relevant authority.

This can be made clearer to the purchaser, and it is something we will look into doing. We’ll also continue to closely monitor our sale landers, search results, and cart, where premium domains are displayed in local currencies, for areas to adjust and improve.

The asking price should be displayed - not your estimated price involving any possible fee, sales tax, or VAT.

The residents of locales where tax is routinely collected, such as in the European Union, already know that VAT is extra. By increasing the displayed price you're distorting the seller's expectations and perhaps also lead to failed sales.

 

[Recons.Com]

We appreciate the community’s patience as we thoroughly looked into this.

To be clear, GoDaddy/Afternic are not quietly adding commission to these purchases. In territories where we are required to collect VAT or local taxes, they are added to the displayed price in the search result automatically.

A final validation is performed in the cart at the time of purchase and these fees are paid in full to the relevant authority.

This can be made clearer to the purchaser, and it is something we will look into doing. We’ll also continue to closely monitor our sale landers, search results, and cart, where premium domains are displayed in local currencies, for areas to adjust and improve.

Thanks, James.

After someone wrote in the thread and I also started getting a version of lander in another currency, I noticed on the index page that my location is being reset to Singapore every time. Before March, that default GD location was Ireland, but that wasn't causing sales problems, except being forced to change it every day or sometimes few times a day.

The Singapore one has huge implications:

The USA buyers often get this, and possibly other countries as well. It shows USA number, it is in $ and it is 9% higher price. There is no location change option or anything that makes it explicit that there is surcharge. So, as a result, if I am priced my name $2499, it shows 2724.11$. Which could hurt my sales by 20%-40% because

a) according to your blog post, changing price from $2500 to $2499 increased sales by 8%. 99, 88, 50, 95 are often used because, not without ground, everyone assumes those endings help. And, 2500, along with 3000, 5000, 10000 are proven to be psychological thresholds crossing which have major implications. So, you go from 2499 to even 2501$ and you can have 10-15% sales lost.

b) at this price levels, the price elasticity is not a straight line, so adding 9%, on top of the issues from the paragraph above, can lead to additional losses.

And, now, add % lost because people see this (as I mentioned, sometimes, it also changes the currency, while still displaying USA phone):

 

[Recons.Com]

Just to make clear:

- I don't use any vpns, proxies etc.

- I am in the US

- any web tool easily identifies my location

- many others get exactly the same result, i.e. are in the USA and get Singapore designation. So, it is not about somehow having a faulty IP db. It is GD redirecting its visitors to its default destination of Singapore (Ireland before that), whenever the script fails or just for the heck of it.

 

[Dane]

@GoDaddy - Same problem here. I am located in the US. If I go to godaddy.com (on my phone OR on my computer) and I search for one of my own Afternic-listed names, I am shown a price that is 9% MORE EXPENSIVE than my listed price. This is not good. I also see a +65 phone number, which is the country code for Singapore. This too is not good.

 

[Recons.Com]

@GoDaddy - Same problem here. I am located in the US. If I go to godaddy.com (on my phone OR on my computer) and I search for one of my own Afternic-listed names, I am shown a price that is 9% MORE EXPENSIVE than my listed price. This is not good. I also see a +65 phone number, which is the country code for Singapore. This too is not good.

There. I have asked in investor chats and the problem is indeed widespread.

In territories where we are required to collect VAT or local taxes, they are added to the displayed price in the search result automatically.

A final validation is performed in the cart at the time of purchase and these fees are paid in full to the relevant authority.

James, this part of your response is troubling to me, because I assumed the problem is self-evident. Again, it is not showing only for the territories where the surcharge might be relevant, but to other countries, including the bread-and-butter of .com sales, USA. And, the final verification part is not helpful, as people typically don't add a product into their cart, if they did not like the price.

 

[Recons.Com]

After setting my location to USA in the noon, by 6 pm I am back to "Singapore - English". This is just too ridiculous for a multi-billion company to shoot itself in the foot and take down its partners along for the ride.

 

[Recons.Com]

Here is what a free web tool ip2location.com/demo says about my location:

 

[Edukar]

@GoDaddy I warned that a dashing time has come for your company. You should not offend your customers. Solve the problems on time. Final countdown has begun.

 

[Recons.Com]

Another day, another reset to Singapore. This time, also comes with the flavor of Singapore currency. Few weeks since being reported, a multi-billion company cannot fix a simple technical problem of correctly identifying its customers and REMEMBERING the choice causing it leak $millions a day.

 

[LoveCatchyDomains]

Another day, another reset to Singapore. This time, also comes with the flavor of Singapore currency. Few weeks since being reported, a multi-billion company cannot fix a simple technical problem of correctly identifying its customers and REMEMBERING the choice causing it leak $millions a day.

Do you wonder why Singapore?

Sorry to hear about your ongoing challenges with the GoDaddy listings. Hopefully it will be sorted out tomorrow, with the Easter holiday over.

 

[Recons.Com]

Do you wonder why Singapore?

Sorry to hear about your ongoing challenges with the GoDaddy listings. Hopefully it will be sorted out tomorrow, with the Easter holiday over.

Not sure why Singapore of all places... Before, it would default to Ireland. While it was as dumb, at least a) there was no financial consequence as the price was the same and most of the time in USD (euro isn't as much problem either) b) I could explain that they might have some offices there as tech companies like Ireland for anything Europe.

Singapore is a headscratcher.

And, no, I wouldn't get my hopes high about them fixing it so soon. The Godaddy/Afternic sync problem (I list the names and they show as unlisted in my account for some) was first reported by me mid Summer 2023. After few weeks and forth, I was told "we know about the problem, not going to fix any time soon, deal with it". Not literally, but close enough. After about 9 months since, it has gotten worse, as now MOST names show as unlisted when added and now if I change prices in Afternic, in GD they still show with the old pricing (i.d. new bug added).

And that bug is as simple as it gets. I mean how difficult is it to populate one DB with the data from another DB and sync it? And how difficult is it to check a person's IP against available DB of IPs and correctly identify it? A novice could do it in minutes. For this multi-billion company this is an unsolvable problem.

 

[LoveCatchyDomains]

Not sure why Singapore of all places... Before, it would default to Ireland. While it was as dumb, at least a) there was no financial consequence as the price was the same and most of the time in USD (euro isn't as much problem either) b) I could explain that they might have some offices there as tech companies like Ireland for anything Europe.

Singapore is a headscratcher.

At least perhaps GoDaddy could shed some light on this one curious point?

And, no, I wouldn't get my hopes high about them fixing it so soon. The Godaddy/Afternic sync problem (I list the names and they show as unlisted in my account for some) was first reported by me mid Summer 2023....

A friend of mine recentlywas upset by finding that his Afternic domains were not actually listed.

So what's the deal @GoDaddy? Why the "phantom domain listings?"

 

[Dane]

I'm still seeing Singapore results. @GoDaddy - is this going to be fixed??

 

[Acroplex]

Go in the browser settings and delete all GoDaddy cookies. Restart the browser, see if it gets fixed.

 

[Dane]

Go in the browser settings and delete all GoDaddy cookies. Restart the browser, see if it gets fixed.

But even if that works, it only helps me. I didn't do anything to get this Singapore cookie, it just appeared. Which means the same thing is happening to potential buyers, and they are seeing the wrong price (and the wrong phone number). GoDaddy should do something to fix this problem.