My Beef with Sedo.com

[domainhacks-931385]

The standard commission in the domain industry is 20%. How can any credible company justify charging 85-95% commission?

For example a .com for $60
You keep 10
Sedo keeps 50

for a cctld for 210
You keep 10
Sedo keeps 200

You can tell me that higher bids = less commission, fine. But a large percentage of offers are the minimum bid. Any credible company would not charge this kind of outrageous commission.

 

[enterscope]

I have had domains listed on Sedo for years and never get any offers. I even had a domain name featured in their monthly GreatDomains auction and didn't receive any bids. I've had better luck on forums and Flippa.

 

[Kate]

The standard commission in the domain industry is 20%. How can any credible company justify charging 85-95% commission?

The minimum used to be $6 (10% of $60).
I personally would not do Sedo's job for $6 per domain.

Every transaction requires human intervention and coordinating with both seller and buyer, some of which are complete dummies. Some transfers can also be a headache.

You can tell me that higher bids = less commission, fine. But a large percentage of offers are the minimum bid. Any credible company would not charge this kind of outrageous commission.

People complain about Sedo but don't Godaddy charge 30% ?

Sedo is not the right place for low value domains. Try Bido, the forums or Ebay.

Personally I seldom sell outside Sedo, most offers come through them. I sell names that are worth $$$ at least so I can afford to leave money on the table.
Yes, the commissions are high but the margins for seller are high too. That's what I like in domaining.

 

[The Grinch]

wow Sedo really charges that much, and people still use them? that's insane.

 

[alien51]

The standard commission in the domain industry is 20%. How can any credible company justify charging 85-95% commission?

For example a .com for $60
You keep 10
Sedo keeps 50

What it simply means, is that you don't use SEDO to sell a domain for 60 bucks. SEDO is like a showroom at the Waldorf-Astoria. The minimum commission is used to pay for their branding and other luxurious amenieties. You don't go to Waldorf-Astoria to sell your worn out rubber shoes for 60 bucks. You have to sell your used Mercedes-Benz instead (if you have one).

 

[sofiapartner]

I started to use Flippa. $29 for listing and 5% commission ($10 minimum). I think that is fair. And there are a lot of domain buyers there too.

Lets face it - even King Federer sold company dot net through Flippa. ))

 

[equity78]

Exactly right, you don't sell $60 on Sedo. If you want $60 you can use the forums or ebay.

Sedo has $50 minimum,they don't want $60 transactions the same way if you go into a lot of stores they tell you $10 min for credit card purchase, they don't want someone using credit card for one COKE or a pack of gum.

 

[RazorNF]

Yes, having a set minimum is fair (otherwise imagine how much time their staff would be wasting facilitating $5 or $10 sales).

 

[DU]

a lot of stores they tell you $10 min for credit card purchase, they don't want someone using credit card for one COKE or a pack of gum.

Which often violates their contract. Tell them you'll be calling your card company and see if they change their mind.

I pay in cash so it doesn't affect me.

 

[alien51]

Perhaps the credit card thing is not an exact analogy. Because a few weeks ago, i just paid $1.99 on a domain reg using my credit card thru a Godaddy coupon. Hehe

 

[bulkdomainz]

I'd be surprised if people really accept $60 offers on Sedo! I got one and counter-offered higher. I see no reason why I should get less than 20% of the sale price of my domain while the middleman gets the rest. IMHO, Sedo can afford to charge a flat percentage rate accross all sales as the higher priced names will make up for it. Thank God for domain forums!

 

[lennco]

I'd be surprised if people really accept $60 offers on Sedo! I got one and counter-offered higher. I see no reason why I should get less than 20% of the sale price of my domain while the middleman gets the rest. IMHO, Sedo can afford to charge a flat percentage rate accross all sales as the higher priced names will make up for it. Thank God for domain forums!

The people who accept the $60 offers are the ones who just want to get it into auction and take the chance of getting higher bids.
It usually doesn't work out to well for them.

 

[DU]

Lesson:

Always low ball with $70 :lol:

 

[sanfran]

The most amazing thing about SEDO is that they try to hide their origin.
They'd like u to think that they operate out of Cambridge, MA or somewhere in UK.
The truth is that it's a quintessentially German operation, with an ideological bent from the 1940s.
:hehe:

 

[alien51]

The most amazing thing about SEDO is that they try to hide their origin.
They'd like u to think that they operate out of Cambridge, MA or somewhere in UK.
The truth is that it's a quintessentially German operation, with an ideological bent from the 1940s.

What exactly do you mean?

I think everyone knows they are German. Even Wikipedia lists them as German.

 

[DU]

What exactly do you mean?

I think everyone knows they are German. Even Wikipedia lists them as German.

Maybe he confused German with 1&1. That relationship they do try to hide.

It's even worse if you get a minimum bid and you and buyer pay VAT. I think after commission and VAT you actually lose money.

 

[rmg]

I personally would not do Sedo's job for $6 per domain.

Agree.

Their commission is only 10%. You are talking about the minimum fee so I can't see nothing wrong here.

 

[sanfran]

SEDO folks are busy doing what they fathers failed to do:
Die neue Weltordnung

 

[liquidcherry]

The most amazing thing about SEDO is that they try to hide their origin.
They'd like u to think that they operate out of Cambridge, MA or somewhere in UK.
The truth is that it's a quintessentially German operation, with an ideological bent from the 1940s.
:hehe:

what's next,you're saying Hitler invented domaining??

It was always clear that SEDO is a German company, where do you get your intel from.....

Liquid

 

[lennco]

what's next,you're saying Hitler invented domaining??

It was always clear that SEDO is a German company, where do you get your intel from.....

Liquid

I thought Al Gore invented domaining?