NameSilo

New Afternic & GoDaddy Commission and Pricing Structure

Labeled as information in Domain Industry News, started by Nitindomains, Mar 10, 2015

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  1. Nitindomains

    Nitindomains "Veritas Liberabit Vos" VIP

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    Received the following mail just minutes back:-

    Hello Member,

    Good news! We’ve made it easier for you to list your domain in one place and reach a broader audience of buyers to increase your sales velocity and income.

    How are we making things simpler?
    • Reduce time spent in pending review, domains are listed immediately after passing the required integrity checks
    • Reducing commissions on higher-priced sales to increase your earnings
    • Lowering minimum sales price and minimum offer amounts so you can list more domains and earn more money

    We’re also taking the guesswork out of promoting your domains. Domains with fast-transfer enabled are promoted through the Afternic Premium Network automatically. Domains without fast-transfer are placed in the Afternic Standard Network.

    Know that you can always list a domain without fast-transfer and then enable fast-transfer later. When you do, it jumps from the Standard Network to the Premium Network, which includes 8 of the top 10 registrars, gives you the broadest reach, and exposes your domain to over 75 million monthly search queries.

    We also want our fees to be simple and straightforward, so they’re now based on your domain sale price. The three commission tiers look like this:
    Sale price of domain >>> Commission fees
    $0-$5,000 >>> 20% ($15 minimum)
    $5,000-$25,000 >>> $1,000 +15% of amount over $5k
    $25,000+ >>> $4,000 + 10% of amount over $25k

    To help you list and sell more domains inventory, we lowered our minimum sales prices. The buy now minimum is only $50 (versus $250), and the minimum offer amount decreases to only $20 (from $250).

    These changes take place Early April new listings. In the next [3-4] weeks, we’re converting existing listings over.


    In a Separate mail notifying the change in Pricing Structure @ GD Aftermarket, the mail states the following:-

    Please note we're setting a minimum of $50 for Buy-It-Now Auctions and $100 for Premium listings. We're also setting a $20 minimum listing price for 7-Day Auctions and Offer/Counter-Offer domain listings.

    Along with the changes to new listings moving forward, we'll be converting existing listings over to the new system over the next 3 to 4 weeks for an early April launch.
    • If your domain is below the new minimum offer price, we'll bump the minimum offer up to $20 for 7-Day Auctions and Offer/Counter-Offer listings.
    • If you have a Buy-It-Now Auction listing priced below $50, we'll switch it to an Offer/Counter-Offer listing with a minimum price of $20.
    • If you have a domain that's listed as both a Premium Domain and a Buy-It-Now Auction, we'll consolidate it and use the higher of your two price points.
    If you don't want us to change your listing prices automatically, simply update your domain pricing manually before March 31st, and it will default to the new listing rules when we roll out the new structure.
     
    Last edited: Mar 10, 2015
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Beezy

    Beezy Top Contributor VIP

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    I just got an email with the same pricing structure from Godaddy Auctions.
     
  3. Nitindomains

    Nitindomains "Veritas Liberabit Vos" VIP

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    Yeah, just received the GoDaddy email as well.

    All the same. Now they are killing their marketplace as well. Sedo stands best now @15%
     
  4. Violets

    Violets Stellar Web Holdings VIP

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    GD is getting greedier. They knew they were doing pretty good since past few months.

    Such an unwelcome step.
     
  5. Dorkside

    Dorkside Established Member ★★★★★★★★★★

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    I'm kinda confused.

    Will GoDaddy still have different fees for premium listings and auction listings? Or does the new structure apply to both?
     
  6. carob

    carob Top Contributor VIP ★★★★★★★★★★

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    The GD email announces a big improvement for premium listings - the most you will pay now on that is 20%, previously it was fixed 30%

     
    Last edited: Mar 10, 2015
  7. FPForum

    FPForum Top Contributor VIP ★★★★★★★★★★

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    Got the same email as well. I'm a little surprised how their commissions and fees vary for each type of listing.
     
  8. tomcarl

    tomcarl Top Contributor VIP

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    So they increased everything by double across the board but their big sale for the doubling of fees was that they lowered their Premium commission to 20% which is still 5-10% higher than other aftermarkets.

    Great strategy, "We'll be competing with Google, let's keep our customers loyal by doubling fees."
     
  9. tomcarl

    tomcarl Top Contributor VIP

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    And, anyone with domains listed on GD auctions over 5K is basically getting a 25% fee increase (They want 35% of your Premium Domain Sales) ;)
     
  10. sofiapartner

    sofiapartner Top Contributor VIP

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    Did Flippa paid them to do that? What a move!
     
  11. lennco

    lennco Top Contributor VIP ★★★★★★★★★★

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    Horrible business move.
    Double the fees = increased asking prices = less sales.
     
  12. tomcarl

    tomcarl Top Contributor VIP

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    I'm surprised by the fee increase. You'd think the success of Flippa would make them more competitive, but no, GoDaddy reminds me of a greedy boss that heads a cold-calling campaign and sees a sales increase and decides lower the commission payout. They're basically looking at what everyone is putting in their pockets and wants a bigger piece of it. All companies are out to make money, no charity, I understand that, but at least give an incentive for doing so (discounts for large portfolio holders, an updated browsing system, a better platform) - The Premium listing fee going down to 20% is nothing because you could've always listed your domains on both Premium and GD auctions, but made your Premium Listing a little bit higher to account for the 10% higher commission, so basically they've handed everyone BS on a silver platter.
     
  13. NameOmnia

    NameOmnia alea iacta est VIP

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    WOW I just got the email too....that is way more expensive then before!
    What a shame!
    Can people just stop being so greedy? I think I will definitely turn my focus away from domaining.
     
  14. NameOmnia

    NameOmnia alea iacta est VIP

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    $0-$5,000 >>> 20% ($15 minimum)
    $5,000-$25,000 >>> $1,000 +15% of amount over $5k = nearly 35% ( are we mad??????? )
    $25,000+ >>> $4,000 + 10% of amount over $25k = 16% + 10% = 26% ( wtf???? )

    It's probably time to give Ebay a better chance
     
    Last edited: Mar 10, 2015
  15. McDuke

    McDuke Top Contributor VIP

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    It is now cheaper to book a flight and do the deal in person. :D
     
  16. tomcarl

    tomcarl Top Contributor VIP

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    I just took down some of my domains I had BIN over 5K.

    If they want the names, they'll find me. The more gateways to purchase a domain the better, but I won't give them the option to buy it off of me minus 35%.
     
  17. sofiapartner

    sofiapartner Top Contributor VIP

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    Me too. This commission is not serious.
     
  18. Domainace

    Domainace Top Contributor VIP ★★★★★★★★★★

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    It's not that well written, so it's being misread here. I don't see any 35% fees. I see this:

    Sale price of domain >>> Commission fees
    $0-$5,000 >>> 20% ($15 minimum) $4000 sale = $800 commission
    $5,000-$25,000 >>> $1,000 +15% of amount over $5k $10,000 sale = $1750 commission ($1000/20% from the first $5000, and $750/15% from the second 5
    $25,000+ >>> $4,000 + 10% of amount over $25k $20,000 sale = $2750 commission ($1000/20% from the first $5000, and $750/15% from the second 5k, and $1000/10% from the last 10k)
     
  19. NinoMNE

    NinoMNE Established Member

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    So, is the same commission when you sell it on auction and with offer/counter offer..?This GD numbers made chaos in my head now...
     
  20. morf13

    morf13 Top Contributor VIP

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    Maybe list your higher end domains with Flippa, etc, and the lower level ones with Godaddy?
     
  21. Nitindomains

    Nitindomains "Veritas Liberabit Vos" VIP

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    You messed it up here.

    $20,000 sale = $3250 commission ($1000/20% from the first $5000, and $2250/15% from the second 15k)

    It is a <$25k, so the 3rd tier(10% slab) doesn't apply.


    All in all, doubled rates, as it were 10% flat for all the regular BIN/ Offer-Counter Offer sales. Not talking about the premium listings.
     
  22. NameOmnia

    NameOmnia alea iacta est VIP

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    40,000 sale : 4000 ( 16% ) + 1500 ( 10% of the amount over 25,000 ) = 5500 commission = 13.5%
     
  23. morf13

    morf13 Top Contributor VIP

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    How does this compare to a similar Flippa sale??
     
  24. Shimmy

    Shimmy Established Member

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    $1,000 +15% of $5k = $1750 commission. That is 35% commission on 5K
     
  25. JB Lions

    JB Lions Top Contributor VIP ★★★★★★★★★★

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    So if I'm reading this right, and I just had a $5000 sale a couple of weeks ago, I paid $500. Now that would be $1,750. haha, what idiot came up with this. And yes, that ends up being 35%, when it was 10%, using the $5,000 sale as an example.

    It should be a flat rate across the board, that's the easiest to remember and competitive rate. 10% was nice, this is insane.
     

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