Epik

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. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    We all know the sweet spot for selling domain is under $5k. For all these sales, commissions have now doubled. There is no way you can paint it any other way.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. The New Guy

    The New Guy Active Member VIP

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    I haven't used godaddy because I don't like their escrow approach, but the formula is needlessly complex.

    If godaddy set up a flat 15% commission no matter the sales price, market, or network, and backed it up with a true two-way escrow like sedo offers, I'd consider using them because the extra 5% would be worth it for the wider exposure.
     
  3. m0ss

    m0ss Established Member

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    Will Godaddy be allowing all the new GTLDS in this new platform?
     
  4. tonyk2000

    tonyk2000 Active Member VIP ★★★★★★★★★★

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    An idea to list everything in one place is a good idea. What makes me worry is that GD would likely be unable to set the things correctly and to fix all the bugs on-time. How many month did GD require to make Premium Listings shown as available on GD international websites, after GD opened a set of international websites? All premium listings were reported as unavailable on international websites, and it took GD _months_ to fix after we complained a number of times. Or, we already complained and it is was never fixed - some (but not all) premium listings are reported as unavailable on MOBILE godaddy website. Still not fixed after we complained about this about 3 months ago. So, what GD is basically going to do now - is to build a new system based on buggy current one.
     
  5. carob

    carob Active Member VIP

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    That is a very good point.

    Currently if you update a Premium Listing price, it takes 24 hours to change on the site. What happens if someone buys it during that period?

    This is a risky area since you have authorised GD to just take the domain from your account the second someone pays for it. AFAIK the only safe thing to do (to avoid selling at a previous, lower listing price) is remove the listing. I did that with a domain and it stayed listed. I asked GD what would happen if someone bought it - they said the buyer would get a message saying the domain was no longer avaliable.

    GD need to update prices in real time, especially if they are talking about making improvements.
     
    Last edited: Mar 12, 2015
  6. tonyk2000

    tonyk2000 Active Member VIP ★★★★★★★★★★

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    What will happen is exactly the following - we transferred-away a domain with a previously enabled premium listing once (to Uniregistry), listed the domain with DomainNameSales / InternetTraffic under "make offer" model (obviously more expensive). A buyer happened to appear in these same moments and somehow managed to pay godaddy an old fixed price, was promptly refunded as the domain was in fact unavailable (not even regged with GoDaddy), submitted an offer through InternetTraffic contact form, received higher quote and later accused all of us - registrant, broker, GoDaddy in conspiracy against their personality. They were of opinion that InternetTraffic asked GoDaddy not to sell them the domain name, and that GoDaddy promptly complied. Anecdotical case indeed, thanks to GoDaddys misconfigured system
     
  7. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    The fact of the matter is you should have one marketplace Afternic and Go Daddy makes little sense, combine it to one entity.

    Secondly auctions are not in the registrar path, you should have kept that at 10%, the person using the 7 day auction is looking for different things than the person who wants their names to show up in the registrar path.

    No one ever and I mean ever gave you feedback that they would like to pay 20% on auctions vs 10 % SO just stop.

    If you can have tiers you can separate Premium Listings and Auctions, two separate and distinct products.

    10% for auctions
    20% max tiered for premium listings.
    Afternic has been an abomination in many ways, here is one fun fact, I have no names parked at Afternic every time I log in you show me traffic and clicks and revenue, nowhere on Afternic does it say what this money has amounted to, and it should be zero. I have had emails don't forget to approve the premium listing with your registrar, opt in, NO email comes.

    Change the system, Flippa will continue to eat your lunch for auctions, then you will just have premium listings. So this is a net loss for you guys, plus the people who already have decided to leave Go Daddy.
     
  8. carob

    carob Active Member VIP

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    Hi Joe

    Thanks for coming here and explaining the arguments behind the price increases, after the fact.. But this is all defensive firefighting since the email presented this in a way where people could easily misinterpret the commission structure - look how the 35% figure keeps qetting repeated. And no benefits or context were presented.- doesn't it make sense from a presentation viewpoint to implement and explain the improvements, and only then introduce increased or changed charges?


    Sedo do provide a lot of info about their sales trends and values, it might help if you offered that too.

    Is GD thinking that sellers should set higher prices? Well as it stands the price suggester tool in the Premium Listings thinks I should sell most domains at low XXX - for 19 out of 20 domains my own listing price is 3 or more times what GD suggests.

    I don't use GD auctions because it did not sell domains for me, I had to pay to use it, and it was way too complicated and confusing - I just hated it. So I am in the minority here who see the changes as a plus - cutting the 30% on Premium Listings down to 20%, where most others see commissions go from 10% to 20% with no benefit.
     
  9. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    Carob I agree with you on the 30 to 20 but most were listing with Afternic and getting around the 30 anyway, I have had 20% for months, just selected premium at Afternic and in the Go Daddy registrar path.
     
  10. carob

    carob Active Member VIP

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    Hi that is true but you have to wait 60 days for a new reg on that path - so you have to rememember to come back in 60 days and jump through hoops.

    I agree Afternic is a mess, I think I'll give up on them and just focus on DNS. I just don't have time to wrestle with buggy platforms and risky listings.
     
  11. tonyk2000

    tonyk2000 Active Member VIP ★★★★★★★★★★

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    "buggy platforms and risky listings" - well said. This is exactly why we use only Premium Listings and not auctions or Afternic. And even with Premium Listings there are constant bugs, not all of them are even mentioned in this thread as it is not a GD support ticket. Just one more bug - once GoDaddys check printing system stopped to print destination country name on checks/envelopes. The checks returned to GD as undeliverable. And even our Premium Account manager was never able to make a 100%-guaranteed statement that this bug is/was fixed. So we had to remove higher-priced listings and are currently using paypal to receive payments...
     
  12. weblaunch

    weblaunch Established Member

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    The new GD auction pricing structure will definitely drive away many sellers who deal with low-priced domains. If you were to sell a domain for $20 with the new fees, you'd end up with a whopping $5 net proceeds after the $15 minimum fee, whereas formerly it was $15 (with the $5 min. fee). If your cost of the domain that sold at $20 was $5, you'd be looking at a profit of 0%, compared to 200% before. (GD was wise enough to raise the minimum offer price from $10 to $20; otherwise, you'd end up LOSING $5 for every domain you sell at $10 with the new min.).

    It's interesting to see whether or not the new prices will have enough of a negative impact, if any, on the GD marketplace to force them to change them back, but at any rate, the abrupt and drastic increases can't be good for those who tailor their business models to GD's rates.
     
    Last edited: Mar 12, 2015
  13. tomcarl

    tomcarl Active Member VIP

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    [​IMG]
     
    Last edited: Mar 12, 2015
  14. tomcarl

    tomcarl Active Member VIP

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    It will, without a doubt. People will always complain about higher fees, but when their fee structure literally makes many selling models impossible to turn a profit, people have no choice but to list elsewhere.

    I'm sure there's thousands of domains sold in the $15-30 range, not anymore.
     
    Last edited: Mar 12, 2015
  15. weblaunch

    weblaunch Established Member

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    The reason I'm not so sure that the changes will have a negative impact on their marketplace revenues is that the changes will favor GD's expiring domain auctions at the expense of third-party sellers. But it's also true that many of these third-party sellers are also buyers of GD expiring auctions who look to later flip their purchases for small profits through the GD auctions. I'm sure GD has enough smart people to crunch numbers to forcast the viability of the pricing changes. I think all it takes for the price hikes to backfire is for another major player to step in and offer an auction marketplace that charges only 5%-10% commission on auction sales.
     
  16. Joe Styler

    Joe Styler Aftermarket Product Manager GoDaddy Staff Afternic Staff PRO VIP

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    I really can't thank everyone enough for the honest feedback. I really appreciate it. We have been doing a lot of work behind the scenes on the back end to strengthen the platform and remove the issues that some of you have brought up as buggy. It's not something very transparent when you look at the site but it is happening behind the scenes. We have some plans for changes to continue and many of the things brought up as suggestions are in place on our roadmap. Please feel free to bring them directly to me and I will help make sure they are seriously considered.
    Some things we are currently working on that were suggested to us are allowing you to add domains to your watchlist on the auction in bulk, and allowing you to download a list of names for sale which will also include the number of views your listing has had so you don't have to look at them one by one.
    I can also say that on the Afternic side there has been and will continue to be improvements made to the infrastructure of the site which will allow for better customer experience in the future.
    The next year will have some great changes around the Aftermarket so stay tuned and feel free to reach out.
    I am normally at all the domain conferences and have been for the past 5 or 6 years so if any of you have not met me and would like to face to face please let me know. I had the pleasure of meeting Eric Lyon face to face for the first time at the last namescon.
     
  17. Nerevar

    Nerevar Active Member VIP

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    What about the domain extensions that did not qualify previously for Premium listings: info, biz etc? Will they be converted to premium listings if listed as "buy now"?
     
  18. thekiller

    thekiller Active Member VIP

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    For example on sale of $4000 we were deducted %10 or $400. And now we will be deducted 20% or $800. @Joe Styler what do you think? is it positive change?

    Most of us there have sale under $5K and you have doubled the commissions.
     
  19. Domaingel

    Domaingel Established Member

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    I at least want to see an improvement in how premium listings are promoted. Currently, if anyone tries to register a domain on GoDaddy that is not available, they are provided with $10 new tld options. The average person isn't going to dig further and do a customized search to see if there are any similar .com available to purchase.
     
  20. Domain Shane

    Domain Shane Active Member DSAD.com Staff PRO ICA Member VIP ★★★★★★★★★★

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    The fact that you have to include a calculator means its is not simple enough. The problem is this. Godaddy has the scale to make it the cheapest, easiest, and fastest way to auction names and instead you blew it and made it more complicated and raised the prices. Congratulations to Flippa and Namejet. They just added customers and didn't have to do a thing.

    PS your direct links to auctions don't work in mobile. Between my affiliate links to your "you've been outbid, bid again" emails, none lead to the auctions as your responsive site breaks all links.





     
  21. Joe Styler

    Joe Styler Aftermarket Product Manager GoDaddy Staff Afternic Staff PRO VIP

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    Nerevar: There are plans to allow other tlds into the Premium Channel. This standardization of the commission project is foundational to allow for other future changes such as that.

    thekiller: I hope you will try the premium channel which was lowered from 30% to 20% and has a much higher sales rate.

    Domaingel: The domain registration consistently changes and we did have alternative premium results up for a while and may again but we do switch things consistently for testing.

    Shane: It is more complex than a straight commission. We considered that before changing but thought saving sellers more money on higher dollar transactions was worth the confusion over a straight 20%.
    Can you email me an example of the affiliate link that's not working so I can get it over to the developers?
     
  22. Domain Shane

    Domain Shane Active Member DSAD.com Staff PRO ICA Member VIP ★★★★★★★★★★

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  23. Joe Styler

    Joe Styler Aftermarket Product Manager GoDaddy Staff Afternic Staff PRO VIP

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    I see that now thanks for bringing it up. I will see what I can do.
     
  24. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    For most of us here, whose bread and butter is selling domains <$5k, you've thrown us under the bus. It's a straight 100% increase in commissions. We don't actually care what commissions you charge over $5k. It seems your new commission structure benefits the big sellers over the little sellers.

    Now we probably move to your Premium Listings because we get better monetization, for exactly the same commission of 20%. Why would anybody just want to list on your auctions anymore when Premium Listings are the same price. You better be prepared for your volume increases in Premium Listings. Whereas we ate the 10% commission, we are not going to eat the 20% commission. But we maybe increase our prices between 20-40% (because we want something out of this sale too). Which will probably involve less sales completions. Also, you are probably going to severely damage Make Offer pricing with this move. At least for the initiated. And I think single handedly you have increased prices for domains sold under $5k, which doesn't gel with your marketing posture of being in the corner of everyman/woman.
     
    Last edited: Mar 13, 2015
  25. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    You also need a much better automated system of recognizing when a domain has changed hands (or dropped). Else you are likely to have on your hands, lots of disputes where people have purchased domains which are not owned by the domain lister anymore. This is in dire need already.
     

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