Secret behind my Afternic pricing

[AbdulBasit.com]

Hello everyone,

Today I wanted to share the secret or the reasoning behind my pricing especially at Afternic. Although I keep the same pricing at every platform whether the inquiry comes via Afternic, Sedo, direct or elsewhere.

There is a calculator for calculating Afternic commission and I know many of our sales are in the range of below $5,000. Actually it matters when your price is $5,001 and especially $25,000 and above that level.

So whenever you’ve a sale of $5,000 or below that level at Afternic, you tend up to pay a fixed commission of 20%. However, for instance a domain you sell for $24,888 then you’ll end up paying up a commission of $3,983 which is exactly 16% commission of the sale price.

Now the interesting part is when you sell a domain just for $1,000 more which means $25,888 then you’ll end up paying a commission of $4,088 which is almost 15.8% commission of the sale price. I know for some domain sellers, the 0.2% commission is not a big deal but you’ve to think that when a buyer is willing to pay $24,888 then of course they can pay $25,888 as well.

And you know what… as the sale amount increases, the commission drops significantly. For example, if you remember I sold AutoFun.com for $50,000 via Afternic BIN, so I ended up paying exactly 13% commission if you calculate through their calculator.

Yeah I know the big sales don’t come that often but I’ve seen many investors selling their domains for $24,888 or $24,000 so this post is especially for them to understand and revise their prices.

In short, if you see their sales commission structure and study it, you’ll know that as the amount increases, their overall commission decreases. So keep their commission structure in mind when pricing your domains.

Feel free to give your feedback no matter how good or good it is

 

[enterscope]

Great tip, and I would be interested to know more about how you price your domains for end users. What factors do you consider like extensions, age, keywords, etc?

 

[AbdulBasit.com]

Great tip, and I would be interested to know more about how you price your domains for end users. What factors do you consider like extensions, age, keywords, etc?

Thank you!

You may want to check this out.

 

[falez]

so what youre saying in a nutshell is that theres no point in pricing a domain slightly above one of their rate-decrease threshholds (which are 5k and 25k)?

 

[xynames]

Another way to do it - if you're directly involved in or at least have some input in the negotiations, is to once the buyer is at least in your asking price range - in the range where you might consent to let the domain go - is to calculate the added commission and come back with a final counter that gives you NET the last offer the buyer made.

For example, if the domain price offer gets to 19000 and you're willing to accept something in that range, come back with 19000 + commission (say, for example, 23750) and say that you'll do it for that price because it will get you the 19000 net. Of course this works better in situations where the commission is more like 10% than 20%, but still, it's something to consider - stating that you will accept NET to you whatever the buyer's latest offer might be. The sort of negotiation has worked for me many times - often once the buyer gets to a certain price he's willing to tack on another 10 or 20% to make the deal happen, if he understands your basis for asking for it.

 

[xcloud123]

cool

 

[AbdulBasit.com]

so what youre saying in a nutshell is that theres no point in pricing a domain slightly above one of their rate-decrease threshholds (which are 5k and 25k)?

Nowhere I mentioned what you're saying.

What I mean is you can save some $$ by slight adjustment in your pricing especially when the pricing is close to the Afternic commission brackets which can make good difference in your earnings depending on the amount and price range you're selling domains.

 

[AbdulBasit.com]

Another way to do it - if you're directly involved in or at least have some input in the negotiations, is to once the buyer is at least in your asking price range - in the range where you might consent to let the domain go - is to calculate the added commission and come back with a final counter that gives you NET the last offer the buyer made.

For example, if the domain price offer gets to 19000 and you're willing to accept something in that range, come back with 19000 + commission (say, for example, 23750) and say that you'll do it for that price because it will get you the 19000 net. Of course this works better in situations where the commission is more like 10% than 20%, but still, it's something to consider - stating that you will accept NET to you whatever the buyer's latest offer might be. The sort of negotiation has worked for me many times - often once the buyer gets to a certain price he's willing to tack on another 10 or 20% to make the deal happen, if he understands your basis for asking for it.

Yes, this strategy is also useful but again in your example case where I'm okay to accept $19,000 NET and $23,750 gross which is slightly lower than $25,000 which will make difference for the AN commission. But it doesn't mean I won't accept $23,750 gross if I see the deal is falling through. It's just one strategy to keep in mind while pricing and negotiating at Afternic.

 

[falez]

Nowhere I mentioned what you're saying.

What I mean is you can save some $$ by slight adjustment in your pricing especially when the pricing is close to the Afternic commission brackets which can make good difference in your earnings depending on the amount and price range you're selling domains.

yeah, that is exactly what i said...

 

[AbdulBasit.com]

yeah, that is exactly what i said...

With your first message, it shows a question mark at the end

 

[falez]

With your first message, it shows a question mark at the end

yes, because my post was seeking confirmation as to whether or not your OG post was understood correctly xD

 

[AbdulBasit.com]

yes, because my post was seeking confirmation as to whether or not your OG post was understood correctly xD

Okay

 

[falez]

Okay

 

[xcloud123]

you are my idol，
learn much from you blog
always expect your new article！
i happy you laurch your domainsweb dotcom ,
it is great!

 

[AbdulBasit.com]

you are my idol，
learn much from you blog
always expect your new article！
i happy you laurch your domainsweb dotcom ,
it is great!

Thank you so much!

 

[justsand]

Hi @AbdulBasit.com,

I have a few questions regarding Afternic price strategy and listing. Since you are using Afternic landers and making sales, I hope you're the right person to answer these questions.

1. Which option is best for Afternic listing, Fixed price or Buy Now with % of BIN as Make Offer?
2. What % of BIN as Make Offer will be ideal/best for sale conversion?
3. Why NS3/4 landers why not other landers?

Thank you very much

 

[AbdulBasit.com]

1) BIN.
2) I've tried Make Offer for years with almost no results and BIN has changed things dramatically.
3) Here is the answer - https://www.abdulbasit.com/domaining/my-take-on-afternic-ns5-ns6-lander

Thank you!

 

[justsand]

1) BIN.
2) I've tried Make Offer for years with almost no results and BIN has changed things dramatically.
3) Here is the answer - https://www.abdulbasit.com/domaining/my-take-on-afternic-ns5-ns6-lander

Thank you!

Thank you for your reply!

Sorry, but there is confusion in the 1 & 2 answers. Actually, I am asking between Fixed price (BIN for floor & MO) and BIN with Make Offer (percentage of BIN as MO).

It would be helpful if you clarify

 

[AbdulBasit.com]

Thank you for your reply!

Sorry, but there is confusion in the 1 & 2 answers. Actually, I am asking between Fixed price (BIN for floor & MO) and BIN with Make Offer (percentage of BIN as MO).

It would be helpful if you clarify

All my domains are having the same BIN and Floor price no matter whatever the asking price I've set.
I'm not using landers like https://www.afternic.com/domain/beegreen.com which has both BIN + MO.
Also the MO price varies depending on the BIN price.