Sedo Raises Commission to 15% on Marketplace Sales & To 20% On MLS Fixed Price Sales

[the_poet]

Sedo.com announced today that it is raising the commission rate of sale made through the it’s Marketplace (without broker assistance) to 15% from 10%.

Also for those customers who fix price domains to sell in the Sedo MLS service, the commission rate will rise from 15% to 20%.

Read more...

 

[Sull]

Sedo Changes for 8/1/11 - My Issue

Here is my problem from their most recent newsletter:

"• You can still enjoy a low 10% commission for domain sales that originate through Sedo's website if you park your domains and set fixed, "Buy Now" prices."

That's great and all, but to list anything above $10K (for those domains that are worth it) you need to PAY Sedo for an appraisal. So basically you pay Sedo an extra 5% commission to leave it as "make an offer" OR you pay them for an appraisal and then hope it's fairly inline with your pricing so you can then list a fixed price to avoid the extra 5%.

At least with SmartName (afternic) they drop it down to 10% if you are parked with them for more than 2 weeks.

If Sedo did it that way I'd have no problem with a bump in percentage, but it seems a little self serving to me. Just my opinion though.

 

[Vito]

Hey Sully,

I just received my email from Sedo entitled...
Important Changes: Sedo’s Improved Domain Marketplace

Within that letter there is a link for "pricing"

Here is that link...
http://sedo.com/us/about-us/price-l...d=19&et_lid=246433&et_sub=NewMarketplaceEmail

In that link clarifying their pricing I see...

Buy Now sale originating on Sedo's Domain Marketplace
in which the domain is also parked3 with Sedo
10% of sale price
(no minimum fee)

3) Domains must be listed with fixed prices and sold as Buy Now and parked with Sedo to qualify for the reduced commission.



I dont see anything about sales of $10k or higher.

I think that is a helluva incentive to keep your domain parked at Sedo and list at "Buy Now" with a fixed price to maintain that low fee of only 10% comission.

I do have a lot of beefs with Sedo (HomePage, Exact Keyword Search in other tlds, etc) but this 10% sales commision still seems like the best commission fee out there for all of us.

Take Care,
Vito

 

[Domagon]

That's great and all, but to list anything above $10K (for those domains that are worth it) you need to PAY Sedo for an appraisal. So basically you pay Sedo an extra 5% commission to leave it as "make an offer" OR you pay them for an appraisal and then hope it's fairly inline with your pricing so you can then list a fixed price to avoid the extra 5%.

Or, alternatively, the seller and buyer negotiate outside of Sedo resulting in paying 0% commission. Happens all the time.

Higher Sedo's commissions get, the more incentive (ie. saving $1,500 on a $10,000 sale) for people to cut out Sedo - they don't enforce sales.

I'm sure Sedo has factored that into their calculations and believes the rate increases will, nevertheless, be more profitable.

In short, imho, 15% commission for "Make Offer" listings is excessively high for the minimal promotion and service Sedo provides.

Ron

 

[Erdy]

I'm very annoyed with this. My domains are not parked at sedo but they are forwarded to their sedo sales page. Now they want me to pay %15.

Old prices:
1.parked and fixed price: 10% no min
2.parked and not-fixed price: 10% min €50 / £35
3.not-parked and fixed price: 10% min €50 / £35
4.not-parked and not-fixed price: 10% min €50 / £35

New prices (from 1 Aug 2011):
1.parked and fixed price: 10% no min
2.parked and not-fixed price: 15% min €50 / £35
3.not-parked and fixed price: 15% min €50 / £35
4.not-parked and not-fixed price: 15% min €50 / £35

The problem I have is with the one I marked in bold. These are fixed price sales. There is no negotiation at sedo site. They should keep those at 10%.

Their old prices are not as clearly written on sedo's page as I wrote them here.
http://sedo.co.uk/uk/about-us/price-list/?tracked=&partnerid=&language=e
It doesn't mention number 2 and 3 although these are also possibilities. It appears the person who changed the prices overlooked number 2 and 3. They just put all in the same basket. They don't know what they are doing.

 

[the_poet]

Their goal is clear: they want everyone to park their names with Sedo.

 

[Erdy]

My point is, if the sale is origination from a visitor who opens my domain, then I don't want to pay 15% but this is exactly what is going to happen because those stupid sedo people don't understand that some people don't park but forward their domains to the sale sales page.

I have already send them two tickets. I'm very annoyed. Bloody idiots they are. Does anyone know an alternative that will pay to my UK bank account?

 

[Sull]

In short, imho, 15% commission for "Make Offer" listings is excessively high for the minimal promotion and service Sedo provides.

Ron

Thanks for saying it much better than I did in my convoluted way. It's almost like a punishment for having "make offer" on after 8/1. Oh well, Afternic looks like they might get my domains.

Happy 4th to those in the States!

 

[labrocca]

I think it's time I remove my Sedo listing.

Their website sucks, landing pages are crap, PPC is bad, and their commission is unacceptable.

Bye Sedo.

 

[lennco]

Sedo's service was never worth 10% to begin with!

And Now I have to pay 15%?

If I sell a domain for $10k I have to give them $1,500 bucks?

For what?

Most of the inquires I get is actually through my Whois not Sedo!

"F" Them! :td:

 

[Name Trader]

Blimey! The marketplace must have taken an up-turn. Good for us domainers. Time to increase my prices

 

[Domagon]

Think 15% is high, how does 20% sound ...

According to Sedo's most recent email regarding pricing I received this morning, and is also mentioned in the new price list on-line.

"When you list a domain for sale, that domain is automatically promoted across Sedo’s Domain Marketplace, including the SedoMLS Promotion Network, where eligible."

Emphasis mine - listings may now be automatically promoted, without any additional action of the seller, on SedoMLS potentially resulting a fee of 20%.

Bottom line is some sellers, especially those with "Make Offer" listings, though it could potentially affect some "Fixed Price" listings too, could end up paying double what they are now ... 20% is a steep premium to sell a domain.

On a related note, while SedoMLS in theory should result in more exposure, it could also be abused by Sedo ... ie. a person finds a domain the usual way (type-in domain / search on Sedo's website) and then during the sale process, the buyer is routed through SedoMLS to boost the rate to 20%.

Imho, the end-game appears to be that Sedo is seeking to double its price to 20% in a back-handed way ... they likely figure if many people accept 15%, they'll tolerate 20%. Especially since some sales venues charge even more, so it makes sense for Sedo to try pushing the rate to 20% across the board. Whether buyers and sellers will pay that is debatable ... many people will be motivated to list elsewhere and/or cut out Sedo during the final sales process resulting in Sedo getting zero.

Ron

 

[avp]

Finally the motivation to leave SEDO. 80% of my sales have been through direct contact from the buyer anyway. The crazy thing is, I would tell them that offers could be made at SEDO.com. I did all the work, and SEDO collected the commission!!

Escrow.com must be jumping for joy at this announcement. Their business should increase considerably.

avp

 

[GijsZePa]

Insane. Increasing your commission with 50%. If they raise the bread price with 50%, it will be war on the streets...

Time to (re)move my domains..

Martin

 

[exsedo]

Perhaps they have had a rethink on their business model. ie. dump all the lower quality domain names and become an eliteist operation, dealing with only the best domains.
They are getting too big for their boots and have forgotten their origins.