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SedoMLS - Sellers Beware

Located in General Domain Discussion started by SJM211, Aug 16, 2011.

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  1. SJM211

    SJM211 Member VIP ★★★★★★★★★★

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    Just a quick note to all as I nearly got caught out - check how much commission you are paying on Sedo sales!

    I just sold a domain for 3300 Euro and noticed that the commission was charged as 20% MLS rate rather than Sedo's (already in my opinion high) standard 15%. I queried this with the transfer agent and was told that all domains were automatically listed on SedoMLS and that the onus was on me to prove to them that my offer came directly through Sedo and not through the registrar that the domain was registered with:
    You'd think that their system should be able to track this.. Perhaps it conveniently doesn't so that we get charged the higher rate by default.
     
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  2. equity78

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

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    I thought the MLS was buy it now only. How would an auction come from Moniker ?
     
  3. SJM211

    SJM211 Member VIP ★★★★★★★★★★

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    That's exactly what I thought. I queried it and was told that I needed to send proof that the offer originated through Sedo. I have sent screenshots and the original offer email and am waiting to hear back..
     
  4. MattheP

    MattheP Member VIP

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    http://www.namepros.com/industry-news/723698-sedo-has-changed-user-agreement-price.html

    Offers through mls are offers only. All fixed price sales are going through sedo site. Offer come from moniker because moniker is selling domains through sedo mls.

    ---------- Post added at 12:25 PM ---------- Previous post was at 12:22 PM ----------

    This is funny. Sedo should know if offer came from mls partner registrar through sedo system or directly from moniker... what screenshots ?!
     
  5. Brujah

    Brujah Member VIP ★★★★★★★★★★

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    It's a win for the registrar partners then isn't it? They don't even have to really send any sales, but if your name is with the registrar they get the commission.

    Personally, I'm replacing Sedo as often as possible with alternatives.
     
  6. namenut

    namenut Top Member VIP

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    It seems desperate times call for desperate
    measures. As to the thread topic the invoice
    reflected a straight 10%.

    NN
     
    Last edited: Aug 16, 2011
  7. silentg

    silentg Top Member VIP

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    You can cancel the sale and ask the buyer to be banned. I have done this before with Sedo.
     
  8. namenut

    namenut Top Member VIP

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    Thanx .... but I think we're straying off topic. My fault for mentioning it. :notme:

    NN
     
  9. werty

    werty Established Member ★★★★★★★★★★

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    I noticed I paid 25% on my last sale. But I had already accepted...
     
  10. MattheP

    MattheP Member VIP

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    No, someone has to actually buy domain through partner registrars and then registrar will get its commission. And, registrar can promote mls domains that are registered with other registrars - registrar just have to join sedo mls and include sedo code snippet in their site. AFAIK.

    What alternatives (I am not talking about escrow or your custom landing pages) ?

    ---------- Post added at 12:20 PM ---------- Previous post was at 12:19 PM ----------

    Looks like partner registrar can choose their commission level - from %5 to %15.
     
  11. SJM211

    SJM211 Member VIP ★★★★★★★★★★

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    The point that I was trying to make here is that Sedo should have the ability to track where the offer originated. It seems in this case they couldn't do this and therefore applied the higher rate. Maybe this is a one off as I haven't come across any other examples.

    Just a heads up to check what you are paying and make sure that it's correct.
     
  12. Juanle455

    Juanle455 Established Member

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    Thanks for the heads up... another "gift" from Sedo, I guess is time to look for alternatives.
     
  13. MattheP

    MattheP Member VIP

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    At the end of the day, its just another offer you may get. If you are not satisfied, you can cancel it or counter offer. And any offer is better then no offer. And who knows - you can be happy with offer, even with %25 commission. It costs you nothing :)

    And again - what alternatives? Through years, I sold 3 domains through bido, 0 through afternic, godaddy and dynadot marketplaces. And 40+ through sedo. I am not happy with them or their commission, but it makes money. I am not counting direct sales, forums, emails etc. Only domain marketplaces.
     
    Last edited: Aug 17, 2011
  14. domainsusi

    domainsusi Member VIP

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    Shame on Sedo - extortion tactics

    Buyers should be made aware of how much of their purchase price is not going to the seller but pocketed by Sedo.

    Someone start a blog - it will be successful...........

    .
     
  15. SJM211

    SJM211 Member VIP ★★★★★★★★★★

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    To be fair to Sedo they have agreed to refund me the 5% difference in commission so I can't really complain :)
     
  16. Sedo

    Sedo Member Sedo Staff VIP ★★★★★★★★★★

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    Hi Everyone,

    All domains listed in your Sedo account are now automatically promoted both on Sedo.com and through the SedoMLS Promotion Network, which is the largest global domain distribution network.

    Any sale where the buyer or the initial bid originated on Sedo.com is subject to a commission of 15%. The commission is 20% for any sale where the buyer or the initial bid originated via the SedoMLS Network, and there are two ways in which a buyer can purchase a name via SedoMLS:

    • Through partners who are in the SedoMLS Basic network: A potential buyer sees a domain listed on that partner’s site, and is referred to Sedo.com to place a negotiable bid or to purchase the name at a Buy Now price. SedoMLS Basic partners syndicate both Buy Now and Negotiable listings. For any SedoMLS Basic sale, the negotiations and transfer take place on Sedo’s site.

    • Through partners who are in the SedoMLS Premium network: A potential buyer sees a Buy Now domain listed on that partner’s site, and they purchase the domain directly at that partner’s website. For most Premium sales, automatic transfers are also available.

    As these kinds of sales originated via the SedoMLS Network, the commission is 20%.

    If a buyer is referred to Sedo.com from a SedoMLS Basic partner, we will let you know how much commission you will be charged as soon as you receive their initial bid. For information on how the commission is calculated, and to view whether the buyer originated from the Sedo.com website or had been referred from a SedoMLS Basic partner, you can click on the “more details” button within the bid thread. If a buyer purchases a domain listed at a Buy Now price, you will see commission details in the Transfer Center section of your account as soon as the buyer has agreed to the purchase.

    If you have any other questions about the new commission structure, or about how the SedoMLS Network works, please get in touch with our Customer Service team at http://support.sedo.com.
     
  17. Domagon

    Domagon Member VIP

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    Not sure I follow ... Would visiting a "partner" site, or heck even an ad / tracker originating from them shown on another site (possibly even indirectly such as via an ad network or spam email), count as a referral?

    To rephrase the question ... Does a referral always require user action directly on the partner's site? -or is merely visiting such partner site, in some instances, enough to count as a referral?

    If cookie stuffing is all it takes to count as a referral, wow, that's going to be abused costing both buyers and sellers extra money.

    Ron
     
  18. azwiz

    azwiz New Member

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    ...as a referral, wow, that's going to be abused costing both buyers and sellers extra money. Ron[/QUOTE]

    Hello everyone. I am not a regular poster here at NamePros but I have been dealing domains since the late 90's (too bad I didn't think to register Sedo.com back then).

    This thread caught my eye regarding "SedoMLS - Sellers Beware". I thought I would make a few comments. First, SJM211 who started this discussion is totally correct. Sedo has DOUBLED their commission fees on MOST domain names now listed with them! I repeat, Sedo will be charging YOU 20% for most of your domains sales UNLESS you park the domains directly with Sedo.

    I believe that Sedo has crossed the line by charging such an exorbitant fee. Today I made my decision. After seeing posts from other NamePros members, plus advice on other sites, I REMOVED my entire 10,000 domain portfolio from Sedo. They have forgotten the source of their business and hopefully others will weigh the responsibility of supporting a fair domain market system. By Sedo DOUBLING their commission fees, only results in buyers AND sellers paying MUCH MORE. Buyers will be going DIRECT when the word gets out on the huge being premium added.

    Sedo was originally 10%. Good business that makes sense. As demand increases, Sedo would get 10% of that natural increase. Unfortunately, Sedo gave notice of increasing their cut to 15% starting August 1, 2011 (for what?). Then an additional 5% charge on top of their new 15% would be applied if you manually "activated" their special MLS option. That evidently was to pay those third parties out of YOUR share... NOT from their new 15% amount.

    But, that is NOT the whole story. Don't take my word for it, just read carefully what the Sedo rep has posted above.

    When your domain gets an offer or is sold through Sedo's new "partner syndicate channel", the commission goes up to 20% automatically! No exceptions (unless you limit yourself and park the domain directly with Sedo). There is NO OPTION TO REFUSE their special MLS network otherwise!

    Besides that, from my own experience, Sedo will NOT tell you the third party that the buyer used, nor will they prove anything to you where the transaction originated.

    A good analogy would be a surprise extra charge on the restaurant bill. The bill only states the dinner was prepared by a visiting famous chef that evening. The restaurant won't let you met him, they won't tell you who he is. You just have to take the restaurant's word for it and pay their extra amount. Totally ignoring you're a regular customer who has spent thousands and thousands.

    Is this fair? Real estate agents don't get 20% commissions, auto salesmen don't get 20%, not even stock brokers! Who does these days?

    Thanks for reading this!
     
  19. Dorkside

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

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    I really wish Sedo would just use a flat commission rate that doesn't vary depending on the extension or where the sale originates. Simpler is always better.
     
  20. DnEbook

    DnEbook DataGlasses.Com ★★★★★★★★★★

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    The hand of greed is now involved and there are deals being done left right and center to screw over the seller
     
  21. azwiz

    azwiz New Member

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    Yes, and this is only the beginning! With Sedo's new outrageous commission rate, it puts ALL sellers at a severe disadvantage. That's what happened to me.

    Earlier this month I was contacted directly from the who-is contact information. The inquirer wanted me to accept a very low-ball offer (I'm sure we all get those from time to time). A polite answer was sent back saying "the price listed is firm". That same fixed price was on Sedo, just like it was shown on my site.

    30 minutes after telling the inquirer that the selling price was non-negotiable, a Sedo message was receive congratulating me on selling that same domain name!

    Not until later logging into Sedo, did I realize that Sedo was charging me 20% because it "was sold through their MLS partner network".

    So to warn everyone now... BEWARE, having the SAME price will allow vindictive buyers to "get even" who don't get their way. I thought I was being fair by having the SAME fixed price but it ended up biting me. Did Sedo applaud me for my same price system? NO... Sedo just ignored my story and would not budge on the additional 5% added. They also refused to say what "partner site" this vindictive buyer used.

    Do the comparison yourself. Selling a $2,000 domain on your own, through Escrow.com only costs $65 (if the buyer uses check or wire transfer) or a reasonable $126 if the buyer uses PayPal or their credit card. Bang, no risks - no fuss.

    BUT, going through Sedo THEIR commission is $500 for the same $2,000 fixed selling price !!!

    *A little unknown PLUS*... It might be far better to REMOVE your domain listings from Sedo in my opinion. Then you qualify to use Sedo's "escrow service" for ONLY 3%! The domain MUST NOT have been listed recently with Sedo (how much time I do not know). Strange they penalize their loyal sellers with high commissions and give-away the same escrow procedure for 3% to outsiders.

    I predict three things will start happening:

    (1) Those in the know who are professional domain buyers will now contact the seller directly and hint that the seller's price has to be discounted or they'll simply cost the seller MORE (giving him less net proceeds) by buying it through Sedo's Network.

    (2) Dual pricing will start. One kind of price on Sedo counteracting the additional costs to the seller. A LOWER price the seller himself will set to entice buyers to buy direct.

    (3) Eventually, word will get out that listing prices are HIGHER using the Sedo Network making less sales for Sedo and their "partners". Then Sedo will require ALL domains listed must have "ID Protect" (hiding the who-is record). Making it impossible for a seller to be contacted outside of the almighty Sedo Network.

    Hey, thanks for reading this!
     
  22. MattheP

    MattheP Member VIP

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    So, looks like even fixed price domains can get %20 commission sale through sedo. Well, that really su*ks. I was somewhat ok with %20 if I have a chance to counter offer or cancel negotiations. But with fixed price you have to accept offer if you dont want to get on sedo "gray-list".
     
  23. Brujah

    Brujah Member VIP ★★★★★★★★★★

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    Raise all your Sedo fixed-price listings, and set your minimums to the price you previously listed. Set your prices elsewhere lower than the premium it will cost buyers who choose Sedo.
     
  24. Domagon

    Domagon Member VIP

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    Sedo's commission fee chart only shows 10%, 15%, and 20%.

    http://www.sedo.com/us/about-us/price-list/

    You're being charged 25%?!

    If so, wow, that's crazy ... heck, even 20% is crazy - many more people will be cutting out Sedo after the sale and doing the transaction direct - unethical, but it already happens ... the more Sedo raises fees, the more incentive to do so.

    On an aside, GoDaddy makes it difficult for buyers / sellers to cut them out by requiring for sale domains to be registered through them - Sedo doesn't require that; likely not even a registrar, and hence doesn't have that capability...

    If Sedo ever does enact such a requirement, don't be surprised to see 30%+ commission rates, which will make 20% seem like a bargain; GoDaddy is running a 20% special and lots of people are excited about it - there needs to be more competition or something, because 20%, 30%, etc seems very excessive, as azwiz points out, compared to other sales related industries.

    Ron
     
  25. RTM

    RTM Established Member ★★★★★★★★★★

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    Time to withdraw portfolio from SEDO perhaps....
     

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