NameSilo

SquadHelp-Registered Names: Questionable Practices

Located in Domain Marketplace Reviews started by DomainBanana, Sep 14, 2019.

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13
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704

  1. DomainBanana

    DomainBanana Established Member

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    !!! Be Aware !!!

    SH will reg an approved name for free and give sellers a 25% commission for the first year.

    After one year, to keep their small 25% commission, sellers have to pay a $10 reg fee/name. While you pay $10/name/year (more than the annual renewal rate), SH retains ownership of the name and takes a 75% commission on the sale!

    Once you let SH register a name you've come up with, they own it forever, and they grab massive commissions while forcing sellers to cover the cost of the reg fees!

    Not acceptable !!!

    (n) (n) (n)
     
    Last edited: Sep 14, 2019
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  2. Jay Ha

    Jay Ha Exploring.. VIP

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    Well, you can do that or go ahead and reg the name before submitting it.

    Disclaimer:I don't have an account at SH.
     
  3. DomainBanana

    DomainBanana Established Member

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    @Jay Ha Of course regging the name is the best option.

    Who would agree to pay 110% of an annual reg fee while allowing another party to own a name and get 75% of the sale?

    Totally absurd!
     
    Last edited: Sep 14, 2019
  4. Haykay2005

    Haykay2005 Top Member VIP

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    That's rubbish.... Pay you $10 to retain 25% on a name I suggested!
     
  5. GrantP

    GrantP Squadhelp.com Squadhelp Gold Account

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    We typically do not participate in discussions unless specifically tagged but using words like "Scam" is going a little too far, so I am offering a response here.

    First of all, we offer three ways to participate in our Marketplace:
    • Submit names that you already own
    • Submit names that are still unregistered, you will register if they are approved
    • Submit names that are still unregistered, SH will register if they are approved
    If you are an active domain investor, it certainly makes sense to register the names yourself - not only do you pay a significantly lower commission compared to SH registered option, you also retain full flexibility to remove your domains from marketplace and sell them elsewhere if you prefer. The SH registered option is for those people who do not wish to take an investment risk for upfront reg fees and/ or for ongoing renewals.

    Within the SH registered option, there are two ways we handle renewals. You can continue to have SH pay for any renewals or pay $10 (or $5 + 500 points) to keep your original commissions.

    Most people choose to have SH continue to pay for their renewals - so they have zero investment risk for the entire lifespan of the marketplace listing but in that case the commission reduces slightly every year. For example, if your domain is initially approved to receive 25% in the first year, you may receive 22% of the selling price in the next year, 20% in the following year, and so on. We have not had a situation where the commission of a seller has dropped below 18% and we do not intend to do go below that number. It is, however, possible (and likely) that after few years we may stop offering renewal options on that domain because we can not pay for renewals in perpetuity - in that scenario the domain will be dropped.

    Many creatives on SH platform are not domain investors. Several of them do not wish to take investment risk for their domains, and they choose the SH registered option to protect their names so that they can continue to submit their names to contests, and build a portfolio in the Marketplace at the same time.

    At the end of the day, there are several ways to participate in the marketplace so that sellers/creatives can decide for themselves what method works the best in their situation. The rules for each method are clearly stated in our Marketplace Terms.
     
  6. DomainBanana

    DomainBanana Established Member

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    @GrantP, SH's convoluted rules cannot hide the fact that you're asking people to cover 110% of the reg fees while SH retains ownership of the name and keeps 75% of any sale.

    This is unequivocally wrong and yes, a scam.

    Note: all of my SH domains have been removed b/c I disagree with these terms. This is how SH deals with dissent -- denial, censorship, banning users from the marketplace.
     
    Last edited: Sep 14, 2019
  7. webcom

    webcom Member VIP ★★★★★★★★★★

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    What's disguised as an innovative way to help sellers build a portfolio with SH is actually a clever way for SH to build their portfolio of brandables using the power of crowdsourcing in exchange for a low commission offered to creatives in the event of a sale. Very beneficial for SH and not to so beneficial for creatives.
     
  8. DomainBanana

    DomainBanana Established Member

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    SH even gets sellers to pay 110% of the renewal fees on SH-owned names after one year, while taking 75% of the commission! A total racket!
     
  9. offthehandle

    offthehandle . Gold Account VIP

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  10. karmaco

    karmaco Top Member VIP

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    Seems like people should get more than a paltry 18 to 25 percent of a sale for their idea. Seems like it should be 50/50 with the commission and the renewal. There is a sucker born every minute I guess.
     
  11. DomainBanana

    DomainBanana Established Member

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    It's not just the paltry commission. What really gets me is that, after the 1st year, the name's originator has to pay 110% of the reg fees while SH retains full ownership of the name and takes 75% of the sale.

    SH is asking the seller to take all the risk and more, yet the seller only gets 25% of the sale?!?!

    This is unprecedented and outrageous.

    No other marketplace would dare operate this way.

    And no seller in his/her right mind should agree to it.
     
    Last edited: Sep 15, 2019
  12. Haykay2005

    Haykay2005 Top Member VIP

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    First year you took the risk and qualify for a higher percentage, shifting the risk to me by the following year should give me a higher return as well. This is a simple logic unless sh choose to play on domainers intelligence
     
  13. offthehandle

    offthehandle . Gold Account VIP

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    I will chime in as usual as I do with these sorts of scandal threads. I would not put names up on any more platforms like this if I were you guys. There are plenty of posts here on all these same less than ethical practices on so many 3rd party venues. Why don’t you install a landing page or Wordpress and get all your own traffic?

    Are You sure others are any better? Lol. Don’t they all have some angle?

    One favors insider trading in their crooked search so their cartel can be on the first page regardless of user intent, One large auction platform everybody gripes about has groups supposedly bidding on their own names, allows pay per click touts of names and or API bots, another keeps your money as credit and you have to jump through hoops to get it back, another allows registrants to renew after you bid on the name so its really a fake auction. This dinky industry has plenty of other problems other than this new one.

    So, read this comment below made by the OP of this thread. Go ahead and give away your ideas to this dumb marketplace, then see if the same thing happens as this post below where they simply gather all the DNS data and inquiry traffic and pick and choose which names they want in the future, then register them in their own name. You just educated a supplier to become your competitor!. We’ve all done it, believe me I would be a lot wealthier had I not allowed my “supplier” years ago in my prior business to learn my markets.

    OP ‘s Post says:

    “Heres a rant to brand bucket and to Michael krell (brandbucket ambassador) for declining names I've submitted to list with them and then when I did not renew it Michael picks up the name and lists it on BB..”

    Poor form sir”

    https://www.namepros.com/threads/rant-to-brand-bucket.1025221/
     
    Last edited: Sep 15, 2019
  14. DomainBanana

    DomainBanana Established Member

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    Suppose a real estate company offers to list a home on the following conditions:
    • The real estate company takes ownership of your home.
    • You pay all the monthly mortgage costs.
    • Upon sale, even though you have been paying all of the costs, the real estate company receives 75% of the profit.
    Would you list your home with this company?
     
    Last edited: Sep 15, 2019

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