warning Unfair Afternic commission

[Igor Gabrielan]

I was contacted by an Afternic broker to buy a domain for his client. I wasn't even registered on the website afternic.com. Naturally, this domain was not in their listings or marketplace. The domain was sold for $25,000. Afternic wants to keep a 30% commission from me. Their rules are that the buyer pays the broker $99 + 20% of the sale price.

https://twitter.com/x/status/1953750227581546632

 

[Igor Gabrielan]

Me:

I was approached by a broker from Afternic to buy a domain for his client. The domain was not listed on Afternic, moreover, I was not even registered on the website Afternic.com. The domain was sold for $25,000. Afternic wants to keep 30% of it from me, which is $7,500. Who should pay the fees in the brokerage deal?

Grok 4 Heavy:

## Overview
In domain brokerage deals, fee responsibility depends on the platform's policies and the deal's structure. Generally, when a broker represents the buyer (common for unlisted domains), the buyer pays the fees. When the domain is listed on a marketplace and the broker assists the seller, the seller typically pays.

## Afternic/GoDaddy Brokerage Practices
- **Listed Domains on Afternic**: Sellers pay a commission (default 30% of the sale price, minimum $15, potentially discounted to 20% with Afternic nameservers or other conditions). This applies when the domain is actively listed for sale on Afternic.
- **Unlisted Domains (Domain Buy Service - DBS)**: For scenarios where an Afternic/GoDaddy broker approaches a seller on behalf of a buyer (as in your case), the broker represents the buyer. The buyer pays all fees: an upfront $99.99 non-refundable fee plus 20% commission on the final sale price. The seller receives the full agreed-upon price (e.g., $25,000 in your case).

This is supported by GoDaddy's official Domain Broker Service details and industry analyses (e.g., DomainInvesting.com), which confirm the buyer covers fees in outbound brokerage for unlisted domains.

## Discrepancy in Your Case
Afternic's attempt to deduct 30% ($7,500) from you suggests they may be treating this as a standard listed sale, possibly if you registered or listed the domain during the process to facilitate the transaction. However, based on your description (unlisted domain, not registered initially, broker approached you), this aligns with DBS, where **the buyer should pay the fees**. The 30% rate also mismatches DBS's 20% buyer-paid commission, indicating a potential error or misclassification.

## Recommendation
- Contact Afternic/GoDaddy support immediately, referencing their Domain Broker Service Agreement (which states sellers receive the full agreed price) and your deal's outbound nature.
- If unresolved, request documentation of the agreed terms and consider escalating via GoDaddy's dispute process or seeking legal advice on the contract.
- For future deals, clarify fee responsibility upfront and use written agreements. If using DBS, ensure the buyer is aware they cover fees.

 

[fka1080405]

Do you mean that you were contacted by a GoDaddy broker? A GoDaddy broker does not charge commission to the seller, the buyer pays the commission. Afternic handle negotiations through Afternic hosted landing pages, whereas GoDaddy brokers handle cold inquiries that come in via the GoDaddy website.

I think what it sounds like happened is... you were contacted by a GoDaddy broker who encouraged you to list the domain name for sale via Afternic and then the broker directed the buyer to the Afternic landing page for your domain through which the buyer purchased the domain, causing you to be responsible for paying the standard landing page commission because the purchase didn't go through a broker. Does that sound accurate?

Can you share a copy of the conversation you had with the broker? The specifics matter. The typical approach from a GoDaddy broker is to reach out and explicitly state that the buyer pays all fees (the 20% commission) so it is very weird that this happened, it sounds like a miscommunication happened, you should not have listed the domain with Afternic, so we need to work out why that happened.

(Afternic has the option to create a "Custom Checkout Link" through which the buyer can purchase the domain for just a 5% commission to the seller. The 30% commission rate (which can be discounted by using name servers or turning off "Boost") is based on the assumption the buyer found the domain through an Afternic listing.)

 

[Igor Gabrielan]

We had a lot of conversations, but as far as I remember, there was no mention of commissions. I sold several domains to GoDaddy brokers, and they never charged me commissions there. So I was sure that it would be the same here.

How could Afternic's broker contact me if I was not registered on their website? Obviously, if the buyer paid Afternic an initial brokerage fee of $99 in order to pay a 20% fee on the sale price. Could the buyer avoid paying the 20% fee? Hardly. So Afternic wants 50%? Surely it is impossible for both the buyer and the seller to pay fees?

 

[Igor Gabrielan]

In the correspondence with the broker I came across the word "gross". I didn't notice it because I don't speak English well. But I still don't understand. How could he offer a deal with a "gross" price if according to their rules the fee is paid by the buyer?

 

[Igor Gabrielan]

Broker:

I'd like to confirm that if we can get the buyer to $25,000 USD Gross (25k), you will accept this offer of $25,000?

 

[Igor Gabrielan]

I think this is the case when gross = net. After all, a specific non-zero commission was not stipulated, according to their rules, the commission is paid by the buyer, so gross = net = $25,000.

 

[Igor Gabrielan]

Gross means net price minus commission.
According to their rules, the buyer pays a 20% commission, the seller doesn't pay commission or his commission is zero.
So gross = net.

 

[Igor Gabrielan]

Afternic Transaction Assurance <[email protected]>:

Hello,



Since the domain name is listed in your account and is not using our nameservers and the default AfternicBoost option is enabled the commission is 30%.



In the future if you would like to have a lower commission, please review this: https://help.afternic.com/s/article/What-are-your-fees-commissions



Kind regards,

Dimitar,

Transaction Assurance

Me:

This is a lie! This was a brokerage deal! In a brokerage deal, the buyer pays a fee of $99 immediately and 20% after the sale.

 

[Igor Gabrielan]

Hello,

Can you please confirm if you have spoken to the broker regarding this?

Looking forward to hearing back from you!

Kind regards,
Dimitar,
Transaction Assurance

 

[Yanosh]

Igor , have you listed the domain on afternic after the conversation with the broker ?
You should have used the afternic checkout link
It is also possibile that the buyer offered 25k gross , meaning that the fee in included
Anyway , that’s a bit odd

 

[fka1080405]

We had a lot of conversations, but as far as I remember, there was no mention of commissions. I sold several domains to GoDaddy brokers, and they never charged me commissions there. So I was sure that it would be the same here.

How could Afternic's broker contact me if I was not registered on their website? Obviously, if the buyer paid Afternic an initial brokerage fee of $99 in order to pay a 20% fee on the sale price. Could the buyer avoid paying the 20% fee? Hardly. So Afternic wants 50%? Surely it is impossible for both the buyer and the seller to pay fees?

Right, this is where there needs to be clarity. You have mentioned Afternic's brokers multiple times but what you're saying is not consistent with how Afternic operates. If you go to Afternic's website and say that you are a buyer, you will be redirected to GoDaddy.com.

Afternic is for sellers, Afternic's brokers represent the seller and so Afternic's brokers charge the seller of a domain. GoDaddy is for buyers, GoDaddy's brokers represent the buyer, GoDaddy's brokers charge the buyer of a domain.

GoDaddy = buyers. Afternic = sellers. The broker for this sale was instructed by the buyer so it's GoDaddy, not Afternic.

There are 2 scenarios:

A buyer wants to buy a domain name that is not listed on Afternic:

1. The buyer goes to godaddy.com and searches for a taken domain, e.g: "igor.com"
2. GoDaddy tells the buyer that the domain is taken, and "We might be able to help you get it" with a link to hire the GoDaddy Broker Service
3. The buyer pays the upfront fee for the GoDaddy Broker Service and agrees to pay a 20% buyer's commission
4. The GoDaddy broker reaches out to the owner of the domain via whois (or similar) and negotiates a deal with them, agreeing on a price (e.g: $25,000).
5. The buyer pays GoDaddy $25,000 + $5,000 in buyer commission
6. The seller transfers the domain to GoDaddy by providing the authorization code
7. The seller receives $25,000 from GoDaddy

Afternic is never involved.

For scenario 2:

A buyer wants to buy a domain name that is listed with Afternic:

1. The buyer goes to godaddy.com and searches for a domain that is listed with Afternic, e.g: "igor.chat"
2. GoDaddy shows the buyer the buy it now price (e.g: $25,000) or the option to make an offer if the seller has enabled it
3. If the buyer opts to make an offer, then Afternic's brokers, representing the seller, engage with the buyer, negotiating a price based on the information configured in Afternic (e.g: floor price)
4. The buyer pays the agreed upon price (e.g: $25,000) and then Afternic deducts their commission (up to 30%)

You went through scenario 1 so I don't understand why you listed your domain with Afternic nor do I understand why the domain was purchased via Afternic. The email excerpts you've provided do not provide any clarity. Afternic should not have been involved in this transaction at all.

Can you please provide a complete contact history, the exact messages and information shared with you? If a GoDaddy broker told you to list the domain name with Afternic, then GoDaddy should make this right by waiving the commission, but it isn't clear that has happened.

 

[Igor Gabrielan]

Are there separate brokers Afternic and GoDaddy? I had a broker Mauli Fry. Here is her LinkedIn account. She is marked as Aftermarket Partner Seller Executive
GoDaddy.

 

[Igor Gabrielan]

Hi Igor,

I worked on this with management today. Can you please do me a favor and create another afternic.com account with a different username than IgorGabrielan?

Your previous username was IgorGabrielan it's not letting me add wix.ai to your new Afternic account because it's reading a previously deleted Afternic account with this same username.

Please let me know your username for the new afternic.com account you create, and I'll get wix.ai added into the account so we can get the transfer and sale completed.


Thank you,
Mauli

---

From: Igor Gabrielan <[email protected]>
Sent: Tuesday, July 1, 2025 8:29 PM
To: Mauli Fry <[email protected]>
Subject: Re: Wix.ai Payment In

 

[Future Sensors]

Congrats on your sale.

 

[Igor Gabrielan]

Hello,



Thank you!



We will get back to you as soon as we review it.



Kind regards,

Dimitar,

Transaction Assurance

 

[Igor Gabrielan]

Me: As you can see from the broker's email, I did not add the domain to the portfolio. The broker added the domain to the portfolio to create an excuse to charge me an unfair 30% commission. Apparently, the management entrusted her with conducting such scams.

 

[Yanosh]

Hi Igor,

I worked on this with management today. Can you please do me a favor and create another afternic.com account with a different username than IgorGabrielan?

Your previous username was IgorGabrielan it's not letting me add wix.ai to your new Afternic account because it's reading a previously deleted Afternic account with this same username.

Please let me know your username for the new afternic.com account you create, and I'll get wix.ai added into the account so we can get the transfer and sale completed.


Thank you,
Mauli

---

From: Igor Gabrielan <[email protected]>
Sent: Tuesday, July 1, 2025 8:29 PM
To: Mauli Fry <[email protected]>
Subject: Re: Wix.ai Payment In

This is unbelievable

 

[DN_Hunter]

Has the domain name changed ownership already?

Looks like they asked you to create a new Afternic account just so they can add this domain name and have it sell on the Afternic platform. Unfortunately, the default is to have BOOST enabled (extra 5%), and your domain nameservers were most likely NOT pointing to Afternic -- another 10%).

I'm hoping Afternic looks at what happened and does better on your commission rate. 30% fee on this sale is ridiculous based on the way the sale happened.

Side Note: they really should stop making BOOST turned on by default. How many angry customers got burned on this policy? Did they ever send out a Change in Terms of Service at Afternic? They probably did as I can't recall. But if they did not, that's a class action waiting to happen...

 

[alcy]

to be fair to at least some brokers... I had sale few months back that broker reminded me to switch dns to afteric before finalized