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What type of fees involve in a domain transaction

Labeled as question in Domain Beginners, started by Pathi, Oct 25, 2016

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  1. Pathi

    Pathi Established Member

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    Hi
    I am new to the domain industry.I have a small question. Hope you guys help me regarding this.
    Suppose i have listed my domain in Flippa and i have a buyer. he wanted to buy the domain using Escrow. Can you please tell me the number of fees with the percentages that involve in this transaction?
    Also what are the fees related to the transaction doing in Godaddy?
    Thanks in advance.
     
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  2. Nerevar

    Nerevar Top Contributor VIP

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    I will describe the cost structure for the 3 major marketplaces: GoDaddy (including Afternic), Flippa and Sedo.

    1. Listing fees

    BIN (Buy now) or Make offer listings are free on GoDaddy, Flippa or Sedo. However, auctions are free on GoDaddy, but cost $9 on Flippa and $59 on Sedo.

    2. Advertising fees
    Here come all sorts of upgrades to your listings for improved visibility, showcasing etc. that marketplaces offer. Usually there is not much sense in using them, unless you know exactly what you are doing. Can be selected during the process of listing a domain, or sometimes after the listing is live.

    3. Successful sale fees
    Godaddy: 20% (minimum $15) for a sale under $5000, and a bit less for a sale over that amount.
    Flippa: 10% (no minimum obligatory fee, which is very good for those smaller $xx sales)
    Sedo: 15% (minimum $60) - or, if your domain is parked with them, then 10% (minimum $60)

    4. Transaction safety fees
    All three marketplaces use their own Escrow services that are free for domains sold on the marketplace. Namely, Flippa Escrow service is pretty good and safe. However, if the buyer or the seller prefers for some reason to use the external service Escrow.com, it can be arranged too. There is a fee caclulator on the Escrow.com homepage. These fees can be paid by either the buyer, the seller, or split - whichever way they agree.

    5. Disbrusement fees
    These fees need to be considered when you chose the method for the marketplace Escrow service to pay you.
    - Paypal: the usual 3% that Paypal charges any commercial transfer
    - ACH or eCheck: usually free, at worse $5 or something minimal, depending on your location
    - International bank wire: Payment from Flippa Escrow by bank wire can cost up to $50, depending on your location and your bank policy. (Note: you can choose to be paid by Flippa Escrow in Paypal, not to be confused with being paid by the buyer in Paypal). I have heard that Sedo sends bank wires for free (this is why they charge the minimum $60 successful sale fee). I do not remenber how much Godaddy charges, but I think they do charge. Payment from Escrow.com by bank wire should be around $25.
     
    Last edited: Oct 27, 2016
  3. Pathi

    Pathi Established Member

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    Huge thanks for the long ,clear and descriptive answer. Now i have a good idea about the fees involved. Gonna save this. *bow*
     

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