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Domain Investing Stats and Tips

Just add 30 % no big deal

August 24, 2012 by Raymond Hackney

By: RH

"Just add 30% no big deal" That is a common comment left when someone, especially someone new to the industry talks about commission fees. I am always puzzled when someone just throws that out there.

1) This is not a booming global economy, companies with far more vital goods and services find it hard to pass along 1 to 3 percent increases.

2) Price matters, you cannot say a domain just goes up in asking price because of the venue where you are selling.

3) End users do not care about your selected venue and what they charge you. I spoke to someone who actually sent that back in the comment section on SEDO. He told the end user that they have to understand that Sedo charges 20% commission. He told me after he sent that, they ended the negotiation.

You need to think about what you feel your domain is worth, understand that if you use a secondary exchange like Sedo,Afternic or Go Daddy that there is a commission and maybe slightly bump your price. You cannot think that "Oh what the heck is another 30 % ?" 20 to 30 percent is a big deal in a lot of transactions.

You need to think about having your own sales site set up and using Escrow.com to handle your sales so you can get the price you want without having to worry about another 20 or 30 percent negating the deal.

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Filed Under: Domain Sales, Opinion

About Raymond Hackney

Raymond Hackney has been involved with domain names since 1997. One of the most prolific writers in the domain industry and founder of TLDinvestors.com and 3Character.com

Comments

  1. Jonathon says

    August 24, 2012 at 1:25 pm

    Could not agree more with your premise. I work in a business where I cannot pass along 5% increase and people think 30% is no big whoop ?

  2. Markus says

    August 24, 2012 at 1:28 pm

    Agree completely. Buyers are often price sensitive and 30% (GoDaddy) is a lot to tack on as a premium just to cover the cost of selling. It’s certainly enough to make the difference between selling a domain or not selling it.
    p.s. Any suggestions on how to develop a sales site?

  3. RH says

    August 24, 2012 at 1:33 pm

    Jonathon and Markus thanks for the comments.
    Markus I think you can get a script, or someone like Tia Wood does real nice work. I think Traffic Media has a nice solution. When you open an account at domainparking.com you can ask for a domainpool account. A look at one is http://www.perfectnames.com Its easy to add and use if you need a contact comment here and I will email you the right person to speak with.

  4. Ian says

    August 24, 2012 at 2:15 pm

    Definitely agree that it’s best to sell through your own venue whenever possible. Most of our sales are smaller (under 1k) so PayPal has simplified things for us. Although, I would recommend eCop or Escrow for higher amounts as chargebacks can and will happen with PayPal eventually.
    GoDaddy’s 30% is on the high side but the system seems to be working for them. They changed it to 20% for a short time last year and didn’t see any noticeable difference (or so I was told). The unfortunate part was that any changes made to an active premium listing at 20% (even a price drop) would then adjust back to 30%.
    They will make several thousand this month in commission from my sales but I can’t complain as I’m the first to admit that without the system they have in place many of the sales may not have happened… Nonetheless, it would be nice to see their commission rate at 20% or less.

  5. RH says

    August 24, 2012 at 2:18 pm

    Thank you for the valuable feedback Ian, your sales site looks really good.

  6. Ian says

    August 24, 2012 at 2:59 pm

    Thanks, RH. 🙂

  7. Tia Wood says

    August 24, 2012 at 6:55 pm

    @Markus: There are a few solutions specifically for domain portfolio investors that all have their advantages and disadvantages. Domain Market Pro from Ideae.com is one I have came across many times in the industry.
    Oddly enough I’ve had an increase in requests this year for these specific types of websites and have built them custom tailored to need; a sign, I feel, that domainers are taking matters more into their own hands.
    Feel free to contact me if you wish to discuss your options.

  8. todd says

    August 24, 2012 at 7:22 pm

    Listing your domains through Godaddys premium listings is a waste of money and time. You pay them 30% to sell your name and they keep your money for at least 45 days after it sells but if you list only through Godaddy auctions your name still pops up when someone checks it and it shows plain and clear the button to click to see the price and it only cost you 10% and you have your money in 10 days or less. It makes absolutely no sense whatsoever to list names as Premiums.

  9. Nadia says

    August 25, 2012 at 8:30 am

    I’ve never sold a domain at GoDaddy, and I agree 30% is too high. I’ve also heard they can take several months to send payment. However, there’s something to be said about the convenience factor in having someone else handle escrow and payment, especially when dealing with buyers from other countries.
    Sedo is my main sales platform, and it’s been really convenient. I think a personal sales platform makes a lot of sense, but not everyone is going to contact you that way. Sometimes it helps to have a big company (Sedo, Escrow.com, GD, etc.) that users are familiar with and trust, especially if it’s a larger sale.

  10. Havela says

    August 26, 2012 at 3:29 am

    Good article and I agree 100%. I have never understood how someone can add 30% on the price because they are selling through GoDaddy. When I fix a price I try to find the market price, which should be independent of venue. Any fees and commissions will have to come off my profit.
    By the way, RH, I think your blog is one of the best domainer blogs. All your posts are well thought out and you always have something interesting to say.
    PS @ todd: Isn’t there also the difference that in order to buy from ordinary auctions you have to be a GoDaddy auction member (and pay that fee), whereas a premium domain can just be added to your basket and purchased on the go regardless of membership?
    If so, I think that might be a very big difference to end-users, who do not really want to learn to use or pay for GoDaddy auctions in order to buy a domain. I know that personally I would have been much more likely to buy a domain if I could do it then and there without any further thinking or effort.

  11. todd says

    August 26, 2012 at 10:20 am

    @Havela, truthfully when you buy a premium name you still have to go through the whole process of giving them all your personal info, credit card info etc…….which is no different than buying through the auction house. I have sold many names through Godaddy auctions and I have never had anyone complain about the process. I am not sure but I don’t think you have to open a auction account to buy a name. I may be wrong but I don’t think so and if you do it only costs 5 bucks.

  12. RH says

    August 27, 2012 at 1:11 pm

    @Havela thank you very much for the kind words much appreciated.

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