TLD Investors

Domain Investing Stats and Tips

Shouldn’t Sales Commissions Be Coming Down ?

by

By: RH

We see more and more partnerships between Aftermarket sites and Registrars. On September 26 Sedo announced they were expanding their partnership with Go Daddy.

They wrote in their press release, "Go Daddy customers will now be able to purchase
previously owned premium domains names Sedo users have listed as “Make
Offer.” Previously, only names listed as “Buy Now” were available for
purchase at Go Daddy. By offering the option to purchase both “Buy Now”
and “Make Offer” listings, Sedo and Go Daddy are ensuring that buyers
have the widest possible selection of premium names."

Did domainers need this partnership at the expense of a 20 % commission ?

I would say no as most domainers already have a Go Daddy account and can sell their for 10 %. The fact that there was no opt out to this program expansion has had some domainers pulling their names from Sedo.

I think sales commissions should be coming down in this business as there are more companies involved in selling aftermarket names. Competition should push prices lower.

There has been a lot written over the years on how Verisign should run the .com and .net registry for less. People believe prices should come down because there is competition to run the registry.

I think that should play out the same for aftermarket sites. I mean I have nothing against Sedo, I use them and think they are good people, but why would you get a commission for putting my names on Go Daddy when I already have an account there ? I did not ask you to do that.

Go Daddy is certainly more well known than any aftermarket site, an end user more than likely knows Go Daddy over any other company in the space. If they are charging 10 % you should be less imo.

If someone finds my name on Sedo.com and submits a $60 offer and I get them to $3000, why should Sedo get 15 % off my negotiating skill ? 5 % seems more fair. If you are going to broker or run a special promotion well sure that deserves more because you are actively working for the sale.

These high commissions lead domain investors to just tack it on to the asking price. It is not so easy to pass along 10,20 or even 30 % price increases.

What do you think ? Leave a comment below.

Comments

  1. I don’t understand why these brokers get more commission than a real estate agent. 10% is more than fair. If they want to share, share the 10%. Its nothing more than “information highway robbery”.

  2. It makes it harder to get deals done, when you are pricing the commission into the sale, lose lose for all.
    I was quoting a domain for $1100 via offer, and after sale I would get $880, nice chunk missing.

  3. Thanks for your comment EH
    I agree Tom and a lot of domainers accept it. You cannot accept it, sales are hard enough, losing a deal because you added 20 % is not cool.
    Commissions need to come down imo.

  4. Hi Raymond,
    Sedo is all about helping you find the right buyer wherever they’re located. Any domain listed for sale in your Sedo account benefits from great distribution worldwide, which is why we sell to buyers in over 150 countries every year.
    The commission for sales made via SedoMLS Premium is 20% as opposed to 15% because SedoMLS gives you even more exposure for your listings, with over 80 partners (including not only Go Daddy but many top registrars!) The higher commission reflects the increased leads that the SedoMLS brings in for all our domain sellers.
    Daniel @ Sedo

  5. you could write more articles and teach people to avoid brokers. “how to buy a domain without a broker” or “how to avoid sedo” . “you’re paying more for your domain using a passive broker”

  6. Sedo’s godaddy partnership has been a nightmare for domainers (THIS IS WHERE YOU TAKE NOT SEDO).
    Domains have been deleted in droves, because godaddy clients are thinking the name can be had for $60 with no education on the cost of a premium domain.
    Sure if this was 2001 it would be ok, but we are a good 15 years into this industry.

domain name news