In the official Dan (an advertiser here) thread at Namepros there has been quite the conversation since DAN 2.0 was released. One point of contention centered around the fact that Dan will now charge a fee to buyers on transactions of $1,000 or more. Alipay: +1% fee, credit card: +2% fee, Paypal: +1% fee. Sedo charges 3% CC/PayPal/AliPay processing fee for transactions above $500. I have paid that many times using Paypal buying a domain name at Sedo.
PayPal and Credit card payments are subject to an additional Payment Processing Fee of 3.05%.
So Dan posted something that I think is important for all customers to read. I think it explains all the ins and outs of the new checkout system. I understand some do not want any added layers that might cause a buyer to have second thoughts. I also think it depends on what kind of name is being purchased. If I see someone priced a name I want at a great price, I am not balking at 2% if I want to use a credit card.
The new checkout system at DAN
We’ve been informed that there’s quite some misinformation spreading about our revamped checkout. We’d like to share some insights about our checkout to clarify why we’re so excited about our new checkout, and you should be too.
We’ve designed the checkout with care and so far the data since launch is looking very promising. It’s too early to make a final conclusion yet and we will implement improvements over time when our data indicates that that is required. But so far, after a small hiccup on launch day, we’re doing well.
Here’s what makes our payment processing system stand out:
1: We offer all local payment solutions per market. Most of our competitors are focused on optimizing
for just one region. Domain buyers at Dan can pay with their local payment processor like Ideal, Mr cash, AliPay etc. These payment options do not introduce any payment fee.
2: All transactions handled by Dan under $999 do not include a payment fee.
3: For transactions from and above $1000 we’ve created an entirely new setup so we can offer local Bank Transfers which process within hours not days as an alternative that also introduces a 1% discount for the buyer. Unlike our previous checkout, all domain buyers in the new model get the easy local Bank Transfer option including the 1% discount.
Since our sellers pay a low commission at Dan and considering that Dan has built quite a reputation with repetitive domain/brand buyers, we expect more end-users to purchase their domain at Dan due to the 1% discount given which saves you inherently also commission that other platforms charge. Buying domains at Dan is the smartest thing a domain buyer can do. They’ll get an exclusive 1% discount and enjoy a much faster and efficient domain ownership transfer.
In the new model, the seller even gets a 1% discount when the buyer pays with Bank Transfer. Even if you import a lead, and the lead pays with Bank Transfer, you only pay a 4% commission instead of our already low 5%.
4: We’re the only marketplace that accepts credit card payments up to $100k (Afternic/ Sedo/ Escrow.com all limited this to just $5K). We process weekly multiple mid $xx,xxx transactions being paid with credit card at Dan. This alone is making all Dan sellers more money.
Meanwhile our other two direct competitors: Godaddy & Sedo both charge fees and or make their checkout pretty limited. Godaddy always ads a $19 renewal charge on all transactions while Sedo charges a 3% payment processing fee.
5: In the past 12-months we’ve implemented many changes in the background with the assistance of a dedicated Adyen payment specialist and a third-party PSP optimization specialist. We’ve for example increased the acceptance rate of credit card payments from the US by 24%! Which is huge! Our current credit card acceptance rate is higher than 95% of other e-commerce/marketplaces due to the strong focus we gave this part of the core service we offer.
In our revamped model, as mentioned earlier, we’ve made sure to always present the buyer with a discount alternative and free local payment processing alternatives next to the payment options that do have a 1% or max 2% payment processing fee involved.
We do not share these things publicly because we shouldn’t have to. Especially not in a market where our product and processes are copied by all competitors, new and old.
Dan is the only party here that actually monitors checkout abandonment rates, checkout completion rates, conversion rates, and so on. The assumption being made by many non-active Dan sellers that we’d implement a new checkout that would hurt sales is one that we cannot comprehend. If after the first 30 days we observe a big checkout abandonment rate, we’ll revert the payment fee update immediately.
We’ve built the most efficient domain marketplace existing today, active Dan sellers know this because we’re continuously improving our processes on all fronts. All divisions at Dan (we’re growing to 45 employees this year and 110 next year) have KPI’s and each division, monthly makes sure to improve their division KPI’s. The bigger we get, the more we can do. In the past years, we’ve operated with a very small development team. Now, 60% of our entire team is in product development!
We’ve started the process of raising €15M in growth capital this year to double down on everything we’ve planned next. That round will likely close before December. Our announcement blog post made it clear that what we’ve launched recently is the new foundation for us to be able to build & grow faster towards our end goal and so an in-between offering.
We’ve rejected 3 acquisition offers in the past 2 years alone from the biggest companies in the market because we’re not closely done with reshaping the domain industry. In those discussions, we found out how effective our marketplace is performing compared to our competitors. The domain industry is still a niche market, which introduces benefits but also negative downsides. A small group of domainers that hardly sell any domains are the most vocal ones on forums like this one. This makes us less active here because we gain nothing from getting into endless discussions with people that are not receptive to anything we say.
Always ask Dan’s staff about how things work at Dan when in doubt. We don’t advise collecting information about Dan on forums because we’re a fast-moving company that changes processes often.
We hope the above clarifies the checkout changes we’ve implemented and why Dan’s checkout is still the best payment collection option offered in the market.