The Paul Nicks interview got a lot of engagement. Paul answered a lot of questions in the comments that might have been missed by those who read the post when it was initially posted and did not come back (understandably), to read the comment section.
Here is a rundown of some important questions asked by readers that Paul took the time to answer.
Jonathan asked a question with regards to speed of transaction:
Transactions generally take a very long time at Godaddy/Afternic. New marketplaces like Dan.com are able to complete transactions very quickly, often within a day or two. Why is Godaddy/Afternic so slow, especially when it comes to distributing funds, and do you see a future where transactions will conclude quickly, both for buyers and sellers?
1) Speed and security are tradeoffs, we try to thread the needle between a fast transaction and a completely secure one. Most of the time when a transaction slows down, it’s due to either the buyer or seller being non-responsive, that’s why I push Afternic Fast Transfer whenever possible because it takes people mostly out of the equation. Fast Transfer sales typically payout in 5-7 days depending on which reseller it goes to. We are actively looking at both FT and slow xfer payouts to see how we can improve the timing.
In a follow up from Jonathan he asked about leasing and payment plans. Paul explains he is not a fan of leasing.
Installments. As I’m sure you know, many registrars and marketplaces are now offering them and they help both buyers and sellers get more deals done. Is that something Godaddy/Afternic will introduce at some point?
“I’m not a huge fan of domain leasing, as the lessee has the ability to tarnish the reputation and value of a domain in a pretty short period of time (fwding to malware etc). I am in constant contact with our cart and payments team though trying to make sure that we have as wide array as possible of payment options. Pay over time is something I’d like to see as it should greatly increase sales velocity, the trick is finding the right solution for it.”
Brad Mugford asked about why bringing a transaction to GoDaddy still encounters a 20% commission? Paul explained GoDaddy does not have a way to just process a sale.
Brad Mugford writes:
Why does GoDaddy not offer some service where you bring your own lead for a lower fee? Back when GD Auctions were 10% I would often just send leads there to purchase the domain. For 20% I am not going to do that.
We don’t have a mechanism for just processing a sale, that’s more in the escrow.com world. There has been some interest in the past from other investors but it’s not an area we’ve chosen to focus on.
Abey Joseph asked a good question about the added transfer or renewal fee when someone purchases a domain name. Paul gives reasons why it happens and why it won’t likely change.
Abey Joseph wrote:
When we add a domain in afternic and pointed the DNS to NS5 & NS6 with BIN,domain resolves beautifully with a BIN landing page and it is nice..But when a buyer adds this domain to cart,it goes to GD cart and asking for additional amount of $7.99 renewal fee or $18.99 transfer fee along with the domain BIN price..If the buyer remove this additional price,entire domain purchase is getting cancelled.Even domain which are registered in GD very recently also,these additional amounts are showing..But if the buyer directly purchase from afternic,there is only BIN price to pay..If i put a domain in afternic for $1995 for sale,buyer has to pay only that amount..But he clicks the NS5 & NS6 lander BIN,he has pay additional amounts..please look into it as this may distract some buyers thinking off additional payments like Taxes extra..
Likely not something we’ll change. When a domain is purchased through Afternic, it goes through our “slow transfer” process that requires authcodes to be sent between owner and buyer and allows the buyer to choose which registrar they want to initiate the xfer through. Although slow xfer does allow cases where only a push is required (thus no extra fee) the whole process adds friction.
Our Fast Transfer process is used for the BIN lander and greatly speeds up the sale and xfer of a domain with less friction in the process. We found with our namefind portfolio that fast xfer listings performed 3-5X better than non-FT.
One other area of concern with removing the xfer fee, along with the extra 1 year of registration, is that a customer buying the domain may not understand that they need to renew in less than a year. With the current process, they get 1yr + whatever time was left on the registration term which I feel is a better user experience.
You can read the rest of the questions and answers here in our interview with Paul Nicks.