Better lead follow up is worth the commission.
Domainers tend to gripe about paying commissions to marketplaces, especially when the lead was generated from a link on their own parking page.
This makes sense. If you, the domainer, generated the lead, why should you pay a marketplace a fat commission?
I think there are two ways that marketplaces can “earn” their commission:
1. The marketplace generates the lead. This can either be from someone searching on the marketplace for a domain, or (more likely) from distributing the listings to registrars. This is a high value for domain name sellers.
2. They do a better job handling the lead than you would. In this case, it means a faster response (preferably by phone) than you can provide as well as better follow up.
I received an email marketing pitch from Afternic today that smartly addresses the second value add. It proposes that domainers put a for sale link on their parking pages that leads to Afternic, and Afternic promises:
I know we’ve all used domain sales services that do little more than send the same email you would have sent to the prospect. I think Afternic’s pitch is solid. If the company consistently contacts leads that often and by phone, it’s worth the commission.
That’s not to mention getting into its registrar distribution network.