Auction fees go up as domains get more exposure.
Go Daddy Auctions has increased its sales commission three-fold from 5% to 15%.
This change was noticed by Hybrid Domainer earlier today.
The auction price increase makes sense given that auction listings now show up in the registration path when someone searches for the exact domain name on Go Daddy.
A Premium Listing carries a 30% commission while the typical auction listing only cost 5% until now. This is steep difference based on a few small differences in convenience:
1. Premium Listing domains can be purchased by a customer immediately through their shopping cart.
2. Premium Listing domains have instant transfer so there are no transfer headaches.
3. Auction purchases require the customer to buy a $4.95 auction membership.
I suspect these differences account for significant sales velocity, but a 25% additional commission is very high.
While 15% is three times the old 5% commission, it’s still in line with industry standards especially given the added registrar exposure.