Here’s how commissions work on payment plans and how Dan.com’s commissions are higher than Afternic’s.
Yesterday, Dan.com emailed its users to let them know about a new brokerage feature. Now that Dan.com is part of GoDaddy, Dan.com users can send their inquiries to GoDaddy’s brokerage team to handle.
This is similar to how Uniregistry works. When you receive an inbound offer, you can push it to a GoDaddy broker to handle.
A couple of things about the announcement stood out, so I reached out to Dan.com yesterday for clarification.
Payment plan commissions: Dan.com announced that you can use payment plans even if you use a broker. Dan.com confirmed to me that, should your buyer choose a payment plan, you only pay the commission with each payment rather than all upfront. This makes sense because the buyer might stop paying.
General commissions: You should know that the commission rate is higher than what you pay when using GoDaddy/Afternic. You’ll pay a flat 20% commission if you let a broker handle your Dan.com inquiry. At Afternic, you pay 20% of the first $5,000, 15% of the amount over $5k up to $25,000, and 10% over that. At Uniregistry, you pay a 15% fee when a broker handles your deal. So if “commission alignment” is the goal, we’re headed in the opposite direction.