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.
Gregg says
You couldn’t pay me to use GoDaddy brokers, let alone agree to pay them any commissions. Pass.
kia foster says
Well know Tactic .Keep saying one thing, do the exact opposite. Politicians use it all day long !!.
Nuno says
At Uniregistry the commission is flat 20% if deal comes from Godaddy. Some weeks ago I lost a 50k+ deal, buyer came to me with initial offer of 50k but then decided to make offer at Godaddy, didn’t want to help out with such heavy commission (when came directly to me in the first place) and then got upset and cancelled everything.
Charging me 10k to just forward an email is too much of a lead that was already mine, is too much. I tried to ask Uniregistry/Godaddy to lower their commission to 15% like they have with Godaddy/Afternic and close the deal but they refused.
Nuno says
I am sorry for some redundant things, cannot edit.
Mark Thorpe says
Archaic commission fees at GoDaddy.
10% or less!!!!!!!!!!!!!!!
Don says
I never understood any of the commission issues. Just do a landing page forward all domains and use escrow com at 2.5% for top service. If one can’t respond or even call the inquiry why be in business.
Nuno says
Many, many buyers only want to use Godaddy. No other escrow, period. It’s a sad reality some of use face.
Squarely says
This making Sedo looks like a good bargain and best still going to Sav
Nuno says
use = us.
nik says
DAN.com’s effective commission on 5 year payment plan is almost 19%. It is no where close to 9%. They charge extra 10% only to process the payment. It is pure rip off. USE ESCORW.COM
Andrew Allemann says
Dan splits the extra commission with you. Escrow also charges additional fees for holding plans like this.
John says
Use DaaZ.com lease to own feature, they charge just flat 8% lease to own fee. No in-direct fees whatsoever, they will not even ask buyers to pay extra for asking to use credit card payments. They are not offering any brokerage services though.