Company changes commission structure for semi-exclusive domains.
Naming platform Squadhelp is lowering the commission it charges sellers of some domains if the domains sell on Afternic instead of Squadhelp.
Squadhelp offers two listing types: Premium and Standard. With Premium listings, Squadhelp undertakes marketing, including featuring the domains to people running naming contests on Squadhelp and remarketing ads for people who visit the domain.
Squadhelp usually requires exclusivity for domains in the Premium program because it undertakes marketing efforts for the domains. However, it also offers semi-exclusivity to some clients who have at least 50 Premium listings.
Under semi-exclusivity, domain sellers can list domains on Afternic but must pay a commission if the domain sells there instead of Squadhelp. They also have to price the Afternic listing at least 10% greater than the Squadhelp listing.
Previously, Squadhelped charged the difference between the Afternic commission and what Squadhelp would have charged if the domain sold on Afternic, with a minimum of 5%. (Squadhelp commissions on Premium domains range from 12.5% to 30%.)
Now, for Premium domains that sell on Afternic for $25,000 or less, sellers pay Squadhelp 5%. For domains greater than $25,000, they pay nothing to Squadhelp.
Sellers must still list domains for at least 10% higher on Afternic.
The new terms are in response to Afternic’s higher commission rate for domains that aren’t parked on a GoDaddy-owned service.