Temporary 20% commission now back up to 30%.
Go Daddy’s experimentation with commission rates for Premium Listings is over (at least for now).
The commission charge is back to the original 30% on any new Premium listings or if you edit existing ones.
For the past couple months the commission was reduced to 20% on any new listings or if you made changes to existing ones.
Although 30% is the highest commission in the industry, the reach of Premium Listings is hard to ignore. Premium Listings are shown directly in the registration path of GoDaddy.com when someone searches for the same domain name. Customers can buy the domains on the spot and they are instantly transferred into the customer account.
GoDaddy registers about half of all new domain registrations, so the audience is substantial.
You can also get your domains for sale listed on GoDaddy results pages if they are listed on the auction service, but there’s no instant transfer capability.
Leonard Britt says
Sold two domains last week at Godaddy – yes the reach is undeniable but a 30% commission does eat into the proceeds. Perhaps they thought registrants would lower their prices as a result but given the uncertainty as to how long the commission would be lowered, it didn’t make sense to make across the board price cuts to then have to reverse them.
Andrew Allemann says
@ Leonard – if you had cut the prices you would be locked in at the 20% on those domains…but that probably wasn’t clear to people.
Congrats on the sales.
Jeff says
Do you think that this will push commissions up at other marketplaces?
DomainReport.ca says
If the 20% is locked in, I probably won’t change any of my listings for now. Haven’t had a sale at Godaddy yet, but I’ve only had my names listed for a few months. Yes, they do get a lot of traffic and many people will see your domains than otherwise.
Brad says
I think changing back to 30% is a big mistake.
The 20% is what motivated me to list some new domains and re-list domains already on there.
I make at least a few sales on GoDaddy Premium per month.
At 20% GoDaddy Premium is an appealing option. At 30%, and with a ridiculous payment time frame (Up to 60+ days) it becomes far less appealing.
At bare minimum there needs to be some type of scale. 30% on a $695 sale is not a huge deal, 30% on a $20K sale is.
I hope GoDaddy will reconsider this.
M. Menius says
Can someone briefly list the criteria for “Premium Listing”. Which tld’s are accepted?
Brad says
@ M. Menius
COM/NET/ORG and .CO. Why .CO? I have no idea as there are much better extensions that don’t qualify for premium listings.
Brad
craig says
it’s a deal breaker for me!
Even at 20%!
Andrew Allemann says
@ craig
(desired price) * 1.3 = GoDaddy Premium Listing price
Richard says
I did enjoy one sale @ 20%. I will probably let the rest of the listings expire and just sit at Sedo, because as Brad says, it takes a while to get paid and %30 is a bit much. You can jack up your domain price to offset the commission, but the price may be just outside the buyer’s price range.
martin says
I have never been able to sell any domains on
GoDaddy auctions in 2 years,
can anybody tell me the best way to sell them ?,
replies much appreciated,
thanks.
RH says
Actually Andrew it would be price x 1.4. If you wanted $20,000 and did 1.3 you would price at $26,000 and only get $18,200. So 1.4 and pricing at $28,000 would at least get you $19,600
Andrew Allemann says
Sorry about that. The correct formula is (price desired)/0.7
mike says
I switched my selling platform to godaddy when it was 20%. Now im back to using my old method.
The problem is I still have some listed at godaddy, but with the 30% jump, any future listings, I will raise my price to cover the extra 10%. It doesn’t sound like much, but many customers wont buy because of it. Godaddy will lose $ in this case. they are on their way to being like blockbuster video, until the new netflix of the domain world shows up