Godaddy 25% commission for domains not using their Nameservers (1.Viewing)

| www.swetha.xyz

Swetha has moved from dan.com to efty

I have moved from dan.com to dn.ca

I have a feeling if godaddy does not backtrack on the nameserver policy it's going to cost them big time.



PS. Some of the other platforms are no better, sedo says they are but technically it still boils down to having to have the nameservers at sedo.
 
DataCube said:
You generally need a lot higher margins to cover the low STR. Adding commissions just makes it worse.
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Exactly, but a lot of people don't understand the numbers.

If you have a 2% STR (and it might be lower the first few years) then those 2 out of 100 domains you sold have to pay for the other 98 unsold ones. So if your domains cost $100 on average, then you need to sell them for $5,000 each just to break even on the base cost. And that's just simple math and doesn't include any commissions, renewals or other fees.

When it comes to investing, only the revenue and expenses of your entire portfolio matter, and you can pretty well ignore individual sales.
 
DomainRecap said:
Exactly, but a lot of people don't understand the numbers.

If you have a 2% STR (and it might be lower the first few years) then those 2 out of 100 domains you sold have to pay for the other 98 unsold ones. So if your domains cost $100 on average, then you need to sell them for $5,000 each just to break even on the base cost. And that's just simple math and doesn't include any commissions, renewals or other fees.

When it comes to investing, only the revenue and expenses of your entire portfolio matter, and you can pretty well ignore individual sales.
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I posted some of my 2022 stats the other day on Twitter.

https://twitter.com/x/status/1627715596316966913
 
DomainRecap said:
Yeah, I saw that and what you posted is exactly how investors need to look at their domains, as a portfolio, not just some outlier sales that don't tell the whole story. (y)
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I have always said that you have to account for all the domains you don't sell in a year, not just the domains you do sell.
That is a key point which many investors don't seem to grasp.

Brad
 
DataCube said:
I have always said that you have to account for all the domains you don't sell in a year, not just the domains you do sell.
That is a key point which many investors don't seem to grasp.
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Exactly, and as Bill Gates said, just take money in and subtract money out.

These "Purchase Price: $250 + Sales Price $350 = Pure Profit!" guys on Twitter are insane.
 
DomainRecap said:
Exactly, and as Bill Gates said, just take money in and subtract money out.

These "Purchase Price: $250 + Sales Price $350 = Pure Profit!" guys on Twitter are insane.
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Yeah, you would need an extraordinarily high STR to build a business on $200 - $300 sales, even if they were all handregs.

Naturally as you move up in price range the ratios are going to decrease. However, then other things come into play like resale value.
For instance buying a LLL.com for a floor price, then selling it for $10K+ profit is not that bad.

Lower ratios generally only work with domains that have higher liquid value and where the renewal fee is a tiny % of the value.
Paying a $10 renewal on a $10 handreg is a big deal. Paying a $10 renewal on a $20K domain is not.

Brad
 
DataCube said:
Naturally as you move up in price range the ratios are going to decrease. However, then other things come into play like resale value.
For instance buying a LLL.com for a floor price, then selling it for $10K+ profit is not that bad.

Lower ratios generally only work with domains that have higher liquid value and where the renewal fee is a tiny % of the value.
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Couldn't have said that better myself, but for those expensive domains you're selling for 2X/3X investment are still dangerous if you can't handle the wait times needed to sell. i.e. using a loan to buy some expensive LLLs.

The reason my empathy level goes haywire sometimes is that I've talked to many "I'm sure it'll sell in a few months" newbies who just do not understand the domain business and that you might have to wait 10-20 years to sell these, even at a "small multiples" price that makes financial sense.
 
+10% more commission deducted for not using dan NS

25% + 5% commission deducted from seller, that is insane! If that’s the case, I rather use other domain escrow platforms. I have not receive a email notification regarding not pointing to dan nameservers will result in a 10% more commission!!! That is unacceptable and i never seen another escrow platform have similar rule like this one!

By “not pointing to your platform page and deducting seller 10% more”, and actually i only include my email and dan marketplace link on my landing page, they still deduct that 10% and reject to make any exception! That really disappoint and upset me! Where dan supports “import your own leads” that the seller invite the buyer by email, so i don’t see how my landing page cause them any lost but only 10% lost to me!
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Read more: Chinese domain seller rages about the 25% fees at GoDaddy-owned Dan.com – DomainGang
 
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