Three out of Four domainers are paying more than 25% commission (1 Viewing)

Community Guide
Nov 4, 2020
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Received this email from GoDaddy this morning and out of curiosity decided to follow the links.

Only had the name servers pointed to godaddy which means all three other domains will be charged 25% commission if they sell on a godaddy site.

Seems like a lot of domainers are thinking 25% commission is acceptable right?

Well there are two ways of looking at this scenario....

1. You take it at face value above and the domainer is ok with the commission.

2. The domainer is just listing there to get the traffic and will ignore the offer to purchase, thus waiting for the end user to contact the domainer directly and paying no commission.

My bet is there is a mix of both because most of the domainers I know personally are not willing to give up 25%

Now for the interesting part...

If you do give up 25% you have a lot to learn because you are not considering the acquisition cost nor the renewals. Once you factor those in the 25% can go up significantly and as the property owner you are giving away a huge amount of your profit. Remember on taxes we only pay on the PROFIT part of the income. In this case you are paying on the entire sale amount including your acquisition and renewal costs.

Looks a lot different when you factor that in right?
Looks a lot different when you factor that in right?

Definitely and I've always said that if every domainer actually "ran the numbers" every month/quarter/year there would be mass chaos.

That's why I'm so incredibly cheap frugal when buying TBR domains (with some exceptional exceptions) because I do run the numbers and realize that most current TBR prices (while adding in commissions & renewals) are unsustainable unless you're pouring in money from another source.

Everybody wants money from you, GoDaddy, CIRA, registrars, etc. and it's just going to get worse.

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