I have found the commission structures for domain name sales at Afternic and GoDaddy to be confusing. Depending on the type of sales ad and how the buyer found a domain name, the commission percentage can vary quite dramatically. This is simplified in the future.
Afternic and GoDaddy are sending an email to customers announcing a change in the commission structure to make it simpler and simpler for both brands. Instead of having to think about the type of SEO and promotion to determine the commission rate, the new commission structure is strictly based on the selling price of the domain name.
The commission structure for aftermarket domain name sales on GoDaddy and Afternic is as follows:
- $ 50 to $ 5,000 at 20% ($ 15 minimum)
- $ 5,000 to $ 25,000 to $ 1,000 + 15% of the amount over $ 5,000
- $ 25,000 + @ $ 4,000 + 10% of the amount over $ 25,000
The company has set a minimum listing price of $ 50 for Buy It Now auctions and a minimum of $ 100 for premium listings. They also set a minimum listing price of $ 20 for 7-day auctions and offer / counter-offer domain listings.
For customers selling domain names through GoDaddy, the change in commission will result in more revenue for the seller. For customers selling on Afternic, the commission rate will cost a bit more. I guess you can think of it as paying for the extra exposure to the GoDaddy network.
Customers of both companies will receive an email notifying them of these changes, if the email has not already arrived.
As always, your comments are welcome, and I’m sure GoDaddy will respond to your comments and concerns.