New York, NY – EmpowerPioneers.com has launched the biggest transformative game-changer for the premium domain aftermarket in 2023, right after consolidation move by GoDaddy purchasing Dan.com domain marketplace. Within days, GoDaddy announced their “commission re-alignment” which they expect to go into effect on February 1st, when they offer a new pricing structure that gives incentive for sellers to park their domains with GoDaddy.
People have certainly been waiting for a long time to see commission rates for aftermarket domain sales marketplaces to come down. Even with the new commission re-alignment GoDaddy will charge a flat rate of 15% for domains parked with GoDaddy and 25% if parked elsewhere. That is a 10% commission incentive or if one can see it as a 10% punishment if domains are not listed with GoDaddy.
Is GoDaddy trying to bully domain sellers to list and park their domains with them and no one else? Are they cornering the market? How will consumers react to this?
GoDaddy is already the biggest and probably most influential of all the domain marketplace brokers. If they wish to corner the market, they may certainly be able to. GoDaddy owns Afternic, which is the world’s largest domain name marketplace, much larger than SEDO or others. And, they just bought Dan.com to increase their marketshare.
From consumers’ point of view, why pay 10%-25% for selling your domain name? In fact the truth is that the commission rate of a marketplace can hardly be justified. If your house is put on MLS for sale, the total buyer and seller commission are usually about 6%. Some online listings can be as little as half of that or even lower. So why would GoDaddy or Sedo or other aftermarket websites charge 10% or 15% or 20% or even 25%? Do they provide any extra value for that fee? Afternic’s current rates of 20% for transactions up to $5,000, 15% on the amount up to $25,000, and 10% on the amount above that. Dan.com currently charges a 9% commission fees.
The answer according to the leading experts is simply: No.
What these companies provide is a marketplace for listing and an escrow transfer service.
EmpowerPioneers.com a website community dedicated to small to medium sized businesses, providing them with content marketing services as well as guides and marketing tools, intends to help domain name aftermarket sellers to list their domain for a listing price and sell it without a % commission or any form of commission fee. If a seller and a buyer want escrow services, well there are many escrow service companies in U.S. and Canada that charge a nominal fee for this service. These escrow fees are not even as much as 1%. So why would anyone pay 10%-25% commission for selling their domain name?
Chuck Fairbank is a well-recognized name among high value domain name brokers in the United States. “There are about 30 of us who work with 1,000s of smaller brokers and pre-IPO companies or funds that want to purchase high value domain names since domain names are a very significant decision within a marketing department. Everyday I email my colleagues around North America and we exchange offers and work with brokers, and almost not a single day goes by that we don’t discuss the ridiculous commission rates charged by marketplaces. For instance, I represent the owners of ALEXIVA.COM, a 7-letter domain name, a distinctive exclusive name with incredible marketing retention value, and can be used for any new company or new product, in almost any industry, an asset value multiplier, or an IPO candidate business seeking a domain name that has the high-end brand stature that can be used in fashion, cosmetics, music, food, beverage, confectionery, household goods, apparel, footwear, health and beauty, housewares, furniture, luxury goods, appliances, shoes, watches, purses, toys, games, software, APPs, technology, smart phones, e-commerce, or any high-end brand. It is currently listed in SEDO.COM for almost $2 million. If this domain name is not parked with Sedo.com, but sold through their network, then the owner has to pay a 15% commission or say $300,000. If the domain name is sold through one of Sedo.com partners, the commission would be about 20% or $400,000. Where on this planet can you buy a piece of property or an asset and pay 20% commission for buying that property or asset through a website?
Even Robbins, another leading domain broker of high-end domain names also stresses over this high commission rate fees. “I represent the owner of MyCareerMatch.com a company that provided career guidance services for decades and are now selling their domain name. MyCareerMatch.com is a domain name that can, without any doubt, help some business owner or startup potentially reach more customers without spending a lot of money on advertising. The word CAREER has about 135,000 searches per month (varies monthly) in Google, with a broad monthly search of 83,000,000 while MATCH receives about 1,830,000 searches per month in Google, with broad searches of over 30,000,000. This domain has a very high memorability and retention value, and would be ideal for recruitment agencies, employment websites, job centers, career guides, and others. We have priced it at about $250,000 but if the owner did not have to pay say as much as 20%-25%, then he would most certainly reduce the price to less than $200,000. The high commission rates for aftermarket will eventually come down. It cannot be any other way. Even selling a $70 million penthouse in Manhattan New York has a total 6% commission rate, including both seller and buyer commission rates.”
Lakshmi Pichai, an international high-end domain broker acknowledges that high commission rates will most certainly come down after some consolidation and competition among top marketplaces. “EmpowerPioneers.com is challenging the market and may be the transformative game-changer, although they won’t be the only one. Others will join in and commission rate pricing will feel the pressure from both ends. These high commission rates are just not sustainable. We have many domain names that are being negotiated on pricing and we get offers every day and present it to the owners of the domain names. For the offers we received in the last 6 months, almost every single one being negotiated could have sold if the price was reduced by the percentage of the commission rate, for instance 15%-25%. Domains that are highly sought, such as Securetrans.com, Jabbermate.com, Implantsexperts.com, Babybirdscafe.com, Miracleseedcapital.com, Ecomavenue.com, Cryptocurrencyexaminer.com, Bitcoinperformance.com, Suprasharp.com, Neosymmetry.com, Gomommydesign.com, Friscokiss.com, Millennialsoasis.com, and Bitcoinlocalatm.com would have already been sold if the seller has agreed to a 10%-20% reduction in the asking price. That is the commission rate by these dominating marketplaces which websites like EmpowerPioneers.com want to eliminate and instead have a listing fee only.”
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David Cohen a San Francisco based broker for Silicon Valley companies thinks that by the end of 2024, the commission rates will come down by as much as half. “I have clients who are negotiating to purchase some of the high end domain names we represent. These domains, like Writersviews.com, BitcoinSecureATM.com, or Botanicalmarvel.com are highly sought domain names, but if the seller has to pay 20% – then, at some point the negotiation goes into idle mode and both buyer and seller procrastinate. We had an offer for PhonePayment.com priced at $2 million, but the buyer wanted the seller to reduce the price by $250,000 to $1.75 million. The buyer was ready to pay and buy, if price was reduced. The sale would have happened if the negotiation was done outside the large marketplaces and on a platform that did not charge up to 25% commission.”
Will there be a transformative disrupter for the premium domain aftermarket in 2023 or even 2024, and the commission rates come down to something reasonable like MLS housing market, say about 6%? EmpowerPioneers.com certainly hopes so and they are trying to make it happen. For additional information regarding domain sale marketplace for domain aftermarket with zero fees and 0% commission, contact EmpowerPioneers.com directly on (786) 496-0590 or visit their website.
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