08|02|2011 05:42 pm EDT
DNN has just received word from Godaddy that Premium Listings sales commissions have been reduced to 20% on all new Premium Listings for the month of August. The previous rate was set at an industry-high 30%. Many domain name sellers had noted that the Godaddy commission was excessive but had seen good results using the platform to increase their sales. It’s important to note that this is a promotion on new listings. If you have existing names listed, you may want to delete them now and re-list them to take advantage of the lower commission structure.
All domain names sold through Premium Listings are displayed as for sale, with a “fixed price”, when a user searches for the domain from the Godaddy home page. Godaddy also offers an auction platform with a lower commission of 10%. These names also appear in the results for home page searches. Sellers can list their names at a fixed “buy it now” auction price, but auction listings do require the seller to sign-up and bid, and thus the conversions are likely to be lower than a “fixed price” option that takes the user right to a cart and checkout rather than requiring bidding. A recent report released by Sedo claims that “fixed prices” increased sales by up to 40%.