Subscribe to RSS Feed

08|02|2011 05:42 pm EDT

GoDaddy Lowers Premium Listings Commission to 20%

by Adam Strong in Categories: Domain Sales

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%.

Tags: , , ,

10 Comments

Leonard Britt

August 2, 2011 @ 6:31 pm EDT

A commission reduction is good news for sellers but having to delete and relist every name would be very time consuming given that only a relatively small percentage of listings will actually sell.

Jamie

August 2, 2011 @ 7:41 pm EDT

That is great news! Now they need to speed up the payment process :)

Steve Jones

August 2, 2011 @ 8:25 pm EDT

That’s a pain that they don’t simply fix the commission of names already listed – we’ll have to relist thousands of names. :(

Premium listings are worth it though…hopefully with this commission change, new ownership will be putting some emphasis on these listings and making them more visible. This is not only GoDaddy’s biggest untapped cash cow in waiting, but better exposure of these listings would tremendously help the domain industry AND help GoDaddy’s customers get stronger names for their businesses.

Sameh

August 6, 2011 @ 7:28 pm EDT

@Jamie .. To me, speeding up the payment process is better than lowering the commissions. My account Exc told me that they are working on ways to speed up the payment process.

Sameh

August 6, 2011 @ 7:35 pm EDT

Here is a tip to get the 20% commission without having to delete your listings:

Just edit the domains. That would be easy if you have specific pricing model (EX: $999, $1999, etc..) and if so do this :

– Use the “Search” to list all domains with “List Price” 999 to 999.
– Select all then click “Edit”
– Set “List Price” to 999 then click “OK”
– Now all the listings are still the same but with 20% commission.

[…] couple weeks ago Adam Strong noted that GoDaddy reduced its fee on Premium Listings sales from 30% to 20%, but only on listings […]

Shane S

August 20, 2011 @ 5:18 pm EDT

Wish I found out about this earlier. Someone recently bought one of my domains – and I still had them listed at 30%. Of course now I updated them all to list for 20%… but I wish GoDaddy announced this to me with an email! It cost me over $400 in extra commission to them because I had to find out after. Why leave a bad taste in a customers mouth?

[…] the past couple months the commission was reduced to 20% on any new listings or if you made changes to existing […]

domain flipping

April 23, 2012 @ 1:39 pm EDT

well to be fair, GoDaddy doesn’t want to lose money too…so this way if you are lazy they get an extra 10% commission out of your domain flipping.

Domain Flipping

May 28, 2013 @ 2:56 pm EDT

Although 20% is the highest commission in the industry, the reach of Premium Listings is HARD TO IGNORE. specially if you are in

domain flipping… Premium Listings are shown directly in the registration path of GoDaddy.com when someone searches for the same domain name.

RSS feed for comments on this post · TrackBack URI

Leave a Reply