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10|26|2009 11:44 am EDT

Bido Changes Fee Structure, Creates Credit Based System

by Frank Michlick in Categories: Up to the Minute

According to Jarred Cohen’s post on the Conceptualist blog, Bido is now moving from a percentage based fee system to a credit based system. While the fee for domains with a reserve used to be the greater of 3% of the reserve or $29.99, it is now based on pre-paid credits.

The reserve pricing schedule is now 1 credit per $1,000 of the reserve (capped at 10 credits maximum). One credit costs $8.88 but users can save money by purchasing credits in bulk.

From Jarred’s post:

A reserve auction of $900 would previously cost $29.99, however now it only costs 1 credit ($8.88), a savings of $21.11. The credits are returned in the same fashion [ed. as before] if the auction completes with a winner. If the auction sells, you can reuse the credit(s).

While the credit system does mean lowered prices for listings with reserve, it does seem to complicate the payment structure and pricing a little. In addition it gives Bido some money reserves that can potentially work with, comparable to Registrars and Registries that require pre-paid account balances from their clients.

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5 Comments

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Jarred

October 26, 2009 @ 2:48 pm EDT

Thanks for the coverage Frank, very much appreciated.
We’ve had Credits prior to this change – they are also used for other things, such as Auction Acceleration (for example, if a seller wants to skip voting). We felt this change moving Reserve pricing to the Credit system would 1) actually provide more uses for our existing Credit system, 2) simplify the pricing structure (the need to have both a minimum fee and percentage tier), and 3) offer significant savings to sellers, in turn attract higher quality listings.

We continue to observe, adjust, and adapt as necessary to find the proper balance. Feedback and comments most welcome and I’m subscribed to receive notices of followup comments, so I’m looking forward if readers here have some input and feedback for us. Again, thanks for the coverage, very much appreciated.

Regards,
Jarred

Frank Michlick

October 26, 2009 @ 3:13 pm EDT

My apologies Jarred, I apparently did not pay attention when you introduced the credit system. Thanks for dropping by.

Jarred

October 26, 2009 @ 4:14 pm EDT

Not a problem whatsoever, it was quite a soft change at the time, still fairly new actually.

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October 27, 2009 @ 3:57 am EDT

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