Are You Affected by GoDaddy’s Commission Change?

If you buy or sell domain names, you’ve probably by now heard about the big change about to happen at GoDaddy. We’re talking about commission, of course, and the changes GoDaddy is about to implement at its aftermarket sites – Afternic, Dan, and Uniregistry.

Rather than having different commission rates on each site, as is currently the case, February 1st will see the introduction of a standard 25% rate. This does drop to 15% if you’re using GoDaddy’s servers, but even then, some clients are going to lose out because of the change.

The losers look to be those who currently use Dan to make their domain sales. That’s because they are paying just 9% of each sale to Dan. In future, they’re looking at 15% – and that’s only if they use GoDaddy’s servers. That’s still a 6% increase – and if they’re using other name servers, they can expect a huge 16% increase in commission.

If you’re in this position, what can you do?

Look at alternative services

GoDaddy is arguably the daddy of them all, and this change merely solidifies that. However, you could look at other services such as Sedo and Sav (two separate businesses, although they sound a bit like a modern solicitors when written like that).

Consider the commission – and the service you get for that

We should mention that the commission is just one part of the process to think about. Of course, if you are currently selling domains at Dan, you’re going to pay more for the privilege as of February.

You’ve got a while to look at alternatives including the ones given above. But make sure you consider the service too. It’s easy to be impressed by a low commission percentage, but is it still easy to sell your domains via another site or service?

Most importantly, do they have the reach offered by GoDaddy?

Sedo is the best bet in this case, and it could be that it’s worth switching and making a sale or two to see what you think. There won’t be a one size fits all alternative to suit every seller.

Some may choose to stay with GoDaddy despite the hike in rates – although this only looks set to affect Dan sellers rather than those using the other GoDaddy services. If you currently use other name servers and will therefore get hit for the full 25% commission charge, consider whether it’s worth switching to their servers instead. This is the quickest way to drop the commission to 15% while still taking advantage of the market reach on offer at GoDaddy.

In the end, no two people are likely to be in the same situation. It’s important to make sure you do your sums and see whether moving away from GoDaddy will be the best bet or not. The answer might be simple enough if you’re using Dan, but not as clear if you make your sales using their other services offered by GoDaddy.