Hello and Assalamo Alaikum,
Recently I received email from DomainNameSales.com which I would like to share with you:
Dear friends and clients of DomainNameSales.com
Beginning today our DomainNameSales.com brokerage will be adjusting commission structures for brokered transactions from 12.5% to 15%.
This commission adjustment brings the industry’s most advanced sales-platform in-line with market rates charged by other brokerages, however, it is an incredible bargain against the backdrop of services which continue to increase as we move towards our integration with Uniregistry.
Over the past 90 days we have added 5 new Domain Brokers – two are fluent in Mandarin, three have backgrounds in Hi-Technology, Advertising, and Engineering Sales. Our new team members allow us to extend our reach into new markets and industry verticals, and to do a better job for you. The total number of in-house brokers at DNS is now 24 – who speak more than 10 languages, and are available from 7AM-9PM M-F CST, to work on your leads.
This rate change applies to any domain negotiation currently in process unless the price has been agreed upon by buyer and seller.
Any questions please call 1-800-818-1828 ext 8 or +1 949 416 2555 and ask for Jeffrey Gabriel.
Jeffrey M. Gabriel
Vice President of Sales | DomainNameSales.com
Office: +1 800 818 1828 (x6261)
Direct: +1 949 416 2555 (x6261)
QQ: 2926924739
Skype: JeffreyMGabriel
Personally I don’t think this change is good because of two reasons. One is there is no more attraction in commission percentage as compare to similar platforms like Afternic, Sedo, etc. Earlier rate of 12.5% was better not because I had to pay 2.5% extra from no onwards but the main reason is these rates are charged by other companies too. Although I still like DomainNameSales far better than others because the brokers are very professional and friendly as well as there is clear transparency at all steps.
Secondly, as mentioned in above message “this rate change applies to any domain negotiation currently in process” isn’t good too. Now when I am negotiating with a person through broker, so I have set margin of 12.5% but in between of negotiation I have to adjust my margin level and keep things tight in lowering my final asking price. In my opinion, this change may take place from any specific date/time.
What you guys think about this change? Feel free to share your views on it.
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I agree 100%. I can live with a 15% commission but I am not very happy about DNS applying it to negotiations currently in progress. They should have left existing negotiations at the 12.5% level and 15% for inquiries received after the change.
Exactly!!
15% is in line with other venues and +2.5% is a small but fair increase given the work the DNS brokers usually put in, IMO.
Actually 2.5% isn’t much increase but since they were having edge over the competitors who are normally charging 15% but now onwards most of the companies including DNS having same brokerage fee. Not that impressive considering just commission rate.
Their true edge is their sales platform and if this will continue to allow them to offer what many of us in the industry use on a daily basis (for free), I have no problem with them charging what is the going rate at this point in time. 🙂
Rightly said. I am sure Frank Schilling will keep his platform on top compare to his competitors. As always he comes up with best whether it’s parking company, registrar or registry.
Thanks for commenting and sharing your views 🙂
I have seen huge domains offering a 12 month payment plan internally thru their system, now if uniregistry, and dns could linkup, and offer this same service, domain sales would go thru the roof.
Yup. Agree with you 🙂
Also I have heard they are coming up with marketplace which will definitely be great for domainers to get more exposure and create more possibilities of selling off their domains.
Afternic also just increased the commission structure..do they have some kind of association and agree among each other to increase the commission?
I don’t think so they are associated in such a way that both increases the commission together. We may call it coincidence 😀
A rate increasing trend of brokerage houses is not good at all for the development of secondary market. Sellers will have to increase their price to reflect the increased commission rate. This means there will be less sale of domains.
But I still think DNS won’t lose that many sales because they still have the edge over many things like their platform, transparency, highly qualified brokerage team, etc.
I like your blog. You are really communicating.
Thanks very much! 🙂
Comments from people like you keeps me active in sharing news and tips.
I think I have my feelings very clear about this on my blog this morning. For me I do not see why it’s acceptable for DNS to increase the commission from 12.5% to 15% on domains which they started brokering when the commission was 12.5%. Totally unprofessional, and some might say, unethical!
I can accept the price increase and will continue to use DNS. I just don’t like the way they have ‘forced’ this increase without any prior notification.
Rightly said. The only thing I can do now is not to lower my asking price for the leads where the % was increased in between the negotiation is under process. This may lead to less number of sales for both DNS and their clients including us.
An increase is not good news but its not a surprise given some of the competition have increased theirs. It’s still the best platform and you have the opportunity to do your own negotiations.