My first and last experience with Dan.com as seller

Hi everyone!

I’ve had some 3K domains listed with Dan a long time back but never bothered to add the remaining one’s because I’ve never had a sale through them until yesterday.

I’ve bought several domains through Dan by private sellers and always had a smooth and overall great experience.

But last week I concluded my first domain sale via Dan and I wanted to share my experience with you all.

Unfortunately I cannot share the domain name because the buyer requested not to do so which is not an important thing in sharing all this. The domain had a BIN of $2,988 at Afternic/Sedo and the buyer tried negotiating but I remained firm and sold it for the BIN price.

Buyer paid via bank transfer and Dan offered him a 1% discount for making the payment with this method which is good. However, I was charged the same 9% which is still not bad since I had to pay 20% to Afternic and 15%-20% to Sedo commission. Payment was well received and processed in no time which I admire their quick service and even the payout was done in hours. The entire process took just several hours which was great to see.

The problem I found was that when Dan informed me that “Unfortunately, we can’t process transactions above $2k through PayPal without charging an extra fee of 4% (Which PayPal is charging us). Can you please update your banking details so we can proceed with the payout?”

And my response was “That’s not done. This is my first transaction as a seller with your company and you’re asking to charge me 4% just for sending payout via PayPal!

I’m receiving much larger payouts from Sedo and Afternic and they charge me nothing. I would like you to send in full or in batches but I don’t want to pay any fee.

Then Dan responded this “We understand this was unexpected and have made an exception this time. This payment has been sent to your PayPal account without the extra fee.

Could you please update your banking details for future payments over $2k.

Payment was received in a flash without any deduction for which I thanked them and wanted to share it with you as well.

I’ve always had the reservations for not trying Dan landers which I’ve already discussed several times over NamePros and privately but I wasn’t aware of this problem where they charge 4% for sending payouts of over $2,000. And anyone following my blog is well aware that most of my payouts are over $2,000. Sedo and Afternic don’t charge anything for any amount of payouts sent to PayPal.

So in short, anyone selling a domain via Dan and willing to receive payouts by PayPal will end up paying 13% of your sales amount. 9% commission on the sale price plus 4% PayPal fee charged by Dan.

I wonder why the domain sellers at Dan say of paying only 9% commission whereas you pay 13% commission in total who’re receiving the payouts of over $2,000 via PayPal.

And here comes the gimmick from Dan which was the most frustrating part dealing with Dan and I’ll NEVER use them as a seller in the future. I’ve gone ahead and deleted my entire portfolio from Dan.

So what happened is I came to know that Dan with their new model is offering 1% discount to the sellers IF the buyer is going to pay Dan via bank transfer.

Here is the exact quote copied from NamePros under clause 3:

“In the new model, the seller even gets a 1% discount when the buyer pays with Bank Transfer.”

As per 8% commission, I should’ve received $2,748.96.
As per 9% commission, I should’ve received $2,719.08

I received $2,721.47 which is close to after the deduction of 9% commission.

Now calculate this. The sale happened for $2,988 – 8% commission = $239.04
$2,988 – $239.04 = $2,748.96

But in actual, I received $2,721.47 which is short of $27.49

For this, Dan gave me silly explanation copied below:

We offer buyers a 1% discount on their purchase when they submit the payment via Bank Transfer. Only when the buyer opts for this discount payment method do we discount our commission by 1% as to the seller. 

This applies to the final price the buyer pays and not the price before the buyer’s discount. 

Our standard commission is 9%. If the buyer does not opt to pay via Bank Transfer, we charge 9% commission. 

In this transaction, if the buyer paid via a different payment method, the buyer would not have received a discount and our fee would have been 9%. 

This would have been calculated as follows: 

Full price: $2988,00
Our fee: 9% (268,92)
Your Payment: 2988-9% = $2719,08

The buyer however paid via Bank Transfer. We therefore provided the buyer a 1% discount. 

This is calculated as follows:

Full price: $2988,00
Buyer’s discount: 1% (29,88)
Buyer’s final price: 2988-1% = $2958,12

Since the buyer received a 1% discount, we charged you a discounted commission of 8%. Please note that this is calculated from the final price the buyer paid after the buyer’s commission was applied. 

In this transaction, the total paid by the buyer was $2958,12 after the discount was applied. Your payment is therefore calculated from this value and not the initial price before the buyer’s discount. 

This is how your payment was calculated:

Buyer’s final price: $2958,12
Our discounted commission: 8% (236,65)
Your payout: $2958,12 – 8% = $2721,47

Important to note your payment is calculated from the final fee after the buyer’s discount was applied.”

If this was the case that Dan mentioned, then why the hell did they say at NamePros that in their new model, the seller even gets a 1% discount when the buyer pays with Bank Transfer? Because no matter how the buyer pays with, the seller was already getting their cut after 9% commission.

So Dan charged me 9% on the sale amount or 8% commission on the buyer’s final price. In short, I actually received the amount after 9% commission.

So they should either take back their 1% commission they’ve started offering without actually giving or give it in real.

Feel free to give your feedback no matter how good or good it is 😉

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69 Comments
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James
James
1 month ago

These are all things that have been known for years as far as extra charges for PayPal payments over 2K. Not sure how you weren’t aware. They still have one of the lowest commision rates in the business and pay pronto not like Afternic and Sedo. Many of us love DAN.

Raj
Raj
1 month ago

Most of the members know about this, i prefer wire, payout wise they are fast. I love dan

Matt
Matt
1 month ago

Blown out of proportions.

  1. Skip Paypal if you have an issue with the 4%
  2. Even with the 4%, they’re under Sedo/Afternic

It sounds like the 1% is wire transfer is for buyers and how they pay, shouldn’t even be related to how it affects Sellers.

I’m not a BIN seller on any marketplace, rather have my own landers and deal directly with buyers. Dan so far seems like the most innovative and most determined option out there. wish them the best.

Joshua Bonsu
Joshua Bonsu
Reply to  Matt
1 month ago

Hi Reza,

I do not think it is worth the reply…. I have much respect for Abdulbasit but in this situation he’s been unreasonable

Reza
Reza
1 month ago

Hi AbdulBasit, So effectively you made more money because of the new checkout introduced by Dan but that’s a bad thing? If the buyer had paid with a different payment source, the commission would have been 9% and the total payout would have been lower as well. In that case, you wouldn’t have left us a 1-star review and used tags in this post like “Never use Dan.com” for SEO ranking. But when you do get a bigger (the benefit for the seller isn’t huge but still present) payout because the buyer opted for a bank transfer, then you portray… Read more »

Ian Ingram
Reply to  AbdulBasit Makrani
1 month ago

Seems like an overwhelmingly positive Dan transaction to me: – Your customer saved money without costing you anything by paying via bank transfer. Very cool. – As a result, a couple of extra dollars were added to your bottom line. Bonus. – You had a pretty smooth and quick transaction. Nice. – Dan even granted your PayPal request and removed the 4% fee. Very accommodating. – You also received payment faster and paid less than half the commission you would have at most other marketplaces. Sweet. – The 1% discount issue was misleading to you and you feel shorted out… Read more »

Ian Ingram
Reply to  AbdulBasit Makrani
1 month ago

“It has to be the exact amount I should receive. Nothing more, nothing less.” I feel you did receive the exact amount you were supposed to. You just weren’t clear on how the payout was calculated. I appreciate your blog. I’m sorry to give you this tough love, but I do it because I feel strongly that your article is unfair and unwarranted. I’m not a big Dan user either but they have been great for the industry. They are learning, growing and constantly taking feedback into consideration and making improvements. They are one of the reasons marketplaces like Afternic… Read more »

DomainsGENERAL.com
Reply to  AbdulBasit Makrani
6 days ago

I’m sorry, but according to your article and comments, you seem very confused. You keep seeing your selling price and fail to see how much the buyer actually pays. You seem angry because you were announced a 8% commission, and you would want this on your selling price in the end. But that amount was never paid by the customer! You would want Dan to pay the additional 1% the customer didn’t pay AND lower their commission 1%!? They are doing it ONCE (paying what the customer didn’t pay through their reduced fee), not TWICE. You can’t have your cake… Read more »

MapleDots
1 month ago

There is an easy solution to all of this…

List on marketplaces at a slightly higher price, point the domain to your lander and sell at a lower price. Specify your payment of choice. Most clients check out the domain in the URL bar before they buy so in a lot of cases they will pick the lower price and engage through your lander. So even if they see it on marketplace you have higher odds of selling commission free via your lander.

Albert
Albert
1 month ago

Thanks for sharing this information and reviews. Good to know this. Hope more DAN sellers can search and found this reviews on Google before listing in DAN.

Joshua Bonsu
Joshua Bonsu
Reply to  Albert
1 month ago

Trash

Samuel
Reply to  Albert
1 month ago

Dan has been good so far, this is BS

zone
zone
1 month ago

you are bad boy Don’t use Dan.com

Saul
Saul
1 month ago

Seems a bit harsh on Dan they were trying to help you out ultimately. Paypal is the one you should have an issue with if anyone, that’s a obscenely high commission rate for moving some money ripe for a new startup to come in and disrupt if you ask me.

Joshua Bonsu
Joshua Bonsu
1 month ago

This sounds like a sponsored post and very unreasonable. What point are you trying to prove here. That Dan pays PayPal fee? Even with the extra 4% it’s still cheaper than the companies you mentioned so what’s your point?
You go this far to right a blog post for something this trivial really?
I’m disappointed

Michael
Michael
1 month ago

Sorry Abdul but a very poor article in my opinion. Everyone knows there are extra charges for payout about $2K at Dan. They have one of the lowest commission rates in the market. They are constantly innovating. And also, they listened to your request and did not charge you extra 4%. The article is in very poor taste in my opinion.

Bipul
Bipul
1 month ago

I was not also aware of the 4% Paypal fees for my 1st ($2000 sales). But they have a superfast bank transfer which has no fees at all for me. I used my Payoneer ( SEPA) which takes only 24 hours for most of my payouts.

BullS
1 month ago

Did GD pay you to bash DAN?

So Dan charges you 9% and GD charges you 20%…..so what are you bitching about?

When my client wants to pay me $90K for my consulting fees via pay pal, and get dink by the fees, I told them I rather have a check and wait for a week. No biggie.
I rather have the check.

Anon
Anon
1 month ago

I realized that your trustpilot 1 star feedback and after that saw your post.

This is not the kind of gentlemanly behavior that befits you. I request you to change the comment. Giving 1 star is unfair in my opinion. You also didn’t explain why you gave 1 star. I hope you realize that you are hurting not the company but the sellers trying to sell their domains.

Charles
Reply to  AbdulBasit Makrani
1 month ago

Highly biased post with full intention, who doesn’t know that PayPal charges 4% on business payments, if other companies don’t
Get charged or pay the fee could be special arrangements but quite strange!
Nobody deletes all names and bashes a great
For this nonsense, go to other platforms that play with people’s money for days or weeks
Pure bs.

Matt Morgan
Matt Morgan
1 month ago

Hello Abdul, how are you doing? I hope you and your family are fine.

The domain industry is a learning game, and even yourself an advanced domainer, you are still learning by experiencing platforms and landers.

Great find and thanks for sharing it with your fans

Matt Morgan

Mobolaji
Mobolaji
1 month ago

Hello AbdulBasit. Thank you for sharing this but I find it misleading. Though for the sake of ambiguity in the said quote concerning the commission stated by Dan, your thought is understandable. But a clear understanding of part 2 and 3 of Dan’s sales processing structure which you quote would have prevented this.

I hope you reconsider your review of this.
Thanks.

Samuel
1 month ago

Hi Abdul, I admire you but this is not right. You just made a mountain out of A molehill, didn’t expect that from you.

DomainerChase
DomainerChase
1 month ago

I think you are unhappy with 1% extra you want dan should take 8% if buyer pay bank transfer but i think it’s dan standard policy for seller they will take 9% commission it’s not our issue if dan give his buyers extra discount so $2k+ we all known about this..
Love Dan.. lowest commission and nicest landing pages.

Jose
Jose
1 month ago

Hi Abdul, Thank you for sharing I use Paypal to receive money from sales domains if it is not higher than $400. In DAN I preferred Bank Transfer, the same as Afternic, Sedo and finally Uniregistry (which is still in their market after my last comment on their blog, it was feasible and everything worked for the better). We have a lot to choose from to buy and sell domains, now each of us choose the place that best goes well for sales. Hate DAN for the sales of domains in BIN $ 1200 could from $ 100 to my… Read more »

stablebrands
stablebrands
1 month ago

Maybe I failed to understand that last part of 1% but to me looks like the 1% discount goes to the buyer not the seller? And in this case if the company gives the buyer 1% it means they have reduced there commission but but there charge of 9% stands?

I could be wrong though but it how I understood it and have used Dan without issues

stablebrands
stablebrands
Reply to  AbdulBasit Makrani
1 month ago

With this I definitely feel what they said was right. Though the calculation could be wrong(not sure either)

Here is my point.
Did you get exact fee after 9% for selling = No (You got slightly higher by about $2.8, Would you consider that not a benefit with the 1% discount given to buyer?)

Maybe you would just be interested in knowing how much the seller benefits from the buyers 1% discount?

Raj
Raj
1 month ago

I don’t understand why people without reading the post completely but support DAN.
Abdul is sharing his bad experience and it is not mainly about paypal but the 1% discount they claim to offer for sellers.

Last edited 1 month ago by Raj
stablebrands
stablebrands
Reply to  Raj
1 month ago

Hi, I thought the 1% is offered to buyer and in the process the seller benefits though by a small amount in $ from the 1% discountered to buyer and thats the $2.8 he got in addition?

stablebrands
stablebrands
Reply to  AbdulBasit Makrani
1 month ago

Here is my point and my understanding.

1% benefit for the seller is on commission Dan was to get(In this case $268.92) and now instead of them taking all that your given your discount of 1% of the commission ($268.92*0.01=$2.7).

So that $2.7 is topped on your initial amount you where to receive.

Does this make sense?

stablebrands
stablebrands
Reply to  AbdulBasit Makrani
1 month ago

Maybe they need to explain it better for everyone to understand!

Just curious would it be “nonsense” if it was a big sale ($300k)and your 1% yielded say $300 in addition to the actual amount?

Nametree
Nametree
1 month ago

Taken aback by the tone of this post – I usually look up to you as a measured resource of wisdom in the domaining community, but this is anything but wise or measured. There have been many questionable enterprises in the domaining industry, and while Dan has its imperfections, they’ve pushed the industry forward in many ways (commissions, landers, user experience, speedy payouts and transfers). You’ve lost a fan.

Sulaiman Saafir
Sulaiman Saafir
1 month ago

Hi Abdul Basit,

What do you mean by “I’ve had some 3K domains listed with Dan”

Do you mean pointing your domains to dan? Or just listing? Have you ever used their nameservers?

Thanks.

Sulaiman Saafir
Sulaiman Saafir
Reply to  AbdulBasit Makrani
1 month ago

Okay, so which lander of afternic do you use now a days? NS3/NS4? Or NS5/NS6?

Mr Dee
1 month ago

Abdul, my friend….I think you should try and relax. Dan.com is one of the fastest, smooth, lowest commission and secure service you can use. This time around I think you’re depressed because you have lots of domains listed with Dan.com but your conversion is really low.

Zaman
1 month ago

Thanks, A. Basit for sharing. This helps us with domain Research.

Rieza
Rieza
1 month ago

Hi Abdul… I hope you and family always in good condition. Its not about 1 % discount good or worse for all, I think DAN only need to focus to build a large network like afternic / sedo than change the commission model after 1% discount to buyers. DAN should build a large network with top registrar worldwide to beat afternic / sedo and dominate the domain market globally. Why ? As a domain sellers may be we want to answer 2 very simple question : “When we didn’t point the NS to DAN , is it possible the domain… Read more »

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