Hello everyone,
Today I wanted to share the secret or the reasoning behind my pricing especially at Afternic. Although I keep the same pricing at every platform whether the inquiry comes via Afternic, Sedo, direct or elsewhere.
There is a calculator for calculating Afternic commission and I know many of our sales are in the range of below $5,000. Actually it matters when your price is $5,001 and especially $25,000 and above that level.
So whenever you’ve a sale of $5,000 or below that level at Afternic, you tend up to pay a fixed commission of 20%. However, for instance a domain you sell for $24,888 then you’ll end up paying up a commission of $3,983 which is exactly 16% commission of the sale price.
Now the interesting part is when you sell a domain just for $1,000 more which means $25,888 then you’ll end up paying a commission of $4,088 which is almost 15.8% commission of the sale price. I know for some domain sellers, the 0.2% commission is not a big deal but you’ve to think that when a buyer is willing to pay $24,888 then of course they can pay $25,888 as well.
And you know what… as the sale amount increases, the commission drops significantly. For example, if you remember I sold AutoFun.com for $50,000 via Afternic BIN, so I ended up paying exactly 13% commission if you calculate through their calculator.
Yeah I know the big sales don’t come that often but I’ve seen many investors selling their domains for $24,888 or $24,000 so this post is especially for them to understand and revise their prices.
In short, if you see their sales commission structure and study it, you’ll know that as the amount increases, their overall commission decreases. So keep their commission structure in mind when pricing your domains.
Feel free to give your feedback no matter how good or good it is ๐