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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