The so-called “Domain Marketplaces”, charge as much as 30%, and have a range of confusing fees and “fine-detail” fees associated to their “brokers” or “partners”, who may or may not be involved in the sale of your domain name.
Why do they CHARGE so much?
What VALUE do they really provide?
Sale of a home in U.S. has a 6% commission fee, (seller AND buyer agents) which includes all the work provided by the Seller Agent, Buyer Agent, and their respective companies. Why domains are sold with such exuberant fees and commission rates?
Because most sellers don’t know about alternatives.
Here’s an ALTERNATIVE vs. Marketplaces:
- SEDO.com charges 10% BUY NOW, + Showcase (premium listing) Fees, from $39-$200+/mo showcasing
- SEDO.com charges 15% MAKE OFFER, + Showcase (premium listing) Fees, from $39-$200+/mo showcasing
- SEDO.com charges 15% DIRECT AUCTION, + Showcase (premium listing) Fees, from $39-$200+/mo showcasing
- SEDO.com charges 20% PARTNER Sale additional fees (which apparently you have no say on)
- GoDaddy-Afternic charges 20% for the first $5,000 sale price (other fees may apply) + subscription
- GoDaddy-Afternic charges additional 15% for above $5,001-25,000 sale price (other fees may apply)
- GoDaddy-Afternic charges additional 10% for above $25,000 sale price (other fees may apply)
- EmpowerPioneers.com Domain Listing fees: $25/mo listing fee + 0% commission
- Escrow Services fees: use a law firm near you, or use one on our list for approximately 1% (actually less)
- Your domain sold for $10,000-$100,000 cost you in fees about $2,000-$20,000+ at SEDO
- Your domain sold for $10,000-$100,000 cost you in fees about $2,000-$14,000+ at GoDaddy Afternic
- Your domain sold for $10,000-$100,000 cost you in fees about $25/mo at EmpowerPioneers.com + Escrow fees (~1%)
While Domain Name Marketplaces (Sedo, GoDaddy, and others) suggest that their percentage fees are justified because they offer escrow services so that the buyer and the seller can exchange (safely) the domain for the funds, the fact is that almost any law firm in U.S. or Canada or even Europe offers escrow services, and in most cases, by far, these escrow services are about a few hundred Dollars. Homes sold about a million Dollars have escrow fees of about $500ish in most states, so why for selling a 100,000 domain name, you have to pay about $20,000?
See Escrow fee of a well known domain escrow law office below. Instead of 10%-30%, they charge less than 1% for domain transactions. Their fees even include basic legal advice and answering your questions regarding the transaction.
|Registrar/Marketplace||Listing Fee||Commission Fee|
|Sedo.com||Showcase fees $38/language||10%-15%-20%|
|GoDaddy.com||Subscription fees||20% with minimums|