Domain Name Wire explores how to take advantage of AfternicDLS and if it helps sell domain names compared to the regular listings on Afternic.
When NameMedia bought Afternic, I figured they weren’t just going to add the domain aftermarket to their portfolio of sales channels. They had plans to enhance Afternic and use it as an onramp to the parent company’s sales prowess.
Shortly thereafter, Afternic announced AfternicDLS, an expanded promotion service that allows you to list your domains for sale through over 50 different channels in addition to the Afternic.com site. That includes BuyDomains and its live sales staff that handles requests via phone.
The commission for AfternicDLS is 20%, twice that of a basic listing on Afternic (and a few of its partner sites such as eNom). Is it worth paying that extra commission? According to Adam Gross, Director of Product Management, Domain Marketplace for Name Media, domains listed with DLS are ten times more likely to sell than domains listed with the basic service. “We are really happy with the results,” says Gross.
That makes sense given the distribution. Among the sales channels for DLS are 8 of the top 10 registrars, many listings sites, and the aforementioned BuyDomains.
I considered upgrading my domains on Afternic to “expanded promotion” earlier this year, but was confused about the “floor” price option available when doing this. Gross explains that the floor price is the minimum that you are willing to sell the domain name for. This allows AfternicDLS to negotiate on your behalf without having to contact you, thus closing sales faster. This is different from your reserve price. The reserve price triggers an auction at Afternic.
When listing domains at Afternic, here’s what you do to select AfternicDLS:
1. Choose “expanded promotion” from the drop down box.
2. Optionally, set a floor price. If you don’t set a floor it will slow down the sales process when a BuyDomains sales representative is negotiating on your behalf, and may result in a customer choosing another domain name.
If you have a large portfolio of domains at Afternic you wish to upgrade or if you need to upload a large portfolio, consider using Afternic’s instant bulk upload tool.
If you set a floor price, remember to close your listing if you sell your domain through another venue. If you’ve ever “bought” a domain through an aftermarket only to find out later that it was no longer available, you know the frustration.
So, is paying the extra commission worth the added exposure? My take is yes, especially for “mid-range” domains that you plan to sell for up to $10,000.
Pete says
These 20% + commission fees to sell domain names is hurting the domain name industry.
If these domain companies were selling lots of domains the market forces would keep the commissions down to support industry competition.
The domains are not selling and so now the domain industry comes up with high fees and huge commissions to sell domains.
Are these hyped pricey domain auctions with domain selling for upwards of a million dollars charging 20% – 40% commissions?
I had over 100 geo city domains and geo real estate domains listed on a popular site and sold zero of them. Not one sale. Now this company is coming out with a premium domains selling program with a charge of $3.99/month for each domain listed for sale. The commission is between 20-40% for each sale!
Are domain names a bunch of lemons waiting to rot in the summer sun with 20-40% commissions to sell them? Time will tell.
Patrick McDermott says
Hi Andrew,
This article is very timely for me as I am just about to use their enhanced service.
If you don’t set a floor price then listing at another venue is okay. Is that right?
As a Seller I’d like to be listed everywhere possible (that’s worthwhile).
Can you see any problem listing the same domains For Sale at both Afternic DLS and
Fabulous’ DDN?
And Sedo? And Moniker?
Thanks.
Patrick
Andrew says
Pete, I think the standard 10% commission is too low. It doesn’t give much incentive to a brokerage to personally market your domain. I have a broker who contacted potential buyers on my behalf and got a sale and only charged 10%, but I think 20% is the right price for that kind of service.
If AfternicDLS wanted an exclusive contract, then I think 20% is too high (maybe 15% would be right). But since you are free to list elsewhere then 20% seems reasonable. Heck, add 10% to your asking price and you’ll walk away with the same amount…and a greater likelihood of sale.
Andrew says
Patrick, you can list your domains elsewhere if you use AfternicDLS and set a floor price. Just make sure to immediately remove it if you sell through another venue. I’d also recommend not having a compulsory sale somewhere else…for example a ‘buy it now’ price.
As for DDN, that’s basically an instant sale, instant transfer platform. If you list a domain on DDN and DLS, be sure to immediately remove it if you get a sale through a different venue.
Pete says
FYI – Aboutus.org is now attacking all cash parking pages as spam and labeled as a Link Farm.
http://www.aboutus.org/LinkFarm
Check out candy.com – now labeled in big letters as a Link Farm by about us community.
uzma says
with domain names there is always a possibility you will never sell. unless u r comfortable with that domaining isn’t for u.
make sure u have other plans if u can’t sell at right prices: like development, etc or just hold on for fun.
Don1 says
This is what will end up happening they will take my advice once again over at afternic. 20% across the board will not work, no idiot with a 500k domain name will give these guys 100k to sell the name. It would be just eaiser to do a professional press release and negoiate with sedo at 5% and let them handle the bidding and everything. Just my opinion
1 to 5k 20%
5k to 50k 15%
50k to 100k 10%
100k to 500k 7.5
500k and up 5%
Michael Leskin says
Andrew,
I began buying domain names in April of this year and now have close to 600. Many are keyword-based with high search volumes and mid-high CPC.
I want to begin listing them on Afternic and Sedo. The information you gave on AfternicDLS and setting a floor price was very valuable.
I have over 450 domains at GoDaddy due to the low acquistion price via their Domain Buyers Club. Yesterday I learned that I cannot transfer a domain to another registrar for 60 days.
Does this prevent me from listing newly registered domains on Sedo and Afternic for sale? I’m very confused about this.
Thanks in advance for your reply.
Andrew Allemann says
@ Michael – you can still list them on Afternic and Sedo; a buyer will need to take possession of the domain name at GoDaddy rather than transferring to another registrar. All registrars place a 60 day lock on new domain registrations.