Sedo Increases Sales Commission 50%; From 10% to 15% : For “Domain Sales By Our Sales Team” Without Notice
Thanks to a reader who noticed that Sedo.com is raising their commission rate 50%, from 10%-15% effective TOMORROW.
Changes to Sedo’s domain brokerage service prices on January 4, 2011
“”"Sedo is committed to helping individuals and businesses find their ideal domain name with the services they need to do so. ‘”"
“”In reflection of investments in our tools and services and an increased demand for highly personnel-intensive brokerage, we will increase the commission on successful domain sales enabled by our sales team from 10% to 15%. This change goes into effect on January 4, 2011.”"”
I checked my Sedo.com account and I have the same notice posted on the front page after you check in but only in one particular place in the site.
So basically Sedo is increasing their commission rate by 50% on sales where a broker is involved effective tomorrow.
Tomorrow.
I’m assuming from the notice posted on the site, that pure online transaction and auctions will continue to be at a 10% commission.
As customer who sold several hundreds of thousands of dollars in domains through Sedo in 2010 using there “sales team” (who in My Case consisted of Jeff Gabriel), I would have expected to receive an email to notify me of a price increase of this magnitude at least a couple of weeks in advance.
But I didn’t get any such notice
NOTHING
Are you kidding me?
I’m assuming if I didn’t get notice of this 50% price increase, than none of Sedo.com’s clients got a notice from Sedo on this price increase.
A notice on 1 page of a site, is not the way for customers to learn of a 50% price increase.
Moreover, other than a notice on the page I spoke of, other parts of Sedo’s site such as “Sell Domains” or Price List, still are showing a 10% commission for brokered transactions, with only hours now to go until a 50% price hike.
Happy New Year
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“I’m assuming from the notice posted on the site, that pure online transaction and auctions will continue to be at a 10% commission.”
“The notice itself is quite unclear:”
It is unclear and wide open to interpretation, has anyone from Sedo actually confirmed that pure online transaction will still be 10% ?
I thought all transactions on sedo involved a Live broker on their end, is’nt that what they are, Brokers?
“and an increased demand for highly personnel-intensive brokerage, we will increase the commission on successful domain sales enabled by our sales team from 10% to 15%.”
At what price/effort/time point does commission go from 10% to 15% ???
10k, 50k – 5 hrs, 20 hrs ???
I see TDS.TV is unregistered. TDS – “Top Domain Sales”…
- TBC
“I must be small time since I don’t have an island beach house”
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@MHB
With all due respect, YOU are a REAL Person.
The “Domain Industry” is now being built on a Dollywood Model
3D Virtual Worlds allow [Larry Leisure Suit] to show people around his Empire
A Registry can ~~fabricate~~ players to attract noobs to their License.to.Print.Money.Machine
There is even an “industry Lingo” that has developed: Sunset, Land.Rush, Roll.Out, Defensive.Registration
As long as the suckers put their credit cards in the slots the Eco.System will process them.
“But if you know the buyer and have met before and have a relationship you don’t have to go met by tickets and sit down a call will suffice.”
Sure, if you know the buyer it’s a lot easier, but selling to the same, incestuous circle of people- even if some repeat buyers might be categorized as ‘end users’- probably isn’t the right method and leaves far too many stones unturned.
To note the oft-cited Candy.com sale- the group who paid 3mm for that wasn’t Hershey, wasn’t Mars, wasn’t some gigantic candy company… It was a small to midsized organization who probably went all in on that name.
Successful brokering is about turning stones, inciting interest amongst people who have deep pockets and creating an ‘event’ around your name, even if it’s a private, tightly-kept one.
The best sales in this industry go unreported.
Besides Sedo (which is most probably overcharging for what it is doing) and Afternic (which has conflicts of interest), what are the alternatives?
Rich
Alternative to what, live brokers or automated systems sales?
@MHB
I would say both. I would say that what I am looking for is work and value commensurate with the effort. What I would like to avoid is a situation where I am paying a commission while the broker is actually actively working for the buyer ( a situation that often arises even in the real estate market).
“paying a commission while the broker is actually actively working for the buyer”
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Isn’t the situation in some cases ?
“paying a commission while the broker is actually actively working for the BROKER”??
People report they take their domain portfolio to brokers ( no specific company ) and their first experience is to be told ALL their domains are worthless.
(Sort of like grandma’s 1 caret Diamond is now worthless?… until polished)
@TheBigLieSociety
Unfortunately this has been my experiences so far. Without even looking at any facts, a price is placed on the domain (which is completely out of line with other domains that have been sold or on sale), most often substantially on the downside. It is rather disconcerting to observe a lack of due diligence on the part of the broker.
To add to my discomfort, brokers request both complete control and exclusivity over the process. My question is, what is going on behind the curtains that I (the owner/seller) should not be observing and taking a part in. I have worked with mergers and acquisitions, and the seller is not only an active participant in the process but also completely directs the process, for obvious reasons.
The percentage is fine if that is what they want to do. I think doing that on such short notice is not cool.
The funny thing is that what do they mean when they say “where a broker is involved”. What does that entail? Does that mean if they send you an email the broker is involved.
donny1
“To add to my discomfort, brokers request both complete control and exclusivity over the process.”
Exclusivity, obviously. It’s what preserves the integrity of the process. Don’t believe me, I’d propose this…. I’ll give you a name of mine to go and sell. Invest your time, money and effort to kick down walls and make the sale happen, then watch how fast I’m able to completely cut you out of the picture once all your hard work is done. Before you even realize what’s happened, I’m cashing the check and you’re holding the bag.
As far as control over the process, yes, that’s a no-brainer too.
In a broker, you’re hiring a representative who knows more about this than you do, which is precisely why you’re hiring them in the first place. It’s no different than if you found a Picasso in the attic. You could fire up the internet, get a baseline education on how the art market works and the whole thing would appear temptingly ‘easy’ to try your hand at, without an expert adviser who’s ridden that rodeo before.
Clients who want to hire advisers only to micromanage the process themselves are complete nightmares and counterproductive as hell. This is probably why you’re having a hard time getting rid of Links.com… That, and your expectations have most likely been unduly inflated by the hugely favorable opinions of ‘domainers’ who are apt to significantly overvalue a name like that, relative to it’s actual marketability.
@Anon
I understand your thinking. It is completely from a broker’s point of view who is trying to maximize profits while minimizing effort. It is completely contrary to what happens in any other seller/broker relationship in any other industry. In fact, Sotheby charges the buyer since for all intents and purposes, the broker is usually working for the buyer. The seller has to be involved in order to ensure the integrity of the process.
As far as Links.com is concerned, I am in no rush and will sell the domain in the way that I see fit.
@Rich what is your price for Links.com and what are you looking for in a broker ?
If you are interested in chatting, I’d be happy to talk to you about it and see if I can help in any way.
@Adam
No price has been set at this time. I am in the middle of my due diligence process to better understand the industry and different vehicles available to sell a domain such as the one that I own. I am also, simultaneously, investigating other opportunities other than selling the domain.
In order to avoid hijacking this discussion, I would be happy to discuss the services and processes of any broker who works for sellers. What I am looking for is a thorough understanding of the process and how the seller benefits from the process. I can be contacted via the contact form on my website at Links.com. Thanks.
Rich- “Adam” above is Adam Strong and would be worth talking to.
Also, consider Andrew Rosener- http://www.mediaoptions.com/
@Rich
“Besides Sedo (which is most probably overcharging for what it is doing) and Afternic (which has conflicts of interest), what are the alternatives”
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Sedo has their own portfolio that has hundreds of thousands of names called DomCollect. Personally, I am okay with a company owning their own domain names, but prefer a company to be transparent about it.
What other Industry that yo know of has such a Wide freaking bleeping Margins? and commision fees?
without offering you any kind of legal protection/insurance/warranty over contractual agreements…
inc: parking 50 % 50 in most cases?
“without offering you any kind of legal protection/insurance/warranty over contractual agreements…”
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If the U.S. Government provides a written Appraisal for the “Value” of your .COM domain(s), would that help protect you ?
How cool would that be ? You could tell everyone your domains are worth N billion dollars. They would appear as assets on your Balance Sheet.
@DSeller
I did not know that Sedo maintains its own inventory. This is as much of a conflict of interest as it would be if a real estate broker that I hired owns a home on the same block or condo complex. I totally agree that there should be much more transparency. Unfortunately, there are no ethical or legal rules governing domain markets which opens the industry up to complaints and justifiable concerns by both buyers and sellers. What is really going on? – is a question that needs to be asked.
TheBigLieSociety permalink
“without offering you any kind of legal protection/insurance/warranty over contractual agreements…”
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If the U.S. Government provides a written Appraisal for the “Value” of your .COM domain(s), would that help protect you ?
How cool would that be ? You could tell everyone your domains are worth N billion dollars. They would appear as assets on your Balance Sheet.
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I am talking about the subject of the thread… their “Brokerage Service” buying and selling domains.