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May 07, 2019

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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

Sedo Removes Minimum Sales Fee & Lowers Minimum Bid Requirements for the Rest of 2019

Investors who buy and sell domain names employ a variety of different strategies. Some are able to specialize in high end assets that often run into six figures but a more common approach is trying to sell a higher volume of easily affordable domains. One drawback to the latter approach has been that minimum sales commissions can take a big chunk out of seller proceeds 

and minimum bid requirements make it harder for buyers to justify buying a lot of domains.Aftermarket giant Sedo just tackled both of those problems head on with a major change that is bound to be a popular one with a lot the buyers and sellers who use their global platform. They have eliminated their minimum sales fee (going from $60 to $0) for most TLDs and dramatically lowered minimum bid requirements (from $90 to $20) for the rest of 2019

For sellers, that will mean more net profits from domain sales priced at the lower end of the price spectrum and for buyers it creates more purchase opportunities for all budgets. Sellers will pay just the commission of 10%, 15%, or 20%, depending on the type of sale and where the buyer came from, regardless of the sales price. This promotional offer applies to domains within Sedo's Category I TLDs (which 

 

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is the vast majority of TLDs). Category II TLDs (that tend to have premium price structures) aren't included in this promotion. Expiring Domains Auctions and External Transfers also arenít included in this promotion.

Sedo's announcement included some examples of the impact the new pricing initiative can have on the bottom line:

Three possible outcomes if you sell a domain for $100:

1) The domain had a Buy Now price AND was parked at Sedo AND the buyer came from the Sedo platform: There is only 10% commission, so you pay $10 and earn $90. With the minimum fee eliminated, you earn $50 more.

2) The domain was bought through a negotiation or via auction on the Sedo platform: There is a 15% commission, so $15. You earn $85. With the minimum fee eliminated, you earn $45 more.

3) The buyer came from a SedoMLS partner site: There is a 20% commission, which is $20. You earn $80. With the minimum fee eliminated, you earn $40 more.

The bottom line is, for a domain sale of $100 you earn between $80 and $90, instead of $40 as has been the case in
the past. In all three scenarios, you earn at least twice as much as before.

Sedo also noted that you donít need to adjust any settings or make any changes in your account to activate this promotion, it will update automatically. List all of your domains with Sedo to get the most from this savings. You save the most when
you park at Sedo AND set a fixed price on your domains.

It is also important to note that sellers do NOT have to adopt the new $20 minimum bid. You can customize your preferred minimum bids in your account or by contacting your Sedo sales rep to set the amount manually.  

(Posted May 7, 2019)  

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