Question of the week: If you could change one thing about the domain industry, what would it be?

by Morgan on November 13, 2016

I thought now would be as good a time as any to start a new series on my blog, and I’ve decided to call it the question of the week. Each week I’ll pose a question that I can hopefully re-cap at the end of the week with either an answer that seems to represent the majority, or at least a good representation of the different viewpoints.

To start things off I thought I’d pick a relatively broad question – if there is one thing you could change about the domain industry what would it be?

As always, it’s never fair for me to ask a question and then sit back in the catacombs while everyone else answers…so here’s my answer. If there was one thing I would change about the domain industry it would be the commission that marketplaces charge. 20% – 30% is way too high IMO for something that passively sells your domains.

If there’s a broker working hard making calls, sending emails, and hustling to sell my domains, that’s one thing. However if you’re a marketplace with thousands, tens of thousands, or millions of domains I don’t think 20% – 30% is reasonable. I’d be okay paying 5% – 10% but if there was one thing I could change in the industry it would be to bring these commissions down to something more reasonable.

Now it’s your turn, comment and let your voice be heard!

Photo Credit: benjaminreay Flickr via Compfight cc

{ 12 comments… add one }

Nick November 13, 2016, 11:10 pm

More transparency and checks and balances in things like domain parking, especially. Not that Google can come in and claw back $50 from a month ago and the parking company doesnt have to tell you why, or what domain was the target, who the culprit was, etc — just that “it happens”.

Its almost like its an organized crime business. You know, the big goons walk into your place and tell you they’re taking back some money for their boss. They cant tell you why, maybe they dont know – maybe they do, but they cant tell you. They’re just going to do it. If you dont like it then you dont need to do business with the boss.

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Joseph Peterson November 13, 2016, 11:39 pm

Teams … Prior to diving into the domain industry, my whole professional life was spent as 1 member of a team – all of us working toward a common goal, which none of us could accomplish without all of us succeeding.

Within the domain industry, there’s virtually no teamwork. Camaraderie exists to a certain extent. But that’s not the same thing. Most domainers work solo. Some are fairly antisocial, actually.

And this is not strictly a cultural problem; rather, it’s a problem of infrastructure. As friendly and supportive as many domainers are, there simply aren’t very many big projects or organizations. As a result, there’s scarcely any opportunity for teamwork. Resources and skill sets are not pooled. We bid against one another and gossip. Most of us reinvent the wheel every day. Occasionally we help one another. But, of all the industries I can think of, the domain industry ranks dead last when it comes to opportunities to collaborate on big goals.

Going straight from the submarine Navy into domainer land was a real shock – like jumping into a frozen lake after a jaccuzzi. There’s no changing this any time soon. But I do miss teamwork.

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- Paul Kapschock November 14, 2016, 7:14 am
  
  “Going straight from the submarine Navy….”
  
  Fun fact Joseph.
  
  I am commenting because my son was in Navy and submariner till his retirement . I even got to go on a 3 nite “Tiger Cruise” out of Bremington years ago. Many great memories!
  
  Glad to know you are old time submariner.
  
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- Morgan November 14, 2016, 8:01 am
  
  Great comments so far everyone!
  
  @Joseph – I really like your suggestion and couldn’t agree more…I wonder if we can find a way to build teams in the industry? You’ve got my gears turning…
  
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Domenclature.com November 13, 2016, 11:53 pm

Question of the week: If you could change one thing about the domain industry, what would it be?

Linton, let me commend you for a cool series!

My answer would be that a domain industry be created to replace what exists now.

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Chris November 14, 2016, 3:48 am

If I could change one aspect of this industry it would be for 100% outright ownership of Domain Names instead of the current lease/renewal system in operation, this one simple change would push demand and prices to new levels and make Domains a solid future investment option. A fixed price for lifetime ownership.

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joe November 14, 2016, 4:15 pm

Great post for better comments

@Nick, I suffer with registering US domains and another between Asia and US I suffer in my own flesh years that neither great US lawyers have not been able or have not wanted to stop this advertising game hidden from a great program without the Owner, registrant, administrative contact, know nothing have taken advantage of my and other fellow domainers US and not being able to make money with domain parking 8 years have 41 generic domains some premium and I have let them expire of these within ICANN there are many.

@Joseph, Team very well thought I think that from the beginning to have found a team formed in a social network of domainers would be much better than going to forum, I find on facebook for a 28 year old woman a team of varied age between men and Women Digital Marketing in Spain where I live and be a very interesting experience in which you share everything a little without fear, all are from different cities of Spain some wish to expand to other countries, it is a good very collective therapy to make a team that always You get much more than going solo in a globalized market.

@Cris, Interesting proposal but I do not think that I was in this group and many more like me would happen to them the same, this market there are those chosen by registradoras domains and those that if we find a discount on the way we do very well to my the 25 This 75% is not a wholesale domain name company, this usually happens in all markets if you are close to the place and you are friends with your executive team, usually 25% is a lot for those who play our lives In this market to be able to sell more, the question so that they need 75% if they already have in their portfolios more than 2500 generic domains and 75% with premium without using estibot.

@Morgan ,You well know what you get to spend and it is normal that in home business one look at your household expenses etc what you taught me I am grateful, but bad luck will always be the same I will not be like many of you in the eye Of the great business hurricane at conferences and events.

By last

Negotiations of premium domain names do not last a whole night, at conferences and events, looking at Google a phrase to write here, see in third position a website to be a magazine and a small interview say character before giving To know negotiation of a night, not to be so only 1 hour and to be negotiated in the event.

It is easier to close an important business agreement a meal with a good wine, when arriving at the office only makes agree the when and how.

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Ian Ingram November 14, 2016, 4:28 pm

Two easy ones. One that would likely increase profitability for those in the industry and one that could help to increase the credibility of the industry.

1. I’d like to see more domain investors waiting to put a bid in. Especially for those ‘under the radar’ type domains. Seems obvious and yes it’s often someone outside the industry that does this… but it is surprising how often domain investors will place a bid on an auction hours or even days before it ends.

I get that someone may be exploring the Krubera, sleeping, etc. during the auction but hopefully they understand that there will be more eyeballs on the domain because of their bid, and likely more bids. That there is a greater chance the domain will be placed on a daily list of available names or a list of most active auctions so everyone can see it.

If they put in a proxy bid and are not outbid, they will probably pay more for the domain than they otherwise would have. If they are outbid, there is a better chance that the price will go above what they or another rational investor would pay because of their early bid.

If this is someone’s standard method of operation, their early bid could be costing them or their industry teammates a substantial amount of money.

2. I would also like to see the term ‘domainer’ disappear. It’s generally not understood outside the industry and lacks professionalism, imo.

It may be because of the type of emails I get from those referring to themselves as a domainer, but more often than not they are the ones trying to sell a domain they registered yesterday for $100k today.

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Eric Lyon November 14, 2016, 6:20 pm

I like a few of the points made in this article. I noticed that you mentioned wanting a marketplace with lower commissions. NamePros has 0% commissions and we are actively working behind the scenes on ways to improve user interaction, along with several new features we would like to add.

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Ray November 15, 2016, 7:36 am

Brokers!

I have asked a number of brokers to broker my domains over the years.

Some that I have dealt with were fantastic. Some less so. Some do not even have the courtesy to respond when I send them domains, others treat domain submissions that they don’t see value in as a big joke. Its simply bad for business and lets the whole industry down.

Could I also take this opportunity to praise Brannans who I have used, but have no other connection with (I’m in the UK) and who I cannot praise highly enough for their professionalism and great customer service.

Ray

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joe November 15, 2016, 3:01 pm

Luck did not accompany me too much with regard to the broker commissions, but if I can say by reading from them that a 25% better pay the broker for better for the seller and get a much higher price than expected by the own seller.

It does not meet well that Godaddy or Afternic for sales of less than $ 5000 charge commission 25% the difference is of scandal but here it says something to him more important registrar

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joe November 15, 2016, 3:07 pm

Mistake Godaddy and Afternic be for less than 20% commission

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