Here is another update on the markup opt out process on Afternic.
Namepros member Stub was kind enough to post the reply he received when he opted out.
As you have requested we have removed your domain listings from all Afternic resellers that are adding a markup to your BIN price. Your domains will no longer be provided to markup test resellers from Afternic.
We appreciate you sharing your concerns. We are using this test to determine our long-term policy to reseller markups. As a customer we’d like to share some background on this exercise with you:
- The markup test involves a small number of resellers, less than 5% of our reseller network by sales volume.
- Afternic does not receive any of the markup revenue, 100% of proceeds from the markup go to the resellers.
- The data shows that while markup resellers experienced a slight decrease in unit sales growth, sales increased in other channels. It appears customers are searching multipe sites for the same domain name, or are contacting domain sellers via the for-sale link on the domain landing page. This means overall sell through rate is largely unchanged but shifted away from markup resellers to other channels.
- The markup test was in response to long-standing demand from Afternic resellers. Many resellers themselves have sub-resellers selling Afternic domains. By the time they were to get their commissions, it wouldn’t be economical for them to carry the Afternic names unless there was additional margin made available via the markup. As a result of the markup we’ve seen an overall increase in sales by this sub-reseller category.
Long story short our main goal is to help our customers sell domain names. To do that, we need to be in front of as many potential customers as possible. Sometimes, that’s means testing things like enabling third party markups. You still receive the contracted commission associated with your stated Buy Now price.
While this is standard practice with some other players in our industry, it’s something we have delayed implementing. We understand not everyone likes this practice, which is why we are enabling customers to opt out.
Please allow 24-48 hours for the changes to fully take place with our partners.
Feel free to reach out with any further questions.
With best regards,
Afternic Support
I thank Afternic for the detailed explanation.