Announcement: Reduced Commissions for Sellers

We are pleased to announce changes to commission structure for premium domains (effective January 1, 2022). The changes are designed to benefit sellers who continue to list their domains with Squadhelp for an extended period.

If your domains have been listed for 2 years or more in the premium section, the SH commissions on seller owned domains will automatically reduce to these levels:

  • Selling Price Below $2499: 25% (Submission with Coins), 30% ( Free Submission/ without Coins)
  • $2500 to $5000: 25%
  • $5000 to $50K: 22.5%
  • $50K to $75K: 17.5%
  • $75K to $125K: 12.5%
  • Above $125K: 10%

Important Points:

  • In order to receive these reduced commissions, your account must be in Good Standing (e.g. no severe policy violations, no excessive delisting of premium domains etc)
  • Your listing date will be calculated when you added the domain to your account. If you acquire the domain from wholesale marketplace, or if you add a domain which was previously delisted, the listing date will be reset to the current date.
  • The new commission rules will go into effect on January 1, 2022. Any sales that have occurred prior to Jan 1, 2022 will continue to follow the original rules. This also includes any installment sales that are in progress.

We appreciate all the support and trust our sellers and creatives have placed in our platform by listing their domains as well as via ongoing participation in our platform. We will be making additional announcements in the near future that will benefit our seller and creative community.

10 Likes

Please define excessive in terms of % of domains previously listed. Because SH has not been selling much for some of us, we have had to de-list. But the change in commissions could impact our decisions. Also, because this is new, decisions made by sellers prior to this announcement should be considered. There should be some kind of kudos or points for hanging in there.

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That’s a super move @grant thank you very much, it is much appreciated.

Just to put everyones mind at rest, I’m assuming we’re all in good standing ‘unless advised otherwise’ (or perhaps there is something in our back office that we can see if we are not in good standing?). I’m asking as those of us that have removed names are in a panic right now :smiley:

Could you also confirm that Afternic sale commissions will also apply, so in effect we’ll be paying you 5% if a name sells on Afternic instead of the current 10% (for names listed under $2499).

Thanks

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@Commulinks Good question. Since we have received this question from few sellers, we have added an article that provides additional information regarding what can cause an account to move to Not In Good Standing.

Routine delisting of domains for a small percent of your domains does not result in your account moving to Not In Good Standing. However if a substantial number of domains are removed (typically above 15% of your portfolio), it can move your account to Not In Good Standing. In that case, you will be able to clearly see that from your dashboard since you will no longer have access to several features as explained in the article.

@AbleBrands We will be updating the policy regarding Afternic Sale commissions as well. Here is how the Afternic sale commissions will be calculated for domains listed for 2+ years:

SH BIN price less than $2499: 7.5% (submitted with coins), 12.5% (submitted without coins)
SH BIN price between $2500 and $5000: 7.5%
SH BIN price above $5000: 5%

We will continue to calculate the SH commission based on SH BIN price even if the actual selling price on Afternic is higher.

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With the huge growth of the marketplace and STR going down, incentivizing sellers to stick around with reduced commissions is a smart move. Kudos & thanks!

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This is a great change for those with large portfolios of names that are seller owned that were added 2+ years or more ago. I am happy for all of them. It works especially well for those with names listed for over $5K.

For those with names listed at $2499 (or less), it amounts to $125 (or less) additional on one sale, which does not come close making up for the plummeting STR. It would take about 10 sales to make up for 1 lost sale due to the size of the marketplace. Then you factor in that they need to have been listed for 2+ years, which reduces the number of names in a portfolio that qualify.

However, I realize that SH isn’t trying to make up for our lost sales - only to put the platform on par with other large marketplaces and that we as sellers have to make decisions about this.

I would like to ask SH to put a moratorium on sellers who have been here for a long time when it comes to delisting causing accounts to not be in good standing. Just as SH has to make decisions about the platform, so do we. And that can include delisting in order to stay profitable now that sales are down so much. I think there is a difference between a seller who comes here, lists for 6 months-1 year and delists to go on another platform and those who have hung in here since 2017 and are now dealing with all of the influx from others and sales losses. Thank you for considering this.

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Hello !
Quick questions :

  1. Do we still have to increase the price 8-10% on Afternic for SH Premium names?
  2. What happens with the wholesale market purchased domains - if the original seller
    listed without a coin, but then new owner later adds/pays the coin in order to be able to sell on Afternic? What category does that fall under?
    Thank you !

Hi everyone!

Just wanted to share an update that we have come across few examples where the reduced commission was not applied even though the domains were eligible for reduced commission as of January 1, 2022. We are going through such cases and will apply a manual credit to reflect the reduced commission.

1 Like

@ZestyQueen That is correct. The 8-10% requirement for Afternic stays the same.

If the seller acquires a domain from wholesale marketplace, their listing date will reset to current date. After 2 years, the domain will be eligible for reduced commission even if it sells on Afternic (as long as it was authorized to be listed on Afternic)