Thanks for everyone’s feedback. We have infact taken a conservative view in presenting the different scenarios in this article. Even though our 12 month sell through rate is currently more than 20%, we have used 5% as expected sell through for most examples, and 10% in one example. We could have used our current sell through rates to make the distinction even stronger, but we have chosen a much more conservative number in the analysis. As the Marketplace grows, it is certainly possible that the sell through rates may decline a bit.
The main point of this article is to convey that SH can actually get more revenue by implementing the exact same commission rates and appraisal/listing fees charged by other Marketplaces however we have aligned our commission structures directly with the success of our sellers. We do not want any revenue if we are unable to sell your names. If someone just evaluates the commission rate without accounting for other fees, it can lead to a flawed comparison.
We always value those in our community who have been with us, and any changes we make are in order to continue to improve our platform for everyone. Unfortunately, we are unable to revisit the past commission rates. While in some cases, you may have been offered a 2-3% higher SH commission than the current levels, we hope you also recognize that the early adopters of Marketplace have been able to achieve a fairly high marketing exposure and sell through rates (on average) on their names (since there wasn’t much competition when those names were approved).
Similarly, in the case of SH registered domains, the commissions offered initially used to be a bit greater than what we currently offer. Initially, for many domains, the creative commission for unregistered domains was as high as 40% (or 36% after withdrawal fees). However at this stage, it is extremely unlikely that a new domainer would receive such a commission for a SH registered domain. Therefore, it works both ways.
We will continue to look for more ways to make the Marketplace even more beneficial for our entire community. Regarding the unregistered domains, we expect to announce some changes in the next few days.