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Domain Sales Platform Commission Breakdown

Spaceship recently upped the commission rate it charges for sales on its SellerHub platform. Spaceship started out by charging 5% to close a deal on the platform, and the commission rate was just increased to 10%. This wasn’t unexpected, but I think the company could have done a better job rolling it out while explaining why the change was necessary.

Doron Vermaat is the CEO and Founder of Efty, a domain name sales platform that recently started allowing buyers and sellers to transact via its Efty Pay offering. Efty Pay charges a 5% fee for transactions. Sellers can still opt to close deals using third party escrow and sales platforms without having to pay a commission to Efty beyond the monthly platform fee for landing pages.

In a well-written post on X today, Doron went into great detail to explain why the Spaceship commission increase is reasonable and why Efty is still able to offer a 5% commission rate. Doron outlined the fees, operational costs, and payment risks that domain name sales platforms take on when they facilitate a transaction. This doesn’t even cover the marketing costs incurred by domain sales platforms to get buyers to convert.

I think Doron’s post sheds some light on why commission rates tend to be substantial.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

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