Sedo Eliminates Minimum Fee on Sales

Sedo announced that it is removing the minimum fee on domain name sales transacted via its platform. Prior to the announcement, the domain sales platform had previously charged a minimum fee of either $60 (for the vast majority of extensions) or $200. The minimum sale prices were $90 and $230 respectively.

In place of the minimum fee, Sedo is now charging a straight up commission. Here’s what the company said on its website announcing the change:

“Until now, with every domain sale you had to pay a minimum fee of $60. That meant selling a domain for a few hundred dollars might not have been worth your while. At least that is the feedback we received from our valued customers. We listened, and that is why we are doing away with the minimum fee!”

This is a good move for customers who sell lower priced domain names because it will mean less money taken out at the time of sale. For instance, here are three scenarios related to a $100 domain name sale that were shared with me by Sedo:

Example of a sale with the new promotion in place:
You sell your domain for $100:

a) The domain had a Buy Now price AND was parked at Sedo AND the buyer came from the Sedo platform: There is only 10% commission, so $10. You earn $90. With the minimum fee eliminated, you earn $50 more!

b) The domain was bought through a negotiation or via auction on the Sedo platform: There is only 15% commission, so $15. You earn $85. With the minimum fee eliminated, you earn $45 more!

c) The buyer came from a SedoMLS partner site: There is a 20% commission, which is $20. You earn $80. With the minimum fee eliminated, you earn $40 more!

This means: For a domain sale of $100 you earn between $80 and $90, instead of $40 like in the past. In all three scenarios, you earn at least twice as much as before.

I think this change will make it more likely that a seller would sell a lower priced domain name via Sedo than via PayPal.

It looks like this change is valid for the remainder of 2019. There is some other fine print, so you’ll need to read the offer page to see all of the details and limitations.

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

6 COMMENTS

  1. Obviously sales are tanking for lower value names and Sedo implements this to combat that problem. Thank the new gtld’s for lower sales. Buyers without that much funds would rather register a new G then to buy a com for low XXX. Some say these new extensions don’t affect sales but it’s pretty obvious.

  2. It’s a good move that’s good for the whole spectrum of domains. Even people at the top can potentially benefit from this. (Warning: requires a little vision vs. shortsighted thinking.)

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