There have been a number of times where I received a direct inquiry or offer on a domain name, and instead of doing a deal directly with my company, the buyer will purchase the domain name via GoDaddy, where I also have it listed for sale. Sometimes the deal is done at a higher (or substantially higher) price than I would have offered had the deal been closed directly with me. Some buyers simply trust the GoDaddy brand name and are willing to pay a premium price to close a deal via GoDaddy.
Pierluigi Buccioli kicked off a discussion on Twitter yesterday, and I commented in response to him:
Buyer offers $1800 for a domain with a $2495 BIN price
Buyer goes to GoDaddy where he buys the domain for full BIN price
Moral of the story: buyers are perfectly happy to pay full price to expedite a transaction
— Pierluigi Buccioli (@pier0) July 9, 2020
Shortly thereafter, Hiren Patel also shared one of his experiences with a buyer purchasing a domain name directly via GoDaddy after negotiating with him elsewhere:
Last week I had little similar experience.
Someone knock the door on Dan with $500 offer
My counter : $9750
His counter : $1000
My counter: $9588
His counter : $2000
My last counter : $9288
2 days silence
He bought from Afternic Fast Transfer $9999
— QualityNames.com (@QualityNames_) July 10, 2020
In my opinion, many GoDaddy customers trust the brand name and would prefer to transact directly via GoDaddy. They don’t have to worry about coordinating with the domain seller or signing up for an account at Escrow.com, DAN.com, or other platform. They can use their preferred payment method, and the domain name will automatically be delivered to their GoDaddy account without having to deal with the technical aspect of a domain deal. To some people, this is worth a premium price.
I would prefer not to do a deal I negotiate through GoDaddy because of the extra commission and extra time it takes to get paid. However, I would not prevent a prospect from closing a deal via GoDaddy by taking down a listing. I would consider raising the price at GoDaddy to offset a higher commission and possibly dissuade a buyer from purchasing via GoDaddy after negotiating to buy the domain name directly with me or on a different platform.
I have sold quite a few domain names using GoDaddy, and other than the extra time it takes to get paid for transactions, I can’t really complain about getting deals done there. If a buyer prefers to purchase a domain name at GoDaddy, I am happy to allow them to do that.