I’ve had a couple of sales on DAN.com since the last week in March. One sale was a straight-up purchase after a negotiation on the platform, and the second sale was a lease to own purchase using a three year payment plan. I thought I would share a few things I learned about DAN after using the platform for these two sales.
For what it’s worth, I have 271 domain names listed for sale at DAN right now. I started listing late last year with just a handful of domain names. I have added about 250 names in the past month or two.
A few observations and things I learned about DAN:
- After the negotiation concluded on the first sale, I experienced very good communication from DAN to facilitate the transfer of the domain name. The domain transfer was seamless, and I was paid quickly. I can’t think of anything that would have made the transaction happen more smoothly.
- When you sell a domain name with a payment plan, DAN takes a 9% commission. If the buyer pays over one year, the purchase price increases by 10%. If the buyer pays over 2 years, the purchase price increases by 20% in what is called the “long term markup.” I was not aware until after I closed the lease to own deal, but DAN’s commission is 50% of the long term markup amount, in addition to 9% commission on the base price. For instance, if you have a BIN price of $10,000 and a buyer chooses the lease to own option over 13 months, the commission is 9% of $10,000 plus 50% of the additional $1,000 markup.
- Sellers may wish to keep this extra commission amount in mind when pricing their domain names and setting the maximum length of a lease because it will affect the monthly lease fee and the payment amount. In addition, the markup % is taken from every payment, so if a buyer opts out after month one, DAN will still earn a percentage of its longterm markup commission.
- What I shared above is NOT to say that I think this is unfair. In fact, the escrow services I have used all charge an annual fee for managing the deal. I did not educate myself first to understand the fee structure. Unless I missed something, I think the explanation about the commission fees could be a bit more clear. That said, I have added quite a few more names to my account with this lease to own payment option because of the ease of use.
- Setting the price is very important when offering a payment plan on DAN because there is no option to submit a lower offer. I wrote about this previously, but I think it is important for users to understand.
So far, I have had a good experience using DAN, and I have added more names to my account there. Most are standard low to mid-value inventory I have in my portfolio that have BIN prices on GoDaddy already. For people who directly navigate to my listings with BIN prices, I feel like it may be helpful in closing a deal more quickly without the need to negotiate or get involved.
Importantly, I think it is pretty clear already, but DAN is a sponsor of this blog. It’s a banner placement deal, and I am not compensated per lead or per action. Put simply, whether you decide to use DAN or not, I am not compensated more or less.