Most people are likely familiar with the forthcoming modifications to the sales commission rates across all GoDaddy properties, such as Afternic, DAN.com, GoDaddy.com, and Uniregistry.
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Effective February 1, 2023, a new commission structure will be put in place with a 15% commission rate for domain names pointing to Afternic, Dan, or Uniregistry nameservers at the time of sale. In contrast, those not directed to these nameservers will be subject to a 25% commission rate. To qualify for the 15% commission rate, the DNS must be directed to specific designated nameservers.
There is a rising debate among domain investors as to what constitutes a fair commission for domain sale, with some expressing frustration over excessive commission rates. Although there are less expensive alternatives like Escrow.com and Sedo, additional expenses may still apply.
Investing in domain names was once highly profitable when there were few domain zones available. However, with the rise in zones, domain potential dropped significantly. At present, buying top-level domain zones is a risky undertaking, since investors can build their own zone for about $200,000.
This investment comes with escalating risks, as evidenced by the 30-year wait for a profitable outcome with ai.com. Maintaining an extensive domain portfolio also necessitates a substantial budget for renewal costs, which may skyrocket if the cost of renewal is increased by one or more domain zones.
Furthermore, non-Russian investors betting on domains outside Russia, particularly the common .com zone, face technical obstacles and significant risk. To guarantee adequate domain protection, registering and defending a trademark becomes necessary, given that many countries have mechanisms in place for similar domain names to registered trademarks.
As a result, it is recommended that individuals buy a domain name for its intended purpose, such as for a website or online store, rather than solely for investment purposes.