I wanted to test out SnapNames.com to sell domains and have been doing so now for about a month. I tested "old" domains, I tried newer registered domains, short, long and different extensions, different starting prices etc.

So here are my findings and thoughts behind it:

First of all, SnapNames.com charges 20% once a domain name sells. It’s a bit high, but SnapNames.com use to be KING when it came to selling domains and for high prices. Remember the "use to be". Out of all the domain names that I listed for sale, only one was ever featured on the "Home Page". That was 9F.net and who wouldn’t feature it! It’s a 2 character domain that I listed with No Reserve and $99 to start! I think the reps must pick random domains to feature on the home page, since there really isn’t any pattern and today’s featured domains are…. Not so hot! Domains I wouldn’t even register really. Like School-Milk.com or TodaysBestBet.net or DatingOnlineLinks.com etc.

Now I question what a seller "Get’s" for their 20% sellers fee? Extra marketing? Featured Listing? Spotlighted? Email Marketing? or is the fee simply because of the name SnapNames.com and your domain is listed on it’s platform? I think it’s because of the Name! I wanted to look at the 20% and break it down a little. 3% can be taken off the top for payment processing. 17% left. I figure about 1% goes to the ONE Person who lists the domains into the system. Another 1% to the payment processing people. The other 15% goes to "the house"!

As for the domains I listed… It started out, rough with 3 Non-Paying Bidders all on 3 letter .org domains. It took a bit of time and pushing on my part to get Snap to say the bidder was bad. After that I requested the domains be relisted. All the relisted domains did sell and were paid for the second time except one which didn’t meet reserve. The 3 Letter .org’s that I started with a reserve of $499 did the best and sold. I did list a batch at $99 and they all undersold IMO. They undersold in the toon of At or Below current wholesale prices according to ($320) 3Character.com . So being charged 20% and starting at $99 with No Reserve and selling for (LJQ.org $279) (FZH.org $304) is not worth the time or chance at selling. Now I did have some that sold for what I considered "fair" prices, but again, these were starting at $499 each. (BGK.org $599) (APK.org $574) (GAH.org $681) etc but one would say they are better domains and should of sold for more. Still not at prices I think for charging 20%.

VCVC .com domains did BY FAR the worst and sold a great deal under what other VCVC domains are at other auction services. I listed several VCVC .com domains and expected each to sell for around the $300 mark. I was Wrong. (UJUR.com $164) (IWUH.com $104) (UJAJ.com $114) (OZUC.com $166). Sedo has been getting higher prices and for a fact, the buyer of UJUR.com turned around and flipped their purchase from snap for $164 and resold it 11 days later for $435.

The good domains did the best, but that happens any place and the biggest thing…. Not the premium 20% commission. AostaValley.com sold for $955 but it had traffic and is a GEO domain. Postings.net did well at $580. GreenClover.com Flopped IMO and sold for $124. JPPP.com sold for $802 which is about what Triple Quads are going for. Newer domains sold for the listing price of $99 which included Good Buys for the price, FadeProof.com, CoedSpace.com and DietChips.com .

My best sale was the 2 character domain, 9F.net which sold for $5,251 on May 6, 2008. That was a domain that I picked up on TDNAM.com on 2/13/2008 for $1,555. SnapNames took $1,050.20 for the commission on that one, leaving me a profit of $2,645.80 after taking out my purchase price.

Overall I would give selling domain names on SnapNames.com a C. The submitting process is a bit long and takes several emails back and forth. If your domain is not registered with Moniker.com or uDomainName.com you will have to transfer it. Then the domain can not be listed for at least 24 hours after a transfer for whatever reason. The getting paid part sucks. I selected getting paid via paypal, which they pay you via an echeck. After waiting 7 days for funds to clear at SnapNames, then another 5 days to wait for funds to clear via paypal and any weekend days in there… it sucks. No reason they can’t Mass Pay you the funds!

The seller’s dashboard is very clear and provides you with all and any info you need. The biggest downfall that I see with the system is, snapnames "marks" sellers domains as "In Auction" and start the domain listing at your reserve price. Now if you start your listing at $99 and it’s a good domain, you will get bidders. This is where I see the problems starting. The price keeps going up as people bid so as the price get’s higher, the less people will be in at the end of the auction. If SnapNames treated user submitted domains as it does with it’s expiring domains, as many people that back order the domain before the auction date, would be in a 3 day auction all at the same price. The more bidders the better at the end!

So as your domain listing starts to get bids, it can also push away somebody that "could of" bid later and got caught up in the auction bidding. As a buyer, I do not even search by "In Auction" domains. One, I have to bid higher then what the current bid price is to be in the auction. That auction might not really end for several days or even several weeks. There is no "watch" feature, so your domain can get lost in the massive stack of domains they have listed etc.. I’m sure I could come up with several reasons why user submitted domains seem to do worse then expired, but by putting them "In Auction" and the price going up, highly reduces the amount of people that will be in at the end of the auction.