Effective September 1, any new premium domains approved at Squadhelp will be assigned a Variable commission rate. The commission percentage will be based upon the final selling price (instead of the approved price) of the domain.
To avoid any confusion, the actual SH commission is always calculated based upon final selling price (not based on listed price). What is changing with this new variable commission model is that the commission percentage will also be decided based upon the final selling price (not based on listed price).
Below are the SH commission rates that will be applied based upon the final selling price:
Below $2499: 30% (Submission with Coins), 35% (Submission without Coins)
$2500 to $4999: 30%
$5000 to $50K: 25%
$50K to $75K: 20%
Above $75K: 15%
Here are some examples to illustrate this:
Example 1: Name was approved for $4000 (30% commission) and sold for $5000 because the seller decided to increase the price.
SH commission (in the original method) = 30% of $5000 = $1500
SH commission (in the new variable method) = 25% of $5000 = $1250
Example 2: Name was approved for $5500 (25% commission) and sold for $4400 because the seller decided to offer a discount on the price.
SH commission (in the original method) = 25% of $4400 = $1100
SH commission (in the new variable method) = 30% of $4400 = $1320
What about previously approved domains?
Any domains that were approved prior to September 1, 2020 will stay with the original (fixed) commission % that they were assigned to. However, as a seller you have the option to switch your previously domains to a Variable commission method as well.
If you prefer to stay with the Fixed commission method for your previously approved domains, you do not need to take any action. However, if you prefer to switch to the Variable commission option, you can make that change from your Seller Preferences section. This option will be available in your account effective Sep 1, 2020.
Once you decide to switch your previously approved domains to a Variable commission method, they can not be switched back to a fixed commission method.
The variable commission model does not apply to Basic, Basic Plus or SH Registered Domains.