The difference is…essentially nothing.
The one difference is:
“A Premium listing gives your domain name more visibility in the primary GoDaddy.com search results.”
So if someone searches for a domain that’s related or similar to the domain you have listed as premium, your domain might show up in the search results.
I say might because there’s no insight into how they choose what domains show in the search.
Still Almost the Same
However, if you sell on Godaddy Auctions, you’ll still show up on exact domain searches with a price and a premium tag.
For example, if I’m selling domaintothebank.com for $25,000 and someone types in domaintothebank.com, they’ll see my domain for sale for $25,000.
Whichever platform someone finds your domain name on, auction marketplace or premium listings, the fee structure is the same:
20% for the first $5,000 and then 15% thereafter up until $25,000 and then the commission dips.
You can see a full commission breakdown here:
Go with Premium
So if you’re trying to decide which route to go, go Premium as long as it’s worth your time because you potentially get more exposure and it won’t cost you anymore in commission.
One note here is that your premium price will trump what you input as your Godaddy Auctions price.
What I don’t know is if a premium listed will also result in you showing up in Auctions. But showing up for sale in Godaddy search results is far better than their marketplace since most people would never even think to look in auctions.