GoDaddy will acquire a domain selling platform popular with domain investors.
GoDaddy (NYSE: GDDY) acquires domain name trading platform Dan.com.
The world’s largest registrar will take over a competitor that had taken a bite out of its aftermarket sales, and the acquisition is sure to create consternation among domain name investors.
Dan.com entered the scene as Undeveloped and tried a few approaches to break into the market. It initially offered industry standard commissions of 15%, but later lowered them to 9%, ushering in an era of lower commissions for beginner domain selling platforms. In 2019, it was renamed Dan.com and attempted to jump on the blockchain bandwagon. While the blockchain didn’t work out, Dan.com started gaining traction as an inexpensive way to sell domains through landing pages.
Along with other upstart platforms, it introduced an innovation that shook up the aftermarket.
Now he’s part of GoDaddy, the industry stalwart he once tried to overthrow.
Domain investors will have many questions. Many domains list through GoDaddy’s Afternic DLS to gain access to the registrar path, but point their domains to Dan.com to pay lower commissions on direct sales. Will this option disappear in the future?
I asked GoDaddy, President of Domains Paul Nicks, about this (and more) via email.
Domain Name Wire: Will Dan.com remain a separate system, or do you plan to integrate it with Afternic and/or GoDaddy? If it will be integrated, what is the timeline?
Nicks: Our initial view, based on due diligence, is that there are opportunities for Dan.com and GoDaddy to join forces, especially with Afternic. Together, we expect the integration of Dan.com’s automation and lease-to-own options to add momentum to GoDaddy’s goal of providing domain investors with an integrated experience within a top-notch marketplace with sound advice, cutting-edge data science and the best brokerage team in the world.
We don’t have any details to share on the schedule yet. Shortly after closing, we will hold a multi-day planning meeting designed to create a common and in-depth understanding of our goals and plan with those who should support the integration work. We will spend several days learning together and expect to develop an onboarding plan, including key onboarding steps.
Domain Name Feed: Many innovations have come from domain name selling platforms, including Dan.com. I’m thinking of the Dan.com transfer bot, installment plans, domain categories, payment services/timeline, statistics, and import-a-lead. Does GoDaddy intend to retain all functionality of Dan.com?
Nicks: Here are some specific examples of what we expect from a post-closing integration based on due diligence.
- Dan.com customers will benefit from Afternic’s extensive network reaching more potential buyers, as well as Afternic’s premier brokerage team helping Dan.com customers close lead-based deals at competitive prices. higher average sales.
- GoDaddy also intends to extend some of Dan.com’s best offerings, including hire-purchase options and automation technology, to Afternic customers, establishing a new buyer’s market for investors in domain transacting through the Afternic marketplace.
- GoDaddy Afternic listings will be enabled with Dan.com sale landers, including customizable landers that are currently used on Dan.com and not available on Afternic.
- Joining GoDaddy offers Dan.com the opportunity to expand customer success operations and help customers in more time zones and languages.
- Finally, our goal is for Dan.com to become an engine of experimentation that produces better results on the shared platform.
Dan.com has payment integrations with other services, such as Efty. Will these be impacted?
Nicks: We are still in the early stages and have no specific plans to share today. We will review all partnerships individually once closed and proactively share updates.
Domain Name Wire: Many people use GoDaddy’s Afternic DLS to access the registrar’s registration path, but choose Dan.com landers because they are cheaper (9% vs. up to 20%). Will this remain an option or should we expect to pay higher prices for landing page sales in the future?
Nicks: We’re still in the early stages and we don’t have a commission alignment plan. Once we have updates to share, we will proactively share them.
Domain Name Wire: What benefits will Dan.com customers get from GoDaddy owning Dan.com?
Nicks: In addition to what we’ve shared above, a message from the Dan.com team: “Rest assured, the amazing team that has made Dan.com such an amazing company intends to keep working to assist domain customers after the deal is completed.We put our customers first and that will remain the same.
Domain Name Wire: Does the entire Dan.com team come to GoDaddy?
As part of the transaction, all full-time Dan.com employees will be offered jobs to join GoDaddy.