What GoDaddy’s acquisition of Afternic means for domainers – Domain Name Wire – CROCODOM.com

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Domainers will see some immediate benefits and should keep a close eye on changes at the combined GoDaddy/Afternic.
GoDaddy acquires AfternicGoDaddy acquires AfternicLast week GoDaddy announced that it acquired domain name aftermarket Afternic.
My in-depth article about the acquisition covered some of what this means for domainers, but I think it makes sense to go into a bit more detail.
Benefits for people who currently list on Afternic
More sales.
If you list your domains for sale on Afternic and opt-in to the premium distribution level, your domain names show up on over 100 partner sites. This includes GoDaddy, but the existing GoDaddy implementation does not include Fast Transfer. Also, when GoDaddy a customer sees the domain for sale they have to click through to GoDaddy Auctions to buy the domain name.
Once fully integrated, GoDaddy customers will be able to buy domains on the Afternic network just like they purchase a hand-registered domain name, thanks in part to Fast Transfer.
Afternic Chief Revenue Officer Bob Mountain told Domain Name Wire that, post-integration, he expects “a good double digit increase” of sales velocity for Afternic-listed domains at GoDaddy compared to the old implementation.
Another domain registrar option.
In order to participate in Afternic’s premium, fast-transfer network, you must keep your domain names at a participating registrar. Before this deal GoDaddy was not an option. Now it will be, meaning you can keep your domains at GoDaddy and still get distribution across the network.
Future enhancements.
With GoDaddy’s muscle (and money) behind Afternic, in addition to GoDaddy’s acquisition of domain parking service SmartName, you can expect new features in the future. I expect a single domainer dashboard, with relevant parking and sales information all on one screen. Regardless of where you keep your domains, if the registrar is part of the Afternic partner network you can expect to be able to list domains for sale from your registrar account rather than Afternic. The company will also work on expanding to more ccTLDs and languages.
Benefits for people who currently use GoDaddy Premium Listings
More sales.
GoDaddy Premium Listings are currently only listed for sale at GoDaddy-owned registrars. Once rolled into Afternic, these listings will get significantly more exposure at over 100 partner sites, including 18 of the top 20 domain name registrars.
Lower commissions.
This is a biggie. For now, Afternic doesn’t plan to change its commissions. GoDaddy Premium Listings charges 30% and Afternic only 20%. So if you’ve been using GoDaddy Premium Listings, your commission will be cut by a third. There are no guarantees on future commission rates, but GoDaddy CEO Blake Irving told Domain Name Wire that it’s not the company’s intention to change the rates.
Keep your domains anywhere.
One of the biggest frustrations of not having GoDaddy part of the Afternic fast-transfer network was having to keep domains at different registrars to take advantage of either Afternic or GoDaddy Premium Listings. If you wanted to sell domains on GoDaddy you had to keep the domains at GoDaddy. If you wanted to list them on Afternic Premium you had to keep them at a participating registrar.
With GoDaddy part of the network, you’ll be able to keep your domains at GoDaddy or the other registrars in the Afternic network and get distribution on all partner sites.
I’ll be honest, much of the reason I moved domains to GoDaddy over the past couple years was to take advantage of Premium Listings. That said, I won’t transfer them out as a result of this deal. I’ve grown to appreciate GoDaddy’s two-factor authentication, and now think it’s a must have for any registrar. Also, GoDaddy is simplifying its checkout process, so registering domains there won’t be as much of a pain.
The bottom line is that it’s great to not worry as much about where domains are registered in order to tap into the distribution network.
Future enhancements.
See above.
Potential downsides
Less competition for listings.
Before last week there were basically three big domain marketplaces: GoDaddy, Afternic, and Sedo. Now there are two.
Yes, I realize some competitors are doing well building domain sales platforms, e.g. DomainNameSales.com. But when it comes to distribution and buyers finding your domains through means other than your parked domains, there really isn’t any competition.
Now we have just GoDaddy/Afternic and Sedo. Competition forces innovation and price controls. Although I think it’s in the best interests of all players to continue to innovate, my bigger worry is on the price side. Even though GoDaddy doesn’t plan to change Afternic’s commissions, the truth is no one will be able to match its distribution. It could probably get away with higher commissions.
More competition for sales.
Will the acquisition lead to more domain names listed for sale? That’s one of the goals behind the deal.
Once domain registrars make it easier for customers to list their domains, we should see a lot more domains listed for sale in the domain registration path. Right now GoDaddy Premium Listings has about 1 million and Afternic has around 3 million priced domains in its Premium network. So that’s 4 million priced domains that customers can purchase with fast-transfer. What happens if this number jumps to 10 or 20 million?
It’s an intriguing question. On the one hand, when a customer comes up with a domain name they like and see that it’s for sale, they’ll likely buy that domain unless they opt to hand register something else because they only want to spend $10. But if they check a few domains they want at GoDaddy and many of them are for sale at various prices, they might opt for the less expensive of the bunch. That means your domain might be passed over.
In general, I like to think that a more robust aftermarket will lead to all boats rising. People will become more aware of the aftermarket and not scratch names off their list if they’re merely registered (but may be for sale).
Only time will tell if that’s correct.
Categories: Domain Sales
Andrew Allemann has been registering domains for over 25 years and publishing Domain Name Wire since 2005. He has been quoted about his expertise in domain names by The Wall Street Journal, New York Times, and NPR. Connect with Andrew: LinkedInTwitter/XFacebook
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says
Do you have confirmation that the commission for premium listings is going down ? If so that’s some darn good news. They’ve changed this before. Hopefully it sticks even with the seed you planted in here for them to not change it 🙂
It’s optimistic to think that distribution registrar partners are going to stay with afternic when a competitor is now the owner. I expect some movement on this front. This had to shake up things on distribution and partnerships.
says
Adam, the premium listings are going away as the domains are moved into Afternic. They said they don’t plan to change the commissions at Afternic.
As for distribution partners, that’s a good question, and one I posed to GoDaddy and Afternic.
Some registrars have publicly come out supporting the news. I can see how it could be good for competing registrars – they’ll have more premium domains to sell, after all. Those registrars that have their own inventory (but haven’t listed it with GoDaddy directly) will get more distribution to potentially sell their own domains.
The other thing is that the only other competitor here – Sedo – is also affiliated with domain name registrars. It’s part of the same group that owns 1&1, United Domain, etc. So there’s no true competitor without ties to a domain registrar.
I wonder if there are change in control provisions on the registrar partnerships, like what we saw with SnapNames when it was sold to Oversee.net, resulting in NetSol bailing.
says
This really is going to be a game changer. The weekly sales will increase substantially making them more money with a lower commission
says
You forgot another important benefit. Currently, domains registered with GoDaddy don’t benefit from SedoMLS Premium because GoDaddy doesn’t provide Fast-Transfer but I guess GoDaddy will join SedoMLS Premium as well pretty soon after adding the Fast-Transfer feature.
says
Why would GoDaddy join Sedo’s fast transfer? Sedo is now a key competitor.
says
Nice write-up, Andrew. Very informative.
says
I hear people talking about “more money, more money” but I don’t think that will eventuate. I doubt that you’re suddenly going to convince a reg fee buyer to spend hundreds or more. It will just redistribute the existing sales towards the Godaddy group at the expense of smaller players.
says
The “more money” doesn’t mean you’ll get more for your domains individually, it means you’ll get more money because more domains will be sold. I have no doubt that the fast transfer integration will lead to more sales.
says
It will make things easier for everyone including the end user to buy names in the secondary marketplace. Many still don’t understand how to buy a domain name that isn’t available at GoDaddy. If GoDaddy does some sort of educational campaign even within their commercials it should increase the buyers in the marketplace. The amount of liquidity flying around the stock market should eventually find itself to other asset classes and if this industry collectively does a good job educating the public everyone will be better off for it.
says
Educating the public on the domain aftermarket.
Godaddy could accomplish that. A year ago a GD employee told me they were putting their best people on Sedo MLS, that GD saw the aftermarket as a major growth area.
Most of their customers buy one domain. Why not sell them an expensive one?
says
Sedo and Godaddy to partner this is bad for domain sales, if you have domains registered at Godaddy when selling Sedo domain name you charge only 40% of the sale, the remaining charge Godaddy and is written in the agreement with Sedo
With Godaddy, cash auction is another matter bad for you want to win with your sale, you must pay for your order to sell at Godaddy.
Afternic surely be the same as with Sedo not yet have data from the agreement between the two companies, who won here ever one Godaddy the same as always.
There are other best that these three together and make a lot more money without Godaddy involved.
says
Not sure I understand exactly what you’re saying. Is it that when GoDaddy sells a domain through its Sedo partnership then GoDaddy keeps most of the sales commission? I don’t really care who gets what portion of the commission.
says
Good analysis as always, Andrew. This is the reason I keep coming back to read your blog. I think the trend is toward list once, sell everywhere. Just one single entry point for anyone who wants to sell. Domain purchase and transfer will become so easy and instant that the average Joe will come in to speculate as well. The bull market is to come!
says
Fantastic Information & News Andrew — Should really help the Domain Sales market’s become much stronger with Lots better Liquidity for Buying & Selling Domains more efficiently and with faster and safer completion of sales.
says
“and not scratch names off their list if they’re merely registered (but may be for sale)”
Still rather surprising how often this happens, even if you know where to look.
says
I am from Bangladesh. I have parked a domain with afternic.com my parked revenue is $28+ How can I Withdrew my parked revenue via paypal?
Domain Name Wire is a trade publication for the domain name industry covering topics relevant to domain investors, brand owners, policy makers, domain registrars and registries, and more. Founded in 2005, Domain Name Wire has been cited by Wall Street Journal, New York Times, NPR, and Washington PostRead More About DNW
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