Comparing Instant Transfer, Reg Path Domain Sales Services

New sales channels are opening up for domainers thanks to efforts by Afternic, GoDaddy, and Sedo.

Over the past week Afternic turned up two new partners in its Afternic DLS Premium program and Sedo extended the beta of its SedoMLS program to large domain holders.

Each new partner that gets integrated into these systems means more domain sales. Afternic has found that, with each new registrar partner it adds, sales go up — it’s not just the same number of sales being spread across more partners.

The key to this sales channel working is two fold: getting into the registration path when a person is searching for a domain name and having instant transfer capabilities. That means that Mr. Small Biz can search for a domain name, find your domain for sale, add it to his cart, purchase it, and get the domain name instantly in his account.

Here’s a comparison of the three major services available today:

Registrars providing instant transfer for each service is important on two fronts: they provide a sales outlet for your domains and you need to have your domains at an instant transfer registrar in order to participate. Your domains don’t need to be at the same registrar as where the domain is sold; it just has to be at one of the registrars in that channel’s network.

Both Afternic and SedoMLS are quickly expanding their reach, and I expect more partners for each service in 2011.

Comments

  1. DSeller says

    Very helpful overview Andrew.

    Wow – had no idea that Sedo has no instant transfer partners and Afternic has 4 of the top 10. Afternic has jumped way out in front.

  2. Meyer says

    Also, there are pro’s and con’s with each one.

    For example –
    Afternic
    pro – skilled sales people in selling domains.
    con – a skilled sales person will be offering
    alternatives and data that could work against
    the smaller domainer. As much as they deny it,
    it is logical the sales person would push
    the company portfolio.

    Godady
    pro – more known by the general public than
    the other sales companies.
    con – very cumbersome company to work with.
    Plus, the highest commission fee and it takes
    the longest to be paid.

    Sedo
    pro – large inventory and skilled sales people
    (like Dave Evanson) for higher priced domains. Plus, Sedo does not have any corporate
    domain inventory they need to move.
    con – transfer process moves as fast as molasses.

    • says

      Meyer,

      I’d argue that any possible Afternic sales channel conflict is resolved thanks to Afternic DLS Premium. The sales person gets the same commission, and now if you set a floor, buy now price, and use an instant transfer registrar, the sales person has just as much incentive to sell your domain as one of Afternic’s.

  3. says

    @VAG: ICANN has a inter-registrar transfer policy, I am not aware of a domain ownership transfer policy from ICANN, which is basically what happens here. The domain does not change registrars.

  4. says

    @Andrew: I didn’t realize that. Than the ICANN agreement would require for the user to agree to the standard FOA in a way or form – so this should be part of the registrar contract then when you enable the feature in your account.

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