Sam Nunez explains the RevenueDirect acquisition and the potential for future acquisitions.
Sam Nunez, VP of Product Management for Sedo, answers some questions about the companies acquisition of RevenueDirect.
Domain Name Wire: When did Sedo first enter into discussions with RevenueDirect/Dotster about acquiring the parking company?
Nunez: The successful round of negotiations started last December. We had some on-off discussions with Dotster for more than a year though.
DNW: Sedo had a listing agreement with Dotster already in place, correct? I mean where Sedo listings were shown as alternatives on domain searches at Dotster.
Nunez: Yes. The current relationship is akin to an affiliate program for our aftermarket services. As part of the new strategic partnership, we intend to take it to the next level.
DNW: Your press release on the deal mentions monetizing Dotster’s large portfolio of domains. Does this refer to its registrar-owned domains, customers’ domains, or both?
Nunez: Registrar owned. Dotster’s customers that are using the RD platform are considered as RD customers and are included in the acquisition.
DNW: Will Sedo parking pages be used as default “coming soon” landers on Dotster customers’ pages?
DNW: Will Sedo, with its newly added domains, be able to offer a higher revenue share to customers?
Nunez: In the short term, there will be no change for RD customers. As we take the best of both products, we expect to be able to pass through even better monetization levels to RD customers, as well as to Sedo existing customers.
DNW: Is Sedo looking for other acquisitions in the domain parking space?
Nunez: Yes. Obviously we are not going to acquire for the sake of acquiring, but challenging times always offer better buying opportunities for the stronger players. Our industry is maturing, so this is bound to happen.
I see more partnerships between traditional aftermarket companies and registrars. I wonder if this is because they simply try to reach to new customers, of if there is a fundamental change within the marketplace. Or both.