GoDaddy to acquire domain sales platform that is popular with domain investors.
GoDaddy (NYSE: GDDY) is acquiring domain name sales platform Dan.com.
The world’s largest registrar will pick up a competitor that had taken a bite out of its aftermarket sales, and the acquisition will surely create consternation amongst domain name investors.
Dan.com came on the scene as Undeveloped and tried a few approaches to crack the market. It initially offered industry-standard commissions of 15% but later lowered them to 9%, ushering in an era of lower commissions from upstart domain sales platforms. In 2019, it rebranded to Dan.com and tried to jump on the blockchain bandwagon. While the blockchain thing didn’t work out, Dan.com started gaining traction as a low-cost way to sell domains via landing pages.
Together with other upstart platforms, it introduced innovation that shook up the aftermarket.
Now, it’s becoming part of GoDaddy, the industry stalwart that it once tried to unseat.
Domain investors will have a lot of questions. Many list domains through GoDaddy’s Afternic DLS to get into 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 envision integrating it into Afternic and/or GoDaddy? If it will be integrated, what’s the timeline?
Nicks: Our initial view based on diligence is that opportunities exist for Dan.com and GoDaddy to join forces, specifically 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 offering domain investors an integrated experience within a best-in-class marketplace empowered by sage guidance, cutting-edge data science and the world’s premier brokerage team.
We don’t have specifics to share on timing yet. Shortly after close, we will hold a multi-day planning meeting designed to create a common and deep understanding of our goals and plan with those expected to support the work of the integration. We will spend several days together learning and expect to develop an integration plan, including key milestones from the integration.
Domain Name Wire: A lot of innovation has come from the upstart domain sales platforms, including Dan.com. I’m thinking about Dan.com’s transfer bot, installment plans, domain categories, payout services/timeline, stats, and import-a-lead. Does GoDaddy intend to keep all of Dan.com’s features?
Nicks: Here are a few specific examples of what we expect for integration post-close based on due diligence.
- Dan.com customers will benefit from Afternic’s expansive network reaching more potential buyers, as well as Afternic’s premier brokerage team helping Dan.com customers close lead-based transactions at higher average sales prices.
- GoDaddy also intends to extend some of Dan.com’s best-in-class offerings, including lease-to-own options and automation technology, to Afternic customers establishing a new market of buyers for domain investors transacting via the Afternic marketplace.
- GoDaddy Afternic listings will be enabled with Dan.com sales landers, including customizable landers that are currently in use on Dan.com and unavailable in Afternic.
- Joining GoDaddy provides Dan.com the opportunity to broaden customer success operations and help customers in more time zones and languages.
- Finally, our goal is for Dan.com to become an experimentation engine driving 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 do not have specific plans to share today. We’ll review all partnerships individually once close occurs and share updates proactively.
Domain Name Wire: Many people use GoDaddy’s Afternic DLS to get in the registrar registration path, but choose Dan.com landers because they’re cheaper (9% vs. up to 20%). Will this still be an option or should we expect to pay higher prices for landing page sales in the future?
Nicks: We are still in the early stages and do not have a plan around commission alignment. Once we have updates to share, we’ll share proactively.
Domain Name Wire: What benefits will Dan.com customers get from GoDaddy owning Dan.com?
Nicks: In addition to what we shared above, a message from the Dan.com team: “Rest assured, the great team that made Dan.com an amazing company intends to continue working to help domain customers after the deal closes. We put our customers first and that will remain the same.”
Domain Name Wire: Is the entire Dan.com team coming over to GoDaddy?
As a part of the transaction, all Dan.com full-time employees will be offered jobs to join GoDaddy.
Sad news, less competition is never good… regarding “world’s premier brokerage team”, with the exception of a few key people (that I appreciate) what I often see is lack of feedback and follow-up, probably even interest, that caused me to lose a few sales. Very few conversions compared with the leads I manage myself. I’ve had thousands of names managed by Godaddy team but those days are reaching its end.
Agree.. We have seen Uniregistry story already.. DAN team making lies to call partnership , joining forces..etc.. I dont think domain investors are fools , they can easily research and findout things.. I wish they could have more direct to announce the way the DNW has done … Rather than creating monopoly domain investors better to support start-ups like DaaZ.com or other registrar marketplaces like Dynadot.com.
$1 Domain Name says
agree. but are they totally closing DAN.com and swtiching all users to Godaddy (mandatory) ?
$1 Domain Name says
agree. But are they closing down DAN.com and switching all users to Godaddy?
the borg grows.. expect full integration by 2027..ok 2029
Kia Foster says
Same as other Commentator, Nunu, very sad news. I do not like Afternic or GoDaddy, they are the typical inefficient ,slow moving platforms, and expect 11% MORE commission, for doing a 100% less good of a job. In this case unless GoDaddy keep things at Dan.com pretty much as they are, then my domains will ALL be coming off Dan and will sell direct as I used to before I started using Dan.
Richard B Morris says
This is just another opportunity for GD to rip off domain investors like they did me last year when they sold me Reservations.online, took/stole it back and then tried to sell it to me for $500,000. The CORRUPTION in the domain industry is off the charts…..very SAD!
Can someone translate what Paul Nicks said?
Don’t worry about it, I will launch http://www.after.domains against godaddy.com
good call..all the best.. there are other marketplaces too.. DaaZ.com charging just 5% BIN , Squadhelp landing pages listing cost 7.5% . dynadot , namesilo, namecheap, epik .. a lot more.. its just domain investors need to start looking around and avoiding monopoiies getting created..
Mark Thorpe says
“Do not have a plan around commission alignment”
Godaddy should lower their domain commissions to match Dan’s! Godaddys domain commission percentages are very outdated, especially with fast transfer option, which is automated
Oh, thank you! I will think over again!
20% vs 9% right now. For what? I’m history when GD starts to change things.
Terrible news for the industry, maybe leaving Dan soon.
I think so
There must be reasons other than fees that some sellers chose Dan, not GD. I am sure they will be disappointed and even feel betrayed. I will remove all my domain listings from Dan. Sorry.
Andrew Allemann says
It is a combination of low fees, an easy-to-use interface, good transfer system, fast payouts, great payment methods for in and out payments.
Afternic are so slow in all respects. They just do not seem interested in anything but taking 20% and then slow payout compared to DAN.
I do absolutely agree with you!
Please delete all the spam comments from yong and after.domains.
not too many, I listed about 5000 domain names, but i am failed to sell !
sorry I meant 2000
Digital Address says
GD should check through thoroughly and confirm that FATF Recommendations or FATF Standards are in place at DAN well before the closing date.
Good Domain Name, Good Business! No. Fraud any more!
Started using Dan.com last year because of their commission scale and user-friendly platform.
I expected Dan.com to become a registrar, as I use GoDaddy, Epik and NameCheap to register my URLs. Had Dan.com moved to become a registrar, MANY would have moved assets away from GoDaddy with their $20 renewals. So, for GD, this was a sagacious business move to absorb a competitor.
I’d have bet Epik or NameCheap would have acquired Dan.com because more competition is needed against the juggernaut of GD.
If GD raises commissions on Dan customers this will be a bad mistake, as GD already loses renewals to other registrars. GD should lower their own commission scale or keep Dan.com customers ‘grandfathered’ in.
On last year, I invested my all of money for domain market, but I am failed, I think on and on, the reason why?
I have experienced about domain investment approximately over 10 years, But still failed. Now we should wake up! the reason I am sure that market point controls by market holders, I want to change it from market holders to clients.
We should keep our trust!
Newnic.io & After.domains holder
Knowing how bad GoDaddy is, how rarely they update their tools, the provision and hidden costs that they take, the amount of feedback that they listen too, so on and so on, this is one of the darkest day in domaining. What’s left? Sav, Efty?
Maybe someone trusted in the Domain space will start “Dan 2” .
LOL, hopefully you wont lose your money.
Rich B says
Well that’s the end of that then. Godaddy turns everything to rubbish full of spam.
I sure hope they keep DAN’s tech staff. Their tech is VASTLY better than Afternic’s.
I assume we’re going to lose our nice 9% commission rate. 🙁
Sure, I’ll go develop 4,000 names.
good luck! So do I!
there are other players giving lower commisison rates.. e.g: DaaZ.com BIN listings cost just 5% and Squadhelp one costing 7.5% .. if they change commission fees, people go for other alternative options.. dont worry , domain investors are smart and make right choices to save fees.
Godaddy wants power and domination of the global domain market and for years it has been doing it, step by step, Godaddy’s problem is that it has left a lot aside, the Domain Investors and everything is paid, it has focused with a lot of advertising in all social networks towards an easy market to make money that of the Free Domain, Hosting, Website etc the second year many leave but the rotation of the naive is greater and that is how Godaddy works for this reason it has 21 Million Clients.
Dan.com will disappear.
Big business wins again as Dan.com joins a long list of corporate sellouts. But the people are waking up and the fight against the monopolist vultures has just begun.
true.. start using daaz.com, squadhelp, dynadot, namecheap, namesilo, epik ..etc Many options are there.. just 5% BIN sales on DaaZ.com and 7.5% on squadhelp.. DAN is not the only one offering low commission fees. , also daaz process payouts in 48 hours like DAN
@John Thank you, I know all those who advise me.
James A says
I would say I hope the United States DOJ do something useful and block this acquisitions for anti-trust reasons but lets be honest….they don’t care. And we domain investors will suffer from lack of competition.
The heading of your article should be “BAD NEWS” . (not Big News lol) Really I do not like GoDaddy or Afternic at all, and all they want to do is monopolise and destroy Dan.
Correct title would be bad news not big news
Godaddy cannot reconsider such a strong change from 20% to 9% in the commission because its floating keel would give a very big turnaround in the stock market.
start using daaz.com, squadhelp, dynadot, namecheap, namesilo, epik ..etc Many options are there.. just 5% BIN commission fee on DaaZ.com and 7.5% on squadhelp whilelabel listings.. DAN is not the only one offering low commission fees. , also daaz.com process payouts in 48 hours like DAN
The-Online.com Cheap Domains says
yes, the commission should come down to 9%
that’s the only reason I had so many domains for sale at DAN.com 🙁
Better 9% of something than 20% of nothing.
We’ve also been using godaddy to get domain names for both our own projects and our clients’ websites. We use it from time to time. However, we don’t want to continue with Godaddy anymore when we notice that there has been a very serious increase in domain renewal fees lately. It may want to create a monopoly by buying its competitors in the market increasingly.
sad news. but hope they keep dan.com afloat.
I believe that the best company to start up a new version of DAN (obviously under new name) would be Huge Domains/Namebright as they have good set up etc. I do hope they can do it.
hugenames and namebright.com are same and they are biggest crook. They will auto renew your names and they never process refund on most of the things. They are private family business and very unreliable.
I have never had a problem with them. Yes autorenew can be annoying, but then can always switch it off.
After all, I don’t know why we worry so much if nothing will be the same with Godaddy, we have to look for life in other places.
I have not yet read how much Godaddy will pay the CEO of DAN.com, at least much more was learned with the acquisition of Uniregistry.com CEO Frank Schilling domain portfolio to Godaddy..
Maybe DomainNameWire might start a new “Dan” ?
@The-Online.com Cheap Domains @kiafoster You have not understood what I write.
I give you an example:
Assuming you two were Godaddy it would go down to 9% if that would drive Godaddy’s assets down on the NASDAQ stock market.
Right now after evaluating the Nasdaq 100 or Tech where the GDDY assets are and the forecasts of the most experts, in my opinion the acquisition of Dan.com by Godaddy may have been a Leasing with a purchase option, until the bad weather passes. ahead of the possible recession.
I would think Sav is in a good place to pick up where Dan left off.