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Acquisition of Innovative Aftermarket Sales Platform Dan.com is Another Smart Move By GoDaddy

I had no idea GoDaddy was about to buy fast-growing, innovative domain sales platform Dan.com, but when Dan broke the news in a blog post this morning, buttressed by a separate press release from GoDaddy, my instant reaction was, "Well, that makes perfect sense." 

GoDaddy, of course, was already an aftermarket powerhouse and in recent years that division of the company has played an increasingly important role in the industry giant's overall success. With its incomparable name recognition and expansive sales network GoDaddy is the first place many businesses look when they need a premium name for their enterprise. However, 


as business history has often shown, even the best known brands can have a profitable apple cart upset by an innovative newcomer. Especially one that arrives on the scene with an extraordinarily appealing product at a great price that is winning over new converts every day. Few domain companies in recent years have fit that description better that Dan.com. 


Getting Dan eliminates a growing competitive threat and brings GoDaddy some impressive new technology that will go a long way toward future proofing their aftermarket cash cow. So, it's all good for GoDaddy and a fitting reward for Dan.com Founder Reza Sardeha and his entire team for the remarkable sales engine they created. What remains to be seen is how well it works for domain buyers and sellers. Dan has a much lower fee structure (ranging from 5 to 9%) but more widely-known GoDaddy/Afternic sells an enormous number of domains for clients, making it a lot easier to justify their 20% commission. At this early stage, no one knows exactly how the two platforms will be used to complement each other or where the fee structure will settle.


If they can combine the best of both platforms, everyone will come out a winner. As it always does, it will all come down to the execution. Seeing how the newly minted GoDaddy/Dan team goes about the process is something everyone in the industry will be watching with keen interest in the months ahead - and it won't be long before it gets started, the deal is expected to close in the 3rd quarter and that starts Friday (July 1)! 

(Posted June 28, 2022)  


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