The possible reasons GoDaddy had in closing down Afternic (maketplace platform) first and now Dan, two masterpieces they invested in not too long ago?

[Finest Domainer]

Inviting analytical views? my views to start with are as follows:

If you do thorough research, you will realize what they are upto and will be shocked? The way to research is like this.

1. First and foremost, let us ask a question, why would GoDaddy, buy DAN and Afternic? The answer is simple, they wanted to be a leader and so they bought two successful domain marketplace businesses.


2. So after investing two large businesses, why close them ? In corporate philosophy this is called volatile takeover and to kill competition. So since GD is shutting down both, in a short span, they managed to kill the competition for selling premium domains of others, Domainers, retailers by and large.


3. Now the third question, why will they want to kill premium domains (domainer's and retailers) market? Because, .COMs are supreme and they are rare. GD is principally a registrar, the largest one can say, so their major income comes from new domain bookings where they have volume and margins. While .coms are scarce, the opportunity to sell other TLDs is potentially good. While Premium market is a slow churner, it is simple to target new bookings.


4. So, how to target increasing new bookings? Closing options to provide premium domains first, as most buyers prefer .com. So close DAN and afternic for buyers, from searching premium domain options. Buyer now is left to search in GD in new domains search bar. This will give mostly options to book new TLD's. And shockingly not show all premium domain options , even if listed with them. Example, search web3 in the bar, web3media .com option is missing, though it should not be missing as is listed with them. They should even show all premium domains which may be with others as they have a network. So what is the network for? Anyway, that is how to target new bookings and sideline premium domain sales, even if you have listed with them through Afternic, or other platforms.


5. Then comes most interesting part: GD auctions. They openly admit they want this for selling expired domains, and not domainer's premium domains. Some body buys through the lander the direct domain is so rare and your luck. It is almost like you selling directly through a for sale page at your domain, and they getting commission still. Wow! Hurray !


So know the game plan of of big players and learn how to manipulate things. This is perfect example of a big corporate juggernaut and an strategic example and learning for fresh startups.

More views expected, in domainer community's wider interest.

 

[bmugford]

2. So after investing two large businesses, why close them ? In corporate philosophy this is called volatile takeover and to kill competition. So since GD is shutting down both, in a short span, they managed to kill the competition for selling premium domains of others, Domainers, retailers by and large.

I mean, like many acquisitions, it is clearly about eliminating competition.

It's not like they bought Dan.com to make it a better experience for customers only to randomly decide to close it later.

3. Now the third question, why will they want to kill premium domains (domainer's and retailers) market? Because, .COMs are supreme and they are rare. GD is principally a registrar, the largest one can say, so their major income comes from new domain bookings where they have volume and margins. While .coms are scarce, the opportunity to sell other TLDs is potentially good. While Premium market is a slow churner, it is simple to target new bookings.

4. So, how to target increasing new bookings? Closing options to provide premium domains first, as most buyers prefer .com. So close DAN and afternic for buyers, from searching premium domain options. Buyer now is left to search in GD in new domains search bar. This will give mostly options to book new TLD's. And shockingly not show all premium domain options , even if listed with them. Example, search web3 in the bar, web3media .com option is missing, though it should not be missing as is listed with them. They should even show all premium domains which may be with others as they have a network. So what is the network for? Anyway, that is how to target new bookings and sideline premium domain sales, even if you have listed with them through Afternic, or other platforms.

I am not that convinced on this point. GoDaddy makes way more money from me, and many others on commissions from sales, not registrations or renewals.

I realize charging Joe Blow $20+ for a .COM and paying the registry $10 is good business. However, when you make a sale for thousands that is a nice fat commission for GoDaddy.

We also might be confusing some orchestrated plan with just plain old incompetence.

I am not sure if GoDaddy really considered the exodus that "Boost" and closing Dan.com likely caused.

Brad

 

[Finest Domainer]

I mean, like many acquisitions, it is clearly about eliminating competition.

It's not like they bought Dan.com to make it a better experience for customers only to randomly decide to close it later.


I am not that convinced on this point. GoDaddy makes way more money from me, and many others on commissions from sales, not registrations or renewals.

I realize charging Joe Blow $20+ for a .COM and paying the registry $10 is good business. However, when you make a sale for thousands that is a nice fat commission for GoDaddy.

We also might be confusing some orchestrated plan with just plain old incompetence.

I am not sure if GoDaddy really considered the exodus that "Boost" and closing Dan.com likely caused.

Brad

Hi ! Brad. You are bit mistaken on this 3 & 4 by not getting convinced. Here you are bit individualistic it seems. One needed a thorough research across the industry and GoDaddy , before committing.
First, one needed to look at new domains booking data of everyday. Then another research was, GoDaddy's admission, which was shared on twitter, why they closed these two marketplaces, because they have poor sustainable sales relatively to new as well as expired domains through auctions, both give volumes and bigger profits, and in case of latter ( this to address your point more specifically) the entire sale proceeds ( it is huge) is their booty and profit, and not just commission on premium sales. Point 5 was the highlight of this, as per research. I tried to cover as much after detailed study and interaction.
Your views and contribution was admirable and thanks for it as it gave reasons to detail more.

 

[Jannes]

GD is principally a registrar, the largest one can say, so their major income comes from new domain bookings where they have volume and margins.

GoDaddy's main business is selling (and upselling) multiple products and services to entrepreneurs, small and medium-sized businesses. GD is not a domains first company (anymore). Alan Shiflett said that pretty clearly on a DNW podcast (#497).

 

[bmugford]

Hi ! Brad. You are bit mistaken on this 3 & 4 by not getting convinced. Here you are bit individualistic it seems. One needed a thorough research across the industry and GoDaddy , before committing.
First, one needed to look at new domains booking data of everyday. Then another research was, GoDaddy's admission, which was shared on twitter, why they closed these two marketplaces, because they have poor sustainable sales relatively to new as well as expired domains through auctions, both give volumes and bigger profits, and in case of latter ( this to address your point more specifically) the entire sale proceeds ( it is huge) is their booty and profit, and not just commission on premium sales. Point 5 was the highlight of this, as per research. I tried to cover as much after detailed study and interaction.
Your views and contribution was admirable and thanks for it as it gave reasons to detail more.

Millions and millions of domain registrations only exist because of the investment potential when it comes to possibly selling them later.

If GoDaddy makes it harder to sell domains, it would really make the demand to register and renew domains lower.

More secondary market domain sales would lead to more demand for registrations and renewals.

Making sales harder is kind of like shooting yourself in the foot if you want more registrations and renewals IMO.

Additionally, there is a difference in clientele when it comes to an end user willing to spend thousands on a good domain vs one willing to register whatever crap is available.

Brad

 

[Finest Domainer]

Millions and millions of domain registrations only exist because of the investment potential when it comes to possibly selling them later.

If GoDaddy makes it harder to sell domains, it would really make the demand to register and renew domains lower.

More secondary market domain sales would lead to more demand for registrations and renewals.

Making sales harder is kind of like shooting yourself in the foot if you want more registrations and renewals IMO.

Additionally, there is a difference in clientele when it comes to an end user willing to spend thousands on a good domain vs one willing to register whatever crap is available.

Brad

that is precisely the point sell crap which is easier as it is low price 12$-100$ new regn.'s than wait for a premium domain to sell and earn commission. Auctioning an expired one pays still lot more, so they openly say they prefer same. The end story!

 

[Finest Domainer]

GoDaddy's main business is selling (and upselling) multiple products and services to entrepreneurs, small and medium-sized businesses. GD is not a domains first company (anymore). Alan Shiflett said that pretty clearly on a DNW podcast (#497).

Agree. But within the domain area of their business, this view was being discussed purely.

 

[Finest Domainer]

Millions and millions of domain registrations only exist because of the investment potential when it comes to possibly selling them later.

If GoDaddy makes it harder to sell domains, it would really make the demand to register and renew domains lower.

More secondary market domain sales would lead to more demand for registrations and renewals.

Making sales harder is kind of like shooting yourself in the foot if you want more registrations and renewals IMO.

Additionally, there is a difference in clientele when it comes to an end user willing to spend thousands on a good domain vs one willing to register whatever crap is available.

Brad

Selling premium domain is a hard task. GD was not into it. They started as a registrar selling new domains. This is thier origin. They diversified by taking over two leading secondary premium marketpleaces, Afternic and DAN. Invested heavily in them since Domain was their main business and wanted to strengthen it. They added more products but are largely domain eccentric organization and you are nearly corroborating here.

Markets evolved, .com were rare and selling domains in the aftermarket is not easy. More players got in there. The market introduced new TLD's so it expanded. Old domains vs new domains, the latter became lucrative. Again expired domains yielded huge profits. So easy to understand why they killed DAN and Afternic, after all they are killing it. That alone is a big question which needed a close scrutiny and they virtually have admitted to it, leading to this story.

 

[GoDaddy]

Hi @Finest Domainer
We're providing a little clarity for anyone reading along. Afternic isn't going anywhere. We're proud to continue to grow and build the world's premier sales platform for domain name sellers.

 

[BYYP]

Hi @Finest Domainer
We're providing a little clarity for anyone reading along. Afternic isn't going anywhere. We're proud to continue to grow and build the world's premier sales platform for domain name sellers.

Hi @GoDaddy It would be great to add crypto payout (btc, etc)

 

[GoDaddy]

Hi @GoDaddy It would be great to add crypto payout (btc, etc)

Thanks @BYYP, it's something we will look further into for 2025.

 

[alcy]

why op making false claims gd is closing afternic

 

[789.xyz]

Hi @Finest Domainer
We're providing a little clarity for anyone reading along. Afternic isn't going anywhere. We're proud to continue to grow and build the world's premier sales platform for domain name sellers.

Afternic should disappear, and DAN should be revived!

 

[alcy]

Afternic should disappear, and DAN should be revived!

by now we all know gd does exact opposite of what they should do

 

[Inframan]

Hi @Finest Domainer
We're providing a little clarity for anyone reading along. Afternic isn't going anywhere. We're proud to continue to grow and build the world's premier sales platform for domain name sellers.

Suggestion

Consider offering an official email letterhead to seller's so it can be sent to potential buyers. This is a win-win. You get organic traffic and potential sales commission. The seller gets a serious potential buyer.

 

[Zavian]

I mean, like many acquisitions, it is clearly about eliminating competition.

I am not that convinced on this point. GoDaddy makes way more money from me, and many others on commissions from sales, not registrations or renewals.

I realize charging Joe Blow $20+ for a .COM and paying the registry $10 is good business. However, when you make a sale for thousands that is a nice fat commission for GoDaddy.

Brad

If anything, GoDaddy would have likely closed down the retailers marketplace in order to get more broker sales. Think about it.

Why would GoDaddy want customers to be able to buy domains directly from other sellers? They already offer a brokerage service that charges $60+. By allowing customers to buy directly from domain sellers, they would be losing that sale.

So why not close down the marketplace and force the buyer to not only pay them to negotiate the sale but also gain a commission on top. It's no surprise that GoDaddy is probably the largest brokerage company. They probably have more brokers than any of the other larger brokerage companies. It is simply a way to get the customer to pay twice, firstly for using their brokerage service, and then the commission.

 

[scithe]

Domains are still listed for sale on DAN. I can't delete some of the domains I no longer own. This is silly.

 

[simran.net]

Hi @GoDaddy seems Google has shutdown ads to all domain parking companies from 18 Nov 2024 ( except some crappy low paying arbitrage websites ). In resullt domain parking revenue has become reduced upto 95%

Are you aware?

 

[scithe]

Where did you read that?

 

[Patryx]

GoDaddy, Google, Amazon, FB, Twitter (X), etc.... they are the Masters, they could change Condictions and Policy at any time, and we can only accept or go away. All we are slaves who obey the laws of the Master.

 

[hendrikeka]

Hi @GoDaddy seems Google has shutdown ads to all domain parking companies from 18 Nov 2024 ( except some crappy low paying arbitrage websites ). In resullt domain parking revenue has become reduced upto 95%

Are you aware?

This is for new google ads account started in october 2024 right?