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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)!
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