GoDaddy acquires Afternic from NameMedia

Afternic is a aftermarket  domain selling arena to sell your domains. GoDaddy is one of the biggest domain registrars in the market. GoDaddy is buying Afternic from NameMedia, it is expected to make the process of buying already registered domain easier.

 

NameMedia still owns business of new domain registrations and the deal is just for the Afternic after sale market. Both NameMedia and GoDaddy is expected to benefit.

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Here are the FAQ from Afternic about the deal.

Q:   What led to today’s announcement of GoDaddy’s acquisition of Afternic?
A:   Both Afternic and GoDaddy share a vision for a unified domain aftermarket that allows any registrar anywhere in the world to offer for sale all of the available secondary market domains with the same confidence that exists in the primary market. Afternic is the premier domain aftermarket, founded in 1999. GoDaddy is the world’s largest registrar, founded in 1997. Both of the companies appreciate that success on the Internet is built around connectivity. In the case of the domain aftermarket, this means that a standard needs to exist for registrars to connect to a trusted source of aftermarket domains. Afternic has built that connectivity platform—called Fast Transfer—and GoDaddy will not only join the platform, but will commit to investing in enhancements that will benefit the entire domain industry.
Q:   What does this mean to me as an Afternic reseller? 
A:   First and foremast, it continues to position the registrar as the place to get a name, whether primary, secondary or new gTLD.  It also means more inventory, more advanced features, and more revenue.  First, GoDaddy will fully join Afternic as a Fast Transfer partner and add nearly one million Fast Transfer domains to Afternic; therefore, your customers will have an expanded inventory of high quality domains from which to choose.  Second, GoDaddy’s ownership brings significantly more resources to bear on developing cutting edge aftermarket technology – things like the ability for a customer to list directly from the registrar control panel. Finally, we expect this new inventory and these new features will result in incremental revenue for all registrars that are part of Afternic as it becomes a standard for Fast Transfer that helps drive inventory validation and sales velocity.
Q:   Does this mean that Afternic will be absorbed into GoDaddy?  How will Afternic be operated going forward?
A:   GoDaddy plans to operate Afternic as a utility for the industry, helping drive standardization. Afternic will continue to operate under the Afternic brand, and the same customer service, sales and business development team members whom you know and work with today will continue to support your business. Additionally, GoDaddy plans to join the Afternic network as a full losing-gaining registrar, adding >900k listings.  Most importantly, existing reseller agreements (and economics) will remain in place for at least 12 months.
Q:   Why is the domain aftermarket so important to GoDaddy?
A:   GoDaddy believes that the domain aftermarket has tremendous growth opportunities for all registrars and that a highly functioning aftermarket will continue to position registrars as the place to get a name, whether primary, secondary or new gTLD. When compared to other market categories, like automobiles, the percentage of the market represented by the aftermarket has been very low in the domain industry. This is attributed to many factors, including the awareness of registrants to the opportunities in the aftermarket, the validity of the inventory that’s in the aftermarket, and the presentation of aftermarket inventory on reseller sites. In short, every efficient market has a clearing platform that enables supply to connect with demand, and GoDaddy believes that every stakeholder in the domain industry will benefit from a unified platform: domain owners can opt-in to the aftermarket directly from their registrar control panel, domain buyers can see the most comprehensive supply of validated inventory when searching for a domain name with the same purchase experience as buying a domain on the primary market. It’s a level playing field: Afternic is the interchange network that connects the aftermarket, and GoDaddy participates as any other reseller, supplying its registrants’ inventory for sale across the entire network and providing all of the available inventory for sale on its website.
Q:   How does this impact my agreement with NameMedia?
A:   All aspects of your NameMedia agreement will remain in effect including commissions on BuyDomains inventory and other services. BuyDomains will continue to be operated by NameMedia and is not part of this transaction.  However, we are asking for your consent to assign your agreement to GoDaddy.  This is important to ensure there is no disruption to your revenue stream upon closing.
Q:   What technical innovations should we expect?
A:   We anticipate delivering a wide range of technical innovations – like listings from the registrar control panel – as we supplement the Afternic team with GoDaddy’s formidable resources.  We anticipate receiving significant registrar input on the features that would be most valuable for them.
Q:   Will GoDaddy continue to support Standard Transfer?
A:   Standard Transfer will continue to be supported.  Some TLDs do not support Fast Transfer so we expect Standard Transfer will be part of the aftermarket for years to come.  We do believe though that the registrar-centric Fast Transfer approach is the future growth of the aftermarket.
Q:   How does this impact the NameMedia sales team who’s been selling my portfolio?
A:   The Afternic sales team will remain in place and will be available to support you.

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