It is bad news for Sedo these days, as this company is poised to be dropped by its primary domain distribution partner in 2014. Sedo is currently affiliated with GoDaddy, one of the world’s premier domain name registration services. This affiliation allows Sedo to list domain names via GoDaddy Auctions and via GoDaddy’s main website.
In other words, when interested parties look for domains at these popular online channels, Sedo’s domain listings are displayed in search results.
So, why is this change happening?
Well, it’s because GoDaddy has found a partner that it prefers! In fact, it likes Sedo’s key competitor, Afternic, so much that it recently purchased the company. Now, GoDaddy has announced plans to sever business ties with Sedo, which is bound to negatively impact Sedo’s business fortunes over the coming months (and possibly beyond).
While it is possible that Sedo will be able to regroup and recover from this disappointment, it will take hard work and a strong vision for the future. In addition, it will take time…
GoDaddy Wishes to Create a Centralized Business Hub
According to GoDaddy’s head of product development, Paul Nicks, the decision to acquire Afternic and move in a different direction is part of a grand strategy, which is designed to boost business in the coming years. Nicks sees Afternic as a means to create a “single hub” where domains and registrars are grouped together for the overall ease and convenience of GoDaddy’s valued clientele.
By creating a speedy transfer system via every domain name registrar, this new hub will offer enhanced data security, as well as a more pleasant end-user experience for customers. It will be easier to buy what is needed via this new hub, which will feature after-market domain names, which may be immediately transferred to owner accounts, no matter where registrations are located.
Sedo Features the Same Business Model as Afternic
Sedo offers the same transfer business model as Afternic. However, GoDaddy, for whatever reason, chose not to pursue a central hub setup with Sedo. Instead, the firm purchased Afternic and then decided to go forward with centralization plans for the future. Now, GoDaddy is ready to syndicate sale listing data. However, the process of transferring domains will remain non-automated.
Afternic Attracts Heavy Hitters
Perhaps the rationale behind choosing Afternic is the company’s reputation for working with an array of big registrars. Sedo doesn’t have the same cachet in this important regard. Currently, Afternic works with 90 percent of the top twenty registrars worldwide. In other words, they’ve grabbed crucial market share, which may now be utilized in order to support the success and prosperity of GoDaddy.
This new collaboration will provoke other registrars to choose domain names via Afternic in order to access vital distribution. Therefore, it creates even more challenges for Sedo, which will need to evolve in order to fight for market share. Since GoDaddy is so vast and so well-known, it brings tons of expertise and marketing power to Afternic, at the expense of its former partner, Sedo.
GoDaddy’s Sales May Slip Over the Short Term
According to industry experts, this new business initiative may affect GoDaddy’s sales adversely, if only over the short term. After all, Sedo does have domain sales which are significant, and GoDaddy will lose access to these during the conversion period. However, in light of GoDaddy’s strong profits and superlative brand power, there is little question that the company is strong enough to survive a dip in sales over the short term, if not longer. Therefore, the strategic move may be considered an investment in long-term success.
As you can see, this business bulletin represents an important sea change within the milieu of online domain name sales and registrations. For years, GoDaddy has supported Sedo’s business goals, by partnering with the company and helping it to generate more sales and exposure. Of course, GoDaddy also benefits from this collaboration. However, executives at GoDaddy obviously feel that Sedo doesn’t have the firepower and client list to provide proper backup within a centralized hub.
While only key players at all three companies will be aware of the nitty-gritty details of this new deal, as well as what transpired between GoDaddy and Sedo, it’s safe to say that the team at Sedo desperately tried to retain their partnership with GoDaddy. Unfortunately, as the recent acquisition of Afternic demonstrates, the severing of the partnership with Sedo was probably planned for quite a while before it actually happened.
GoDaddy Is Powerful and Growing
GoDaddy is probably the only domain name hosting firm in the world that most people actually know by name. After all, the company takes great care to promote its brand via celebrity sponsorships and other marketing gambits. For example, female Nascar driver, Danica Patrick, has been utilized for a series of popular GoDaddy commercials.
In addition to unparalleled brand recognition, this company is also known for its large infrastructure. In other words, people who are looking for domains and domain hosting feel comfortable working with GoDaddy, as it has the size and scale to handle a very large customer base.
Companies Must Evolve to Survive
However, like all large corporations. GoDaddy needs to evolve in order to stay strong. By planning the new initiative, the team at GoDaddy are signalling a new milestone in the evolution of the company. If all goes well, services will be improved by this new collaboration with Afternic. The company’s history of success makes a positive outcome likely.
To find out more about the players in question, visit the official websites of GoDaddy, Sedo and Afternic. Since GoDaddy has planned to phase out its auction service for some time, changes have been in the works for months, if not years. Now, the company is pushing forward with plans to launch the centralized hub in 2015. How Sedo will fare is up in the air. However, it is possible that the company will evolve to stay strong, just as GoDaddy is doing right now. Hopefully, Sedo will be able to survive this difficult time and move forward to a brighter future.