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GoDaddy’s 12/20 Portfolio Acquisition was for $17 Million

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In January of 2021, I believe Jamie Zoch was first to report another domain name portfolio acquisition made by GoDaddy. I also noticed the acquisition via my DomainTools Registrant Alert email when thousands of domain names transferred to the GoDaddy’s NameFind entity.

At the time the acquisition was confirmed, no details were shared by GoDaddy beyond the deal confirmation. This morning, George Kirikos appears to have found more information about the acquisition value:

Future Fund Acquires Sushi.com for SushiSwap

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A venture capital company called Future Fund, which operates on Future.xxx, announced that it acquired the Sushi.com domain name for its SushiSwap protocol. The acquisition was announced in a tweet this morning:

How Much of a Discount I May Accept

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I have most of my inventory-quality domain names listed with a buy it now price and a less prominent link to make an offer. I tend to receive more offers than people buying the domain name straight away, so I tend to price the domain name with that in mind. I was recently asked how much of a discount I am willing to accept to sell a domain name, and I want to share some broad insight.

There are several main factors that I consider before agreeing to a discounted sale price:

  • The buy it now price. Knowing that the majority of prospective buyers will submit an offer rather than clicking the BIN price, I tend to price my names a bit on the high side. This allows me to comfortably offer a discount without cutting too much into my returns. If my BIN price is more in line with what I believe is the true value of the domain name, I am less likely to give a discounted.
  • How much I paid to buy the domain name. I need to ensure that I am profitably selling my domain names, so the price I paid will help determine whether and how much to discount.
  • How easy it will be to replace the domain name if sold. If I can easily replace a domain name via auction or private acquisition, I may be more willing to give a deeper discount on a domain name than on a domain name that will be tough to replace.
  • How much I need the liquidity. If I have had a dry spell with domain name sales or I could use the funds to purchase other assets, I may be more inclined to give a larger discount.
  • Who is inquiring about the domain name. If the prospective buyer is a huge corporation, I will likely be less willing to give a discount than if the buyer is a small church or non-profit organization.

Situationally, I may not take anything less than the asking price or may take up to 50% off the buy it now price depending on the factors above. Most of the time, I price names knowing I will have to negotiate a bit. I tend to be more or less generous with the minimum offer depending on the domain name.

One thing I have done in the last few months is tighten the minimum offer standards for most of my domain names. Previously, the minimum offer settings on the account would guide the portfolio. Due to some limitations at DAN, that amount had to be the lowest price domain name in my portfolio. I received many very low offers that were not worth responding to. For many of my names, the minimum offer is either around 50% of the BIN price or what I would consider to potentially the absolute rock bottom price I would consider if I needed to close a sale pronto.

Ultimately, I would say that I might be willing to sell a domain name for a maximum discount of 50% off the BIN price, but the domain name would have to be easily replaceable and I have a strong desire to sell the domain name. Most typically speaking though, I would generally discount somewhere between 10-20% depending on the factors outlined above.

Where I List My Names for Sale These Days

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Someone recently asked me where I list my domain names for sale. I’ve mentioned this in articles at various times on here and on Twitter, but I thought I would share an update to give current information about my portfolio sales listings.

I would guesstimate about 95% of my domain names are listed for sale on DAN.com. These domain names have DAN landing pages and nearly all have BIN prices with the make offer option. DAN has earned my business since I closed my first deal on the platform in April of 2020, and I am happy to send visitors there to buy or negotiate to buy a domain name I own.

Dealing with a Small Pricing Error

I bought a domain name on NameJet in June of last year for less than $100. I priced it at $4,999 on DAN.com, and that is where the domain name resolves. Typically, I price my names a bit higher on Afternic than on DAN because of the higher commission rate and longer payment period, which I discussed at length last September.

Recently, a broker from GoDaddy emailed me because a prospective buyer made a $2,000 offer on this domain name. This would net me $1,600 after the commission, which is a nice ROI but I think it undervalued the domain name. I did a bit of searching, and I noticed that I had underpriced the domain name at GoDaddy / Afternic. This was either accidental or I raised my price at DAN and did not raise it correspondingly at Afternic. Whatever the case, I believe the domain name is more like a $5k domain name than a $3k domain name.

Aman Bhutani on CNBC Discussing GoDaddy’s Q4

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Like many tech companies, GoDaddy has been doing quite well during the pandemic. The company reported its Q4 2020 earnings on Thursday, and the company reported strong earnings. The stock (GDDY on Nasdaq) traded lower to $85.75 on Friday, down 7.65%. It is still trading close to its 52 week high.

GoDaddy CEO Aman Bhutani participated on CNBC’s Closing Bell on Friday to discuss the company’s fourth quarter earnings report, and I embedded the video of his appearance below: