GoDaddy's acquisition and fee changes on

Started by Domaining News, Jan 08, 2023, 05:58 AM

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The founder of, Reza Sardeha, shared his thoughts on Twitter regarding the recent hike in fees at GoDaddy that affected domain investors using the Dan platform.

After acquiring Dan in June 2022 for $71 million, GoDaddy increased the fees from 9% to 15% effective February 1st, with an additional 25% charge for using external DNS services. Reza stated that around 60% of domain sales come from Afternic, which reduced its commission rate from 20% to 15%, and that "average domainers" would not see a significant loss in sales. However, there are several questions regarding the unfairness of the fee hike and how innovative it is.

Why didn't Reza mention the 25% "head tax" for external DNS usage?
Can GoDaddy's actions be considered innovative if they are causing price-jacking for users of the platforms it acquired?
Who exactly is the "average domainer" that would benefit from this change?
Is the claimed "commission-less" paradigm accurate given the increase in fees, especially for unsupported ccTLDs?

Overall, it seems Dan has struggled since the acquisition by GoDaddy, and there are still many concerns about the recent fee changes.