Sedo Purchases RevenueDirect and Why It Makes Sense

Sedo has purchased RevenueDirect, Dotster’s domain name parking service.

Sedo has purchased domain name parking firm RevenueDirect.

For established domain parking firms, acquiring another domain parking firm usually doesn’t make sense. Parking firms rarely have long term contracts with clients, so the acquirer risks seeing purchased clients leaving the ship following a takeover. But this buyout makes sense for a couple reasons:

U.S. Dominance: For a long time, Sedo has been known as the dominant domain parking firm and Google partner outside the United States, while DomainSponsor has the Google lock inside the United States. With this purchase Sedo will bolster its position in the United States.

Higher Revenue Share: By acquiring more clients, Sedo can increase its revenue share rate with Google. This will put it in a position to offer more to domainers, improving its overall positioning. Further, Google domain parking contracts include tiers with different revenue share rates. This buyout may push it into a higher tier.

Registrar Affiliation: Call it a bonus, but Sedo’s domain parking purchase comes with a fresh deal with the affiliated registrar, Dotster. It will send Dotster clients to Sedo for both domain parking and domain purchases.

As stated by RegistrarStats, Dotster is the 15th largest domain name registrar with over 1 million domains under management. The domain server ns1.revenuedirect.com has over 225,000 domains as stated by DomainTools.

This may not be Sedo’s last domain parking firm buyout…