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GoDaddy Raises Prices on .COM
Says "ICANN Raised The Cost"...

 3:36 am on Oct 15, 2007 (gmt 0)

I will preface this by saying:

- I like GoDaddy.com
- I register ALL my domains there
- I refer my customers to register names there
- GD's Domain Control Center works well and is easy to use
- the user interface has recently been improved
- I do not have problems with transfers, DNS, forwards, etc that I have had at other registrars
- settings take effect quickly and without hassle
- the phone support at GD is good.

And yes, their basic pricing is good, (plus mail they send out usually contains a "coupon code" to save 10% to 20% on your order).


I just logged into GoDaddy to check a few domain names -- put 'em in the cart and went to checkout...

Price for .COM registrations is now $9.99, (plus ICANN $0.25 fee per name).

I called the GD sales/support line to see if maybe I was not seeing "my price", (I thought maybe I was on a new customer screen or something), but they told me;

"...ICANN raised our wholesale price 7%, so we have to
pass along the increase to customers since we were
selling almost at cost".

Sorta true... but not really.

ICANN approved Verisign raising it's wholesale price to registrars from $6.00 to $6.42 for .COM names, (hence the "7%")..

But --- GoDaddy's price to the public for .COM's before the raise was $8.95

GoDaddy was not selling at cost -- they made almost $3.00 for every .COM name registered.

GoDaddy's price for .COM's is now $9.99

My math: $8.95 + ($8.95 x .07) = $9.5765

So the new pricing earns GoDaddy an extra $413,500.00 profit for every million names registered or renewed this year!

I think I read they have 18 million names registered.

If that's true, GD will make approximately $7.5 million in extra profit this year alone while blaming the price increase on ICANN.

As I said -- I like GoDaddy -- they did help bring down the Network Solutions monopoly and $35 per domain fee -- so we gotta give 'em some credit.

I'd respect the sales person more if they just said; "Yup, we raised our prices"...



 4:41 am on Oct 15, 2007 (gmt 0)

They're all doing it, not just GD.

I think it's called 'capitalism' :)


 5:08 am on Oct 15, 2007 (gmt 0)

Do you "intimately know enough" about their business to conclude how much actual profit they're making,
especially when every business can set "caps" on what targets are okay and not?

OTOH, at least the one you talked to was brutally honest about it. :D



 5:31 am on Oct 15, 2007 (gmt 0)

The last line of my post was more my point.

Capitalism doesn't have to mean "treat your customers like idiots".

Capitalism used to mean that; if you sell goods or services and treat your customers well your company would prosper.

BTW - being a capitalist consumer, I found if you do a search on Google for "domain name registration" you should get and Adwords sponsored link at the top of the page which takes you to a "special" landing page at GD -- where you can register a name for $6.95

Fun with capitalism:

Chewing Gum not marked "sugar free" or "artificially sweetened", but full of aspertame and sucralose, (NutraSweet and Splenda). How and why do they do it? They use some "sugar" and, by volume the artificial sweeteners are very small in proportion to other ingredients so they can label it as having "less than 2%" and hide it in the fine print of the ingredients panel. The reason they do it: Sugar is a volatile commodity and the artificial sweeteners can be produced cheaply, (and stored, trucked and handled much more cheaply since they have 600% more "sweetness" than sugar -- one 55 gallon drum in the warehouse replaces 600 drums of sugar. Who cares if it might cause brain cancer -- there's profit in them thar' suckers. Read your ingredients -- a certain "sports-ade" produces and markets their "fitness water" line and many other products the same way -- loaded with chemicals to increase their profits and all flown in under the radar for people who would not buy it if it was clearly labeled "artificially sweetened".

Pizza, Milkshakes, Theatre Popcorn, etc -- available in Medium, Large and Extra Large, (nobody sells "small" unless they are trying to make you think you'll lose weight eating it). You won't find the word "small" on too many menus these days.

"Lite" Salad Dressing - read the ingredients, they simply add water and a chemical additive to make it thicker.

I get mad that I have to waste time explaining this to my kid instead of saying "Buy Brand X, they have always made a good product (or provided a good service)".

Now we need to teach our kids to be cynical -- and many of them will just assume they should "take" their share when they get into the business world because "everyone else does".

We capitalists are raising kids that will jump off a bridge because there was commercial telling them to.


 5:32 am on Oct 15, 2007 (gmt 0)


October 15th is the day most if not all domain name registrars rais their prices. I called GoDaddy last week and they told me they were raising prices by- hold on to your seats, fifty three cents.


 6:54 am on Oct 15, 2007 (gmt 0)

That's the article I got the $0.42 figure from.

..hold on to your seats, fifty three cents.

BTW - I was wrong, they should gain more than $7.5M...

Old (retail/list) price $8.95
New (retail/list) price $9.99
Gross Increase in Price $1.04
Verisign increase ......$0.42
Net Increase in Price ..$0.62

Increased revenue --- if they actually register 18 Million names -- which seems about right since a comment from Bob on the blog BobParsons.com says, "Go Daddy Customers (there are now over 4.3 million of you!)"...

$0.62 x 18,000,000 = $11,160,000.00

I still like GoDaddy... I always respected Bob Parsons as a self made, no BS guy -- maybe tomorrow he'll read this and tell the sales staff to just say, "Yup, we raised the price by a buck, and half of it was due to a fee increase".


 7:34 am on Oct 16, 2007 (gmt 0)

From what I understand GoDaddy has increased the cost far more than the other major registrars I have heard about as a percentage increase.

They are allegedly taking advantage of the situation to get windfall profits and in-effect blame it on someone else. Shame on GoDaddy!


 1:57 pm on Oct 16, 2007 (gmt 0)

If you don't think you're getting good value, transfer your domains to a different registrar.

If you think they give better value than others in the marketplace, don't begrudge them their profits.

Profit is what keeps a business in business!


 2:08 pm on Oct 16, 2007 (gmt 0)

If you don't think you're getting good value, transfer your domains to a different registrar.

Exactly. Capitalism is great... if enough people think a company is screwing up or over priced that business will HAVE to change because there is nothing forcing customers to them.


 4:44 pm on Oct 16, 2007 (gmt 0)

Godaddy are still running the same discount registration they had before the increase - and you can register for multiple years at that price.

So if you use that, nothing has changed - only the people who pay full retail price will notice the increase.

[edited by: Tiebreaker at 5:00 pm (utc) on Oct. 16, 2007]


 5:02 pm on Oct 16, 2007 (gmt 0)

If you buy a lot domain names, become a reseller...there are plenty of places where you can put a deposit down, get a nice "wholesale" price, and sell domains to yourself for your "wholesale" cost.


 4:18 pm on Oct 18, 2007 (gmt 0)

GoDaddy was not selling at cost -- they made almost $3.00 for every .COM name registered.

Made? Sure their margin (before all other expenses was $3) - but most of their profit comes from upsells, not registrations.

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