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My question to Godaddy's CEO at NamesCon: Domain Liquidity for the industry

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Was Rob Monster's question at NamesCon out of bounds or bad form?

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  • The industry needs to be having that conversation and Godaddy should engage

    84 
    votes
    63.2%
  • No, we don't need domain assets to become more liquid or bankable

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    2.3%
  • What's NamesCon?

    votes
    3.0%
  • This thread is stupid

    42 
    votes
    31.6%
  • This poll is still running and the standings may change.

Rob Monster

Founder of EpikTop Member
Epik Founder
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Earlier this morning, I wake up to seeing a lovely comment from Shane Cultra on his blog:

upload_2020-2-5_8-47-38.png

To my eyes, that comment from Shane is actually pretty crazy. Ironically, many people told me unsolicited, that my question was the highlight of the Q&A. This is not the first time that Shane has spoken out of school against me with trash-talk and it probably won't be the last since it shamelessly drives up his page views for his affiliate site. I don't know if anyone has a video of the Q&A section of Aman's keynote but if so, would be great if someone would upload the actual video clip. I believe anyone who objectively reviews my question will find it to be rather selfless. It was a question about domain liquidity. There were 2 parts, and I believe they were reasonable and sincere.

Part 1: Domain Liquidity via Loans

As some folks know, Epik provides interest-free loans secured by domains. This is popular but we cannot lend to everyone in the amounts that everyone might like. Compared to Godaddy, we are a relatively small company without access to the vast pool of capital that Godaddy has access to. I asked if Godaddy would consider extending domain loans to its customers. The lending model is proven. Godaddy has the ability to scale it to a much greater degree. Rather than forcing Godaddy customers to abandon domains to their expiry stream, why not allow Godaddy customers with liquid names to borrow against their portfolio? It seems reasonable to me.


Part 2: Working with US Congress to make domain names a bankable asset.

I have also been a long-time believer in the potential for domain names to be a respected asset class. The challenge there is that the banking industry does not recognize domains as a bankable asset class. People can donate domains to non-profits and can get a write-down for their investment basis, but if you go to a bank and ask to borrow against a 3N.com, they have no idea what you are talking about. The House subcommittee on banking could engage here but we would need some lobbying power to make that happen.

For anyone who has ever studied the history of the housing market, the correlation between the availability of borrowing capacity and the prices of the associated asset is indisputable. When credit is available, asset prices go up. If domain owners could more methodically borrow against their domains at conventional banking rates rather than only from hard money pawnshops that dominate the landscape today, it would be a game-changer for making the pie bigger for everyone.

I will be interested to hear what folks have to say on this very reasonable topic about domain liquidity that can greatly impact the future of the industry.
 
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Based on his speech, the CEO of Godaddy seems like a resourceful guy who's sincerely interested in valuing domainers as customers and listening to their feedback.

At the moment, Godaddy forces domainers to pay for a "discount club" in order to get renewal prices that any other registrar offers without having to pay a lot of money for a discount club. They also charge $4.99 to add a Reserve to auctions and make things difficult with the 60 day lock in order to restrict migration (I was just forced to renew a domain there for $18 because of that stupid imposed lock for a purchased domain Godaddy pushed into my account without waiving the lock. This isn't a win for Godaddy. It's something that antagonizes me as a customer and will impact my future decisions).

I don't think Godaddy will ever give domainers loans or help them liquidate their expiring domains. But if Godaddy really wants to help domainers and encourage them to use Godaddy as a registrar and a marketplace they can start by addressing some of the other issues I mentioned - give domainers normal renewals without having to pay for the discount club, eliminate the paid Reserve, be flexible with the lock and in general start treating domainers like partners instead of cash cows.

@Joe Styler
Good points!

ALso! Godaddy inherited the ban on me @ afternic when they bought them out. Not gonna lie, i am now at the point where i will ask GD to either remove that ban, or i move all my names out (not even $1 i will spend). i know i am a small small fish, but i know i spend good $ on GD/ year and there is no need for me to do this if GD wont serve me well. enough is enough.
 
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Good points!

ALso! Godaddy inherited the ban on me @ afternic when they bought them out. Not gonna lie, i am now at the point where i will ask GD to either remove that ban, or i move all my names out (not even $1 i will spend). i know i am a small small fish, but i know i spend good $ on GD/ year and there is no need for me to do this if GD wont serve me well. enough is enough.

Epik wouldn't do you like that.. Just saying
They don't even treat you like a customer - i mean, dude the owner of Epik is on NP everyday and actually tries to help people. Even if it isn't Epik related... GoDady.Sucks - only pops up when cameras are around... #KardashiansOfDomains lol
 
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Specific to the Anti-Trust topic, from what I know about such cases, it would come down to intent. Over the years there have been many high profile cases. Whether such a case would be tried under the Trump administration, who knows, but the Sherman Act is highly codified with an abundance of case law.

Good primer here:

https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws

https://www.law.cornell.edu/uscode/text/15

Whether there ever is an anti-trust suit or other major suit, the scope for discovery is pretty vast. A reasonable judge would allow stakeholders to seek factual answers on an array of discovery questions that in many cases are beyond the scope of regulatory oversight.

Here are some sample discovery questions;

- Does Godaddy routinely interfere with domain transfers through policies related to domain locking or changing of authorization codes beyond what would be required to maintain compliance or security?

- Does Godaddy knowingly allow WHOIS records to be wrong as a basis as domains go un-renewed while the actual legal owners cannot be contacted by 3rd parties due to WHOIS obfuscation or errors?

- What is the nature of the commercial relationship between Godaddy, HugeDomains as it relates to acquiring expired domains under terms not available to all others?

- What is the nature and scope of operating engagement with Board-affiliated organizations, in media (NY Times), social networks (LinkedIn), payment processors (PayPal and Intuit)?

- What has been the nature of Godaddy's communication with mainstream media outlets and social media outlets to defame, discredit, de-fund, or other undermine or impair potential competitors directly or by proxy?

These are not accusations. These are questions. A reasonable discovery process would determine whether there is a compelling case. The size of prize is not small for a prosecuting attorney.

On the other hand, even a $1 billion settlement is covered by Friday's spike in market cap. So, the upside of operating with impunity might exceed the eventual downside of a settlement of a Federal case.

To be clear, I believe Godaddy has many lovely staff. However, there are also an abundance of current and former staff who might provide insight into a legacy of anti-competitive operating practices.

For calibration, I have had some concern about Godaddy's Draconian practices already long before Epik became a registrar. It was their Draconian practices that caused the decision to become a registrar:

https://epik.com/blog/bob-parsons-tear-down-your-privacy-wall.html

Keep in mind post was written in May 2010 -- almost 10 years ago! Epik became a registrar in June 2011 through an acquisition, being confidence that Draconian nonsense would not stand the test of time.

In other words, I have been an active observer of Godaddy for a very long time. With the private equity guys now mostly gone, and an empowerment-minded CEO at the helm, it might be a chance to turn the page.

So, let's just hope Godaddy's Board gives Aman the opportunity to project a kinder and gentler version of Godaddy. That is my genuine hope. As long as the playing field stays level, we're absolutely cool.

If we are lucky, Godaddy will be a giant force for good, both in the domain industry and in the world. Aman has declared a agenda of empowerment. He should try to make good on that before the die is cast.

Back in 2010 wow did not know you were on this back then Rob.
 
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Back in 2010 wow did not know you were on this back then Rob.

When it comes to Godaddy, I have been calling out nonsense for a while. The record shows that I have always taken a nice guy approach first. If there is no engagement, I reserve the right to introduce a solution. Some things take time, especially when largely self-funding solutions to problems. However, I am blessed to have been able to attract and retain some exceptionally talented and diligent people who actually understand the meaning of the word empowerment, and try to live it without much concern for who makes money or who gets credit. And on most days, I believe I have the most fun job in the world, especially lately. I have no animosity towards Godaddy whatsoever. I simply ask them to do the right thing.
 
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When it comes to Godaddy, I have been calling out nonsense for a while. The record shows that I have always taken a nice guy approach first. If there is no engagement, I reserve the right to introduce a solution. Some things take time, especially when largely self-funding solutions to problems. However, I am blessed to have been able to attract and retain some exceptionally talented and diligent people who actually understand the meaning of the word empowerment, and try to live it without much concern for who makes money or who gets credit. And on most days, I believe I have the most fun job in the world, especially lately. I have no animosity towards Godaddy whatsoever. I simply ask them to do the right thing.

Yeah I never thought you liked them or they liked you, just from a person standing on the sidelines with no info either way.
 
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Yeah I never thought you liked them or they liked you, just from a person standing on the sidelines with no info either way.

They employ a number of really lovely people.

They also have policies and practices that I find to be in conflict with customer interests.

My hope was that under Aman, that his rhetoric of empowerment would be substantial.

Let's see. The world is about to change. A lot.
 
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