GoDaddy Crosses 45 Million Domain Name Mark

[the_poet]

Go Daddy Crosses 45 Million Domain Name Mark

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[NPer]

Interesting. Increase of 12.5% in just 9 months!! Top stuff...
They will remain the market leader for years to come.

Nubiano :wave:

 

[Archangel]

They had that increase from all their special offers this year IMO They had a lot in 2009, yes, but this year had seen many 99-cent codes along with multiple 59-cent .info's, $5.99 multiple .coms etc. They'll likely tank in a few ears unless they can assure of pulling a worthwhile profit. I'm in no way impressed.

Interesting. Increase of 12.5% in just 9 months!! Top stuff...
They will remain the market leader for years to come.

Nubiano :wave:

 

[NPer]

They had that increase from all their special offers this year IMO They had a lot in 2009, yes, but this year had seen many 99-cent codes along with multiple 59-cent .info's, $5.99 multiple .coms etc. They'll likely tank in a few ears unless they can assure of pulling a worthwhile profit. I'm in no way impressed.

That was pretty obvious to me to tell you the truth. I bought domains using those coupons that you are talking about.

That's just the thing: other registrars are not doing this. They can-but they don't. What's stopping them? nothing! So it's their loss if they do not want to employ similar sales tactics. Those discounts benefits me and thousands of other people. And that's why I, and thousands of other persons will use Godaddy. If it's a tactic Godaddy uses-so be it... As long as they are profitable, I have to say well done to them.

Only time will tell who will end up with greatest market share in the distant future, but right now and in the near future-it is Godaddy.


Nubiano :wave:

 

[enlytend]

That's just the thing: other registrars are not doing this. They can-but they don't. What's stopping them? nothing! So it's their loss if they do not want to employ similar sales tactics.

Godaddy's taking a calculated risk. They're selling below their cost and gambling that most of the time they will make it up by upselling add-on products or through people renewing at a higher rate.

If everyone registered domains there only with coupons or when they were on sale, didn't fall for the other sales pitches, and transferred out at renewal time, it would hurt them badly.

 

[Archangel]

GoDaddy isn't operating on a big profit right now. Chances of the company being no more look a lot better than perceived by most. They're taking too big a gamble. Only time will tell if it pays off.

 

[kemjika11]

GoDaddy isn't operating on a big profit right now. Chances of the company being no more look a lot better than perceived by most. They're taking too big a gamble. Only time will tell if it pays off.

I disagree with this for one reason- competitive advantage. Godaddy has a HUGE advantage over most registrars because it is the 1000lb gorilla in the room compared to other registrars. Most other registrars aren't managing close to the same # of domains as Godaddy is, simple as that.

 

[Archangel]

I agree with you a bit but the numbers tell the story here. Research GoDaddy a little further and look at their profits. They pretty much are #1 at the moment, yes, but it was a hard-won thing and a Pyrrhic win at best.

I disagree with this for one reason- competitive advantage. Godaddy has a HUGE advantage over most registrars because it is the 1000lb gorilla in the room compared to other registrars. Most other registrars aren't managing close to the same # of domains as Godaddy is, simple as that.

 

[the_poet]

GD's largest competitor is only 20% of it...

 

[DU]

They made a fortune this year with .co registrations to offset the 99c infos
Also I think 90% of those names are at TDNAME offered at $1000+



As Archangel said - GoDaddy is operating on a model that is calculated but risky today working on the edge of losses with attempts to upsell.

Eventually they will want to IPO - it is constantly rumored - but the difference between the 2010's and the 1990's and early 2000's is that the dynamics have changed from REVENUE is king.. to PROFIT is king.

People used to buy on potential (revenue) and now there is a HUGE aversion to risk which is what you look at when you see games played like GoDaddy plays them. This is why GoDaddy does not release its real profit loss. Not only will people be surprised at how much money this many domains DOESN'T make... they might be surprised to see contracts with the .me/.co registries.

The biggest issue is the low entry cost of competition and Godaddy doesn't offer a unique, legally protected service.

That many domains though...wow!

 

[bmugford]

Of the 600,000 .CO regs lets say 1/3 are at GoDaddy.com at an average of $30.

That is 200,000 x $30 = $6M. That is gross sales. GD only gets to keep a percent of that.

It really is not all that much revenue when you think about it for a company that size.

Let's say they get $10/ per .CO reg. They would need to sell 300,000+ .CO just go break even on a Super Bowl commercial.

Brad

They made a fortune this year with .co registrations to offset the 99c infos

 

[DU]

Of the 600,000 .CO regs lets say 1/3 are at GoDaddy.com at an average of $30.

That is 200,000 x $30 = $6M. That is gross sales. GD only gets to keep a percent of that.

It really is not all that much revenue when you think about it for a company that size.

Let's say they get $10/ per .CO reg. They would need to sell 300,000+ .CO just go break even on a Super Bowl commercial.

Brad

My statement was apparently not dripping with enough sarcasm I think most of GD's profit is actually at TDNAME... but hard to say. I imagine that the .co registry also threw them a bone.

But your math is why I don't expect the HUGE .co Superbowl ad.

 

[NPer]

Where GD makes their major money is with TDNAM... They do not even own the domains which drop, but they profit from it... VERY HIGH profit after deducting the operational costs involved with it. Do the math.

I can't see why people isolate the discounted regges etc from their entire business?!?!

They don't just sell domains to domainers-lol. Discounts are discounts-don't read that as their entire business being discounted!!

And.CO is seriously peanuts in Godaddys eyes. .CO is not their focus- .co is merely just a hype that they want to benefit from in the short term... Long term-they have a good strategy... One of their main income drivers is TDNAM!!

Besides hosting (which isn't really big with GD), there are many other products which they also sell to businesses and individuals who are not domainers.

So while we, as domainers, may only see certain areas of their business and judge their ENTIRE business model solely on that, it's not that obvious to us that they are indeed generating profit from other areas too!! E.g. Resellers? they pay Godaddy annual fees whether or not they make sales-and if they do, GD profits anyway... etc, etc...

GD is a company-I am sure they wouldn't just do foolish things that are obvious for us to point out.

Nubiano :wave:

 

[Archangel]

I wouldn't wager on that one.

GD is a company-I am sure they wouldn't just do foolish things that are obvious for us to point out.

 

[Name Trader]

And.CO is seriously peanuts in Godaddys eyes. .CO is not their focus

If that was the case, then why did they change their default domain registration from .COM to .CO

OK. They've changed it back now, but this is an example of what Archangel is talking about.

 

[NPer]

And.CO is seriously peanuts in Godaddys eyes. .CO is not their focus

If that was the case, then why did they change their default domain registration from .COM to .CO

OK. They've changed it back now, but this is an example of what Archangel is talking about.

(Thanks for cutting my sentence mid-way and changing it's meaning in the process for a convenient response.)

And now I quote the full sentence as a reply to your response:

And.CO is seriously peanuts in Godaddys eyes. .CO is not their focus- .co is merely just a hype that they want to benefit from in the short term...

I have to ask you-do you think GD's future is dependent on .co?

Changing default from .com to .co means nothing other than the short term benefits for GD.

If you read Brad's post which included the calculation you would see that .co is peanuts for a huge company like GD.

Archangel never referred to .co in any manner in which you are insinuating. (No $5.99/$0.99/$0.49 coupons were issued to increase .co registrations). Besides, when GD changed the default to .co, they were contacting customers who regged .co's that day to find out if indeed they wanted a dot co. From what I understood from other persons here, was that there were indeed many refunds relating to .co when they changed the default. So I don't think the .co argument fits well with the profitability of GD as a whole.

Just to make it very clear:

And.CO is seriously peanuts in Godaddys eyes. .CO is not their focus- .co is merely just a hype that they want to benefit from in the short term...

 

[Name Trader]

Archangel was being both specific and non-specific.

I certainly was being offered .CO registration when I wanted .COM extension, even though I'd bought nothing else that day. It is an accumulation of such stupid things which turns people off GoDaddy. You always have to be alert to their tricks.

For me, it was being banned for wanting to do whois lookups. with about 0.01% of their total registrations at GoDaddy, that's ridiculous that I can't do more than a random 5-200 lookups a day without being banned. That's unfriendly to large (active) domain holders. They just say fine, go somewhere else. So I'm going to. That's they're attitude to domainers. Even my account manager could do nothing to improve things.

I certainly didn't mean to change your meaning, but certainly a lot of this short term gain messing about, adds to their long term reflection from a lot of domainers (and I was a staunch GoDaddy supporter --- best control panel out there, by far, imho).

 

[diosss12]

Nothing going wrong in internet industries because it virtual industries no one can effect on it.

 

[labrocca]

Godaddy is ego driven not profit driven. Parsons is more interested in being the famous than his company making any real money. His IPO fell apart I suspect once investors saw the books.

And I agree that tdnam probably is their most profitable division. Making nickels from domain registrations doesn't cut it. Registries make the money not GD in every domain reg. GD hosting is terrible and I can't imagine it's highly profitable.

And while GD is the biggest...it's not the best. There is nothing it offers you can't get somewhere else. Not one thing.

 

[Kate]

There is nothing it offers you can't get somewhere else. Not one thing.

Danica ?