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Is godaddy making money?

 
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squash1

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Since: Jan 12, 2005
Posts: 7



(Msg. 1) Posted: Tue May 16, 2006 2:24 pm
Post subject: Is godaddy making money?
Archived from groups: alt>www>webmaster (more info?)

I dont understand how godaddy can make any money given the prices they
charge . Web hosting requires a lot of support and my guess is godaddy
subscribers do not have phds in all the complexities of building
websites. THey must be spending all day answering the most basic
question from users, like what does it mean to host a website? And all
that for $2/ month?!

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Ed Jay

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Since: Aug 05, 2005
Posts: 285



(Msg. 2) Posted: Tue May 16, 2006 2:45 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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squash.DeleteThis@peoriadesignweb.com scribed:

>I dont understand how godaddy can make any money given the prices they
>charge . Web hosting requires a lot of support and my guess is godaddy
>subscribers do not have phds in all the complexities of building
>websites. THey must be spending all day answering the most basic
>question from users, like what does it mean to host a website? And all
>that for $2/ month?!

They're doing well enough to afford television commercials--I've
occasionally been seeing them in southern Calif. You may safely bet that
95% of their labor is performed by software. Add a humongous customer
base, and you have an answer to the question, "How do they stay viable."
--
Ed Jay (remove 'M' to respond by email)

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squash1

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Since: Jan 12, 2005
Posts: 7



(Msg. 3) Posted: Tue May 16, 2006 3:35 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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Blinky the Shark wrote:
> They've even placed commercials in our Super Bowl game (the pro football
> championship game) the last three years, and gotten plenty of press for
> the risque nature and the hot babe. And Superbowl time is the most
> expensive TV advertising buy in the US.

Dont forget how many dot gones placed expensive tv ads a few years ago.
I dont see how Joe football fan knows would know much about the
complexity of building a website. For $2/ a month they would be on the
phone for hours trying to understand the difference between ftp and
http.

My point is they seem to cater to people who dont know much about the
internet. These are the kind of people most likely to be on the phone
all day with tech support. So how can they possibly be making any money
charging $2/ month?
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mgw1979

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Since: Jul 09, 2003
Posts: 527



(Msg. 4) Posted: Tue May 16, 2006 6:41 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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Auggie

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Since: Sep 06, 2005
Posts: 124



(Msg. 5) Posted: Wed May 17, 2006 3:52 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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<squash.RemoveThis@peoriadesignweb.com> wrote in message
news:1147814667.134446.295570@38g2000cwa.googlegroups.com...
> I dont understand how godaddy can make any money given the prices they
> charge .

GoDaddy offers alot more services than just web hosting and cheap domain
names. Other services they offer include: SSL Certificates, merchant
accounts, SEO services, domain name reselling, email, and more.

Many internet based businesses use the business model of: "Make a tiny
little profit from a large number of customers"

> Web hosting requires a lot of support

Web hosting does not require a lot of support... bad web hosting does.

> and my guess is
godaddy
> subscribers do not have phds in all the complexities of building
> websites. THey must be spending all day answering the most basic
> question from users, like what does it mean to host a website? And all
> that for $2/ month?!

I don't think GoDaddy is directly targetting their services, or this domain
name sale ($1.99 per domain), to clueless users. But even for those that
they get they do have a pretty extensive FAQ process that should answer most
questions even a clueless user would have... and for the customers that do
actually call or email in they probably just use standard form replies in
almost every case.


For myself, years ago I did hosting for about 85 customers and even though I
was just one guy I never really had a problem or got overwhelmed by users
calling in. I had one guy who had FTP problems that would call me every 4-6
weeks (he had the same problems each time, either his firewall was causing a
problem or he didn't name the files properly) but for the most part I'd go
months at a time without hearing anything from anybody else and when I
finally did get somebody to contact me for an issue it was something I could
spend about 30 seconds on sending them a form email in reply.
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Red E. Kilowatt

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Since: May 03, 2005
Posts: 206



(Msg. 6) Posted: Wed May 17, 2006 6:58 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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Auggie <Imperial.Palace.DeleteThis@Rome.It> wrote in message:
aFHag.23520$Fl1.14488@edtnps89,

> <squash.DeleteThis@peoriadesignweb.com> wrote in message
> news:1147814667.134446.295570@38g2000cwa.googlegroups.com...
>> I dont understand how godaddy can make any money given the prices
>> they charge .
>
> GoDaddy offers alot more services than just web hosting and cheap
> domain names. Other services they offer include: SSL Certificates,
> merchant accounts, SEO services, domain name reselling, email, and
> more.
>
> Many internet based businesses use the business model of: "Make a
> tiny little profit from a large number of customers"

Or better yet, offer something free or very cheap to gain customers that
you can bombard with additional offers.
--
Red
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dingbat

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Since: Jan 01, 2004
Posts: 187



(Msg. 7) Posted: Wed May 17, 2006 7:42 pm
Post subject: Re: Is godaddy making money? [Login to view extended thread Info.]
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On 16 May 2006 15:35:40 -0700, squash.DeleteThis@peoriadesignweb.com wrote:

>For $2/ a month they would be on the
>phone for hours trying to understand the difference between ftp and
>http.

Do they make an additional profit from that side of the business ?
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