Thursday, December 04, 2008

GoDaddy's Questionable Tactics

An interesting (if long) investigative piece on how GoDaddy uses a second company to warehouse and profit from expired domains. Many registrars auction off their customers' expired domains, but this article alleges that GoDaddy jumps through some unusual hoops to cover their tracks.

I've discussed the domain name selling game in numerous classes, as well as some of the tactics of companies like (GoDaddy competitor) Network Solutions. It's an odd business, and the real money is no longer in the registrations themselves, but in all the add-on services, auctions and other fees that the registrars try to extract from you.

A recent trip into the Network Solutions site management console for a client of ours who needed a domain redirected revealed an innovative advertising strategy: As a paying customer, I could not even reach the management screen for the domains without first viewing and opting out of an account security upgrade. I was given the choice of either purchasing the service or I could "Continue Unprotected." Talk about tasteless, fear-based advertising!

Sadly, this is becoming standard practice as domain registrars turn over every cushion to find those last bits of change. Your best bet is to buy just the services you need and studiously avoid the barrage of upselling.

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