Through GoDaddy last year, my domain name registration cost $9.99 and the privacy registration was $7.99 (while WhoISGaurd is often packaged as free elsewhere). The total was $18.16... Not merely a buck or two for the first time registering a domain name (my real name) for a website that is not even used to sell anything and never will be. It is a basic resume/portfolio reference website that sees very little traffic.
I am now being asked 4x's the cost to renew my domain name at $49.99 with the cost for the privacy registration going up as well...
The is "price gouging," plain and simple. And, GoDaddy knows this... Pushing the onus back onto the "registry" as their excuse for why this happens as they do is ridiculous. They all play in the same sandbox and rely on a cut of that price gouging.
There is no valid reason for my domain name to cost a lot in the first place let alone quadruple the cost this much to renew it. These companies have no appreciation for paying customers, nor are they giving a reduced price the first year as they want you to think. They are happy to get you in the door so the following year they can price gouge you to renew, OR leave you in that 'PAY THIS OR ELSE' circumstance where they sell your domain name to the highest bidder (or pretend to sell it) so they can then charge you whatever they want to get it back, typically at a much higher rate. They are well aware this renders you into a desperate situation to keep your domain rather than having to deal with the hassle of losing it, or buying a different name (and your website going down).
This is disgusting business practice. It is a scam business tactic at the great expense solely of the customer who already proved themselves to be a contributor to GoDaddy's paychecks, and who they ought be loyal to...
And, to imply, as one GoDaddy Pro Advisor did in another post, that GoDaddy makes no money off of domain name registrations is just as ridiculous. This company may make less on domains than on their other offerings, but they are far from making nothing. If they only charged a small mark-up (which they don't) they'd be making plenty based on sheer volume alone. And what are they making in affiliate income based on domain information???
My domain/website is gone now. It just expired after being bombarded daily with emails from GoDaddy to basically 'renew, or else.' It took me a long time this past year to get that website up and looking presentable. I will now have to get a new one, changing what it dots to in the TLD... Everywhere it has been printed must change too, and everyone who had it will now be linked to no website... They have effected my livli-hood. I am losing money, at every end...
I am not sure how GoDaddy thinks this sort of sham business dealing will make for a happy lasting customer. But, I am happier to go elsewhere based on mere principle alone at this point. I will not only never return to GoDaddy to offer a dime of my money, but I will be extremely loud-mouthed all over the internet in regards to this experience.
Solved! Go to Solution.
Hi @brynze. Thanks for taking the time to share your thoughts. Sorry to hear that you've decided to let your domain go. I'll do my best to try to address the concerns you mentioned in your post.
It's no secret that registrars (GoDaddy included) make money from the registration of domain names. Each domain registry charges a different amount for renewal. We probably make more on some domains than others, but there are always valid reasons for why domains are priced the way they are. Most often this is simply a matter staying competitive within the market. We may not be the 'cheapest' registrar in the industry on every single price point, but we are certainly competitive and beyond price, we work to provide a much richer value proposition than our competitors.
Discounts on new services are more common to help customers (new and existing) get started with new business endeavors and ventures. Once they are established, we hope that they see the value of our products and services beyond simply a pricepoint, and choose to continue using our services. Renewal prices are by no means hidden from customers during the purchase process. Renewal prices are listed at the time of registration (see below for an example).
We always make an effort to let customers know that domains are expiring (as you have mentioned). We do this because we don't want them to lose domains that they want to keep or be in a position where they may have to pay a registry redemption fee. This done primarily via email, but also occasionally call customers to let them know about expirations. We do this far in advance, in part so that customers that wish to transfer their domain to another provider have ample time to do so.
As for "pretending to sell" a domain, this isn't something that GoDaddy practices. Typically, after a domain has expired for 30 days, it is listed as an expired domain auction. Prior to this, the domain can be recovered, though depending on how advanced the expiration is, there may be an additional fee (which I mentioned above) to recover it.