HostGator: 10% Raises, No Longer for Sale, and Taking on GoDaddy

Web host plans for big growth.

Web hosting company HostGator has published excerpts of founder Brent Oxley’s recent email to employees. I found it interesting on a number of fronts.

1. The company is giving its Houston employees a 10% raise immediately. This sounds like what Google recently did. This 10% is on top of any usual raises.

2. HostGator is no longer for sale. Oxley said he had an end-of-year deadline to sell the company and he’s taking it off the market.

3. The company wants to take on GoDaddy. “This next year we will be going directly after GoDaddy’s business. I plan on investing over a million dollars a month into TV commercials. We are going to grow extremely fast, much faster then any growth we’ve ever seen before”.

4. Offer to transfer to Austin. The company is making a big splash in Austin with the announcement of lots of hiring. Now it’s offering any of its Houston employees the option to move to its Austin office.

I think the email is an interesting look at how a fast-growing internet company is planning for the future.

Comments

  1. kandyjet says

    Godaddy competitor? sounds good. More coupons then. it’s remarkeble HG recently partnerd with a (forgot the name) doamin registration company as i remember.

  2. jeff says

    Instead of a million a month why don’t they just sell domains for below cost just like godaddy to get their base up a bit ;-)

  3. bob says

    $millions a year on advertising is pointless. Word of mouth goes a lot further. Put those millions into offering deals to your customers. I want more affordable vps and dedicated servers. I don’t want to see commercials.

  4. Rocket says

    When it’s all said and done, the HostGator story is going to get a LOT more interesting. The pay raises were a direct result of the exposure of horrible internal business practices. Grab some popcorn; this one’s going to be fun.

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