Featured Domains

register.to

Redacted Whois at GoDaddy: a revenue hit but better customer experience

Privacy laws and bad customer experience are forcing GoDaddy to rethink a cash cow.

The word WHOIS in blue and yellow letters on black background

Last Friday, Elliot Silver broke the news that GoDaddy is planning to limit personal information in Whois records starting later this year.

GoDaddy is the largest domain name registrar in the world, and also one of the few large registrars that still shows personal information in Whois. Most stopped showing this information, such as email addresses and phone numbers, after GDPR went into effect. GoDaddy decided to only redact personal information for people in the European Union, for which GDPR applies.

I wasn’t surprised that GoDaddy held out for so long. GoDaddy’s Domains By Proxy product is a cash cow. Security company DomainTools ran a quick search for Domain Name Wire using “Domains By Proxy, LLC” and discovered 18 million Whois records. The actual number could be lower or higher given this crude search, but it gives an order of magnitude. (GoDaddy declined to comment on the number for this story.)

At $10 per year, that’s $180 million in annual revenue at nearly 100% margin.

That’s a lot of revenue and profit to give up. But changing privacy laws and customer experience have forced GoDaddy to take action.

Privacy laws are springing up all around the world, including the California Consumer Privacy Act.

And by keeping Whois information public, GoDaddy provided a lousy customer experience. Customers are inundated with telemarketing calls and spam after registering domain names. Many of the callers pretend to be GoDaddy offering additional services.

I recently registered a handful of domains for a friend and added Whois privacy on each registration to avoid the hassle. It stung a bit because the privacy service cost more than the domains.

After one recent experience dealing with a deluge of robocalls after registering a domain, I decided that it might be worth it—even in my unique position—for GoDaddy to begin blocking Whois information.

In my unique position, the downside of private information is that it’s harder to research the owners of domains for stories. This includes investigative stories, end user reports, and more. As a domain investor, I can’t verify ownership of domain names. There are downsides to no Whois and I’ve felt the sting of it over the past couple of years.

It will be interesting to see if GoDaddy retains some sort of “Domains by Proxy lite” service that blocks whatever information Whois records still display, or offers some sort of additional value to users. Such a product might also justify not refunding customers for previous Domains by Proxy purchases.

Either way, GoDaddy is going to have to manage the financial hit that this is sure to cause.

The most in-depth analysis of the global domain market

Get Our Newsletter

Stay up-to-date with the latest analysis and news about the domain name industry by joining our mailing list.


No spam, unsubscribe anytime.

Reader Interactions

Comments

    Leave a Comment

  1. Patrick

    GoDaddy already has an additional service on top of private registration that protects the domain, Ultimate Protection and Security, sometimes called Protected Registration or Domain Ownership Protection.

  2. Admin

    i stopped buy any product frm godaddy because other companies offer frm whois privacy guard but if they truly implement a system to reduce or entirely hide my whois info then i can do business with them.

  3. Angel

    “Customers are inundated with telemarketing calls and spam after registering domain names”

    This is an understatement at least for me. Last year I registered a cluster of domain with godaddy. I received 200 telemarketing call !!.
    That was it for me, after being with godaddy for more than 10 years. I new it was time to take my business elsewhere. I also now tell anyone I come across, including my clients stay away from godaddy.

  4. joesaba2014

    Cancel Private Registration
    Log in to your GoDaddy account.
    If you aren’t automatically directed there, make sure to select the My Products tab:
    Click Manage All next to Domains:
    Select your domain name from the list to access the Domain Settings page.
    Under Contact Information, click Remove Privacy.
    You will receive a confirmation alert.
    http://www.godaddy.com › help › cancel-private-registration

  5. Phil Martinez

    Wow great journalism not! Lost me after the lie of most the calls are people impersonating go Daddy. I own 400 domains at go Daddy with no privacy and my info isnt out there. You sound bitter

  6. Jose

    The losses for Godaddy are a small minute of what it recovers with the domain names registration, renewals, auctions, sales domains marketplace, broker domain, commissions, stock market, patents and licenses there is much more that we do not cooperate with the GDPR of Godaddy in the EU.

Domain Name Wire | Domain Name News
%d bloggers like this: