Max Clark » godaddy http://www.clarksys.com Rants and Raves! Thu, 19 Aug 2010 23:44:56 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 30 Million Domains No Profit http://www.clarksys.com/blog/2008/07/02/30-million-domains-no-profit/ http://www.clarksys.com/blog/2008/07/02/30-million-domains-no-profit/#comments Wed, 02 Jul 2008 11:38:07 +0000 Max http://www.clarksys.com/?p=391 From Data Center Knowledge:

Go Daddy said this week that it is now managing more than 30 million domains.

I was actually thinking about the domain registration business the other day and what the actually costs associated are. GoDaddy is charging $6.85/year (plus the $0.20 ICANN fee) for a .com domain registration. If they are paying Verisign the list price of $6.42/year per .com name registered GoDaddy is making $0.43/year per domain (a 6.7% margin).

With 30 million registered domains that is 12.9 million/year in Gross after $192.6 million/year payment to Verisign. Who’s the real winner here?

To bad there are those pesky things called merchant fees. At a best case 1-2% of the sale price for Visa/Mastercard (higher for Amex) that margin goes away really fast. Ever wonder why the GoDaddy shopping cart is so cluttered with all those up sells?

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