Official Statement from Go Daddy Regarding Front Running Allegation

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Some serious charges have been lodged against Go Daddy regarding alleged domain name frontrunning, and because the person who wrote the article didn’t mention the domain name in question, it’s impossible to see what really happened. Mike Berkens also posted an article following up on a Bill Hartzer article.

I reached out to GoDaddy to see if the company could respond to the allegation, and I received a statement from Rich Merdinger, Vice President of Product Development – Domains at the company:

“Go Daddy does not and never has participated in domain name “front-running” – the act of registering domain names after a registration search is done.”

There are a few things that could have caused the person who made the allegation to think something was amiss at GoDaddy. Perhaps he entered the wrong domain name (ie a typo) which was available, and upon trying to register the actual name, it was unavailable. Another reason could have been that someone else registered the same domain name after he showed it was available. There are other possibilities as well.

One thing is pretty clear though. An allegation without mentioning the domain name is not fair to Go Daddy, and it’s probably damaging as well. In 2008, Network Solutions was heavily criticized  when front running was revealed, and the company ceased the practice shortly thereafter. A class action lawsuit was reportedly filed in response.

I hope the person who made the accusation provides more information so that we can all see for ourselves what happened.

Video: GoDaddy CEO on Fox Business

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As I mentioned yesterday, Go Daddy CEO Warren Adelman made an appearance on  Your World With Neil Cavuto  on Fox Business to discuss his outlook for venture capital funding for new business and where VC money is being invested right now.

The video is embedded above.

Go Daddy CEO to Appear on Fox Business

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According to a tweet from Go Daddy Public Relations Specialist Stephanie Bracken, Go Daddy CEO Warren Adelman will be making an appearance on Your World With Neil Cavuto on Fox Business tonight at 8pm EDT. The Huffington Post has reported that this is the #1 show in its time slot, and it averaged well over 1 million viewers in May.

Mr. Adelman will be discussing small business and venture capitalist spending, and I would expect that he will discuss domain names and the domain aftermarket during his appearance. One reason the domain aftermarket has been strong is due to VC-funded entities acquiring good domain names for their startups.

I think special appearances like this are good for the domain industry because it’s insolar and channels like Fox Business have a pretty large following.

The video has been posted.

Video: New GoDaddy Ad Released

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A few weeks ago, GoDaddy announced that the company had engaged Deutsch, one of the largest advertising agencies in the world, to create a new ad campaign for the company known for its provocative marketing. At the time of the announcement, CMO Barb Rechterman said, “We are teaming up with Deutsch because we think the team there ‘gets us’ and can help take Go Daddy to the next level.”

This afternoon, the first advertisement dubbed “Otter” was posted, and I have embedded it above. As you can see, it’s much different from the former “GoDaddy Girls” campaigns the company used during big events such as the Super Bowl, NASCAR races, and other events where the company advertised.

Yesterday evening, the New York Times  published  an article about the new campaign, “In New Ad, GoDaddy Upgrades Its Image.” When I first learned about the campaign, I assumed the GoDaddy Girls would still be included in the company’s marketing efforts, but that may not be so according to CEO Warren Adelman in the NYT article:

The commercial “captures what we wanted to do really well,” said Warren Adelman, the new chief executive at GoDaddy, whose decision it was to end the era of what the founder, Bob Parsons, called “GoDaddy-esque” ads.

“We wanted to acknowledge our past,” Mr. Adelman said, and “not walk away from” it, but also begin to talk more about “products and services” and “who we are.”

Check out the first advertisement when you have a chance, and let me know what you think of it.

Guest Post: The “Independent Web”: The only place where YOU control your online presence

Godaddy Super Bowl CommercialThis is a guest post from GoDaddy.com. The company has generously supported the Ronald McDonald House. I am hoping to raise $10,000 for RMH in 2012, and I invite you to contribute to help. It’s a great organization!

In 1991, when the Web went public, it was remarkable because it was the first time in the history of the Earth that you could create a presence anyone else in the world could find, see and interact with instantly.   Best of all, you had 100 percent control over the content of the site and therefore over the experience of each visitor, as well as the data from it. Now, two decades later, a massive sea change has seen the addition of pages on Facebook ®, Twitter ®, Google+ ® and other similar sites. The problem is, unlike traditional websites, some of the content and all of the data created by interactions on those sites are not yours to use and to control . . . it is theirs.

To be clear, a presence, for instance, on  Facebook can be a good thing; it is the “water cooler” where 900 million people  gather (that’s more than 12 percent of the planet’s population). Even Go Daddy, a company founded on the concept that every individual can have and control his or her own  Web presence, has a Facebook page. What is important to realize is the difference between building your presence on what has been dubbed the Dependent Web  versus the Independent Web: both have value, but you only fully control one.

Apparently it was John Battelle, co-founder of Wired Magazine  and news website The Industry Standard, who coined the terms in his 21 October 2010 blog entry on BattelleMedia.com. He explained that in the Dependent Web, host companies deliver content, advertising and services based on what or who it thinks the visitor is. Therefore, the content presented is actually dependent  upon past and present actions such as webpages visited and mouse-clicks. In contrast, in the Independent Web (with some exceptions) host companies do not change content according to their perception of visitors’ wants/needs.

Matt Mullenweg, founder of WordPress, compared the two in a recent GigaOM blog  by making the analogy that now “. . . more people want to own their own space on the Web – they want to own a house instead of rent an apartment.” In a posting early this year Battelle added, “Companies that have planted their presence too deeply into the soils of Facebook are going to realize they need to control their own destiny and move their focus and their core presence back into the independent waters of the open Internet.”

To demonstrate the difference, (and while preparing this blog post) a visit to GoDaddy.com  presented all the products and services the company offers, as well as links to various company news, facts and commercials. In contrast, on the Facebook.com/GoDaddy  page mentions of the same products and services were presented (albeit in different format). In place of the supplemental information,   “another chance at love,” taking away from the overall company message. In addition there was a column listing text posts from Facebook friends around the country. Is this good or bad? Well, neither; they are simply different experiences companies can offer by building Dependent Web-based pages or not. So, at the surface, this is fine; below that, maybe not.

Battelle went further saying “I’m a fan of integrating Facebook into your brand efforts . . . but the point is simple: If you are a brand, publisher or independent voice, don’t put your taproot  into the soils of Facebook. Plant it in the Independent Web.” Therefore, if your promotions and the results of SEO drive visitors to www.Facebook.com/YourCompany; that would mean that ALL of the data is Facebook’s to exploit. Instead, if you drive people to www.YourCompany.com/Facebook, you at least “own”  the data that led them to your Facebook account.

So consider that, when registering an Internet domain name  and signing up for a hosting account, you end up with a blank canvas on a wall anyone in the world can see. What you put on that canvas is entirely up to you and what data you gain is yours. That’s the real value of the Independent Web and why Go Daddy has supported it from the start. Oh, and be sure to remember that if you build a website  – but choose to use a free hosting service or  free email address  – you are giving the host company free reign to place their ads on your site and subsequently harvest your data from it.   And remember, obtaining a good domain and driving lots of the world’s population to your site on the Independent Web means you have created a real value in the virtual world.

So what does this  mean to you? If at some point you find you no longer need it, check out how Elliot Silver and his blog (ElliotsBlog.com) followers have turned domain names into re-sellable properties worth from hundreds to millions of dollars; just try to do that with a Facebook page!

* Third-party trademarks are the property of their respective owners. All rights reserved.

Go Daddy’s “Review 60” Policy is Annoying

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I bought a domain name (BrandManagement.com) from someone who has it registered at Go Daddy, and when Escrow.com confirmed my wire, he pushed it to my Go Daddy account. I didn’t want to transfer it away from Go Daddy because an ICANN lock would have been added to the name, which is a problem if I decide to transfer it elsewhere.

I emailed my representative at Go Daddy to ask to have the 60 day Go Daddy lock removed and was instructed to send an email to the people in the “Review 60” department. Andrew Allemann discussed this new review process before. This is what they asked me to provide for them to remove a lock on a domain name my company bought and now owns.

Thank you for your email. To remove the transfer lock on the domain names, you would need to provide us with the following:

1. A completed 60-Day Lock Removal Request Form (attached).

2. Photo identification. Acceptable photo identification is clear, readable, and issued by the government. We must be able to clearly identify the pictured person, name, signature, and expiration date.

3. Government-issued business identification for the current registrant, Top Notch Domains, LLC. The following are considered acceptable business identification (if not based in the United States, please provide a Certified English translation of your country’s equivalent documentation):

Ø A copy of business license
Ø Tax certificate (number alone is not acceptable)
Ø Doing Business As documentation
Ø Fictitious Name documentation
Ø IRS 501(C)3 “Determination Letter” (You may request a copy of this letter by contacting the IRS at 1-800-829-4933)
Ø State issued certificate of tax exemption showing charitable status

You may scan or take a digital photo of the information and email it to review60@godaddy.com.

I’m sorry, but this is annoying. First off, I’ve been a customer for nearly ten years without any security issues, so that should count for something. Secondly, the seller also has an executive account at Go Daddy, so they can easily email and/or call him to confirm the sale. Thirdly, they can likely check the IP address from when the seller pushed it to my account to compare to prior account logins (ie if the IP address of the push from the California based seller originated in Iran, it would be a red flag).

Finally, it seems pretty silly for Go Daddy to police transfers like this. If the name was stolen or if the account had been compromised somehow and I still provided the requested information, I would imagine the owner could hold Go Daddy liable for approving the transfer after reviewing all of the information. If it was not the policy to police transfers like this, much like it is not their policy to police trademark domain registrations, they wouldn’t be responsible for fraudulent transfers like they aren’t responsible for clients registering Microsofts.org.

I am a happy Go Daddy client, but this issue is very annoying to me and I am sure it’s annoying to others, too. I can’t think of another registrar that does this, so I would assume it’s a domain retention issue in addition to a security measure, and that makes it even more frustrating.