godaddy Business Model – How does godaddy make money

How do you access information about anything you need? There are many ways in which you can get the information you want. You can read books, newspapers, magazines, radio or television. However, these are not the mediums that people use to get information in the current day and age. They use them but not to the extent that was used before. All of the above-mentioned mediums have become a thing of the past. The most used way to get information or data on anything in the present time is the internet. The Internet is a place where you can get information about absolutely anything. If you want to know about anything all you have to do is just Google it. This has been the trend for more than a decade now. More people have access to the internet than ever before and it is easier to use it.

You can clearly see that there are more mobile applications today compared to a decade ago. Before applications, people used to access all kinds of data from different websites. Even today there are millions of websites on the internet than ever before. No matter how advanced the technology may become you will never see the decline of websites. The number of websites is only going to increase. This is because all types of businesses are looking for an online presence in the current era. People are starting to realize that having a great website will not only promote their business but also increase their customer base. More companies or businesses are interested in getting their own website than an application. This is because it is easier to create and manage a website. 

Getting a domain and creating a website is very easy today. You have to thank a few companies that have made it easy to get their own website. One of the first names that come on this list is GoDaddy. Most of you might have seen those GoDaddy ads on television. This company has been offering its services for many years but no one knows much about it. Don’t worry! This article is completely about that. In this article, you will be learning about the business model and the way in which GoDaddy makes money. But before learning those let’s know a little bit more about the company.

What is GoDaddy?

As you already know GoDaddy is a domain registrar company. But not many realize that it also offers web hosting services. This is an American company that was founded in the year 1997 by Bob Parsons. But this was not the first company that was founded by Bob Parsons. Before GoDaddy Parsons had another company called Parsons technology which he sold to Intuit for $65 million dollars. After almost three years he decided to come out of his retirement. It was at this time he launched GoDaddy. Godaddy was not the actual name when the company was launched initially. At that time it was known as Jomax Technologies. It was brought in a brainstorming session in the year 1999. But the name was only changed in the year 2006. This is also when they came up with their famous logo that had a cartoon character with glasses and messy hair.

It was in the 2000s the company started to see real growth. Because till then there were only a couple of domain registrars that were present on the internet. But the arrival of GoDaddy completely changed that. Now people had another great option to register their domains.  The investments they received from private equity funds have helped it a lot. Another thing that helped GoDaddy was its size. Even though it was younger than its competitors the size of it was almost the same. In 2012 the company announced that it has acquired Outright which is a bookkeeping and accounting company. It acquired Locu in the year 2013 for $70 million. In the same year, it had also bought Media Temple which announced that it would be working as an autonomous and independent company even after the acquisition. Similarly, it has acquired a number of companies till 2020. Currently, GoDaddy is the world’s largest Web hosting company.

Business model of GoDaddy

GoDaddy has been in the market for more than two decades and it has done all the right things to make it the largest Web hosting company. Let’s look at things that helped them in this. 

Providing an easy way to get a website for everyone

GoDaddy is probably the first web hosting company whose ads were seen on TV. It was one of the best decisions that it has taken in terms of marketing its product. This is because it has done this at a time when many people didn’t know how you could create a website. At that time it looked like it was the only way in which they could do it easily and rightly so. GoDaddy provides all the services that you need to create and run your website. The demand for getting a website kept increasing and GoDaddy was able to provide everything that its users needed while adapting to the changing technology all along. It offers its services to all kinds of customers. But it is a great option for small businesses to get their own website.

Offers everything you need to create and run a website

As mentioned earlier GoDaddy is a web hosting and domain registrar company. It is still successful because it provides all the tools and services that you need to build a website and run it. Everyone knows that it offers domains, websites, and hosting but what people don’t know is that it also provides email, online marketing, WordPress, and web security services. It also offers value-added services like WordPress designers to its users. It is so sophisticated that the customers can build their websites using their mobiles. 


Today the company is the world’s largest Web hosting company in terms of market share. Even though it does not host big companies it still gets more customers every year. The company is because it’s primary focus is small and medium businesses. It offers them an easy way to create and run a website. GoDaddy has been doing this for the past two decades and people recognize this company. So if anyone wants to get their own website they will definitely consider GoDaddy depending on their needs. 

How does GoDaddy make money?

There are multiple ways in which GoDaddy makes money. Let’s go through them one by one.

Selling and managing domains

This is something that you might have guessed. It is the primary revenue stream. A lot of the income generated by the company is through renewals, domain name registrations, and management. 

Web hosting

This is also something that you might have understood by now. GoDaddy offers all kinds of web hosting services. The different types of web hosting services you can get are shared, private, virtual, dedicated, and cloud hosting services. Cloud hosting is becoming more and more popular in recent years. 

Digital Marketing services and Web presence

These are the things that people who have businesses are focusing on more and more these days. It offers everything that you need for social media marketing, search engine optimization, email marketing services, and business listings. Apart from these ways, it makes a little bit of money from business applications.


This is the business model of GoDaddy. It was able to become the largest Web hosting company by offering the easiest way for people to create their own websites. It is still the go-to service for most of the small businesses to create their websites. You can learn about other interesting business models on Zeen. Click here to know about the business model of Cisco.

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