Godaddy Quest To Control The Retail Market

[precana]

A couple weeks ago...i posted a message to this forum to get feedback to see where the wind is blowing in the Domain Name space. And woah did I get it... Well, let me tell you why I posted the message. However, instead of writing a lengthy statement...I have just copied and pasted a question from our company's faq.

I hope resellers take heed to our warning because...your investment is at risk. You have nothing to fear from our company, we're just the messenger. As a reseller your enemy is the likes of Go.... (well maybe I shouldn't say, I will probably get another batch of hate mail).

Anyways...read on, and don't get blind-sided. The domain name industry is about to change forever (don't be left holding the bag). chao.

FAQ QUESTION:
--------------------

It sounds like you are selling domains direct just like Godaddy ... aren't you contributing to the destruction of the reseller market?

Absolutely not. We didn't create the domain industry and we are certainly not destroying it. Tucows and other Registrars blindsided Network Solutions by dropping retail rates to under $20 per domain. Godaddy blindsided Tucows and others by dropping retail prices to under $10 per year. Now, Godaddy has dropped retail rates to under $7.00 per domain. What is next? The CashBack Alliance Matrix is trying to help Resellers salvage their investment by passing on savings it receives from its Registrar partners to Resellers.

The fact is the new retail price will soon be $6.75 per year and the new wholesale price will be $6.19 per year--we're just the first to offering this savings. Resellers can dismiss us as opportunistic but the facts are the CashBack Alliance Matrix may be their only hope to fight the likes of Godaddy.

 

[DotComster]

Price wars = all sides are wrong.

 

[precana]

What do you mean? elaborate on your statement.

 

[GeorgeK]

The real cost savings would be if Verisign Registry was forced to reduce the price of .com at the WHOLESALE level from $6 to say $2 or $3. That would allow for much more dramatic price drops.

 

[YODD]

Hey Guys,

Let's not forget why we are here.... On this portal....

To learn from each other and the Industry....

The lower the wholesale price, the more business we can create...for ourselves, and for newcomers.

This website and others like it are no secret to those that discover them... But to those who don't know the BIZ... or these portals ... well ?? We profit from them!!

We are really a hand full and the smarter guys are out creating incredible affiliate name programs that will capture more clients who want to jump in the "name game" such as myself.

I come from the Import/Export business, and I must say that this is one of the easiest ways I found in the last few years to make a "great" buck.

The "name game" is big business, really big, and I plan to play it !!

Finally, most of us who are on these portals are incredible "inteligent risk takers"

Lorenzo

Good Luck to all of US..

 

[StockDoctor]

precana Mama didn't raise no idgits, but I'm having a difficult time understanding your post. Are you warning us about GoDaddy or Cash Alliance Matrix?

If CashBack Alliance Matrix is your company, I don't get what you are trying to say. I see from the site that they are somehow affiliated with Galcomm? Next, the site appears misleading in that it says $6.75 registrations, but then only allows a 2 year reg for a .com. I also can't find any info on other fees for transfers, or url forwarding or pushing abilities etc. Can you go over your services and the costs?

It's not all about the first fee. If all I did was reg a name, maybe I'd go for the lowest first fee, but I use a lot of other services after that and the registrar I'm using offers all those for free.

 

[precana]

It's not just about Godaddy.

My post warns about the impending price war in the domain name space. As a reseller you don't stand a chance if you do not take appropriate steps to protect your business model.

Realize that Registrars that sell retail like Godaddy are your worst nightmare (because you will never be able to beat them on price). Godaddy is the most aggressive of them all. I think because their leader is a military thinker. He sees resellers not as partners but as the ENEMY. And good military strategists crush their enemies, totally.

Think about it. The Registrars are the gatekeepers to the Registry. They determine whether they will give you the privilege of buying from them (retail or wholesale). If they decide they do not want to sell to you, but want to compete with you are finished (and i feel this will become the norm very, very soon.

In fact, it is my contention that within 2-3 years the margins will be so low that resellers will abandon the domain name industry and leave it to Godaddy and Registrars like them. (Not as if anything is wrong with that. It's business. And quite frankly I think the folks at Godaddy are pretty smart. Once that happens the Registrars will merge or go out a business (just like the Internet Connectivity industr of the late 90s.

Conduct your own research you will see the signs.

This is why we have established a domain brokerage business. All we care about is helping other resellers negotiate better rates and sell their non-domain products and services using superior sales lead generation technology.

It is not a fail-safe solution but it will allow us to make a lot of friends in the industry who we can enter into non-domain business opportunities with, and ensure that we don't get blind-sided.

Anyways, I'm taking offers. So pitch me.

As for the $6.75 rate. Well...that is the standard rate if you want to switch an individual domain using our payment gateway. If you install your own API the fee is $6.35 or $6.19 (one year or two year registrations). We offer this service to gold members.

Nothing misleading about that. Come now.

Finally, you said the domain business is not about the best rates. Yes you are absolutely correct. And that is why you as the consumer have so much power.

 

[StockDoctor]

precana You kind of ignored my questions quoted again below. 1 year only new reg cost etc? Please answer these as they are important to the traders here.

"Next, the site appears misleading in that it says $6.75 registrations, but then only allows a 2 year reg for a .com. I also can't find any info on other fees for transfers, or url forwarding or pushing abilities etc. Can you go over your services and the costs?"

 

[precana]

Sorry buddy.
The transfer fee is $6.75 per year (all transfers are for one year)
You must create an account and login to register for one year at $6.75.

Rates are lowered to $6.35 and $6.19 respectively if user register for gold membership which is $100 per year.

We don't provide any other services (domain related). That is the responsibility of the domain Registrar. We just negotiate low domain registration rates (that do not require volume commitment). Either way...galcomm does provide basic web hosting for $9.95 per month.

We're not interested in the expenses (associated with the domain name industry). However, if you buy through the Matrix we will work with the Registrar to provide superior customer service (2 for the price of one)

Once a user joins our Matrix or cooperative (they never have to use our system to register domains, again. Your Matrix login and password works with our Registrar partner.

So to sum up...we only negotiate low rates for individuals that want the most basic of domain registration services (actual registration for a low cost).

Hope that answers your questions.

Cheers

Precana T

 

[mole]

This price war has got to stop. It can only hurt everyone, including the perpetrators in the mid-long run.

Reminds me of the dotcom insanity in the late 90s where virtual businesses were paying their customers to buy from them. Seems like its still happening in the domain reseller scene :dead:

 

[precana]

That is unlikely to happen. The price war will continue to drop until Registrars that sell retail bring all the Registrars into the game (and get rid of all the resellers). Now I have seen 2 people post that the price war needs to stop. Don't be naive. You are looking at the domain name space through the eyes of the reseller. Resellers have no power, the Registrars do. You can only compete with them to a certain price point and then you're finish while they can sell domains at $6.35-$6.75 and make hefty margins of $0.35 to $0.75 cents.

I will say it again, plan your business (so that you don't get blind-sided).

Cheers

Precana T

 

[YODD]

Right On precana....
you got it right....
Lorenzo

plan your business... words of wisdom...

 

[TrafficMonsterRRR]

Originally posted by precana
Once a user joins our Matrix or cooperative (they never have to use our system to register domains, again. Your Matrix login and password works with our Registrar partner.
....

Who is (are) your registrar partner(s)?

WHOM is my domain going to be registered with ("which registrar??") and how the heck do I do anything with my domain without dropping more money somewhere else if your Registrar partner provides a scaled-down version of services such as DNS management, parking, forwarding, whatever, at your "negotiated" low fee??

If you want me to consider this a serious post/offer, spell out the services and the registrars providing them, please.

You have completely lost meeee. Answer the questions in a straightforward manner or gain ZERO customers!

 

[DomainPairs]

If you are trying to sell domain registration on the net then you may need to go for lowest prices (but lots of people still seem to be happy to pay $10-$25 for a registration). If you are offering a domain management service, then the reg fee is not as important as flexibility and service. Giving a user a certificate and handling DNS transfers and associated eMails means you could charge maybe $50-$100 and still be giving good value.

 

[uncle]

read some Milton Friedman

 

[mortario]

I don't believe Registrars price war would have a big impact to resellers because none of us compete at their level. Heck .. If I'm playing againts GoDaddy that mean I have a lot of cash then I wouldn't be a reseller. If GoDaddy lower it's retail price, the retail competitors would be verisign, dotster, bulkregistrar, etc. Resellers have their own small market where none of the big players cant reach because of resources or know how. IMHO, I don't see any thread yet to the reseller market.

 

[precana]

I'm not gonna post information regarding service offerings, prices and the like and get (word whipped) by users within this group. If you want to know about what we do (simply visit http://www.cashbackalliance.com).

As for the other folks who have commented on DNS services, etc... Oh well, we promise low rates and we deliver them. $6.19-$6.75 with no volume commitment. We don't personally provide any of the services you have quoted directly (however the Registrar does).

All we do is generate sales leads for others including the resellers in this BBS, so don't be so quick to judge. What you do with the rates we negotiate on your behalf...is up to you.

We have been doing since 1989 and we're quite proficient at it. Read our credentials published at http://www.cashbackalliance.com/emarket/clientlist.aspx

Thanks in advance,

Warm regards,

Precana

 

[YODD]

Hey Precana,

Don't give up so easy... I support all of your comments and you make lots of sense.

keep it up,

Lorenzo

P.S. the more competition, the more sites like cashback we will see.

 

[precana]

Finally, a user that thinks Matrix. lol

Precana

P.S Don't get blindsided.

 

[YODD]

I never heard of DoDora.... anyone with comments....

I love e-nom....

I heard that cashback is slow with service and transfers....

Just want to make sure ??

Please,
Thanks

Lorenzo