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MordyK
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MordyK,
User Rank: Light Sabre
3/21/2016 | 7:13:10 PM
Re: Follow the lack of money
I'm not saying don't build other stuff, but enhancing the ARPA for existing accounts is a good start.
mendyk
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mendyk,
User Rank: Light Sabre
3/21/2016 | 7:09:16 PM
Re: Follow the lack of money
GoDiddy still loses money, as Mitch points out. In fact, it loses a lot of money. But that's not necessarily relevant here. What IS relevant is that GD is targeting a very specific market: independent website builders whose customers are very small businesses. VERY small. That's the stated plan. You could probably think of a better one in 10 minutes.
MordyK
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MordyK,
User Rank: Light Sabre
3/21/2016 | 5:53:04 PM
Re: Follow the lack of money
What's the assumption that they won't make any money? do you know their cost structures?

The reason Amazon's AWS took off is because startups used it to save time and resource overhead, and developers in larger enterprises seeing how it gave their startup peers flexibility pushed it on their management. Sometimes even going as far as launching unauthorized instances, and asking permission later.

GoDaddy has become a thing because of these professionals who saw the cost and the hosting as a suitable place to park their customers, so as cloud becomes the next thing this has become the obvious play, and the overhead costs are definitely lower than dedicated servers. Targeting additional users through an existing channel and working on expanding that makes total sense IMHO.

Adobe kinda did the same thing with their acquisition of Behance a few years ago.

 
mendyk
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mendyk,
User Rank: Light Sabre
3/21/2016 | 1:06:14 PM
Re: Follow the lack of money
As in, We lose money on every customer, but we make it up in volume?
Sarah Thomas
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Sarah Thomas,
User Rank: Blogger
3/21/2016 | 12:43:53 PM
Irving at Grace Hopper
Blake Irving also spoke at the Grace Hopper women's conference, which I was surprised to see. I think most of the women were. He also preached there about how much the company has changed and how the issues with it are old news. 

He also revealed the company's diversity figures and gender pay split at the show in a show of good will: http://www.wired.com/2015/10/godaddy-reveals-gender-pay-gaps-at-grace-hopper-celebration/

He was a great speaker. I believe he's genuine, but clearly its reputation will be hard to shake.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
3/21/2016 | 12:00:40 PM
Re: Follow the lack of money
It's an extension of their previous business model (minus the sex and elephant-killing) and a volume business. 
mendyk
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mendyk,
User Rank: Light Sabre
3/21/2016 | 11:48:54 AM
Follow the lack of money
So the plan is to sell services to an intermediary that works with customers who have very limited budgets? This is the vision to get excited about?


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