GoDaddy Will Close its Affiliate Program – Why?


It’s safe to say that many online entrepreneurs were dismayed when they learned that industry powerhouse, GoDaddy, planned to shut down its affiliate program. Most existing affiliates found out about the change via emails from the popular, all-American domain hosting company. When existing affiliates were made aware of the change, they were furnished with a listing of other options, which might be utilized in order to generate income online.

To help you understand why GoDaddy decided to stop this program, we’ve created a detailed guideline.

Was this Program a “Lemon” from the Start?

A lot of people who participated in this program found it lacking in many important respects, right from the very start. For example, there was little information about earnings available, beyond yesterday’s takings. For those who wanted statistics and reports which showed the big picture, rather than what happened over the past 24 hours, this system seemed very flawed. Some affiliates were taken aback that GoDaddy would not offer more information to participants, since, obviously, the team at GoDaddy had access to all relevant information.

However, lots of affiliates stuck it out with GoDaddy, because they knew that hitching their stars to the biggest domain hosting company around was a smart strategy for generating affiliate income. Nonetheless, there were problems, headaches and hassles. These included  invoice issues, incorrect commissions and so much more.

Were GoDaddy Sloppy?

For a company as large as GoDaddy, the affiliate system seemed a little sloppy and haphazard, which is perhaps because it wasn’t the company’s first priority (or its second or its third…) Since GoDaddy is pulling the plug on the affiliate program, it seems that it simply wasn’t worth the trouble. After all, the team at GoDaddy have other ways to make money.

It’s possible that complaints from affiliates fueled the fire and influenced the company’s decision to pull away from this business gambit. Key complaints which might have triggered the decision to bail included commission-based problems. In the end, affiliates will get most hot under the collar if they feel that they’re not being properly compensated for what they do.

Problems with Escrow.com Surfaced

Issues with escrow.com, including dropped commissions when sales were transferred to escrow, are one type of complaint which plagued GoDaddy’s affiliate program, virtually from day one.

A lot of people had very high hopes for the program and these hopes were dashed when their experiences with GoDaddy’s affiliate program just didn’t pan out. This sort of disappointment casts a shadow over GoDaddy’s reputation. After all, people talk, and, if they don’t like GoDaddy because of the flaws in its affiliate program, it tarnishes the company’s image. These days, when reputation management is so important, it’s vital to keep a company’s image as pristine as possible. So, from a public relations standpoint, the GoDaddy affiliate program may have been a little bit of a disaster.

Some Affiliates Felt Scammed

Yet another chink in the armour of the affiliate program was its coupon code regulations, which were detailed in the firm’s Terms of Service. Affiliates griped that customers who purchased names through their links (no matter for how much money!) and then utilized coupon codes when paying for the domain names, did not generate commissions as they should.

In other words, the coupon code situation cut the affiliate out of the deal. Since the affiliate still triggered the sale via his or her link, it seemed unethical to negate the commission due to the usage of a coupon code.

Other Affiliate Programs are Out There

Sorry, we're closedHowever, at this point, it’s really all water under the bridge. The affiliate program is no more. Of course, there are thousands of other affiliate programs online, from some of the biggest companies in the world. For example, Amazon.com offers an affiliate program which allows affiliates to earn income each time that they trigger sales via their own links.

Like most of Amazon’s services, this affiliate program seems to work without a hitch and it doesn’t get the volume of complaints that GoDaddy’s program did. However, for those who were making money via GoDaddy’s affiliate program, there may not be a really appropriate substitute. In other words, since GoDaddy is such a big fish in the world of domain name sales and domain name hosting services, finding a similar affiliate program may not be easy.

Savvy online entrepreneurs will bounce back from disappointment and live to fight another day. Opportunities to earn online income are found everywhere online, for those who are knowledgeable enough to separate the great opportunities from the scams and subpar affiliate schemes.

As of late, GoDaddy’s been going through a lot of changes and transitions. For example, the company recently acquired Afternic and severed ties with its current registration partner, Sedo. In addition, the company is making dramatic changes to its GoDaddy Auctions services, which is slated for phase-out in the future.

It seems that the powers-that-be at GoDaddy are reconfiguring their company for the future. They are changing focus by pulling away from secondary and tertiary aspects of their business, and focusing on streamlining their core business elements. This strategy isn’t necessarily a mistake. After all, as we mentioned earlier, the affiliate program did get plenty of complaints, so may be wise to jettison it entirely. It’s not like GoDaddy needs an affiliate program in order to stay in the black. The company makes lots of money and probably always will. In a nutshell, the company seems to be getting rid of problem branches of the company in favor of keeping the core strong.

A new central hub for e-commerce (for domain names, registration and hosting) is planned for 2015. At this point, it doesn’t seem like there’s much hope for the affiliate program at GoDaddy. It’s gone and it’s not coming back. However, since it caused so much frustration to so many affiliates, the demise of the program may be something to celebrate, rather than to mourn.

To find out more about GoDaddy’s plans for the future, visit the company’s official website today. When you do, you should find press releases and other official promotional materials, some of which may shed light on the company’s new direction.