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I have recently been trying to get it through to Godaddy that they have miscalculated their renewal prices for .biz domains. They insist that their calculations are correct. I insist that their calculations are incorrect. Lets hear your opinion on the matter.
On April 17, 2007 Neustar gave notice that the wholesale price of .biz domain registrations and renewals would be increased on October 19, 2007 from $6.00 to $6.42. This was clearly an increase of 7%. Here's a copy of the official notice that I found on the Icann website.
http://www.icann.org/correspondence/tindal-to-schwartz-17apr07.pdf
(Note: Don't confuse the above with any recent price increase announcements that won't go into effect until later this year)
Most Godaddy customers would be forgiven for thinking that a price increase by the registry is no major cause for concern because the company states the following promise regarding domain renewal prices on their website, which would appear to limit the impact of any price increases:
"Guaranteed renewal price"
"You'll never pay more to renew your domain name than the rate you paid when you initially registered it, or what our registration rate was when you transferred. (The only exceptions would be if the price the registry charges us increased, or if you took advantage of a limited-time, special price. If the registry increases our cost, yours will go up by no more than the same percentage ours did.)"
You can see the above here:
http://www.godaddy.com/gdshop/pledge.asp?ci=3813
The following image is a screenshot from the Godaddy website, the details shown appear to clarify the above matter of domain renewal pricing even further, particularly where it states which customers are eligible for a percentage increase on their renewals and which customers will see their renewal prices rise by a fixed amount.
My .biz domains were each first registered for $7.95, way before May 29, 2007, which definitely qualifies me for a renewal price increase that is exactly the same as the amount the Registry increased the wholesale rate by. According to the Registry announcement, that amount is exactly $0.42 and means the total cost for my renewals should be $8.37 plus $0.20 Icann fee, yet Godaddy insists that the correct price is $9.10, plus the icann fee. That's an increase of $1.15, which, based on the above Godaddy price guarantee and the Neustar price increase announcement, should be an impossible figure to reach.
I have pointed out to Godaddy that their price increase of $1.15 contradicts statements made by both them and Neustar but for some reason they completely refuse to admit that their calculations are incorrect despite the overwhelming evidence that I have provided to them. In fact, they simply skirt around the issues I have raised and continue to deny my request for proof that their cost increased by $1.15.
Furthermore, $1.15 is equal to an increase of just over 19% on the original baseline wholesale cost of $6.00. By stating on their website that my renewal price can only be affected by an increase by the registry, and then increasing it by $1.15, Godaddy is in effect claiming that $1.15 is indeed the price increase imposed on them by the registry. However, the public copy of Neustar's contract with Icann states that Neustar is not permitted to raise their wholesale prices by any more than 10% per year (See section 7.3), which would further make an increase of $1.15 by the registry highly unlikely as it would have meant that Neustar was in breach of its contract with Icann.
http://www.icann.org/tlds/agreements/biz/registry-agmt-08dec06.htm
I have put my argument to Godaddy several times over the last month, including to senior support in the Presidents office. On each occasion I provided evidence to support my claims, the same as shown and referenced above, but Godaddy has repeatedly got back to me saying that my calculations are incorrect and that they differ from the actual increase that has been imposed on them by the registry. When I ask them for proof they simply fob me off by saying that they are unable to share confidential information with me regarding the prices they pay to the registry.
Don't all registrars pay the same wholesale prices? I am quite sure they do, and I am certain that Godaddy would kick up a real stink if they found that they were being forced to pay more than competing registrars.
As such, I am sticking to my calculations and now invite Godaddy to clear up this matter publicly since my efforts to do so directly, privately and with a great deal of diplomacy have failed thus far.
GoDaddy, please answer this one question; If the price increase imposed on you by Neustar was $0.42, and your price guarantee promises to let me renew my domain names at their original cost plus $0.42, how have you managed to come up with a price rise of $1.15? It is a simple question that should be easy to answer but so far you have been unable provide me with a response that is anywhere near to being satisfactory.
To the community here: What are your thoughts? Are we being ripped off and lied to by Godaddy? Has anyone here found any evidence of a $1.15 increase by the registry?
On April 17, 2007 Neustar gave notice that the wholesale price of .biz domain registrations and renewals would be increased on October 19, 2007 from $6.00 to $6.42. This was clearly an increase of 7%. Here's a copy of the official notice that I found on the Icann website.
http://www.icann.org/correspondence/tindal-to-schwartz-17apr07.pdf
(Note: Don't confuse the above with any recent price increase announcements that won't go into effect until later this year)
Most Godaddy customers would be forgiven for thinking that a price increase by the registry is no major cause for concern because the company states the following promise regarding domain renewal prices on their website, which would appear to limit the impact of any price increases:
"Guaranteed renewal price"
"You'll never pay more to renew your domain name than the rate you paid when you initially registered it, or what our registration rate was when you transferred. (The only exceptions would be if the price the registry charges us increased, or if you took advantage of a limited-time, special price. If the registry increases our cost, yours will go up by no more than the same percentage ours did.)"
You can see the above here:
http://www.godaddy.com/gdshop/pledge.asp?ci=3813
The following image is a screenshot from the Godaddy website, the details shown appear to clarify the above matter of domain renewal pricing even further, particularly where it states which customers are eligible for a percentage increase on their renewals and which customers will see their renewal prices rise by a fixed amount.
My .biz domains were each first registered for $7.95, way before May 29, 2007, which definitely qualifies me for a renewal price increase that is exactly the same as the amount the Registry increased the wholesale rate by. According to the Registry announcement, that amount is exactly $0.42 and means the total cost for my renewals should be $8.37 plus $0.20 Icann fee, yet Godaddy insists that the correct price is $9.10, plus the icann fee. That's an increase of $1.15, which, based on the above Godaddy price guarantee and the Neustar price increase announcement, should be an impossible figure to reach.
I have pointed out to Godaddy that their price increase of $1.15 contradicts statements made by both them and Neustar but for some reason they completely refuse to admit that their calculations are incorrect despite the overwhelming evidence that I have provided to them. In fact, they simply skirt around the issues I have raised and continue to deny my request for proof that their cost increased by $1.15.
Furthermore, $1.15 is equal to an increase of just over 19% on the original baseline wholesale cost of $6.00. By stating on their website that my renewal price can only be affected by an increase by the registry, and then increasing it by $1.15, Godaddy is in effect claiming that $1.15 is indeed the price increase imposed on them by the registry. However, the public copy of Neustar's contract with Icann states that Neustar is not permitted to raise their wholesale prices by any more than 10% per year (See section 7.3), which would further make an increase of $1.15 by the registry highly unlikely as it would have meant that Neustar was in breach of its contract with Icann.
http://www.icann.org/tlds/agreements/biz/registry-agmt-08dec06.htm
I have put my argument to Godaddy several times over the last month, including to senior support in the Presidents office. On each occasion I provided evidence to support my claims, the same as shown and referenced above, but Godaddy has repeatedly got back to me saying that my calculations are incorrect and that they differ from the actual increase that has been imposed on them by the registry. When I ask them for proof they simply fob me off by saying that they are unable to share confidential information with me regarding the prices they pay to the registry.
Don't all registrars pay the same wholesale prices? I am quite sure they do, and I am certain that Godaddy would kick up a real stink if they found that they were being forced to pay more than competing registrars.
As such, I am sticking to my calculations and now invite Godaddy to clear up this matter publicly since my efforts to do so directly, privately and with a great deal of diplomacy have failed thus far.
GoDaddy, please answer this one question; If the price increase imposed on you by Neustar was $0.42, and your price guarantee promises to let me renew my domain names at their original cost plus $0.42, how have you managed to come up with a price rise of $1.15? It is a simple question that should be easy to answer but so far you have been unable provide me with a response that is anywhere near to being satisfactory.
To the community here: What are your thoughts? Are we being ripped off and lied to by Godaddy? Has anyone here found any evidence of a $1.15 increase by the registry?
