I had a shock this morning when I checked Gmail. I got an email from GoDaddy – a billing statement for $95.88. I thought there must be some mistake since I don’t recall owning any products in that price range. I checked the GoDaddy website and added up the monthly quotes and low and behold $95.88 is the new price for economy website hosting.
Compared to last year’s invoice which came to $66.02 this is an increase of 45%.
Is it worth it? I suppose we’ll see. Are there cheaper alternatives? Probably. Perhaps an upcoming project for Vancouver Gadgets will be moving the hosting to another provider.
My take on the increase is due to the recent IPO by GoDaddy. There is obviously a push to please investors. According to a recent report from Fortune, the company hasn’t been performing well financially:
“The company says it has about 13 million customers and a market-leading 59 million registered domains. In February, GoDaddy reported roughly $1.4 billion in revenue for 2014, which represented almost a 23% gain from the previous year. However, the company continues to lose money, with $143 million in losses last year after ending 2013 nearly $200 million in the hole.”
I think we can expect a few more price increases over the next five years until investors are completely satisfied. How about you? Have you been shocked by GoDaddy or your current web host lately?