June 23, 2011
Go Daddy’s Elephant in the Room
What happens in Zimbabwe doesn’t always stay in Africa, especially if it’s videotaped and uploaded to an online blog. Just ask Bob Parsons, the CEO of the web hosting giant GoDaddy. The controversy exploded a few months ago with a video clip posted to his blog by Parsons himself killing an African elephant as well as a picture of his prized kill.
Parsons further intensified the controversy being defiant and unapologetic arguing that killing the elephant provided a food source for the needy Zimbabwean people and it prevented other elephants from destroying vital crops. The fallout from the controversy may have eternally tarnished GoDaddy’s image, however, small web hosting providers have taken advantage of the situation in hopes disgruntle Go Daddy customers would reconsider their hosting provider.
The Fallout
Not only have small web hosting companies benefited from GoDaddy’s woes, but the ethical diabolical has also cost the hosting giant some lucrative clients. People for the Ethical Treatment of Animals (PETA) immediately closed the organization’s account with GoDaddy after the controversy broke. Web hosting companies soon began to market and capitalize from the controversial hunting adventure.
HostPapa, a popular certified green web hosting company, led the charge in accommodating disgruntle GoDaddy customers. The web host promised a $5 donation to Save the Elephants charity from every domain transfer. New customers also received free lifetime domains and 3 months web hosting free of charge by using the word “elephant” as a coupon code.
Network Solutions also joined the bandwagon against GoDaddy’s as a result of the unethical treatment of animals as well as previous displeasure with the GoDaddy’s sexually suggestive t.v. commercials. Network Solutions offered customers wishing to transfer a domain a limited time deal for $6.99.
Other web hosting providers that banded together include ManicaNet, NameCheap, United Domains, and Domain.com.
ManicNet promised to donate $2.00 for each domain transfer to SavetheElephants.org, ElephantNaturePark.org or Bush Warriors. For the month of April, the web host also donated a percentage from each customer’s first month of hosting to the charity of choice until the end of the month. Although the efforts are commendable, the company missed an opportunity to launch such promotions immediately after the event; thus driving potential new clients to competitors positioning themselves to take advantage of the situation.
NameCheap perhaps reaped the most benefits from Parsons’ unfortunate adventure. Being one of the first web hosting providers to offer specials and incentives for disgusted GoDaddy customers, by donating $1 per domain name purchased, NameCheap raised an impressive $20,433 for Save the Elephants charity. In addition, the web host also offered a discounted transfer fee. Customers continue to show their appreciation as the company’s community manager reports a continuous consistent flow of new customers.
United Domains, albeit resourceful in marketing, also benefited from the controversy. With only an image of an elephant posted on the web host’s homepage and a zingy tagline “good customer service and we respect elephants”, the company also saw an increase in new customers.
Domain.com yielded a respectable 220% increase in new customers within the initial two days of the transfer-rate sale. Although anticipating the sales increase to extend over a longer period of time, the web host should be commended for its effort.
Conclusion
While the impacts of Parsons’ actions probably won’t faze the country’s largest web hosting company with annual revenue topping $600 million, however, smaller web hosting providers took advantage of the situation to expand market shares and increase profits, if only for a short time period. Perhaps the lesson to be learned is that competitors take advantage of each golden opportunity presented, regardless of the size of the target to be taken down.
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