Who’s Competing To Be The Master Of Your Domain: Squarespace

Description: Squarespace’s newest product offering takes direct aim at domain registrars like GoDaddy.

Source: Fast Company

Date: April 15, 2016

squarespace-logo-horizontal-black

Squarespace and a handful of companies like Wix and WordPress parent Automattic serve as the 800-pound gorillas of the website hosting and content worlds. Now Squarespace is looking to take on GoDaddy and other web domain registrars with a new product—domain purchases made and processed exclusively through Squarespace.

Depending on the name of the URL that’s purchased, Squarespace charges between $20 and $70 a year. Pricing is set depending on the top-level domain used and includes an ad-free parking page that follows Squarespace’s aesthetic along with WHOIS privacy. By comparison, the company’s fully hosted plans hover between $96 and $144 yearly for personal accounts.

Read More.

Questions for discussion:

1. How can registrars like GoDaddy compete against companies like Squarespace?

2. Besides domain registration, what other additions could Sqaurespace consider in order to increase their user base?

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30 thoughts on “Who’s Competing To Be The Master Of Your Domain: Squarespace

  1. Tyson

    Go Daddy will have to adapt in order to increase the success of their company, whether its through cutting cost, or increasing revenues. Go Daddy could also try to gain access to new markets and diversify their business landscape. These are a couple of options that Go Daddy possesses when looking at the future successes of the company. Besides domain registration, Squarespace could use tactics such as clever marketing or increase their target market size in order to increase their user base. When it comes to the internet, companies like Squarespace ultimately need to keep their platform running smoothly and efficiently, while continuously scouting for new opportunities to expand. This also goes along with continuing great customer service.

    Reply
  2. Alan

    I think that GoDaddy needs to adapt it’s marketing or pricing strategies to meet the current market that they are in. As far as I know I had never heard of other companies that were considering competing with GoDaddy, however, now that there is one GoDaddy needs to differentiate itself from it’s competition. Either by raising it’s quality and marketing or by lowering prices and undercutting the competition (Perhaps through volume sales). I think that since GoDaddy has been heavily marketed and is fairly well known they should continue to market their brand, lower their prices, and offer more features that can be added on to packages. That way they can increase the client base that they already have by having those users utilizing more than one product and then sell their main product at a lower price. If GoDaddy can create a product that can stay exclusive to themselves I think that would help as well. Similar to the way that Netflix has it’s own Tv series and video selection algorithm, maybe GoDaddy can have it’s own set website templates or business packages that are very effective and that make switching to another provider more difficult.

    Reply
  3. Sherry Lu

    Registrars like GoDaddy can compete against companies like Squarespace by providing better services, lowing price and adapting to the market/users need. In order for GoDaddy to gain competitive advantage it is important to distinguish or to stand out for itself from other larger website companies like Squarespace. It can either provide better customer services or deals to the customers that other cannot, such as a website or domain purchases package that includes the plans they need. Another way is by reducing the price with the same products/services, to attract more customers. Since the technology becomes easy and fast to access, it is a rapid growing and constantly changing market and industry. Therefore, GoDaddy needs to adapt to the current market and keeping stepping ahead of other company in order to compete.

    Reply
  4. Yifan Han

    Sqaurespace could consider of building a higher satisfied customer services. Squarespace just announced the launch of Squarespace Domains enabling customers to start their website building process by buying a domain directly from Squarespace. GoDaddy can undercut Squarespace on pricing, and try to force Squarespace to abandon this new project. Or GoDaddy can use a focus approach where it focus on certain geographical areas and try to gain deep market penetration in their area of focus, and generate their domain registration revenue mainly from customers in those regions. They offer a little bit at a very low price hoping that they will attract customers to try it. Not every customer will continue using it, just like not every person who has a sample at Costco will buy that product. But the number of people that will end up continuing to pay for their services and eventually buy more, different services will offset the low prices originally offered. Squarespace has a good strategy here and I believe that in a few years they may overtake GoDaddy in this industry.

    Reply
  5. Danielle Anvik

    Squarespace, a website hosting service, is using a product development strategy to offer expanded services to its existing customers in the area of domain name registration. It also is trying to get new customers, since “43% of small businesses choose a domain name before doing anything else online.”

    By moving into the domain name business, Squarespace is stepping onto the turf of GoDaddy and other domain registration services. According to CEO Anthony Casalena, there has been very little innovation recently in the business, and he sees this as a great opportunity to expand with new and relevant products. It will be interesting to see how the older companies choose to deal with this new competition.

    Squarespace is offering other low cost new products as well, with the goal of keeping customers with their company as much as possible. This seems like a good strategy to get small businesses to associate Squarespace with all if their software needs, starting with domain names and working up from there.

    Reply
  6. Bryce V

    GO Daddy is going to have to find a way to do what most successful companies do, and that is to adapt. Right now their competitors have found a way to penetrate the industry while offering a lower price, essentially for the same service, if not better. If GO Daddy does not go the way of just straight up slashing their price, perhaps they can take on the realtor approach. Really hit the market about the reason they are priced higher is because of the intangibles that their brand brings to the table, since they seem to advertise all the time anyways. Perhaps they will take the approach of that they are Mercedes, and everyone else is Toyota. With smart phones taking over virtually all of the business world, squarespace can really look to create a top of the line app that goes a long with their company. Everyone is always looking for whatever is the most easiest/efficient way of doing business. As well an interesting avenue that they could look to enter is social media management through that app. if I were to open a new business and there was an app that I could manage my website, twitter, Facebook, etc. that company would be of high interest to me.

    Reply
  7. Kirsti osowetski

    Other registrar companies could adapt the same services but they could have a lower entry fee and they could also have deals for people who own more than one company and give them incentives for going with their company rather than someone else who is going to charge them the same price for every single website or company they own. They could also have an app for their customers that would make them for easily accessible because everyone has a smart phone attached to their hands. Another addition is more technical support for the customers and hey could also start to offer lower prices for people with more than one website so that they would feel more valued and would continue to use their company.

    Reply
  8. Leah Kling

    GoDaddy could adapt its service offerings to include more entry level, lower priced starter sites. The need to change either its pricing structure or service offerings and customer service is vital in its ability to remain competitive in a changing market. GoDaddy could compete with Squarespace in the same way Squarespace is competing in the market, as well GoDaddy could attempt to penetrate new markets through adapting its products to suite different needs such as targeting the personal consumer market in which users are likely seeking an easy and quick way to set up a website. GoDaddy could create a one click service in which it sets individuals up with a simple site in which they can later customize. On the other hand, Squarespace could provide a similar service to draw in customers as well as offer website setup and design for larger business entities as well as provide a updating and maintenance service. Squarespace could also offer advanced technical support for new users who are likely setting up their website by themselves. Squarespace could also offer a mobile app for customers to manage and change their web services thus increasing the accessibility to Squarespace’s services, the app could also be used for setting up and maintaining websites as well.

    Reply
  9. Sandra Kang

    Companies like Go Daddy can compete with companies like Squarespace by focusing on customers. Customers will be more attracted to Go Daddy if they improve the quality of their products. Customers and users will choose companies like Go Daddy if their product has better quality of has better service and options for them. Providing users services and goods that are not offered in other companies will give them an advantage over other companies. They also need to focus on the needs of the customers in order to attract more customers and keep their customer base. With this both customer and suppliers demands are met. Another option that companies like Go Daddy have is to reduce cost of goods sold (COGS) in order to increase their bottom line and have a cost advantage over other companies.
    Besides domain registration, what other additions could Sqaurespace can use tactics such as marketing in order to increase their user base. Using marketing, companies like Squarespace can attract new users that were not aware of their company or attract users that were previously not aware of what they offered. Another option is that they increase customers’ value for their money and offer a unique service that their competitors do not have.

    Reply
  10. Debbie Payne

    Wow, am I ever behind the times! Although I have heard of GoDaddy, but not Squarespace, I had no idea what they actually were. Nor, did I realize that anyone could create a domain, whether-it-be for an individual or a business. In order for GoDaddy to continue to hold a competitive advantage over Squarespace, they will be required to always stay one step ahead, which can be challenging, considering how quickly technologies are advancing and new incentives surface. In order to keep their client base, GoDaddy will need to be constantly updating their offerings, while keeping their costs to customers to a minimal. Offering more, at a lower rate, will be attractive to all customers, new or existing. Excellent customer service speaks volumes and people will not question price if the customer service offered to them was worth it. By seeing that the needs of their customers are met from start to finish, and beyond, will keep GoDaddy’s customers loyal and open to any new enhancements that may be offered for an additional fee.

    Reply
  11. Zhiyao Guan

    Companies like Go daddy can compete with Squarespace by focusing on two aspects. The first thing they have to do is to increase the quality of their product. A growing number of users will choose companies like Go daddy if they offer superior service for customers. Only by fulfilling the needs of customers can the company finally attract more and more users. In my point of view, it’s also a win to win strategy because both the customers’ needs and suppliers’ objectives are achieved in this way.
    The second method is to reduce the cost of their products or services and thus decreasing the selling prices. Consumers usually want to find the products or services that is attractive and have a reasonable price at the same time. No one wants to purchase something that is not worth the price they pay. It would be awesome for them if they can buy something that is both cheap and of high quality compared with other companies.
    From my perspective, companies can have a competitive advantage over other companies if they take both the price and the quality of their products into consideration. Therefore, companies like Go daddy can use those two basic methods to obtain their business objectives.

    Reply
  12. Anji Sanusi

    GoDaddy can compete with Squarespace by offering lower prices and also providing excellent customer service. They can also broaden their horizon by offering more things. I am not too familiar with both websites but if anything, i believe cheaper prices and helping customers all the way through with excellent customer service would definitely put Godaddy up there with Squarespace.
    if Squarespace continues at the same rate they are now, i don’t think there is any more products to be offered, but one thing they can do is just continue upgrading their site and be efficient and effective when responding to customers issue. This for sure will increase word-of the mouth and may generate a more user data base.

    Reply
  13. Cecile

    Godaddy and Squarespace are both similar companies that provide also the same services to customers. Personally I am not very familiar with both of them as I haven’t use either one before. I do suggest that in order for Godaddy to be able to compete with Squarespace, they need to have a competitive advantage towards substitute companies like Squarespace. What Godaddy is trying to provide is a much more broader variety of services and products which might attract more customers’ interests. In another hand, Squareapce provides little options on their business to achieve production focus on services to their target market. Both companies do have their pros and cons but it is always better to have a wider options and a larger target market in order for a business to grow in years.

    Reply
  14. Shiqi Wang

    GoDaddy should focus on verifying their services and functions for customer, also they could focus on the weakness of Sqaurespace, such as promotion and marketplace researching. As a weakness of Sqaurespace, Wix has support and help available everywhere. Wix has one of the strongest support infrastructure available amongst all website builders. You can either click on the main help button at the top of the page, or each element that you use also has its own unique help button.  It’s nice that the help buttons are right there for you to click on without looking any further.  If you need a bit more “hand-holding”, Wix also offers you phone & email support.
    Sqaurespace could consider of building a higher satisfied customer services. Squarespace just announced the launch of Squarespace Domains enabling customers to start their website building process by buying a domain directly from Squarespace. Squarespace offers responsive templates, meaning that you can resize your browser and the content (including the images, slideshows) will also automatically adjust to help give you an optimized viewing experience.  This is especially helpful if your visitors tend to use mobile devices. Squarespace gives you extensive styling options that the majority of other website builders do not provide. You can certainly do custom styling with other website builders, but you need to know how to edit codes.  Squarespace has a style editor that helps you do all the custom styling without touching codes, from changing of background images all the way down to customizing thumbnail details.

    Reply
  15. Jackson Tiefenbach

    Godaddy needs to compete with squarespace the same way squarespace is competing with them: by broadening the variety of products and services they offer. Who’s to say godaddy couldn’t begin to offer website designing platforms similar to squarespace?

    In regards to what other services squarespace could offer, it seems right now like their brand’s approach to this marketplace is by being as broad as possible and covering as much ground as they can with their different services. Maybe an increased focus on offering e commerce on their sites might prove to cover even more ground?

    Reply
  16. Narinder

    I am not too familiar with squarespace other than what I have just read in this article, but with this is mind, if I was looking to create a webpage an important feature to me would be something that is user friendly. Technology is the future however there are some individuals in generation X and baby boomers that cannot comprehend or fully grasp the concept of technology. By implanting more user-friendly applications and modifications to create and enhance a website would definitely attract more users to squarespace than to a rival company. For those individuals who do not know about such companies, I also look to advertisements. I have seen and heard about “Go Daddy” through advertisements however this is my first encounter with squarespace. My answers may seem very generic or basic even but I honestly feel these two components are important for attracting a bigger user base with an older generation.

    Reply
  17. Karla Carcamo

    Registrars like go daddy can improve their services and maybe try and model their existing business models like the ones from squarespace. I’ve used go daddy and it isn’t the most modern way of building a website when you can use wordpress or I am assuming squarespace and make a very efficient and modern looking website to suit today’s users.

    Squarespace is introducing products that have limited options but are for the small business who just want space on the internet. They are hoping by putting smaller products as an option for small businesses, these small business will upgrade to full websites in the future.

    Reply
  18. Chanelle

    GoDaddy has become a very successful business. However with the uprising of SquareSpace’s offerings, it may put stress on GoDaddy,impact their sales and result in customer loss. This leaves the company at a point in which they must make decisions to change their previous business plan and earn a competitive advantage against competition. In order for GoDaddy to continue to be competitive with SquareSpace, they must start reaching out to other target markets and continuing to create new ideas to attract many different types of customers. Another option for GoDaddy, along with offering new and exciting new offers, they may choose to offer lower pricing, or market themselves as the leading and best company for businesses to create websites with.
    SquareSpace may choose to offer new options to their users to keep a positive customer rate. In order for a company to forever continue to grow and improve on previous years, they must offer new things, reach for new target markets, and continue to improve as a company. For example, many people may not know the first thing about creating a website, add on options that include web design help and informational videos could help the company continue to grow.

    Reply
  19. Sadie R

    Inorder for GoDaddy to set a more competitive playing field with Squarespace they must make their market more focused to Squarespaces target market. Squarespace is offering certain qualities and values to attract is crowd of new business owners to start websites. GoDaddy needs to take these values and double them. GoDaddy already has success, so going the extra mile to bring in more customers in a crowing market is worth it when the funds are available. It all comes down to relationships and value. GoDaddy needs to keep they’re customers interested and not temped to pick an alternative. Squarespace has a competitive market strategy but in order for GoDaddy to maintain more prosperous they must create incentive to bring consumers into their business and away from Squarespace.
    On the other hand, if Squarespace is able to take over GoDaddy they would hit a gold mine of consumers. Essentially Squarespace needs the information from consumers that make them go to GoDaddy then integrate those values into their business plan while still remaining separate. Its a difficult step for Sqarespace but not impossible with the right research and technology tools.

    Reply
  20. Hunter Ascroft

    It seemed to me that although they are designed to preform the same function both GoDaddy and Squarespace are focused on two seperate markets. In the case of GoDaddy it is more general to everyone, regardless of if they are a big or small business. On the other hand Squarespace is more directly targeted at small businesses and people who are on edge about creating websites and going viral. In the long run this could potentially pay off for Squarespace. As long as their promises of being cheaper and more user friendly then they can build a trust with new businesses that will hopefully expand in the future.
    If Squarespace was looking to further expand into the market they could offer other services that tie into registering a domain name, possibly selling or providing website design services. This could create a greater convenience for people who fear technology or are unsure about having a website. They could also offer a month free trial to persuade people to give it a shot. I feel it is one of their key selling points that they are focused on small businesses and personal sites so moving forward it will be important to keep that stance as well as offer opportunity to growing businesses who will want to create more websites and have more then one registered domain name.

    Reply
  21. Evan

    squarespace has a cool icon, name recognition and hip layouts but
    offering a domain included in the price with lacking level of HTML, Javascipt,
    Adobe Flash, etc would make me go elsewhere. I know there are many competitors
    that charge less and can make plans to give domain hosting comparative to
    squarespace. I am not impressed with squarespace in this article, I would
    shop around for other sites. Price and domain security are the key factors in
    web hosting. Squarespace could be more flexible on pricing but their strategy
    is narrow differentiation.

    Squarespace is for those that have money and probably don’t know much about the code behind their websites, thus the trend in drag & drop template website building sites. I think squarespace sucks for the fact that they don’t give discounts for multiple accounts by same user, that’s being a jerk as it wouldn’t cost much at all to the company to host it.

    Reply
  22. Kurtis Hawkins

    Thank god for squarespace! I work for Players Bench Team Apparel a local company that provides custom athletic and corporate apparel to organizations off all sizes, including the UofL. This past year I have launched our new website teamplayersbench.ca using squarespace. After a lot of research, squarespace offered the best design templates, hosting, and e commerce platform that enables us to sell online. Furthermore, squarespace offers really easy editing to change the look and feel of a website with some pretty advanced features that local website designers were charging $5000-$8000.

    For squarespace and other hosting website to keep competing they will need to offer more advanced website add ons. For example, squarespace started with the ability for customers to build their own custom website using pictures and text, then you could add more widgets like forms, google maps, e commerce, and so on. For these website hosting companies the value comes from the ability to create a new website that looks, feels and works like a professionally coded website. Currently, to design truly custom website with company specific add ons (like a back end fulfillment system) can be outrageously expensive; however, as companies like square space develop more and more of these add ons they will increase market share and become more appealing to more customers. This eliminates a huge barrier to entry of a capital purchase on a website that many start ups would face. Now you can pay as little as around $19.99 for a custom website, hosting and domain.

    Reply
  23. Nisali

    GoDaddy has a little bit of an advantage over Squarespace right now because they are already in the market and people know and trust their product. They could further compete by lowering the cost of their product or raising the quality of the product along with the price and providing better service. When it comes down to it, people will pay a little more for a product and company that provides them with the best service. With GoDaddy already having the advantage of being known by people due to their ads that were pretty controversial (with pretty women and no indication of what they did), people know the name and will go to them first. GoDaddy does have a hefty market share right now and at worst Squarespace will cut into that share but I don’t think GoDaddy will go down just because there are already a tonne of people using GoDaddy and probably won’t want to change that unless Sqarespace really sweetens the deal to switch.

    Reply
  24. Yichao Jing

    According to the article, GoDaddy can compete against companies like Squarespace by using higher quality with higher price or higher quality with same price as against companies, such as higher services or more functions. What is more, GoDaddy also can use lower quality with lower price or same quality with lower price to compete against companies. Moreover, GoDaddy can use high quality with high price by getting more profit in per volume or use low quality with low price by getting a large of volume to make profit. Therefore, GoDaddy can get more benefits than against companies like Squarespace. Besides domain registration, Squarespace consider get more innovation to attack user in order to increase their user base. Furthermore, Squarespace can offer some discount to their consumers or improve their service apartment by offer high quality services. Squarespace also can offer some probation period for potential consumers to let them know the benefits about their products. By increasing Squarespace’s user base, the companies should make differentiation with their competitors. Squarespace can increase their user base from following the advice above.

    Reply
  25. Lucille Black Rabbit

    Go Daddy can compete with squarespace by choosing to have lower prices and also by making sure their clients are satisfied with their services. Everyone seeks for the best price so having lower prices will definitely get you more clients and keeping lower prices will ensure that the client is less likely to look else where. They need to work with their clients right from the beginning of their web pages to when they need to expand as their company grows. Giving choices in web pages and helping the client grow and helping them to understand what goes into a good web page and what attracts customers right from the get go will help secure new clientele. Then if squarespace sees that Godaddy is going to be a problem in this category then maybe they will back off and let Godaddy have this part of the business.

    Reply
  26. David Zhang

    Got an idea, and need to make it accessible on the internet? There is a domain name waiting for you. GoDaddy, a company that sells domain names to anybody who is in need of one is facing new players in the web domain game. Introducing Squarespace, who is now directly competing with GoDaddy to be the Master of Your Domain. “The [web domain] industry is so old and has so little innovation”, and Squarespace CEO Anthony Casalena is looking to lure customers away from GoDaddy with doses of innovation. GoDaddy needs to compete by gaining a competitive advantage on Squarespace either on a cost or a focus approach. GoDaddy can undercut Squarespace on pricing, and try to force Squarespace to abandon this new project. Or GoDaddy can use a focus approach where it focus on certain geographical areas and try to gain deep market penetration in their area of focus, and generate their domain registration revenue mainly from customers in those regions. On the other hand, Squarespace can use a “cradle-to-grave” business strategy to take advantage of all stages of their customer’s web design and hosting needs. By offering integrated services that meet the needs of everyone looking to setup a website from start-up to closing, they can attract more users with a diverse portfolio of services available for its clients.

    Reply
  27. Amy Giesbrecht

    Right now, GoDaddy has an advantage over squarespace as they use prominent ads and well known spokespeople to market themselves and increase popularity. Squarespace, however wants to entice customers to join them by offering low prices and advertising towards small businesses and inexperienced individuals with easy to use designs. These small businesses will get to enjoy low priced websites while growing their business and also learn how to navigate a webpage for the first time. Squarespace uses this to their advantage by than offering upgraded packages that these larger businesses have to use. Squarespace hopes that satisfied customers will upgrade or buy more of their services. However, if squarespace does not satisfy these customers, they may switch to a different domain registrar such as GoDaddy once they have learned how to navigate beginner websites. In order to compete against Squarespace, GoDaddy and others will have to offer cheaper prices and provide simpler ways to operate their webpages or squarespace may be able to take market share.
    Squarespace is smart in choosing to enter domain business because although domains are not really a popular business, there are less competitors and demand for it may not be huge but it is not slowing either.

    Reply
  28. Mitch

    Squarespace is smart in choosing the domain business to enter, as we can confidently say domains aren’t something that is just booming right now but are here to stay. Furthermore, there is constantly going to be new domains being created. Just because there are millions of websites already out there right now does not mean the domain market will slow down. The web is a staple in our society and every single new company is going to want to offer a website, these companies will have no ties to current domain websites such as GoDaddy and will come fresh into the market. This is where Squarespace is capitalizing, these companies will come looking for a domain with no allegiances to other providers and will most likely go with the cheapest price. Their plan of attack is also effective in the sense that it lines up with these up and coming businesses, they will buy the cheap start up website because they don’t need a large sophisticated website yet, in the event that the company is a success and keeps growing into a large company they will have more website traffic and more need for a better website and be lured into Squarespaces larger more expensive packages. If Sqaurespace can keep these customers happy they will have success. Companies such as GoDaddy will have to try and mimic this strategy to compete. Again, as customers are coming in with no ties to the industry GoDaddy will have to offer something that they want and wont be able to afford constantly being outpriced.

    Reply
  29. Jiani Z

    In order to compete against Squarespace, registrars like GoDaddy can offer cheaper prices or better webpages. Squarespace is easy to use for many unprofessional user, and it designs webpages so users just need to par for it, but this may not satisfy some users who want special design. In this case GoDaddy can allow and help users to build their webpages, or it can increase the number of designs that customers can choose. Meanwhile, GoDaddy can provide a simplified way to operate their system so customers will not be annoyed if they do not have too much knowledge on URL. In addition, GoDaddy can compete against Squarespace on price part; customers may do not spend too much on URL, but Squarespace is expensive, so GoDaddy can ask a cheaper price especially for individual users, and discounts and coupons can also be helpful in compete in price. More importantly, speed and after-sale services are very important for most users, so GoDaddy can focus on providing a fast speed operation than Squarespace, and keep providing services for customers after they purchased.

    Reply
  30. Matthew Sentes

    Like most other products and services, competing with other companies comes down to the quality of the product/service compared to the price. GoDaddy can either ensure that their domain registration and their other services are a much higher quality than Squarespace, or they can lower their prices to compete with Squarespace. Squarespace is now targeting individuals who have small businesses. They want to entice them to join with them by offering very low prices. They hope that as their business grows they will upgrade or buy more of their services. Squarespace is putting faith in their ability to satisfy their customers enough that they will want to continue using Squarespace as opposed to the number of different alternative companies that they will use. This is a smart strategy as it is similar to Costco having free samples. They offer a little bit at a very low price hoping that they will attract customers to try it. Not every customer will continue using it, just like not every person who has a sample at Costco will buy that product. But the number of people that will end up continuing to pay for their services and eventually buy more, different services will offset the low prices originally offered. Squarespace has a good strategy here and I believe that in a few years they may overtake GoDaddy in this industry. Currently, GoDaddy has a fairly well known spokesperson for them, as well as the ability to advertise with good commercial during the Superbowl. This allows them to get their name and product out to a lot of individuals. However, as Squarespace continues with this, and customers look for cheaper alternatives, Squarespace will at the very least cut into GoDaddy`s market share quite heavily.

    Reply

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