HACKER Q&A
📣 alsodumb

Why would Google sell Google domains to Squarespace?


I’ve been thinking about this all day and it just doesn’t make sense to me. I was hoping someone here would have a well-informed opinion/answer.

Google domains seemed like a natural tool in the GCP and Google ecosystem. It provided one-click access to setup website, Google workspace, provided direct verification in Google Search Console and Google Analytics, and just made sense.

Unlike some of the other investments like Stadia, domains is also not capital or resource intensive. They never offered discount on domains, they sold them at standard prices. The team working on domains must be small. It’s also a low risk project. Why would they kill it?

What next? They’ll sell Google Fi to T-mobile and abandon Google voice?


  👤 petercooper Accepted Answer ✓
My guess is customer support.

Domain registrars end up with a long tail of customers holding small numbers of domains. If Google sells a .com for $12, most of that goes to Verisign, and they're stuck with a customer who will get agitated when "their domain doesn't work." Many registrars use domains as a way to upsell hosting or premium domains (e.g. GoDaddy, Namecheap, Gandi) but the median Google Domains user is unlikely to be attracted to GCP.

Google dislikes having to deal with customers at scale (free users are fine as you can ignore them) and domain registration is high on the list of businesses where you end up with large amounts of customers expecting a certain level of service coupled and almost no margin to provide it.


👤 a_c
This is illustrated in The Innovator's Dilemma and happens all the time. Established companies want to focus resources, increase profit margin, and improve operational efficiency. They improve their best product and sell to big customers. Not-so-successful product with not so wealthy clients got de-prioritized. They don't mind letting competitors take the market share. Why would they? It is lower margin business with low quality customers anyway. They may even sell the money losing product to competitor to milk out the last pennies.

The section "Q: Won't Big Company X just clone your product and steal all your customers?" in https://apenwarr.ca/log/20180724 also described this phenomenon


👤 danpalmer
> The team working on domains must be small

I wonder if this is true. Technology-wise, maybe, but I wonder if domains just requires a lot of negotiation and contact with registrars. I suspect it might be quite labour intensive in that way.

Additionally, to sell to consumers you need to provide services like helping people port domains for renewal, helping with DNS setup, and other consumer-level customer support, and that's expensive. If you've ever heard a Hover advert on a podcast, it sounds like an expensive business to run.

That sort of business doesn't fit with the cloud business. For cloud, sure customers will want a domain, but any business using cloud will have the ability to buy a domain, it's unlikely to be a deal breaker for using GCP, and the only up-side is $10-$100 a year on the account, that's less than a single VM for a month in many cases.

Disclaimer: I work at Google but haven't looked into this at all, this is all personal speculation as an outsider and previous customer of GCP.


👤 thusjustin
Google Domains != GCP Cloud Domains

One is managed at domains.google.com, the other as part of a GCP project either in the Console or via API. See https://cloud.google.com/domains/docs/register-domain

They’re selling the former.


👤 RileyJames
Doesn’t make a lot of sense to me. While I wouldn’t have shifted my domains to google, because of exactly what has just transpired, I am considering moving everything to cloudflare for the same reason I should have moved them to google.

My domains are the starting point for my other infra/sites/web apps. And cloudflare has become that product that already sits there, dns, cdn and workers.

If google can’t sort that out, they seem dysfunctional. Cloudflare seems to understand the value and execute accordingly.

And their positioning as “at cost domains” makes it a no brainer. Only a matter of time before I move them all over.


👤 invalidname
Because Google is an Ad Company.

Everything else is a hobby. Holding this removes from the focus of bringing up ad revenue. We will see them get rid of a lot of these things.


👤 voxadam
> and abandon Google voice?

Speaking as a long time user of Google Voice I'd say that they all but abandon it quite some time ago. Voice still mostly works but it's barely limping along. I'm slowly, one by one, getting my contacts to switch to my carrier number because I don't hold out much hope for Voice being usable product for much longer.


👤 qodeninja
Oh god dont even get me started on this! This has really put me in a bad spot because now I have to move all my doamins onto a new host not to mention all the emails I have to update. Seriously fuck Google.

👤 jpswade
“In keeping with our efforts to sharpen our focus, we have entered into a definitive agreement with Squarespace for the acquisition of customer accounts of the Google Domains registrar business,” said Matt Madrigal, Vice President and General Manager, Merchant Shopping of Google.

I imagine they've underestimated what it takes to operate as a domain registrar, and presumably there's too much politics and conflict of interest in that space.


👤 Onavo
My guess is because it just doesn't bring in enough profits. Most domain registrars make money through volume by either having a relatively small team (porkbun etc.), having most of the team located in a low CoL jurisdiction (Namecheap and eastern Europe/formerly Ukraine), or from value added services/the registrar acting as a loss leader (pretty much every service do this to an extent, CloudFlare, GoDaddy etc.)

For a company like Google that pays top tier salary, there is no way that selling domains (especially not in bulk, their targets are mostly consumers and businesses, domain traders use other services) make enough money. If you take a look at the commiters on https://github.com/google/nomulus

That's at least 10 engineers maintaining one component. Add in SRE and product executives, you are looking at expenses in the two digit millions minimum.

The decision is definitely short sighted but somebody high up no longer wants it as a loss leader.


👤 DomKM
Because, as a registrar, they are not allowed to just shut it down.

More seriously, Google's culture seems fundamentally incapable of longterm investment in anything that isn't directly related to their core advertising business, even if that thing is an onramp to their core offerings (as you pointed out). It's sad and frustrating to observe.


👤 spullara
Google offers domain registration through Google Cloud and its feature set competes directly with Route 53:

https://cloud.google.com/dns (Cloud Domains)

Google Domains competes with hosting registrars like GoDaddy.


👤 LouisSayers
Also scratching my head...

The most logical thing that would make sense to me is that someone at SquareSpace has a close relationship with someone at Google that is able to influence such decisions?!


👤 ajankelo
Probably a relationship play more than anything see here from March when Squarespace wrote about migrating their analytics lake house to Google Cloud: https://cloud.google.com/blog/products/data-analytics/square...

👤 jrflowers
> They’ll sell Google Fi to T-mobile and abandon Google voice?

Why not?


👤 Mandatum
As someone who shifted all their domains to Google Domains at the cost of margin.. I guess I'm shifting back to PorkBun or NameCheap.

👤 retrocryptid
Because it costs too much just to cancel it.

👤 ChrisArchitect
What? Google selling Domains to Squarespace?

For anyone that missed it, is there a link to the story you're talking about? on here or otherwise

And if there is a story on here (which obviously there would be) why aren't you just in there asking your question with everyone else? :-\


👤 philipkiely
Does anyone know if this change is going to affect top-level domains operated by Google, for example .dev?

👤 happytiger
They looked at the numbers and forgot about being critical to developers as a brand point.

👤 funshed
CloudFlare Domains is better, a core business of CloudFlare and google would have to invest to compete. Which on the revenue does not make sense.

👤 leoh
100% agree