Bob Parsons

Founder of GoDaddy

• Born: November 27, 1950
• Place of Birth: Baltimore, Maryland

Primary Company/Organization: GoDaddy

Introduction

Vietnam War veteran Bob Parsons founded the highly successful domain registry website GoDaddy.com. A determined spirit and charitable heart have helped Parsons's endeavor flourish into the multibillion-dollar industry it is today. GoDaddy came into being during the early years of the Web 2.0 evolution and soon became the dominant website registry and hosting service. It has experienced some controversy, however, most of it surrounding its founder, Parsons. His determined nature and ability to capitalize on bad press have made him a major player in the virtual world and an example for those who did not perform well during school and succeeded despite growing up with more disadvantages than advantages. Hard work and persistence despite failure are the hallmarks of Parsons's professional career.

Early Life

Robert “Bob” Parsons was born in Baltimore, Maryland, on November 27, 1950. Raised in the blue-collar inner-city world of Baltimore, he learned early that hard work was essential to a successful life. His early education was no success story, however: He nearly did not graduate from high school. Fortunately, his teachers took pity on him after he decided to sign up for the US Marines; he received his diploma at the height of the Vietnam War.

Parsons served in the Marines from 1968 to 1970. He was wounded during his short tour in Vietnam and became eligible for assistance under the G.I. Bill. After leaving the Marines, Parsons started working at a steel mill. After watching several coworkers get seriously hurt on the job, he decided that it was not the career choice for him. He began studying at the University of Baltimore, randomly choosing accounting as his major (the unconfirmed story is that he simply picked the first major in the booklet).

During his college years, Parsons studied computers as a hobby, reading a computer programming book that he had found at a campus bookstore. After graduating in 1975, he worked for several years in the accounting field for several different companies. Every time he needed a program for his computer, he wrote it himself. Parsons then decided to start his own software company.

Life's Work

Working from his basement in Cedar Rapids, Iowa, Parsons taught himself how to write computer code and used this newfound skill to design some computer software. His first programs were related to accounting, and Parsons used them in his day job. It was not long before he went into business for himself.

Parsons named his first company, begun in 1984, Parsons Technology. He used direct-mail marketing to sell his products, reducing advertising costs and eliminating the need for a storefront. The company did not succeed immediately; in fact, Parsons admits to nearly losing the business several times because of cash-flow problems. Credit cards kept it afloat long enough to establish a solid customer base, and thereafter the company began to thrive. At its height, Parsons Technology had one thousand employees and showed returns in the $100 million range.

Intuit, Inc., a major accounting and tax software company, purchased Parsons Technology in 1994 for $64 million. Part of the deal with Intuit was that Parsons would not design new programs or software for at least a year. He agreed and went off to Florida to play golf. During that year, he got divorced, and his golf game did not improve. He then returned to the world of business; he had not enjoyed resting on his laurels and was eager to get back to work. Parsons took some of the money from the Intuit sale to start a new company, which he named Jomax Technologies, in 1997 (the name was derived from a road Parsons traveled regularly). The employees of the new company were handpicked from former colleagues and who had responded well to Parsons's laid-back management style.

Jomax Technologies experimented with several types of software, website development, and online content building before settling down into the world of domain registry. The only other major company offering domain registry services at the time was Network Solutions, and it charged a high price for its services. Parsons believed he could offer the same kind of services for a much lower price. He also wanted to provide what he believed was missing from the world of online businesses: high-quality customer service. After a brainstorming session during which a staff member shouted out “Go, daddy!” Parsons changed the name of the company and relaunched his business as GoDaddy in 1999. Founded at the height of the dot-com bubble, GoDaddy did not really register in the world of registry services. It was not until a Super Bowl commercial in 2005 that the company began to get noticed.

Using a part-time pornography star as the main player in a risqué commercial, Parsons managed to put the GoDaddy name on the virtual map. By creating hype, he increased traffic, and it was not long before the quality of product and pricing far outweighed the issue of lowbrow advertising. Between 2005 and 2006, cash flow increased 80 percent. GoDaddy became the market leader in the world of domain registry. By 2012, Parsons's company consisted of three different branches: the original GoDaddy.com domain service, Wild West Domains, and Starfield Technologies, LLC. By offering services such as web hosting and online privacy, Parsons has managed to extend his brand in several directions.

In 2006, Parsons considered making GoDaddy a public company. He did not care for the rules surrounding the move from a private to a public concern. Parsons found the process so restricting, however (it included not being able to post his blogs or execute his online video and radio shows), that he pulled his application. GoDaddy remained a private company until 2015.

In 2011, Parsons decided to sell 65 percent of the company to an entrepreneurial group called Kohlberg Kravis Roberts, Silver Lake, and Technology Crossover Ventures for a reported $2.25 billion and stepped down as chief executive officer. In 2014, he stepped down as executive chairman but remained on the company's board until 2018. In 2018, GoDaddy had over 62 million domain names on its registry, 5 million web hosting customers, and nearly six thousand employees.

Since leaving GoDaddy, Parsons has launched a number of businesses under an Arizona-based umbrella company called YAM Worldwide. YAM has businesses in the areas of real estate, motorcycle dealerships, sports, and marketing.

Personal Life

Since stepping down as CEO of GoDaddy, Parsons has focused his energy on marketing, spending his time casting commercials and enjoying his substantial success. Occasionally, Parsons travels to Africa to cull elephants as part of a herd-thinning village feeding program. He has received much negative press for this activity, including a boycott of the GoDaddy brand. Although the boycott did not stop the company's growth, People for the Ethical Treatment of Animals (PETA) and the Humane Society of the United States have publicly denounced Parsons's choices, despite his attempts to explain them.

Parsons is an active lobbyist for the Internet and has supported unpopular online legislation, including an antipiracy law vehemently opposed by giants such as Google and Yahoo! He has been a vocal critic of the way China accesses personal information online and actually stopped registering .cn domains (the country domain for China) to make his point.

In 2013 he and his wife, Renee, who live in Phoenix, Arizona, joined the Giving Pledge, in which very wealthy individuals pledge to donate at least half their wealth to charity. They founded the Bob & Renee Parsons Foundation in 2012 to address issues including homelessness, medical care, education, and concerns of military families and wounded veterans.

Parsons received the Muhammad Ali Entrepreneurial Award in 2011 and was named Arizona Business Leader in 2007. The University of Baltimore gave him an honorary doctorate in 2008 and the University of Baltimore Distinguished Entrepreneur award in 2010.

Bibliography

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Parsons, Bob. “Bob Parsons Doesn't Do Subtle.” Interview by Andrew Goldman. New York Times 1 Jan. 2012. Print. 24 Aug. 2012. Parsons explains his marketing philosophy.

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Peters, Jenny. "GoDaddy Founder Bob Parsons Is in the Business of Helping Others Find Success." Success, 7 July 2023, www.success.com/godaddy-founder-bob-parsons-helps-others-find-success/. Accessed 5 Mar. 2024.

Sloan, Paul. “Who's Your Go Daddy?” Business 2.0 19 Dec. 2006. Web. 24 Aug. 2012.

Vance, Ashlee. “The Challenge of Classing Up GoDaddy.” Bloomberg Businessweek. 24 May 2012. Web. 24 Aug. 2012.

Welch, Liz. “The Way I Work: Michael Arrington of TechCrunch.” Inc. 1 Oct. 2010. Web. 24 Aug. 2012.