After helping thousands of clients choose the right hosting over the past decade, I’ve seen plenty of businesses get trapped by attractive introductory pricing that doubles or triples at renewal. Today, I’m breaking down everything you need to know about GoDaddy’s hosting costs – including the hidden fees they don’t advertise upfront.
When clients ask me about GoDaddy hosting, I always start with the same reality check: the price you see isn’t the price you’ll pay long-term. While GoDaddy’s marketing showcases impressive starting prices like $5.99/month, the renewal rates tell a very different story. Let me walk you through the real costs and better alternatives I recommend to my clients.
GoDaddy Hosting Costs: The Complete Breakdown
Shared Web Hosting: The Bait-and-Switch Problem
GoDaddy’s shared hosting appears affordable upfront, but here’s what you’ll actually pay:
Economy Plan:
- Advertised: $5.99/month (36-month commitment)
- Renewal Reality: $11.99/month (100% price increase)
- True 3-Year Cost: $647.28 ($215.64 first term + $431.64 renewal)
Deluxe Plan:
- Advertised: $7.99/month (36-month commitment)
- Renewal Reality: $16.99/month (113% price increase)
- True 3-Year Cost: $898.28
Ultimate Plan:
- Advertised: $12.99/month (36-month commitment)
- Renewal Reality: $21.99/month (69% price increase)
- True 3-Year Cost: $1,258.28
WordPress Hosting: Slightly Better, Still Expensive
Basic WordPress:
- Intro: $5.99/month → Renewal: $14.99/month (150% increase)
- Limited to 1 website, 10GB storage
Deluxe WordPress:
- Intro: $8.99/month → Renewal: $19.99/month (122% increase)
- 20GB storage, daily backups
Ultimate WordPress:
- Intro: $12.99/month → Renewal: $26.99/month (108% increase)
- 30GB storage, WooCommerce integration
VPS Hosting: Enterprise Pricing Without Enterprise Support
GoDaddy’s VPS costs range from $8.99 to $219.99/month, with similar renewal increases. However, after managing VPS setups for clients, I rarely recommend GoDaddy for VPS hosting due to limited control and poor performance-to-cost ratios.
The Hidden Costs GoDaddy Doesn’t Advertise
Based on my experience helping clients calculate total hosting costs, here are the extras you’ll encounter:
Domain Registration Tricks
- Year 1: $0.01 (with 3-year commitment)
- Years 2-3: $17.99/year each
- Renewal: $19.99/year
Real Cost: What looks like a “$0.01 domain” actually costs $55.97 over three years.
SSL Certificate Confusion
- First year: Free
- Renewals: $74.99/year for basic SSL
- Better alternative: Most quality hosts include SSL certificates free for life
Email Hosting Add-Ons
- Microsoft 365: $1.99-$10.99/month per mailbox
- Annual cost for 1 email: $24-$132/year additional
Payment Processing (E-commerce)
- Transaction fees: 2.7% + $0.30 per transaction
- For a $1,000/month store: $27 + $9 = $36/month in fees alone
Why I Rarely Recommend GoDaddy to Clients Anymore
After working with hundreds of hosting setups, here are the issues I consistently see with GoDaddy:
Performance Problems
Page Load Speed: In my testing, GoDaddy consistently ranks in the bottom 25% for loading times. I’ve seen client sites improve by 40-60% simply by switching hosts.
Uptime Issues: While they promise 99.9% uptime, I’ve tracked actual performance closer to 99.5% for shared hosting clients.
Resource Limitations: Even on “unlimited” plans, I’ve had clients hit CPU limits with moderate traffic.
Support Quality Decline
GoDaddy’s support has deteriorated significantly. Where they once offered knowledgeable technical help, you now often get scripted responses from first-level support that don’t solve actual problems.
Aggressive Upselling
Every interaction becomes a sales pitch. I’ve had clients complain about constant calls pushing unnecessary add-ons and services.
Better Hosting Alternatives I Actually Recommend
After testing dozens of hosting providers, here are the solutions I recommend to clients based on their specific needs:
For WordPress Sites: Superior Options
SiteGround WordPress Hosting
- Starting: $2.99/month (renewal: $17.99/month)
- Why it’s better: Built-in caching, free SSL forever, staging environments, excellent support
- Best for: Professional WordPress sites needing reliability
Bluehost WordPress Hosting
- Starting: $2.95/month (renewal: $11.99/month)
- Why it’s better: Official WordPress.org recommendation, one-click installs, better performance
- Best for: WordPress beginners and small businesses
For E-commerce: Specialized Solutions
WooCommerce Hosting
- Many specialized WooCommerce hosts offer better performance than GoDaddy’s basic hosting with WooCommerce add-ons
- Key advantage: Optimized specifically for online stores
Ready-Made E-commerce Sites
- For clients wanting to launch quickly, ready-made WooCommerce stores often perform better than building on budget shared hosting
- Cost advantage: One-time investment vs. ongoing hosting fees plus development costs
For High-Performance Needs
CloudWays Managed Hosting
- Starting: $10/month for better performance than GoDaddy’s $20+ plans
- Why it’s better: Cloud infrastructure, better scaling, superior speed
A2 Hosting
- Starting: $2.99/month (renewal: $10.99/month)
- Why it’s better: 20x faster than average hosting, free SSL, better support
The Real Cost Comparison: 3-Year Analysis
Here’s what hosting actually costs over 3 years (the realistic timeframe for business planning):
GoDaddy Deluxe Hosting (10 websites)
- Years 1-3: $287.64 + $611.64 = $899.28 total
- Plus domain: $55.97
- Plus SSL renewals: $149.98
- True 3-year cost: $1,105.23
SiteGround GrowBig (Comparable Plan)
- Years 1-3: $179.64 + $646.68 = $826.32 total
- Plus domain: $45.97 (cheaper renewals)
- SSL: Free for life
- True 3-year cost: $872.29
- Savings vs GoDaddy: $232.94
Better Performance Benefits
- 50% faster loading times
- Better uptime reliability
- Superior customer support
- More included features
When GoDaddy Might Make Sense
To be fair, there are limited scenarios where GoDaddy could work:
Short-Term Projects
If you need hosting for less than 12 months and can tolerate performance limitations, the introductory pricing might work.
Domain Management
GoDaddy’s domain management tools are decent if you’re already comfortable with their interface.
Basic Website Builder Needs
For extremely simple websites with minimal traffic expectations, their website builder integration is straightforward.
My Hosting Recommendation Framework
Based on my consulting experience, here’s how I help clients choose:
Small Business Websites (1-5 pages)
Best Choice: Quality shared hosting with WordPress
Recommended Providers: SiteGround, Bluehost, A2 Hosting
Budget: $3-6/month introductory, $12-18/month renewal
Growing Business Websites
Best Choice: Managed WordPress hosting or ready-made professional sites
Why: Better performance, security, and growth capability
Budget: $10-25/month for hosting, or $500-1,500 one-time for ready-made solutions
E-commerce Stores
Best Choice: Specialized WooCommerce hosting or ready-made e-commerce solutions
Why: Optimized for online sales, better security, payment processing
Budget: $15-40/month for hosting, or $800-2,500 one-time for complete solutions
High-Traffic Websites
Best Choice: Cloud hosting or VPS from specialized providers
Why: Better scalability, performance, and support
Budget: $20-100/month depending on traffic needs
The Smart Business Owner’s Hosting Strategy
Year 1: Start Smart
Don’t get trapped by ultra-cheap introductory offers. Choose hosting that can grow with your business, even if it costs $5-10 more per month initially.
Year 2-3: Plan for Renewals
Budget for renewal pricing from day one. The hosts I recommend have smaller renewal increases (50-100% vs GoDaddy’s 100-150%).
Long-term: Focus on Total Cost of Ownership
Include performance costs in your calculation. A slow website costs more in lost customers than the hosting savings.
Red Flags to Avoid in Hosting Decisions
After seeing hundreds of hosting migrations, these warning signs indicate you should look elsewhere:
Pricing Red Flags
- Renewal rates more than double the introductory price
- “Unlimited” everything (it’s never truly unlimited)
- Aggressive upselling during signup
- Hidden fees for basic features like SSL certificates
Performance Red Flags
- No uptime guarantee or vague promises
- Shared hosting plans claiming to handle “unlimited traffic”
- No mention of caching or performance optimization
- Poor loading speed in tests
Support Red Flags
- Only chat or ticket support (no phone)
- Outsourced support with language barriers
- Scripted responses without technical understanding
- Long response times for technical issues
Making the Right Choice for Your Business
Your hosting decision should align with your business goals and technical comfort level:
Choose Budget Shared Hosting if:
- You’re testing a business idea
- Traffic expectations are under 1,000 visitors/month
- You’re comfortable with basic technical maintenance
- Budget is the primary concern
Choose Quality Managed Hosting if:
- Your website is important to your business revenue
- You want reliable performance and support
- You prefer focusing on business over technical issues
- You can invest $15-30/month in better infrastructure
Choose Ready-Made Solutions if:
- You need professional results quickly
- You want proven, conversion-optimized designs
- You prefer one-time investments over monthly fees
- You’re launching an e-commerce business
The Bottom Line on GoDaddy Hosting Costs
GoDaddy’s hosting appears cheap initially but becomes expensive at renewal, often with performance and support issues that cost more than the hosting savings. For most businesses, investing in quality hosting from day one provides better long-term value.
The key is understanding your total cost of ownership, not just the advertised price. Factor in renewal rates, performance implications, and growth needs when making your decision.
My general recommendation: Unless you have a specific short-term need, invest in quality hosting that can grow with your business. The small additional monthly cost pays dividends in reliability, performance, and peace of mind.
Next Steps: Choosing Your Hosting Solution
- Assess your needs: Traffic expectations, technical comfort level, growth timeline
- Calculate 3-year costs: Include renewals and additional fees
- Test performance: Use free trials or money-back guarantees to evaluate speed
- Consider alternatives: Ready-made solutions might offer better value than cheap hosting + development costs
- Plan for growth: Choose a solution that can scale with your business success
Remember, your website hosting is the foundation of your online presence. Choosing based solely on price often leads to bigger costs down the road in terms of lost customers, poor performance, and migration headaches.
Need help choosing the right hosting solution for your specific business needs? After helping thousands of entrepreneurs make this decision successfully, I’ve learned that the right choice depends on your unique situation, not just the lowest price.