Its good question when you think about it. What is the point of promo codes and other coupons. Well i suppose the main reason is because there is so much competition on the net for hosting providers and domain companies that they have to constantly have to come up with new ways to promote their business. When you think about it there sometimes is very little to differentiate between the major players in the web-hosting market. At least on the surface they all seem to be offering the same product and support. All they really have to compete on is price and this has become one of the main factors in winning over new customers.

Promo codes are one of the weapons in this war and hosting companies like godaddy and even hostgator are always giving out codes at events an on their ads in magazines to help entice people in. In reality it could be seen as a gimmick as its really just something to catch peoples eye as they are browsing. Is suppose they feel like they are getting something that no-one else is going to get and at heart this is the feeling that all advertisers want to create, its all part of the “me too” effect.

The codes always vary in type and sometimes the amount of discount too, although there is usually a set percentage for these things though. When you see code for huge savings it usually has more to do with the timeframe you have to sign up for than the actual discount, ie the percentage usually stays the same. So there you have it a brief rundown on how coupon codes work. Remember its true of all these types of deals and not just when you want a promo code for godaddy.