Goodmail shutting down

Yesterday Goodmail sent out mail to all their customers announcing they are ceasing operations and taking all their token generators offline as of 5pm pacific on February 8th.
While this is a bit of a surprise on one level, I’m not that shocked. Ken Magill mentioned in August that Goodmail was on the sales block and rumors have been circulating for weeks about significant changes coming to Goodmail.
Goodmail has struggled to find a market since they first started. At one point they were even giving services away to customers at partner ESPs. Despite the free service, people at some of those ESPs told me they were having difficulty getting customers to adopt Goodmail.
Likewise, on the ISP side, Goodmail didn’t seem to have much penetration into the market. They had AOL, Yahoo and some cable companies, but not much else. And as of early last year, Yahoo removed the Goodmail machines.
I think the real underlying problem was that most companies who are doing things well don’t need certification services. Sure, there are a couple exceptions but in general anyone who is sending good mail is getting to the inbox. Even for companies where delivery was not quite as good as they might want, the marginal improvement at those ISPs that do use Goodmail was not sufficient to justify the cost of Goodmail services.
While I have the utmost respect for the Goodmail management team I think this result was almost inevitable. I never got the impression they valued the end recipient quite as much as the ISPs do. That was just one thing that lead me to believe they just didn’t seem to understand the email ecosystem quite the way that a certification service should.
I echo Dennis’ thoughts and well wishes towards the Goodmail folks. The experiment in sender financed delivery was well worth doing and I think they did it as well as anyone could have.

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A week ago, Goodmail notified customers about upcoming changes to the Goodmail Certification program. They wanted customers to be aware that Yahoo was going to stop offering Goodmail certified email priority delivery and guaranteed inbox placement as of February first. I’ve talked with a number of people in the industry, including representatives of Goodmail and Yahoo about this change.
Yahoo was the first to respond to my request for a comment, and offered the following statements. The decision was made at some of the higher levels of management and my contact did not participate. I was told that Yahoo was looking to have more control over their incoming mail stream. They did not want to be contractually obligated to deliver email. The Yahoo rep also told me that Goodmail was in no way responsible for the Yahoo connectivity problems over the last couple weeks.
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Last summer a number of people in the industry told me that Yahoo had a meeting with Goodmail and told Goodmail that the quality of the mail that they certified was not up to Yahoo’s standards. At that point, Goodmail dropped a number of clients and stopped taking on new clients. One colleague believed he had a slam-dunk application that would take days to approve. Instead he chased Goodmail sales reps for weeks looking for confirmation that his employer would be accepted. Eventually, he did receive a response: his employer was not accepted and there would be a full revamping of the qualifications for the certification program.
It seems, though, that any changes implemented by Goodmail over the summer did not improve the mail stream enough for Yahoo to continue outsourcing delivery decisions to Goodmail.
Quite frankly, I am unsurprised by this. My impression of Goodmail has always been they never really understood the role of a certifying agency. For any certifying agency to be successful, they must continually monitor certified customers and enforce standards. Goodmail’s initial certification process was fine, but they never seemed to follow through on the monitoring and enforcement. I remember sitting at lunch with one of their founders a few years ago and repeatedly asking the same questions: How are you going to police your customers? What are you going to do when bad mailers come to you? How are you going to enforce your standards? The answers I received were vague and left me with the opinion that they didn’t really understand what spammers would do, or pay, to get guaranteed inbox placement. I never felt they recognized the work involved in enforcing the high standards needed to keep their ISP partners happy with their service.
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