• Not a good day to be Danica Patrick. Spurred on by a Reddit thread earlier today (we mentioned it here), a snowballing boycott against the world’s largest domain registar has picked up such tech-industry luminaries as Cheezburger Inc.’s Ben Huh and Y Combinator’s Paul Graham. And Graham’s Hacker News is currently loaded with GoDaddy-related posts tonight, including this post about how to extricate yourself from GoDaddy’s service. But while the movement is certainly noble, it’s one that could face a lot of trouble going forward. Here’s a quick summary of the challenges boycotters may face going forward:

• Why they support SOPA GoDaddy has been one of the more vocal supporters of SOPA, as a statement they submitted to the House of Representatives makes clear: “As much as some would like to paint a bleak picture, this debate is not about Hollywood vs. Silicon Valley. This debate is about preserving, protecting, and creating American jobs and protecting American consumers from the dangers that they face on-line.”
• Prone to controversy GoDaddy doesn’t exactly have the most pristine reputation among tech companies (what with its scantily-clad commercials and elephant-hunting CEO), but it hasn’t hurt their service in the past. Why? Quick — name another company that sells domains off the top of your head. Most people probably can’t. That’s what might hurt this boycott amongst mainstream users.
• An uphill battle? GoDaddy users face a very similar situation to PayPal or Craigslist or Internet Explorer— no matter how controversial, user-unfriendly, or outdated the service may get, the market leader is seated pretty firmly due to years of market recognition and popularity, and it’ll take a lot to shake them. GoDaddy’s offered annoyed users a good reason to move elsewhere, however. But how many will there be? source

• $30 million in funding for cat videos and The Daily What source

• » Suggestion: As you move forward, Ben Huh and company, consider paying your entry-level employees more. Just saying.

• We like the meme machines that Ben Huh’s “I Can Has Cheezburger” network provides. They’re goofy, they’re funny at times, and they often drive some pretty interesting trends online. What we don’t like, however, are his wages. What’s essentially a job in a profitable niche media industry is treated as if it’s a struggling startup. Gawker has been all over this the last few days, after Huh himself backed his company into a corner thanks to a frank admission.

What “Cheezburger” makes in revenue

• $4 million in yearly revenue off
  of user-submitted content source

The “Cheezburger” employee picture

• 30 employees work for Ben Huh’s
  cat-loving empire source

• $8.55 the starting rate (40 hr./week, no benefits) at one of Huh’s sites for an office admin or a junior designer – that’s minimum wage in Washington
• $17,784 the amount that brings home for potential employees each year, before taxes of any sort – that’s just $7,000 above the poverty line source

• » A notable wrinkle: These jobs are contract jobs without benefits starting out. Contract jobs that don’t take out taxes, just an FYI, are the ones that Joe Stack railed against when he crashed that plane into the IRS building. And while Huh claims that people move up in the company, the fact of the matter is that this is a near-poverty level job starting out.

How that compares

• $30k starting rate for an entry-level office administrator source
• $29k starting rate for a Web-based graphic designer source
• $20k starting rate for a “blogger” – so Huh is even low for that source

Can you live off that? No

• $17,784the entry-level pay (before taxes) at Cheezburger Network, with the possibility of wage increases
• $18,337the living wage (after taxes) in the Seattle area, where the network is located source

The justification for low wages

• We advertise lower wages for entry-level positions because the worst candidates focus on money the most. Believe it or not, advertising lower-than-market wages actually helped us yield better candidates.
• Cheezburger Network CEO Ben Huh • In an article discussing how a recent ad drew candidates who were upset that he was offering so little for what are in reality jobs that require a college education. While passion is one thing, it’s another thing entirely to force low wages on college-educated people. He lists three reasons why he feels employees who ask about compensation aren’t desirable. The first? “The candidate’s inability to control their personal expenses, which inevitably leads to drama and demands at work.” He goes further, noting: “If you have high financial requirements in order to absolutely survive, I don’t really know what to say than go get a job at a bank (you know what I mean).” Know what would help them control personal expenses, Ben? A living wage. Well, maybe they could get one (and health insurance!) if they worked at a Starbucks instead. source

But wait, they’re not alone

• Look, it’s easy to focus on them. But the real problem we’re starting to see with user-generated content is that nobody’s really paying enough, and preying on passion. Lots of companies are guilty of this. Examiner.com is a great example. Journalists have for years been able to make a decent, if not great, wage by working at newspapers and other print publications. Will this go away? Will we even be able to buy cheezburgers? Just a thought.