Microsoft 365 and Office license | User assign

rtdc group 20 Reputation points
2026-07-18T05:37:51.0733333+00:00

I just add a domain on Godaddy. and add 1 user with license there. But now I cannot add 1 user without license there. They always need me buy 1 user with 1 license. Actually, I want to add 1 manage user there for add or remove user and give password. I have experienced with using M365 admin center to manage user group. It can add user first and then add role on it. Why I cannot do so with Godaddy license portal there? How can I change back to normal M365 admin center usage as before. They are more user friendly actually. I am free to buy more M365 standard and basic license to assist different user on necessary different condition. Please tell me the steps to change back to do so. Thank you.

Microsoft 365 and Office | Subscription, account, billing | For business | Windows
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Answer accepted by question author
Sophie N 18,175 Reputation points Microsoft External Staff Moderator
2026-07-18T06:07:12.56+00:00

Dear @rtdc group,

The behavior you are experiencing is by design. When you purchase Microsoft 365 through GoDaddy, your tenant is "federated". This means GoDaddy manages the administrative functions behind the scenes, which is why the admin center redirects you to their portal and why you cannot add a user without a license.

To regain the full, user-friendly Microsoft 365 Admin Center you are familiar with, you will need to "defederate" your tenant from GoDaddy.

This process will break GoDaddy's management control and give you direct access to the Microsoft 365 Admin Center .

Here are the steps:

  1. Contact GoDaddy Support: You must initiate this process with GoDaddy. Contact their support team and explicitly request to "defederate" your Microsoft 365 tenant and release the custom domain from their management. This is a mandatory step that only GoDaddy can perform.
  2. Log in to Microsoft Directly: Once GoDaddy confirms the process is complete, you will be able to log in directly to the Microsoft 365 Admin Center using your Global Administrator credentials. If you do not know the password, you should be able to use the "Forgot my password" option on the Microsoft login page to reset it.
  3. Verify Domain and Licensing: After logging in directly to Microsoft, you will have full control. You can then add users without immediately assigning a license and manage roles as you prefer. You will also be free to purchase and assign any Microsoft 365 licenses directly from Microsoft.

For your reference, Microsoft documents this process here: Defederation Process for Microsoft 365 Admins Using GoDaddy

Important Notes:

  • This process does not involve migrating your data to a new tenant; it removes the administrative controls that GoDaddy holds over your existing tenant.
  • Be aware that releasing the domain can temporarily disrupt email services. Confirm the impact and timing with GoDaddy before they proceed.
  • You will likely need to purchase new licenses directly from Microsoft. You should check with GoDaddy regarding their policy on canceling your existing subscription and any potential refunds.

I truly appreciate your patience and understanding. If you have any further questions or need further clarification, please feel free to reach out. I'm looking forward to hearing from you. 

Thank you for your cooperation.

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