To connect Microsoft accounts to Instantly, it is essential to enable SMTP.
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When you get Microsoft 365 accounts on GoDaddy, the setup is different than for the accounts bought directly from Microsoft. You won't be able to access all the features in Microsoft Admin, instead, your SMTP email settings will be on GoDaddy.

You can follow the steps below to enable the SMTP for Microsoft 365/Outlook bought on GoDaddy:

The next thing is to add the DKIM and DMARC records to your domain. Here are the steps to add the DKIM record:

Step 1. You will be able to generate DKIM via this link: https://security.microsoft.com/dkimv2

Click on the domain you want to generate the records for.

Step 2. In the pop-up window click on "Create DKIM keys"

Step 3. You will need to copy these CNAME-type records into your Godaddy domain and come back to the same page to enable DKIM.

Step 4: Publish both of the copied CNAME records to your GoDaddy DNS.

Step 5. Go back to the Microsoft page and click the switch to "Enable".

Now that you have DKIM enabled, you can follow the steps below to add the DMARC record.

Step 1: You can generate your own DMARC with any third-party tool, like Dmarcian or EasyDmarc or you can copy this record with the minimum policy:

Type:

Name:

Value:

Step 2: Click on "Add record" and you are done!

You can verify if your records are in place with tools like MXToolbox.