It's not 100% effective. Some of the scam artists and perverts that we're told infest the web still might find you. Which shouldn't surprise you if you've lived in the real world for any time at all. The privacy option is most effective when purchased at the same time as the domain. The reason for this is that the domain seller immediately substitutes the contact information of your third-party protection service for your name, address and phone number. Any malefactor searching for the ownership of your domain comes up against the protection service and a dead end.
It's less effective if you choose the privacy option after you've held it a while. Reason being, the domain now has a searchable history, and the history leading up to your privacy company's arrival is not completely obscured. For between twelve and fifteen dollars a month anyone can get a membership with Domain Tools and discover that you owned the domain prior to its being taken by the protection service. Are you still the owner? They won't know for sure, but will have your contact information. If you want to be absolutely certain your name can't be found, domain tools will completely cover the history for ten dollars a day (that's no typo; ten (10) dollars American a day).
Not interested? Didn't think so.
Here's another thought for you truly obsessive types. The third-party protection service is now the owner of record of your domain. Who cares about a two dollar domain? But if for some reason that domain should suddenly become a two million dollar domain (not too wild a dream), can you trust your protective service? Isn't possession still nine points of the law? Choose wisely.
So is privacy protection worth a few dollars more a year? Oh, probably; as long as you know what you are getting.
Personally I haven't taken advantage of the domain privacy option yet. For one thing I think people should know who they are doing business with; for another, I'm far too old and ugly to attract many perverts.
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