If you are struggling with making just US$ 145.63 or US$ 297.12 a month from Google AdSense, you will think it is not fair that others are making US$ 6,681.34 or even US$ 86,234.78 a month and are not even paying for their domains! Well, it seems Google thinks that's not a fair business model either.
What is “Domain Tasting” all about?
Domain tasting, is a practice using a 5-day grace period at the beginning of a domain registration that allows the registrant to test the domain name for marketability. This means, if you don't like it during those 5 days, you give it back and get a refund.
But how did it all start?
After the “.com bust” and corresponding stock crash in 2000/2001 anything related to Internet — including domain names — were perceived as worthless. Later in 2001 and 2002 IAregistry.com (now Spirit Telecom) and DotRegistrar.com allowed a small group of large clients to bulk register thousands of domains, test them for profitability and only pay for those they keep. The earliest document I found at ICANN.org on this matter is from February 2002 (↑).
Personally I believe that those business models are sick big time. Think about it,
“They register 1,000's of domain names, test them, and keep only those that seem to be able to make more then US$ 10.00 a year or whatever their cost per domain is. They drop all others.”
What a waste! Of course, those who engage in this sick business model use automated tools for every part of the process. From domain registration, site creation, … Not all registrars fully participate in that model or charge small fees for each domain canceled during the 5-day grace period.
Bob Parsons (↑), president of Godaddy.com one of the biggest registrars in the world, wrote on his Blog:
During the month of April 2006, a little more than 35 million domain names were registered… Only 3 million were kept permanently.
Ever wonder why it seems more and more difficult for you to get the domain name you want? Quite often it’s because the domain name tasting and kiting industry is alive, well and running rampant. The practice of domain tasting and kiting continues to rage out-of-control. In February 2007, 55.1 million domain names were registered. Of those, 51.5 million were canceled and refunded just before the 5 day grace period expired and only 3.6 million domain names were actually kept. With the exception of just a few names, 93.5% of those names were registered simply to see how much advertising revenue – paid by big search firms like our “do no evil” friends at Google – will generate when they are associated with a one page Web site and related links.
During a recent conversation with Dr. Paul Twomey who heads up ICANN, I once again brought up the issue of domain tasting and kiting and asked what his plans are to do something about it. He did express concern, but the bottom line is unless he starts receiving complaints about the negative impact of tasting and kiting, don’t expect any action from ICANN.
a make money blogging carnival - Feb 01, 2008
Welcome to the February 1, 2008 edition of a make money blogging carnival.
John W. Furst presents Google Stops Cashing In On Tasting Of Domains posted at E-Biz Booster Blog, saying, “...
Weblog: SuccessPart2.Com Tracked: Feb 01, 17:18
I think this is well overdue. How often have you tried to register a domain name only to find it has been snapped up because you checked it's availability a couple of days ago.
I do this frequently, and I'm often gazzumped by these cretins and their automated scripts that track domain name lookups.
As for them being able to make significant money out of owning a domain name, I think it's shameful and it's about time Google took this position. Any business person knows there are costs associated with running a business and they aren't all monetary. Responsibility comes with it too.
Good article, I think it is very hard for me or for anyone else to register and select hundreds of domain names for testing issues. Why all of us just focus on from 1 to 10 websites, this is the long term online business for me.