Drop-Catching Domains Is Big Business
WebsiteMag brings us news from the Coalition Against Domain Name Abuse (CADNA) about a recent study of drop catching —'a process whereby a domain that has expired is released into the pool of available names and is instantly re-registered by another party.' The eleven day study showed that 100% of '.com' and '.net' domain names were immediately registered after they had been released. CADNA has published the results with their own analysis. Quoting:
"The results also show that 87% of Dot-COM drop-catchers use the domain names for pay-per-click (PPC) sites. They have no interest in these domain names other than leveraging them to post PPC ads and turn a profit. Interestingly, only 67% of Dot-ORG drop catchers use the domains they catch to post these sites — most likely because Dot-ORG names are harder to monetize due to the lack of type-in traffic and because they tend to be used for more legitimate purposes."
At a recent ICANN meeting, it was voted that ICANN will cease to refund the ICANN domain fee. The result of that will be that registrars won't refund it either, which in turn is expected to be a bullet to the heart of domain tasting.
ICANN's fee is not a lot - 20 cents (US) per year - but that is expected to be sufficient to make domain tasting unprofitable.
Article here: http://www.circleid.com/posts/81299_domain_tasting_ends/