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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."

27 of 197 comments (clear)

  1. What needs to change by FredFredrickson · · Score: 5, Interesting

    What needs to change is getting your domain back if you accidentally let it expire.

    Just days after I accidentally let one of my domains expire with godaddy, they told me it's in a probation period where it was protected and only I could re-register it if it was a mistake- the catch was that it'd cost $80, as opposed to the $10 it normally costs.

    That price is arbitrary, as it's no skin off their backs to re-register it for standard cost. They're banking on drop-catching. Drop-catchers snatch domains faster than I've been able to, even using godaddy's service that watches and grabs a domain the minute it expires.

    --
    Belief? Hope? Preference?The Existential Vortex
    1. Re:What needs to change by CastrTroy · · Score: 4, Informative

      Maybe you should switch to a different registrar if you forget to renew your domain. My registrar sends me email notices 2 months before mine expires, then again at 1 month, then a couple more times after that. They make it really hard to forget. Also, if you don't remember to renew it, maybe it wasn't worth that much to begin with.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:What needs to change by D'Sphitz · · Score: 4, Interesting

      About 6 years ago there was a domain I found that was a month or so from expiring. I checked it every day and it wasn't ever renewed, it entered a hold period and presumably was going to be released to the public after n days (30 i think).

      As the date approached I wrote a script to check the domain availability every 30 seconds, and alert me via email, phone, and loud annoying .wav file as soon as it became available. That never happened, it never officially became publicly available.

      I emailed the new owner and his response was simply "$4000.00". It has now been parked for over 6 years rather than being used for a legitimate purpose.

      I didn't know how the domain name business worked back then, but I learned then how sleazy it really is. These people are in bed with the registrars, and an individual who just wants a domain name less than 40 letters long is SOL.

    3. Re:What needs to change by vux984 · · Score: 3, Interesting

      My registrar sends me email notices 2 months before mine expires, then again at 1 month, then a couple more times after that. They make it really hard to forget.

      Actually, so does goddady. I get all kinds of reminders from them. They also have auto-renewal options.

      I suppose the only way to blow it would be to have your contact address some spam catcher address you never check. But that's not godaddy's fault.

    4. Re:What needs to change by Yez70 · · Score: 3, Insightful

      Your post gave me an idea. Domains are 'property' in a sense and they have a value. Let's charge 'property taxes' on them. If a domain has a market value, it has a taxable value. It could generate some nice tax revenue for states, or countries. It could also spur some pricing wars with domains other than .com and .net as different countries charge different tax rates. The majority of people own domains worth $10 or less, so it would cost them at most $1 a year per domain. Anyone who owns more than 100 domains would have to pay an incrementally higher rate per domain. It's just an idea, I'm sure a politician would love it.

      Imagine being able to forward the '$4000.00' response to the Internet tax office - he's now liable for the $400 in taxes on his $4000 domain, every year. I bet he'd drop the price, or the domain pretty quick.

    5. Re:What needs to change by phalse+phace · · Score: 4, Funny

      I didn't know AOL was also a registrar.

  2. Re:Make em expensive again by EvanED · · Score: 4, Insightful

    It would also cut me out. You don't need to make them terribly expensive... just $25 or so would probably be sufficient. It would at least cut that percentage down a ton.

  3. More than the drop catching by ContractualObligatio · · Score: 5, Insightful

    It's an interesting study, although it seems you safely ignore drop catching. Things have to become available at some point, so it's what happens after the "drop catch" that's important. As the paper itself concludes:

    "Drop-catching alone is not what has led to this problematic environment, but rather it is the abuse of the Add Grace Period in connection with drop-catching that appears to be the cause."

    Gotta say domain tasting and parking spoil the internet for me. I've been thinking about setting up a website, and most of the names I checked were domain parked. I could easily live with the registration fee going up significantly if it meant that only people with a real use for domain bought it. The paper suggests that $100 (which isn't too much) is about the cutoff point where it starts to become financially stupid.

  4. Re:Make em expensive again by suresk · · Score: 4, Interesting

    I agree. This is the only sensible way to solve this problem.

    A while back, some friends and I were working on a business idea. Every single idea we had for a domain name was taken. I remember looking at all the sites to see what they had done with the domains, and out of 200 or so, fewer than 10 were actually doing something with the domain names aside from parking them and making money off the PPC ads.

    As an example of this: I registered uresk.com (Uresk is my last name, and it is a very uncommon last name) back in 1997 or thereabouts. I was still in high school, and the $100/year ended up being prohibitively expensive so I didn't renew it. It has been passed around by speculators for almost a full decade now, despite the fact that it never had much traffic and "uresk" isn't a very common type-in. Bizarre.

  5. Re:Make em expensive again by sssssss27 · · Score: 4, Insightful

    Couldn't you just make it progressive? Have the first cost the normal rate and then have it go up with each new one you register until you hit a predefined limit. That way people like you and I who only have a few domains wouldn't get hurt.

    The only problem that I could see with this is web firms that created websites for other people/companies and register it in their name. I imagine to solve that you could just have the count reset after so long. I imagine these drop catchers register a lot of names all the time.

  6. Re:Make em expensive again by CastrTroy · · Score: 4, Insightful

    Why not make it $100 to register, and then $5 a year to renew.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  7. Tasting may be on the way out by gujo-odori · · Score: 5, Informative

    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/

  8. Re:Make em expensive again by FredFredrickson · · Score: 4, Insightful

    Not only would $100 cut me out, but even $25 would cut me out. I already spend quite a bit of money keeping my websites registered at $10/month. I don't need a stupid tax to keep spammers and squatters down, because that would greatly affect my personal sites. And I don't generate much of any income on my sites, they're are mostly personal.

    Strict regulation, maybe. Remove domain tasting? Yes. But raising prices for honest customers? Hell no.


    A better question would be whether there's copyright infringement having somebody register a domain that uses your site's name.

    --
    Belief? Hope? Preference?The Existential Vortex
  9. Comment removed by account_deleted · · Score: 4, Interesting

    Comment removed based on user account deletion

  10. This is not bad at all by kylehase · · Score: 3, Insightful
    Why are people complaining about this. Most registrars send out several email warnings prior to an expiration almost to the point where it's annoying. Secondly, if a domain is that important to you shouldn't you be using the registrars auto renewal service?

    It's not like they're frontrunning (sniping) domain names.

    --
    You want fun, go home and buy a monkey!
  11. Re:Make em expensive again by armada · · Score: 5, Insightful

    All you need to do is nix the grace period. Simple. If you are not the original registered owner you have to pay full price to register it.

    --
    "This message was sent from an Apple //GS"
  12. Re:Make em expensive again by debatem1 · · Score: 5, Interesting

    Make it a $100 deposit refundable in 6 months.

  13. Bad idea by TheLink · · Score: 5, Interesting

    I disagree.

    The whole problem was the domain speculators hardly ever had to pay for the domains they parked on in the first place with the Domain Tasting and other stupidity that the ICANN allowed (or planned?). Imagine being able to "taste" a house and only pay for it when people wanted to rent/buy it, how stupid is that?

    Now to fix the problem THEY caused, you are suggesting that we PAY THEM MORE?

    I bet if the domain tasting idiocy is really gone for good, this crap will drop to a manageable level in a few years.

    It's really fishy that people are conveniently suggesting this, just after a dubious source of revenue stream is drying up for the registrars.

    --
  14. Re:Make em expensive again by Anonymous Coward · · Score: 3, Insightful

    Not only would it be unprofitable for these "drop-catcher's", it would make it much harder for spammers to run their operations as well. So I'm all for domain names at 100 per year. Or even $50. Right now a domain for 5 or 10 bucks.. at 50 it would cost all these people 5 to 10 times as much to operate. When you are talking about a few thousand domains. Well that would get really costly.

  15. Re:Make em expensive again by DaveWick79 · · Score: 4, Insightful

    I think this is a great solution. Force the squatters to pay a lot up front, and eliminate the grace period. That way they won't want to output a lot of money, even if it's about $50, to register because they won't make enough money on the domain to make it worthwhile. I think that most people would not mind paying a bit more up front as long as renewal was easy and cheap like it is now.

    While they are at it, they should make scams, like Domain Registry of America does, to deceive people into switching registrars. There should be huge fines for this kind of thing, to the tune of $1000's per domain. You've got to make it financially devestating for people to engage in nasty behavior like this.

    While I don't think you can make the squatting illegal, I think you can make it harder to make money on, which will effectively eliminate within a couple of years.

  16. Re:Make em expensive again by curunir · · Score: 4, Insightful

    Rather than making domains prohibitively expensive (and artificially so...a database entry should not cost $100), what needs to happen is a drastic expansion of top-level domains. The shortage of domain names is entirely artificial. The problem is not that there are too many PPC sites. The problem is that these sites make those domain names unavailable for legitimate use. But if there were more top-level domains to choose from, the likelihood that legitimate users would have problems finding a suitable domain would be significantly less.

    ICANN wants to keep this artificial scarcity since it enables them to propose fee increases that keep the registrars profits obscenely high. And, as evidenced by this discussion, even technophiles have bought into their BS. We need to remember that there's nothing magic about 'com', 'net', 'org', 'edu' and 'mil' (and the relatively few others that have subsequently been created). Why is there no '.auto' TLD for car companies and automobile enthusiasts? Why is there no '.music' TLD for bands and music enthusiasts? Why are there not thousands of other TLDs that are appropriate for other purposes?

    Because ICANN says so. There's little to no technical reason why. And changing this makes a hell of a lot more sense than upping the registration fees. All increasing registration fees accomplishes, other than annoying PPC site operators (who will adapt, just as SPAMers adapt to every technical hurdle that is sent their way), is to funnel even more money to the registrars.

    --
    "Don't blame me, I voted for Kodos!"
  17. Re:Make em expensive again by cheater512 · · Score: 5, Funny

    The Domain Registry of America never fails to send me a letter telling me to renew with them.

    Even though I'm in Australia.

  18. Re:Make em expensive again by suresk · · Score: 4, Insightful

    Well, when you are paying for a domain name, you aren't paying for the database entry - you are paying for the right to exclusively use that particular name, right?

    Creating more TLDs will probably help, but causes other problems. If I am interested in purchasing an Audi, do I go to audi.com or audi.auto? Is it permissible for me to register audi.{something} for my own use? What if I register {somedomain}.books and someone already has {somedomain}.com? That is bound to cause confusion. I don't know - I like the idea in some ways, but it seems like it would open up a whole bunch of other problems.

  19. Re:Make em expensive again by SL+Baur · · Score: 3, Insightful

    We need to remember that there's nothing magic about 'com', 'net', 'org', 'edu' and 'mil' (and the relatively few others that have subsequently been created). .edu and .mil (and .gov) are special. They are reserved for United States institutions for education (colleges), military and the federal government respectively.

    Why is there no '.auto' TLD for car companies and automobile enthusiasts? Because the way domain naming was designed, all such domains would be assigned under .auto.com for automobile sellers or .auto.org for the enthusiasts. It worked when only a handful of (very large) organizations had registered domain names.

    The mistake of flattening the tree (to name an example that I still have a valid email address under, the Japanese government should be .japan.gov, not .go.jp) was made and everyone followed it when internet access was unleashed on the masses. National domains were politically expedient, but a stupid idea. Almost as stupid as the TLD .us being assigned geographically.

    How many of you young folk in the United States have ever had an email address with multiple dots in it? My record is <steve@romulus.sedd.trw.com> or <baur@venice.sedd.trw.com> in the 1980s.
  20. The real problem is phony "registrars" by Animats · · Score: 3, Interesting

    Most of the "ICANN accredited registrars" are fronts for domain tasting. There are only a few real registrars; the rest are dummies for picking up dropped domains. Enom has a huge number of dummy fronts - "Enom1, Inc" through "Enom469, Inc".

    One step needed is for ICANN to enforce the provision of the registrar agreement which allows ICANN to prohibit registrars from owning or speculating in domains. And the provision which requires that a registrar have assurance of payment before activating a domain. With that, the end of the "grace period", and Google refusing to monetize domains for the first five days, we should see this problem decrease. The .org TLD recently got rid of their grace period, and domain transactions dropped 90%.

    We're working on this from the browser end. The general idea of our SiteTruth system is to filter out the bottom-feeders. It's the next step after ad-blocking - make the link pages, directory pages, typosquatters, and similar junk far less visible.

    It's not even clear that advertisers benefit from all those junk pages. If you advertise with Google ads, and get clicks from junk pages, do they really result in sales? Or is this just a way to take money from the real advertiser and divert it to some bottom-feeder?

  21. Re:Make em expensive again by Magic5Ball · · Score: 3, Interesting

    There's no need to raise the prices, just the initial commitment. $100 per domain name, which includes 10 to 20 years of registration, would be reasonable, and would also keep domain names from dropping in the first place (but at the increased risk of having their admin/billing/technical contacts become incorrect). Having been on this Internet thing for ages now, I find far fewer compelling technical reasons for domain names to expire than business (recurring revenue) reasons.

    --
    There are 1.1... kinds of people.
  22. Simple by BlueParrot · · Score: 4, Insightful

    $100 to register, Free to renew for the first 10 years. $10 to renew every year after that. That way it works out to $10 per year for those who stay with a domain, and there is a big incentive not to register a domain you do not wish to keep. In combination with trademark law that would probably take the sting out of most of this nonsense.