A Taste of Domains: Getting Registered Millions For Free

A Taste of Domains: Getting Registered Millions For Free

Internet governing bodies, ICANN (international) and Nominet (UK) have become more and more concerned about the practices of domain name tasting and domain name kiting as the number of registered names that are registered but not paid for has soared since 2006. Millions of domain names that were registered went unpaid. In the month of April 2006, 32 million out of 35 million domain names registered were actually part of a scam. These names were not paid for.

These methods are referred to as domain kiting and domain tasting. When a domain name is registered and canceled multiple times within the 5 day grace period, the end result is that the registrant will own the name without having to pay for it. This is termed domain kiting. With domain name tasting, the registrant takes advantage of the 5 day grace period to register lots of domain names and then decides which ones perform best. The registrant decides which ones to return and which ones to keep, paying only for the ones kept.

ICANN altered their policy and cost structure to stop these practices in August 2008. To battle the problem of multiple domain name registrations, Google decided to withhold advertising from domain names that were less than 5 days old. The fact that Google Adsense and others have stopped advertising on new domains and ICANN has imposed fees has put a damper on the practice of domain tasting and stopped domain kiting. However, the fees are only a problem for small time domain tasters. They are just an inconvenience to the big players.

Because of the great number of domain names that are registered, the fees for deleting domains during the grace period are somewhat inconsequential in light of the total costs involved. The fees placed on domain name tasting have only deterred small players. Big corporations and high rollers can just pay the little fees and go on. They can use other ad companies besides Google Adsense to turn a profit. Because of this, the UK company, Nominet created new terms and conditions, which will sever contracts with registrants who continue to use this technique. This has caused domain tasting, or using domain names without paying, to come to an end for the most part.

A Message Labs intelligence report dated September 2009 makes it clear that, even though it is still possible to make some money with domain name tasting (at least internationally), the practice is on the decline. The report emphasizes "stopping domain tasting". This is not completely honest. It's true that the industry for these methods has decreased, however the phenomenon still occurs. Internationally, domains governed by ICANN still offer some measure of profit for domain name tasters if the technique is used properly. However, it must be done on a large scale and closely monitored to turn a profit.

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