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ICANN To Finally Stop Domain Tasters In Their Tracks
Posted on December 19th, 2008 by admin in Domain News | 7 Comments »
Domain tasting – as described in the Domaining Manifesto – is the shady practice of abusing the 5 day Add Grace Period (AGP) to try out domain names with the aim of registering them if they are shown to be profitable (viewed with a yearly registration period projection in mind).
It was a while ago now that the ICANN GNSO voted to set a new policy that would stop domain tasters from abusing the system and it’s taken a few months but it seems ICANN is finally making this an official ICANN policy.
According to the new rules a registrar will only be able to refund 10% of its new registrations each month, with some leeway for one-time mistakes. This should put an instant stop to AGP abusers who have been refunding at a rate of almost 99.99%.
Registries are expected to comply by the new rules by no later then March 31 2009.
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7 Responses to ICANN To Finally Stop Domain Tasters In Their Tracks
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I’m glad I’m not the only one who’s pleased to see this happen. I was almost afraid to cover the story in a positive light at Modern Domainer. Considering that tasting is, on the bottom line, a primary way to evaluate a name for parking, it almost seems like an anti-domainer move. I see it as a matter of choosing the battles that result in respect for the industry. Let tasting, kiting and front-running die. The industry will mature around the changes and lead to more opportunity and less hassles for everyone.
I couldn’t agree more Nathan, I am sure some “domainers” found it profitable to say the least – but I think in the long run we will all benefit from a more level playing field.
Bravo to ICANN for FINALLY putting an end to this practice – it’s about time they did something in favor of domainers. Not sure if you saw the post I started on this in the forum John (lots of views, but not many viewpoints), but it’s a subject that has personally been affecting my business for some time and I couldn’t be happier with the move.
Great points Nathan…this topic has always been somewhat taboo to discuss. No longer!
Could someone please explain to me why they feel tasting is such a bad thing? The way I see it,the more successful domainers hold their names instead of flipping them, and tasting is the tool used to decide whether to let a domain into the fold or not.
Holding for revenue, development or flipping are all various avenues that they adopt. They don’t restrict themselves to only flipping, which IMHO is a prudent business strategy.
Lucky, tasting on an individual basis would be ok – if that was all that was happening.
What you don’t realize is that there is guys out there who setup registrars so they could engage in mass tasting – tasting 10s of thousands of domain names at a time.
The same could be said of existing registrars where there is a narrow line between warehousing and tasting. When registrars taste domain names the general public never get a look in.
John
Lucky, John’s point is spot on.
It’s not the concept per se of tasting that is at the heart of the problem, it’s the rampant abuse of the AGP. If you review some of the data – showing the ratio of # of registrations, compared to actual domains held/dropped – it’s ridiculous. Before the mandatory ICANN fee was imposed to halt kiting, nearly 90% of registrations would drop during the AGP. That’s the problem.
As John pointed out, many “domainers” created their own registrars (so-called Drop Registrars) with the express purpose of bulk tasting, exploiting the AGP and monopolizing the aftermarket.
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