Tag Archives: Domains
Written by Chad Bean
Monday, June 22nd, 2009
It seems like no matter what business industry you’re looking at, there’s always room for shady activities. Web hosting and the domain industry are no exceptions. However, most people are totally unaware of one such practice known as domain tasting. Domain Tasting is essentially when a someone buys a domain name for the sole purpose of seeing whether or not it can generate ad income. The domain registrant puts ads on the domain, and if the ads don’t make any money, the registrant has five days to request a refund.
There have been many big companies involved with Domain Tasting, and since they can pull off the above example on a much larger scale, they have been able to reap insane amounts of profits. This had affected us and our clients because millions of domains were getting tied up by ‘tasters’ and would appear unavailable when someone actually went to register their domain name.
To help curb this problem, since April of this year, ICANN has made their $.20 domain transaction fee non-refundable. So if a company wants to sample 50,000 domain names, for instance, then they’ll have to shell out $10,000 in registration fees even if they get a refund for the domains within the five day grace period. This change hasn’t eliminated the problem altogether, but it’s certainly helped.
Obviously domain tasting wouldn’t have gotten as out of control as it did, had it not been for the huge profits that people were reaping in. At HostGator, we don’t have that many domain registrations, since we specialize in web hosting. However, it’s still evident that there are major profits to be earned with a decent domain portfolio. One such way to monetize domain names, that we’ve explored recently, is via domain parking.
When you first buy a domain, the domain will be using the default name servers of the registrar generally. The default page you see, usually with ads all over it, is a good example of a parked page. What most people don’t realize though, is that even if they aren’t going to develop the domain right away, they can still make money from the domain while it waits to be developed.
The company we’ve been using for domain parking is DomainSponsor. Basically we use their name servers on inactive domain names in our account, and all traffic gets pointed to a domain parking page where relevant ads are displayed, giving us a percentage of the revenue made from the ads.
So just how much money can you make with Domain Parking? We were pleasantly surprised with the results.
The above check was for the month of May. We’ve been using Domain Sponsor for the last 3 months, and are consistently getting over $25,000/monthly with the domains that we have. Now these results may be unique since we do have roughly 12,000 domain names in our DomainSponsor portfolio, but many domainers have much more domains than this and can stand to make much more money. …
Written by Justin G
Friday, March 28th, 2008
“Cybersquatting” has been something fairly common in the industry for a while. I’m sure even some of you that are reading this may buy and hold domains based on the fact that price and value goes up every year. Something however that has a lot of businesses and organizations on the defense is the fact that thousands of domains are registered every year with copyright names within or as a part of the domain registered.
The views on this issue are somewhat split. While some ‘squatters’ have registered domains to put defamatory content about a company, others have registered various domains and jacking up prices to ridiculous amounts in hopes of a company with that name wanting to buy it.
Let me give you one example of what I am talking about. Locally here in the Houston area where our corporate office is located, there is a car dealership that is very well known named Munday Chevrolet. You would think they own mundaychevrolet.com right? Wrong. They own munday-chevrolet.com, a second rate domain name for your company if you ask me.
If you go to mundaychevrolet.com you will find very brief text from the website owner saying why he would never buy a car from Munday Chevrolet. Previously the site was used for pornography. Thats got to be bad for business especially when you have to tell potential customers to add a dash in the middle of your name.
Lets take an even bigger name into consideration that caused a legal battle for years, nissan.com as opposed to nissanusa.com. The only problem here is that this is a bit complicated. What happens when your last name is truly Nissan? This guy is not trying to ‘cybersquat’ at all. He has a legitimate computer business he is running on this site. It’s unfortunate that Nissan motor company had a lawsuit filed against this guy. So where does the gray line run into black and white, making things clear as to what domain you should and shouldn’t be able to own without legal ramifications? (Read more about the Nissan case HERE.) …