Jump to content

Domain Tasting: Difference between revisions

From ICANNWiki
No edit summary
 
(14 intermediate revisions by 2 users not shown)
Line 1: Line 1:
'''Domain Tasting''' is the practice whereby registrants use the free five-day “grace period” at the beginning of [[ICANN]]'s registration process to test the marketability of that specific domain name.
'''Domain Tasting''' is the practice whereby registrants use the free five-day “grace period” at the beginning of [[ICANN]]'s registration process to test the marketability of that specific domain name.<ref>[http://whatis.techtarget.com/definition/0,,sid9_gci1306822,00.html Domain Tasting Definition]</ref>


==The purpose of domain tasting==
==The Process==
Domain tasters use this practice because they want to sell the domain names at a later date and make profit based on such transactions. Thus, domain tasters are looking for domain names with a high ROI (return on investment).
Domain tasters use this practice because they want to sell and make a profit on the domain names at a later date. Thus, domain tasters are looking for domain names with a high ROI (return on investment).  
 
By means of domain tasting the domainers carefully monitor the activity on each website and once the five days "grace period" is over are kept only the websites that generate the largest clickthrough profit respectively the largest clickthrough rate. The registrant conducts a cost-benefit analysis in order to assess the viability to earn profit from advertisements being placed on that specific website.  


The [[Domainer|domainers]] carefully monitor the activity on each website and once the five day "grace period" is over they keep only the websites that generate the largest clickthrough profit with respect to the clickthrough rate.
===Domain Tasting vs. Domain Kiting===
===Domain Tasting vs. Domain Kiting===
There are also cases when domainers repeatedly register, then cancel the domain and re-register the domain in order to avoid paying any fees while making profit from advertisements. This process is different from domain tasting, being known as [[Domain Kiting]].
There are also cases when domainers repeatedly register, then cancel the domain and re-register the domain in order to avoid paying any fees while making profit from advertisements. This process is different from domain tasting, and is known as [[Domain Kiting]].
In this way, domain tasting must not be confused with domain kiting, the process is different as well as the purpose. 


==Domain Tasting Conflicts==
==ICANN and Domain Tasting==
This practice of analyzing a domain's performance during the five days "grace period" may lead to various conflicts and problems for business and individuals. Since domain tasters use domain names to test their profitability, these domain names are unavailable for individuals and companies who are looking for legitimate business. <ref>[http://www.circleid.com/posts/domain_tasting_in_spotlight/ Domain Tasting in Spotlight]</ref>
[[ICANN]] does not agree with domain tasting and has taken action to curtail its practice. For example, ICANN assesses a fee on entities who register numerous domains and habitually return a certain percentage of domains each month; though the fee is as low as $.20 per domain tasted it generally affects those who work with large quantities of domains.<ref>[http://www.icann.org/en/announcements/announcement-12aug09-en.htm Domain Tasting Solution]</ref>


==ICANN and Domain Tasting==
This solution was developed in 2008 when domain tasting became a serious problem. Even if the cost per domain name is not significant for a legitimate registrant, this may affect the domain taster since they rely on volume to earn profit. This solution has had positive results as it makes domain tasting a potentially expensive enterprise.
ICANN, being the organization that regulated the [[DNS]] (Domain Name System) announced their proposal to cancel the grace period for registration. Even if the cost per domain name is not significant for a legitimate registrant, this may affect the domain taster due to a high number of names being monitored, because domain taster rely on volume to earn profit.  


According to the researches of ICANN at the beginning of 2007 the top ten domain tasters were responsible for 95% of all deleted domain names. <ref>[http://whatis.techtarget.com/definition/0,,sid9_gci1306822,00.html ICANN and Domain Tasting]</ref>
According to ICANN, the top ten domain tasters were responsible for 95% of all deleted domain names.<ref>[http://whatis.techtarget.com/definition/0,,sid9_gci1306822,00.html ICANN and Domain Tasting]</ref>


According to the research of [[ICANN]] from 2009 the peak on a monthly basis for domain tasting reached thee leevel of 15 million domain names. Once the $0.20 fee was set for registration, the value aof domain tasting dropped a lot by reach 2 million per month.  
In 2009 domain tasting reached 15 million domain names per month. Once the $0.20 fee was set for registration, the amount of domain tasting dropped by about 2 million per month.


==References==
==References==

Latest revision as of 06:38, 19 July 2012

Domain Tasting is the practice whereby registrants use the free five-day “grace period” at the beginning of ICANN's registration process to test the marketability of that specific domain name.[1]

The Process

Domain tasters use this practice because they want to sell and make a profit on the domain names at a later date. Thus, domain tasters are looking for domain names with a high ROI (return on investment).

The domainers carefully monitor the activity on each website and once the five day "grace period" is over they keep only the websites that generate the largest clickthrough profit with respect to the clickthrough rate.

Domain Tasting vs. Domain Kiting

There are also cases when domainers repeatedly register, then cancel the domain and re-register the domain in order to avoid paying any fees while making profit from advertisements. This process is different from domain tasting, and is known as Domain Kiting.

ICANN and Domain Tasting

ICANN does not agree with domain tasting and has taken action to curtail its practice. For example, ICANN assesses a fee on entities who register numerous domains and habitually return a certain percentage of domains each month; though the fee is as low as $.20 per domain tasted it generally affects those who work with large quantities of domains.[2]

This solution was developed in 2008 when domain tasting became a serious problem. Even if the cost per domain name is not significant for a legitimate registrant, this may affect the domain taster since they rely on volume to earn profit. This solution has had positive results as it makes domain tasting a potentially expensive enterprise.

According to ICANN, the top ten domain tasters were responsible for 95% of all deleted domain names.[3]

In 2009 domain tasting reached 15 million domain names per month. Once the $0.20 fee was set for registration, the amount of domain tasting dropped by about 2 million per month.

References