For quite some time now, registrars were required to allow a 5 day grace period, in which domain names registered could be cancelled and refunded within 5 days. This process allowed large blocks of domains with popular search keywords in them to be registered, monetized (usually by Google Adsense), and if it was discovered within the 5 days that it was not a profitable domain name, cancel it, get a refund, but keep any moneys generated within the 5 days. With a large enough batch of test domains, constantly cycling through 5 day periods, a company doing this “domain tasting” could amass large amounts of money. Of course, this also meant that large amounts of domain names were taken out of circulation, and some of those had trademark issues.

So besides the registrants, who else profited greatly? Google, for one, as they generated revenues when those Adsense-enabled sites got clicks. But the surprise profiteer in this turned out to be Network Solutions, and that’s how this mighty stack of cards came tumbling down.

Three weeks ago, on January 8th, 2008, a forum thread was started by Stratagenix at DomainState.com. It read:

BEWARE: Don’t Search For Names At NetworkSolutions.com

Network Solutions has instituted a 4 day lock on all domain names searched on their site. They are effectively using phishing techniques to hijack or steal domain names and forcing domain name registrants to register their names at Network Solutions. The standard domain name registration fee at Network Solutions is $34.99 – significantly higher than the leading alternatives. I was forced to register a domain name with them today or chance losing it to another registrant. This is unethical in my opinion and should be illegal. I will be filing a complaint at ICANN.

As far as I can tell (and I could be wrong), Bill Hartzer was the first to pick up on this thread and blog about it. From there, the outrage began, and the blogosphere exploded with the news.

A mere three weeks later, and both Google and Icann have made changes that should end this practice of domain tasting forever.

First, Google took action, when they were said to be “considering banning newly registered domain names from participating in the Google for Domain Names program, severely hampering the practice of domain tasting.”

And now, ICANN has decided to not allow a grace period on transaction fee refunds, and that is likely the last nail in the domain tasting coffin. This should also end NetSol’s incentive for hijacking domains during those 5 days.

These issues aren’t new. They began long ago, and they’ve been noticed before. In August of 2006, speculators wondered if NetSol was hijacking domains, and Network Solutions denied the allegations at the time.

I spoke to someone at Network Solutions about this, and she assured me that there is no way anyone can monitor domain names researched on their site.

The blogosphere is a different place now than it was back then. It is stronger and more pervasive, and this time it had the power to break the backs of some mighty powerful people.

Remember that the next time you wonder if you should blog, because you think no one will be listening. It is amazing just how powerful one small voice can be.

© Donna for DazzlinDonna, 2008. | Permalink | 9 comments | Add to del.icio.us
Post tags: Bill Hartzer, blogging, blogosphere, blogs, domain tasting, Google, ICANN, Network Solutions, online communities, power, powerful, search keywords
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