Domain Name Business Trends

The age of the Internet introduced many technological advancements when it comes to the distribution of information and how people do business - managing employees, selling, buying, advertising, and other aspects when engaging in a business. As a result, Internet-based media is now popular especially among the younger groups. One example of how the Internet is slowly shaping today’s information distribution and business industry is the concept of domaining.
 
Domaining 101
 
Basically, domaining is the act of monetizing, selling, buying, and developing Internet domain names. The domain names that are usually involved in this kind of business include those that are marketable (i.e. generic domain names) or those whose registrations have fallen in disuse but can still generate a reasonable amount of traffic. As part of the web address, the domain name precedes extensions such as .com, .org, .gov, and other kinds typically used. People who professionally monetize, buy, sell, and develop Internet domain names are referred to as “domainers.”
 
Controversies In The Domaining Industry
 
Domaining may promise financial benefits because of the Internet’s growing popularity compared to traditional media but this rise to fame has been smeared by several controversies. One such issue is domain tasting. Abused by some practitioners, domain tasting is the act of using the “5-day grace period” given by the ICANN (Internet Corporation For for Assigned Names and Numbers) to test out a domain name’s marketability. This is usually done by the registrant or by the individual who plans to buy a certain domain name.
 
Unfortunately, this practice has been deemed “controversial” by some because thousands of domain names are temporary registered to qualify for the “5-day grace period” but only a few are actually given full operating licenses. Another controversial issue in connection to domain tasting is domain kiting although the latter is quite different. In domain kiting, practitioners abuse the “5-day grace period” and delete a specific domain name and re-register it for another 5-day grace period. Practitioners of this illegal act end up registering a certain domain name without really paying for the service.
 
Another issue with regards to the domain name industry is domain name frontrunning or DNFR. In DNFR, a practitioner illegally acquires a user’s searched domain names and puts those domain names for re-sale. A company that has been accused of DNFR is Network Solutions.
 
The Latest Trends In Domaining
 
Currently, there is a “landrush” period starting from the 20th of February to the 12th of March, 2008 regarding domain names with .asia as their extensions. As a result, many domainers - people who professionally acquire, develop, and sell domain names - are now joining the “landrush” with the hopes of hitting it big time. The “.asia landrush” may attract plenty of domainers and investors but they should read and understand well the requirements and procedures first to avoid confusion. An issue that recently arose was the confusion on whether domain names with .asia as extensions are on a first-come-first-served basis or are offered through an auction.

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