In case you didn’t know we’re in the middle of one of the biggest domain name sales bonanzas since the release of the .tv extension; today was the day which GoDaddy was going to distribute the coveted “.me” domain name extension, the extension which belongs to the country of Montenegro.
TechCrunch reported that GoDaddy is having a tough time keeping up with the demand for these domain names and is actually canceling a large volume of the orders.
The comments on the TechCrunch thread are pretty hilarious, most of them are from spammers looking to buy up trademarked domain names in hopes of getting a premium from corporate slowpokes in the future. Given how much I dislike the industry of domain parking I couldn’t resist sharing my schadenfreude in the TechCrunch comments:
I have to admit, I am really, really enjoying listening to the domain parking crowd squeal like stuck pigs over this one. Those guys make it a pain in the ass for startups to get decent branded domains without having to come up with goofy names. If GoDaddy decided to run a train on anyone, I’m glad it was those low-lifes.
And I think that comment accidentally made me the center of attention. Whoops. So I’m going to go ahead and clarify myself here:
Domain Name Parking is a Useless Industry
Capitalism is great; I love it. The idea is to exchange valuable goods and services in exchange for currency. What value does the domain name parking industry offer? Nothing.
Here’s the business model behind domain name parking:
- Be the fastest person to go to GoDaddy.com;
- Buy up potentially popular domain names, including registered trademarks and brand names;
- Mark up the price;
- Hold them indefinitely, adding zero value to them other than giant AdSense units and “male enhancement” advertisements; and
- Hope that someone has a branding need for a given domain name which is so urgent that they’re willing to pay you for the rights to the domain name.
Basically all the domain name parking industry does is make things more inconvenient and expensive for people who actually want to produce valuable web services. Domain parkers aren’t paid because they add value, they’re paid off to stop preventing other people from creating value!
Domain Parkers Are Counter-Productive
So why do I dislike them? Because they are the enemy of efficiency - they make it take more effort to buy domains and they make it more difficult for entrepreneurs to create web services with names that are easy to brand and remember. The biggest reason for having a good domain name is to make it easier for users to remember!
If anything makes me dislike domain parkers, it’s not because of my work as a marketer, it’s because of the basic economics concept of utility, and domain name parkers don’t have any utility! These guys are low lifes - they don’t do anything to add value to anything; all they do is take possession of intellectual property and become an annoyance for anyone who actually wants to use that property until someone decides that it’s finally worth it to pay them off.
Should Anything Be Done to Stop Domain Name Parking?
If domain names didn’t cost $10/year and nothing to maintain then we wouldn’t have this problem. A higher cost per domain would keep a lot of these parasites out, but it’d also make it much harder for people who want to add value to buy up good domains too.
What about making the domain name purchaser demonstrate that he or she is going to utilize it before agreeing to sell them a domain name, like how patents and copyrights work? That won’t work either because it’s a giant pain the ass - ask anyone who’s filed a patent.
Really, there’s no feasible way to keep domain name parkers from being pests and the best way to get around them is to come up with unique domain name ideas, like many of the Web 2.0 service names. In addition the costs domain name parkers present to fully-funded startups and profitable companies isn’t that high - the people who get screwed are private individuals and bootstrapped startups.
So is there anything that should be done to stop domain name parking? As much as I’d like to see an end to the practice, there isn’t anything that can or should be done. But hey, at least we can enjoy watching the fur fly over at TechCrunch.
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I have to disagree. There’s something that could be done: put the burden of proof onto the buyer’s shoulders.
If you are a domain parker, and obviously blocking a genuine business to use it, then what if that business could simply prove that you don’t operate any business related to the domain name?
It’d be simply to implement through a federal law. I’m interested in your domain and I know you don’t use it for real (just a generic homepage). Then with a lawyer, I prove that you don’t own any business or service related to the domain name, that you have no physical address or phone number on your website etc…
Could be not that complicated. Ok, will cost 300 bucks to pay a lawyer, but you’d win your case and own the domain for a reasonable price, and this will kill the domain-parking business for ever.
Chris, I disagree–I personally imagine that it would be hard to get a judge that understands the web enough to have your case decided favorably. Putting up a bunch of ads in a generic template site might be viewed as “enough” of a related business. This is pure speculation, but experience tells me the courts are pretty far behind in understanding nuances like this.
The only people who bitch about domain parking are those who are jealous of the people making millions off of them now. Its called capitalism, get over yourself.
(Clarification: pure speculation on my part. I don’t really know how it would be viewed, but I don’t think most people in the legal system truly get it. yet.)
I was directed to your blog via TechCrunch (always a good tactic to post a blog url there) and really like your voice. One possible way to facilitate this issue would be to have the domain registry company conduct a review every 4 months on the domain name. If it hasn’t been used, then the domain owner is liable to a cease and desist, losing the privilege of owning the domain name. Another issue to consider, however, is that you are a corporation trying to grab a url name for a marketing campaign, you have to wait nearly 6 months before you can start email blasting and directing people to the landing page. If you don’t wait 6 months, there’s a good chance you will get blacklisted.
I’ll read you blog again. Check out mine when you have a moment…
http://www.gothamtechminute.blogspot.com
The last thing I’d want is for government to get involved with commerce
, not only would they not understand the nuances involved but I wouldn’t want to get onto a slippery slope where people pining for a domain can argue that they’d “add more value than the current owner” and get the government to seize it.; Imagine eminent domain for domain name registrations…. /cringe
Yeah Carl, I’m really jealous. That must be it. I’m about as jealous of domain parkers as I am of pornographers and people who sell “male enhancement” solutions.
“the exchange of VALUABLE goods and services.”
Your logic is flawed the way I see it. Doesn’t something have value if there is demand for it? There is demand for those domain names, maybe not always immediately but in the near future, possibly. How is what the “low-lifes” do useless? Doesn’t seem any different than any other situation where you buy low and sell high.
If anything, it is just annoying. Annoying, not unvaluable and useless. There is a difference.
Jeff,
The domains are valuable, but people can already buy them from a registrar. Parking them and hoarding them doesn’t increase the end-value for the consumer, the person who actually ends up using the domain name for something useful and the people who end up using the useful service.
Therefore the practice is ultimately useless since it just adds an unnecessary middleman when people should be able to buy domains directly from the registrars.
Good work Ninja. You’ve brought all the domain guys over to your blog. :)-
Wanted to point out something. If the a domain owner (ie lowlife) is infringing on someone else’s IP, we have the UDRP (uniform domain resolution policy) to handle this.
On your last comment : “Parking them and hoarding them doesn’t increase the end-value for the consumer, the person who actually ends up using the domain name for something useful and the people who end up using the useful service.”
Many domains have an inherent value because they have traffic. Sending that traffic to a “useless page” is a use of the domain in a resourceful way. If the users didn’t find the information useful they wouldn’t click.
A couple other thoughts :
What’s your opinion on people who own land and “don’t use it” as you see fit ? Or maybe god forbid the lowlifes put billboards up.
Do you own any domains that you aren’t using ?
Good luck with all the comments that will soon be flying on your blog.
Aaron,
Since when have useless and making a profit ever been mutually exclusive? I think what you are trying to say here is that the people doing this are opportunistic bastards. I completely agree. But that’s life, right?
Looking forward to those comments; I’m sure they’ll be as intellectually dishonest as the most of the arguments are on the behalf of the domaining industry, including yours. Way to miss what I wrote in the comments about avoiding “eminent domain” for domain name registration, which covers your “other thoughts” questions in their entirety. As I’ve said, there’s nothing really that we should try to do to curb the practice of domaining, but you’re still a bunch of annoying parasites. You claim that you add value; I say “no, getting direct traffic because of people typing in URLs and spammy organic search results doesn’t present any real value for companies. Guess again.”
Actually if you were interested enough you can just use whois to see how many domain names I own. If I’m not mistaken I own 12; 6 of which are all variants of the domain name for this blog (and the old domain that I used before I rebranded the blog,) another 3 of which are variants for another blog that I’m trying to run but haven’t had time, and I think 3 of the other domains are either for upcoming projects that are in development or old domains that are due to expire soon. So to answer your question, I bought all of the domains with the intention of developing them into projects. I didn’t buy anything with the intention of indefinitely holding them until someone else expresses interest in purchasing them.
I knew about UDRP already; it’s not a preventative measure though, it’s reactive.
As for the real estate argument, that’s such a flawed comparison that I don’t even want to get into the details of it. Real estate has significant barrier to entry and maintenance costs, which prevents “domaining” behavior. People slap billboards on real estate ONLY WHEN it’s the most valuable way to monetize that land. That’s the argument that I’m making against domaining, is that domaining isn’t the most valuable way to utilize those good domain names.
So here’s my question to you, how do you get traffic to parked domains? What work goes into it? Do you put real content on there? I have yet to see a parked domain with real content - I see plenty skraper sites, AdSense cookie cutters, and those awful search culvasacks; so please, enlighten me.
“Since when have useless and making a profit ever been mutually exclusive?”
Never
What I’m saying is that what domainers do isn’t useful; the domains themselves are useful.
“Actually if you were interested enough you can just use whois to see how many domain names I own.”
Clearly you have no idea how whois works.
“I didn’t buy anything with the intention of indefinitely holding them until someone else expresses interest in purchasing them.”
I think you’ll find a lot of domainers started out with the idea that they’d develop sites and that the development was far more complicated in some cases. . . they found profit in “being low lifes” who earn money off of traffic. Addditionally the biggest domainers are not “holding out for a sale” . They’re fine making their millions and never selling the domains they own.
“domaining isn’t the most valuable way to utilize those good domain names.”
So what is ? Blogs with people sanctimoniously pontificating about who is a low-life and who isn’t ? A search engine that scrapes content from other websites ? Who decides what is useful ? You ? You’ve already said this was impossible to police.
“So here’s my question to you, how do you get traffic to parked domains? ” Type-ins
“What work goes into it? ” Into getting traffic ? None
“Do you put real content on there?”
Guess that depends on YOUR definition. In some cases I have advertising, links, banners, lead generation forms. It depends on the domains. In the case of parking you’ll find that most put the ads that google or yahoo feeds. Guess by your logic that makes google or yahoo full of useless content as well
“I have yet to see a parked domain with real content - I see plenty skraper sites, AdSense cookie cutters, and those awful search culvasacks; so please, enlighten me.”
Enlighten you on what ? You don’t find it useful, so be it, but advertisers pay for the traffic, leads, impressions, etc and users are clicking the links, filling out the forms and buying ? Even more advertisers are buying the domains because they know they are valuable .
btw I was just thinking . . .wouldnt a true marketing ninja own MarketingNinja.com ? Guess some low-life must own it, eh?
“Clearly you have no idea how whois works.”
DomainTools is what I use for WHOIS queries and registrant search.
“Guess by your logic that makes google or yahoo full of useless content as well”
Come on, that’s just being silly. And no, I think most of AdSense is garbage, content-wise. My next article (it’s almost done) is about how awful unintelligent AdSense campaigns are.
After reading your comment I actually have a better idea of where you’re coming from: you send those type-ins who are looking for something to a destination. I just think it’s a shame that the parked domain isn’t a destination in itself, but I think you’ve made a good argument for value addition by domain parkers. I was just looking at it from a marketer’s point of view and not an end-user’s point of view; I’d never considering buying advertising space on a parked domain just because targeting by domain name seems pretty imprecise.
“You don’t find it useful, so be it, but advertisers pay for the traffic, leads, impressions, etc and users are clicking the links, filling out the forms and buying ?”
I’d say “stupid advertisers,” but you’ve actually convinced me that I was wrong about your industry not adding ANY value. So I’l level with you: it adds some to end users, but not much. I think an AdSense page is marginally more useful than a 404 page. But I think it still presents a big pain in the ass for a lot of developers who’d make something more useful than just an AdSense block.
Yes, my sanctimonious blog is more useful than the AdSense chunks that line it’s pages. I hope it’s more entertaining too.
As to answer your last question, the only one that I have the energy to answer before I go to bed: yes. There’s some asshole parking it with GoDaddy right now. I would have made a bid for the domain name if I thought it was worth the hassle.
If it wasn’t providing a legit service , There would be no advertisers / advertisements on Parked pages - Simple as that. I’m a fan of more Development myself , But people searching for a particular item online do find relevant ads when they land on parked domains (In most cases anyways). Maybe you should remove those Adsense ads from this site … I don’t see you providing a Legit service here.
I LOVE how you are calling ADVERTISERS Stupid …
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From this very page ….
All these arguments were hashed out in the 1990’s.
-You cannot determine “use” of a domain because a public web site is just one possible function of a domain.
-Initially the price was artifivcially inflated $100 for 2 years with $30 going towards Internet infrsytucture. The $30 was struck down as an illegal tax. The $70 fee stayed in place for many years and all the profits went to a private company and made a small number of people rich.
-There is nobody available to review the use of millions of domains. If there were, the cost of domains would increase dramatically.
-A lawyer to handle a domain dispute starts at $1500 and goes up depending complexity. $300 is not realistic.
-Who owns intellectual property as it relates to a domain name is incredibly complicated. General statements cannot be made. UDRP filings are often more than 50 pages with all the attachments.
-There is no defiition of “parking” a domain
-Domain owners hold domains for different reasons and may or may not have plans to develop in the future. Microsoft has many thousands of domains they may develop.
-For a domain that displays PPC ads only there are advertisers who are paying for these ads and people are being directed to sites they may not otherwise visit. Most advertising is based on this concept.
“I’d never considering buying advertising space on a parked domain just because targeting by domain name seems pretty imprecise.”
You might be surprised about that. . . but it would depend on the domain and advertiser/product. Check out sendori.com . . . they try and make your targeting even more precise.
“So ‘ll level with you: it adds some to end users, but not much.”
around 5 years ago, users would looking for a particular product or service would land on a blank page or a “under construction” page and get nowhere.
“There’s some asshole parking it with GoDaddy right now.” ouch . . .. lowlifes and aholes oh my. you sure about that? Godaddy puts up those parking pages as default often times and often the domain owner doesn’t even know.
“you’ve actually convinced me that I was wrong about your industry not adding ANY value.”
That’s good enough for me I suppose. wagging a finger and name calling sucks especially when you’re not a ninja in the area you are commenting about.
This is a great little argument the domainers are going with; “WELL LOL UR SITE ISN’T USEFUL.” Tell that to all of the people who make it here to learn about how to build Facebook applications.
Last I checked Google doesn’t get sued over click fraud for AdSense units on blogs; however, it does get sued for clickfraud and crappy performance on parked domains. Do me a favor, go ahead and find me some testimonials from advertisers which say “advertising on AdSense cookie cutter sites on parked domains saved our business!” Humor me.
On top of that, you can get advertisements from AdSense even if you don’t have any PageRank score. Google actually encourages this crap: http://www.google.com/domainpark/
And franky, I’m tired of listening to the domainers crying. I said you guys do add some value to end-users, i.e. people who are too stupid to use google and type-in domain names instead, but the fact is that you’re a pest to web developers and a fraud bucket for advertisers.
On that wonderful note, comments are closed, and please don’t let the door hit you on the way out.