'Fraudster' Domain Registras
Every wondered why that domain you want is unavailable? Well you need to look past the adsense junkies & webpimps (TigerStep article 3rd May) to find the real root of the problem.
In April 2006, just over 35 MILLION domain names were registered. Of these domains only 2.3 MILLION were actively used by individuals building websites.
So what were the other 32.7 MILLION being used for? Answer is a new style of domain scam. The process is this, a domain registry makes a large deposit at a source supplier like VeriSign, at current domain costs they could register around 100,000 .com domains. The registra then has 5 days to cancel a domain & get their money back. However in this time they can still actually have a website live. They can manipulate this by dropping the names after 5 days but simply going back in and re register them, over and over again! Not paying a penny for the actual domain name. Of course this process can be automated which again reduces man power.
The above registra will attempt to buy misspellings, common combination phrases, niches etc which will get type in traffic. This scam can also benefit from SEO indexing, as the change over time is quick a search bot may find the site while active and therefore index accordingly
The sites the bent registra creates are ladened with Google adsense which means the registra makes almost 100% profit; after all the sites take up little bandwith so hosting costs are minimal.
Both ICANN and VeriSign have known about this practice for quite sometime — but have looked the other way. This is Domain Shame! on a whole new level!
Source: GoDaddy's Co-Founder Bob Parson
In April 2006, just over 35 MILLION domain names were registered. Of these domains only 2.3 MILLION were actively used by individuals building websites.
So what were the other 32.7 MILLION being used for? Answer is a new style of domain scam. The process is this, a domain registry makes a large deposit at a source supplier like VeriSign, at current domain costs they could register around 100,000 .com domains. The registra then has 5 days to cancel a domain & get their money back. However in this time they can still actually have a website live. They can manipulate this by dropping the names after 5 days but simply going back in and re register them, over and over again! Not paying a penny for the actual domain name. Of course this process can be automated which again reduces man power.
The above registra will attempt to buy misspellings, common combination phrases, niches etc which will get type in traffic. This scam can also benefit from SEO indexing, as the change over time is quick a search bot may find the site while active and therefore index accordingly
The sites the bent registra creates are ladened with Google adsense which means the registra makes almost 100% profit; after all the sites take up little bandwith so hosting costs are minimal.
Both ICANN and VeriSign have known about this practice for quite sometime — but have looked the other way. This is Domain Shame! on a whole new level!
Source: GoDaddy's Co-Founder Bob Parson
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