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99.7% drop in Domain Tasting

This entry was posted on Friday, August 14th, 2009 at 11:11 am and is filed under Domain law and domaining. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

ICANN has just announced that since changes implemented in June 2008, Domain Tasting has dropped a massive 99.7%, which effectively spells the end of the practice.

Domain Tasting, is the practice of registering domains to identify their potential to attract visitors and typically revenue from online ads, and cancelling the registration within 5 days to avoid paying the fees if the domains did not attract visitors / revenue within this period – this was in effect a ‘try before you buy’.

ICANN says (in reference to their solution to this problem):

The solution in brief means that if a company registers and then returns more than a certain number or percentage of domains each month, they are charged for each additional registration above that amount. The result is that domain tasting becomes increasingly expensive the more a company engages in the practice for what may be speculative reasons.

The announcement by ICANN comes after the release of its report: The End of Domain Tasting – Status Report on AGP Measures.

The issue of domain tasting is not one that we have experienced in Australia.