domains not in use

Mike · Joined: 29 Dec 2005 Posts: 120 Location: Ontario, Canada

I'm just curious to see if anyone knows to why so many domains are purchased, but not in use. If I do a search on godaddy for a domain and it says it's already taken. I type the url in the address bar, and there's not even a site. Is it domain companies buying these domains, and selling them for more?

Will · Joined: 26 Feb 2006 Posts: 148 Location: UK

Could be for a number of reasons e.g.

Securing a domain for future use
Preventing others from infringing a trademark
Use for email only - no need for a website
Speculating that they may be able to resell the domain for a profit
Cyber squatting

Mike · Joined: 29 Dec 2005 Posts: 120 Location: Ontario, Canada

Will · Joined: 26 Feb 2006 Posts: 148 Location: UK

You're welcome, Mike Smile

Tropical Tundra · Joined: 07 Aug 2006 Posts: 29

Bob Parsons of GoDaddy has strong opinion on what is going on and why most domains are taken but not even used. He calls it "domain kiting":

http://www.bobparsons.com/MayKiting.html

Lowell Rieger · Posted: Mon Aug 14, 2006 3:51 pm Post subject:

I have a few unused domains that I have for sale parked at Afternic, a domain resale site. The parked "for sale" pages earn PPC revenue from type in and other traffic. It is very easy money. For example, last month one domain earned me more than the renewal price for the domain for a year. And I just get a percentage of the click, not the whole deal. Kind of like Adsense.

Domain name speculation has become a big business. A lot of people ( and corporations) speculate in domain names. A lot of people get burned buying them. The resale market isn't as great as people say. Using free online tools, it isn't too hard to come up with another domain name like the one for sale, and since you can register a name cheap, it tends to limit resales.

That said, every once in a while I sell one of mine to some one who just HAS to have the name. People who invest thousands or millions in startups don't flinch at a $1,000 domain if it is better than anything else they can think of.

Whatever Bob Parsons may say, he actively promotes domain speculation at GoDaddy.

Tropical Tundra · Joined: 07 Aug 2006 Posts: 29

Bob Parson is okay with domain speculation it's registrars who hold on to expiring domains so they can use them without actually paying for it.

Lowell Rieger · Posted: Mon Aug 14, 2006 5:42 pm Post subject:

Pete,

Of course you're right, I didn't mean to trivialize the problem of domain kiting. Kind of like politics where the few, with the connections, beneft at the expense of the many.

I'd read about it, but forgotten about the extent of the numbers. Read it again from your link. Yikes! Even if it was 10% of what Parsons alleges, it is something that needs to be dealt with pronto.

Regards,