93% Of Domain Reigistrations For Scam Sites?

from the domains-for-nothing-and-your-clicks-for-free dept

zanek writes "ICANN's five day money-back period for domain name buyers has created a new, highly profitable industry. Some are accusing investors of colluding with registrars to continually buy blocks of domain names, publish pay-per-click advertising pages, return the blocks for a refund, then buy them again. Others simply throw back nonproductive domains before the time's up. Either way, ICANN loses its fees, and those looking for great domain names can't find any." There have been a few stories about this, but it hasn't been clear just how widespread this is. In the article, the claim is made that an astounding 93% of domain names registered last month were for such scams -- though, it would be nice to see something to back that up. Either way, consider this the next evolution of the typosquatting obsession.
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  1. identicon
    duhblow7, 18 May 2006 @ 3:57pm

    There is a very simple solution.
    When I wrote about the .EU Landrush abuse I not only exposed what was going on – I also provided what I thought was a workable solution. In this case, there is also a very simple solution that would clean this entire thing up quickly.

    ICANN can fix the entire problem with its 25 cent fee.
    Presently, ICANN gets a 25 cent fee on each and every .COM name (and others) kept past the grace period. The ICANN fee is tabulated by each registrar and paid quarterly. A small change here would fix this problem entirely.

    Simply make the fee non-refundable.
    I propose we make the ICANN fee non-refundable upon the registration of every domain name, and have it debited out of the funds on deposit at the Registry. The net effect of this would be every time a domain name is registered, the registrar would have to pay ICANN 25 cents. This would bring the add/drop scheme to a screeching halt.

    -Bob Parsons

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