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For Sale Article From Snap Names

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URLCollection

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Some of you may have seen this but maybe a few have not - This is a proposal from the President of Snap Names regarding his feelings on the drops - Good or bad I think it is worth reading - Steve
http://www.circleid.com/article/777_0_1_0_C/


Advocating Ratio Model for Deleting Domains

To date, end-users (of all levels of technical ability) who are trying to find a good domain name to establish an online identity have been endlessly frustrated by the lack of a method to fairly re-allocate "used" domain names. A full resolution to that problem is a separate (and much bigger) discussion.

For now, there's a critical issue with how all of us -- registrars, and companies like SnapNames and its competitors -- utilize registrar-registry connections to query and catch domains deleting into availability. Some parties have exploited loopholes in ICANN requirements to form hundreds of shell accreditations -- that is, registrars utilized solely for their batch pool access. These shadow registrars have been harnessed into large thread farms, fundamentally undermining any principal of equivalent access (ironically, the basis of a recent Pool.com v. VeriSign lawsuit) by legitimate registrars.

Obviously, this is not healthy for the industry.

In response, VeriSign has proposed changes to how it allocates access to deleting domains. The current method was, after all, implemented as a temporary solution. Their proposal for a "ratio method" of allocating access is the only thing that makes sense given the industry's current state of development and the market forces currently at play. It's a fundamentally fair move that rewards customer-centered behavior, and helps insulate against ever-escalating add-storms and ever shrinking per-registrar capability at the registry.

As many have noted, no solution seems perfect, but a change must be made, and be made as soon as possible.

The fairest approach in the short term is to scale access to deleting domains in proportion to primary market activity. To be more specific, we support calculation of the ratio based on the number of successful transactions performed across all connection pools, and that the ratio be used to limit a registrar's failed transactions.

Registrars who generate primary market transaction volume are skilled at selling to and supporting registrants. They are the companies that registrants choose to do business with -- as opposed to those who are gaining customers purely by chance through the drop catching game.

We support the ratio method despite the fact that our own capabilities to capture deleting domains are likely to be more harmed than helped. We support it because we believe this creates the most fair and level playing field for all, limits gaming opportunities, and curbs the most egregious abuses.

We urge our industry colleagues to address this critical issue in this manner now so we can more appropriately focus on the longer-term question, about how to best serve customers in the secondary market.

Ray King
Occupation:
President & CEO
Website:
www.snapnames.com
 

Dave Zan

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VP for marketing? Might've been more believable if the head of SnapNames
made that article. :goofy:
 

larry4

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The primary beneficiary of that model would be Network Solutions, SnapNames partner.
 

chatcher

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larry4 said:
The primary beneficiary of that model would be Network Solutions, SnapNames partner.

If large registrars are going to receive better access to the dropped name pool, why not just let the previous registrar of dropped names have the first shot at re-registering them? That would remove the uncertainty of where a potential buyer must go to get any particular name. With many registrars now taking over expired names instead of deleting them, a change in registry policy could make (almost) everyone happier. One of the things I like least about the current system is having to go so many different places each day, knowing that most of my effort is going to be wasted, but not knowing in advance which part.

I know many will say that this would give an unfair advantage to Network Solutions, in that it allows them to profit from their legacy position as former monopoly registrar, but so would the ratio method. Granting every registrar early access to the names they have under management as their share of potential drops is just as fair, and would allow them to delete the names and let them go through the redemption period without losing anything. This would be good for current registrants, and would give new registrants more of a "clear title" (new creation dates).

I would propose, at the end of the current 30-day redemption period (during which only the original registrant can redeem the name at the original registrar), a short period of time during which only the original registrar can re-register the name for a new registrant. If it does not, then the name would be deleted as usual and could be chased by all drop-catchers.

It isn't an ideal solution, but then I haven't yet heard one of those.
 

ExpireGuy

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Some parties have exploited loopholes in ICANN requirements to form hundreds of shell accreditations

The pot calling the kettle black....what about the loopholes netsol (snapnames exclusive Partner) went ahead with by rewriting TOS agreements and giving the heave ho to the RGP?.....Birds of a feather flock....well you know.

In response, VeriSign has proposed changes to how it allocates access to deleting domains. The current method was, after all, implemented as a temporary solution.

Sure......three days after the Snap/Netsol deal unfolds, ICANN announces the EDDP set for Dec 21 to stop this nonsense.
IMO if it were up to them....this would be a permanent solution....anti-competitive conglomerates tend to think that way.
 
M

mole

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ExpireGuy said:
Sure......three days after the Snap/Netsol deal unfolds, ICANN announces the EDDP set for Dec 21 to stop this nonsense.

The only nonsense is ICANN, Verisign was supposed to get the WLS anyway that would stop this nonsense, only that something fishy and underhanded happened. Was ICANN bribed by the drop catching companies? It sure looks that way.
 

seeker

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ExpireGuy

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mole said:
The only nonsense is ICANN.

No arguement there...if they would have initiated the tabled EDDP a year earlier, this would't have seen the light of day.

Verisign was supposed to get the WLS anyway that would stop this nonsense, only that something fishy and underhanded happened.

Let's face it. Verisign still has some reported stock in Netsol, so it would suggest they're generating revenue from this alliance....I'm sure their small percentage take on names the likes of beijing.net at $18,000 is higher in scale than the chump change on a WLS slot at $40...more likely less than half that if you factor in the implementation variables.
 

URLCollection

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EXPIRE GUY WROTE - Let's face it. Verisign still has some reported stock in Netsol, so it would suggest they're generating revenue from this alliance....I'm sure their small percentage take on names the likes of beijing.net at $18,000 is higher in scale than the chump change on a WLS slot at $40...more likely less than half that if you factor in the implementation variables.
You bet - everyone wants a piece of the drop business. The revenues are huge and the margains are unbelievable. Lets see what the D.O.C. says about all of this, as I am sure they follow the money as well. Steve
 

David G

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chatcher said:
.....at the end of the current 30-day redemption period (during which only the original registrant can redeem the name at the original registrar

Is that even mandatory anymore? Is it now possible the registrar no longer needs to permit a 30 day redemption period?
 

chatcher

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trader said:
Is that even mandatory anymore? Is it now possible the registrar no longer needs to permit a 30 day redemption period?

Several registrars are now selling some expired names without deleting them from the registry, and in those cases there is no redemption period. But if they do not sell them (for NSI if there is no back order at Snapnames), when they delete them they do still go through the 30 day redemption period, as do all expired names at registrars like eNom who don't yet circumvent the registry deletion process.

My point is that if there was a way to allow the names to sit in redemption period for a respectable amount of time before being seized by the registrars, prior registrants whould have less to complain about. Most of the outrage over the current NSI/Snapnames arrangement has to do with the fact that a registrant now has much less time to save an expired name. The fact that NSI retroactively imposed a new registration agreement on all their registrants to make it possible does not make it any more palatable.
 

jazzpetals

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I would think this entire business of registrars catching names is a conflict of interest. They should just go back to the old days of deleting and let every name be fair game.


URLCollection said:
You bet - everyone wants a piece of the drop business. The revenues are huge and the margains are unbelievable. Lets see what the D.O.C. says about all of this, as I am sure they follow the money as well. Steve
 

Donny Simonton

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Since I work for and manage two domain registrars, I know a little bit more about this than anybody. Basically the ratio model is fairly simple. If you register 1 domain on the front end or the batch pool the ratio model will give you between 250-400 attempts to register a domain on the backend. That's it. If you go over that number, your access will be shut down for a day, I think the proposal was for. And the rules when on from there.

Basically what this does, for companies that have real customers who register domains on a daily basis, the ratio model will work perfectly fine. But for those registrars, that only exist for the batch pool connections, they will be having a fire sale!

Now I'm sure you will have some of the batch pool registrars that start registering bogus domains just to get more connections, but that wouldn't bother Verisign since they would still be making money. But at the same time, currently for every registered domain in the batch pool on average their are 15,000 failures per registrar. So for registrar A to grab that one domain they would have to sell 60 domains a day at the 250 ratio. Or about $350 bucks, so then the batch pool registrars would only go after domains that would make them at least $350 a day. Or they would have to drop down their price tremendously on the less sought after domains.

This would be good for registrars that have a large number of customers that buy domains from them on a normal business. This would also help the customers, if the batch pool registrars lowered their prices on the "crappier" domains.

Just my 2 cents.

Donny
 

sitehq

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Registrars cannot assume that they can rig this game in favor of those doing successful registers for customers because there's no action in a free economy without a reaction:

Catching registrars will first offer $5 registers, than slowly go to free because they can make up the difference on the backend improving their chances catching catching drops. - pretty soon we'll have a market in registration traffic.

everything evolves- i see the drop catching emphasis by registrars being a short lived phenomenon.

heres my reasoning - theres about 12,000 names in the network solutions drop list fof the next five days, out of those i would say 10-15 would get a bid at snapnames $60, maybe 40-50 atenom or namewinner. So the biggest player in the market is getting money for 60-75 per month, say 10% of those go for $500, 40% at 100 and the rest at $60.

thats 7 names at $500 = 3500
40 names at 100 = 4000
40 names at $60 2400

thats $10,000 per month, even if i had a super name each month that garners an additional $10,000, thats $20,000 per month not enought to pay the staff and icann fees.

say tucows is 1/3 the size of network solutions, they will make only $6-$8 per month off their own names


for smaller registrars the numbers are lower.

after the glow will these guys really keep going selling their own expired names...

thanks for reading my rant.

page howe
 

StockDoctor

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I'd like to see the Ratio model happen. Overall good for domainers imho.

Thanks for bringing that article to our attention Steve (Url Collection). Very interesting.

Doc
 
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