Evaluate a Domain Name's Traffic Value Before Purchase with New Catch and Release Service
Every day, tens of thousands of Internet domain names expire and become availalbe for re-registration by members of the public.
But when it comes to potentially valuable domain names, individuals who try to catch those released domains don't stand much of a chance against companies that put a lot of computing power behind registering valuable web domains just seconds after they are released.
In addition, domain registrars have one big advantage in determining the value of domains, which is that they get a 5-day grace period after registration before they are required to pay for a domain.
Now for the first time, individuals can have a similar luxury with the introduction of a new service from Pool.com called "Catch and Release." Though the service still requires a domain name to be available for registration, it may prove to be a valuable tool for domain investors to determine the potential value of a domain before purchase.
In a practice known as "domain name kiting," unscrupulous registrars have abused a loophole in the ICANN rules (Add Grace Period or AGP) and register a domain, park it, and test to see if it will earn enough to justify paying the annual fee. If not, they simply let the domain name go. In fact, according to GoDaddy.com CEO Bob Parsons, in one sample month, of 35 million names registered, more than 90% were only used for 5 days and then dropped.
This gray area can allow a registrar to reserve a domain and then determine the value based on existing traffic before even paying for the domain. If the traffic is low, then they can simply let the registration lapse after the grace period.
"Catch and Release" is a new service that helps level the playing fields somewhat by allowing customers to add domains to a wish list or queue that will be monitored for availability from many sources, not just the domain name drop pool. Users can then make a short-term analysis (4.5 days) of a domain's traffic performance to determine if they want to register the domain name and pay the annual fee.
"That's why we call it Catch and Release'" said Richard Schreier, CEO of Pool.com. "The service is a response to market demand. Domain name investors want to streamline the domain acquisition process while increasing the value of their investments." To this point, he noted, only the registrars themselves had the opportunity to evaluate and retain those domains that graded high in traffic volume.
From that point, the domain can either be parked and monetized, or a website can be built on it to increase traffic and domain name value.
More information:
- Pool.com: Catch and Release service
- Bob Parsons on Domain Name Kiting
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