I’ve been looking to buy a domain name for some time now. I could be boring and just register joeyjwc.com, but I don’t really want to do that. When giving out my email address to others verbally, most people get confused and try to send an email to joeywc. They fail to remember that I repeat my first initial. When I register at new forums now, I try to take the username JWC. It’s far easier to remember. Of course, I didn’t expect that a three letter domain name would be free. In fact, jwc.com has been taken by a legitimate business, so I don’t have any problem with that. What I do have a problem with, however, is the fact that nearly every other three letter domain name has been taken by these businesses that seek to buy large numbers of domain names in bulk and then sell them off at very high prices. If you work out the numbers, the return is extremely high given the risk. Sorry, but I’m not paying $6000 for a domain name. In fact, 3la.org tells us that every single 3 letter .com domain name has been taken. I would imagine that most of them are owned by such companies.
So then, just for the heck of it, I decided to look up random words from the dictionary in a WHOIS database. Guess what? Even the most obscure words have been registered to various businesses seeking to auction off their domain names. Maybe I’m just extremely unoriginal, or maybe these companies are getting away with murder. While nobody cares about a personal website, think about business websites. I wonder how many small businesses decide to scratch the whole website thing because their domain name has been taken and its owner wants $10,000 for it. I just don’t see how this is economically helpful.
I’m not arguing that resale is always bad. The web hosting business has long been comprised of resellers. However, this system works very well. Big server companies sell their servers and collocation services to large webhosting companies, which offer their clients dedicated servers, virtual servers, and other large packages. In turn, these clients often include smaller webhosting companies that can charge their own clients a small amount of money for an appropriate shared hosting package (geared usually towards personal websites and small businesses). Each party ends up making money: shared hosting clients may use the website to make money via AdSense or other such programs (or because those clients are small businesses), the shared hosting webhosts make money from their clients, the large hosting companies make money because they rely on having a few customers that pay high prices for large hosting packages, and the server farms make money from housing the servers. The domain name industry doesn’t do that. It just costs some businesses enormous amounts of money while it causes the domain name owners to become incredibly rich. ICANN’T believe that ICANN continues to let this occur. Bob Parsons, of GoDaddy.com, had brought up a similar topic about tasting and kiting in a recent blog post of his.
The bottom line is: if I see another “What you need, when you need it” slogan again, I’m going to scream.


