Domain 101 - Domain Warehousing Prevention

Domain warehousing is a practice that has been around for quite some time in the world of domain registration and hosting. It involves registrars or individuals buying up large quantities of domain names with the intent of holding onto them until they can be sold at a higher price. This can be frustrating for businesses and individuals looking to purchase a specific domain name, only to find that it's being held by a warehouser with no intention of actually using it. In this article, we'll explore what domain warehousing is, how it affects the domain market, and what can be done to prevent it.

Understanding Domain Warehousing

Domain warehousing occurs when a registrar or individual purchases a large number of domain names with the sole purpose of reselling them at a profit. This practice can lead to a scarcity of desirable domain names, driving up prices and making it difficult for legitimate businesses and individuals to acquire the domain names they want. Warehousers often use automated systems to snatch up newly expired domain names before anyone else has a chance to register them.

The Impact of Domain Warehousing

The impact of domain warehousing on the domain market can be significant. It can lead to inflated prices for domain names, as warehousers often set high asking prices for the domains they hold. This can make it difficult for small businesses or individuals with limited budgets to secure the domain names they need. Additionally, domain warehousing can lead to a lack of availability of desirable domain names, as warehousers hoard them with no intention of using them.

Preventing Domain Warehousing

There are several steps that can be taken to prevent domain warehousing. One approach is for registrars to implement policies that discourage the practice. For example, registrars could limit the number of domain names that can be registered by a single entity within a certain time frame. Another approach is for registries to implement a "cooling-off" period after a domain name expires, during which time the domain name cannot be registered by anyone other than the previous owner. This would give legitimate businesses and individuals a fair chance to register the domain names they want.

Examples of Domain Warehousing Prevention

Some registries have already implemented measures to prevent domain warehousing. For example, the .eu registry has a policy that prohibits the registration of more than 100 domain names by a single entity within a 24-hour period. Additionally, the .uk registry has implemented a "right of first refusal" policy, which gives the previous owner of a domain name the first opportunity to re-register it after it expires.

Conclusion

Domain warehousing is a practice that can have a negative impact on the domain market, leading to inflated prices and a lack of availability of desirable domain names. However, there are steps that can be taken to prevent it, such as implementing policies that limit the number of domain names that can be registered by a single entity and implementing cooling-off periods after domain names expire. By taking these steps, registrars and registries can help ensure that the domain market remains fair and accessible to all.

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