Author of typosquatting report says domainers add little value, and questions the right to register large numbers of domain names.
Cyber intelligence company Cyveillance has interviewed Benjamin Edelman, one of the authors of a recent report on typosquatting, and he has this to say about domainers: they cause harm and add little genuine value.
It should be pointed out that Edelman is co-counsel in a lawsuit against Google and several other industry players over typosquatting.
In the interview, Edelman states that he doesn’t see “much genuine value coming from the domaining business.”
Yes, some users guess domain names, and domainers can cause results to be shown to users who might otherwise receive error messages. But most web browsers already show results that are at least as useful as domainers’ placeholders – often better, with genuine organic results rather than merely advertisements.
This seems strange; as if he’s saying the ISPs and web browser manufacturers should be able to monetize non-existent domains, instead of domainers.
As for domainers that own generic domain names?
Meanwhile, domainers cause some important harms: For one, as detailed in my article, domainers deplete advertisers’ budgets. Domainers also make it more costly for entrepreneurs to obtain the domains required to run actual substantive businesses: A domain might truly be unclaimed, in the sense that no one has ever used it for anything interesting, but a domainer would nonetheless be able to withhold that domain from a would-be user until they agree on a price.
But isn’t that like real property?
Domainers will vigorously defend their right to advance-register large numbers of domains, as if this is some kind of moral entitlement. I’m not so sure. In many areas, landowners are (and, historically, have been) required to improve their property lest they be a blight or eyesore to others. The analogy here is less direct: Which domains are “near†an unimproved domainer domain? But certainly unimproved domains harm others, by impeding what could be direct navigations, and by driving up costs to others.
Cyveillance asked Edelman about certain web sites blocking Edelman’s research computers from gathering information. Edelman doesn’t directly respond to the question. As I pointed out in my earlier story on his report, this is likely the result of anti-bot systems rather than some sort of proactive blocking of his research.
John Berryhill says
“Domainers also make it more costly for entrepreneurs to obtain the domains required to run actual substantive businesses”
And again, the entire economic function of a secondary market – allocating resources to their highest-valued use – is forgotten.
Which is “better”:
(a) Lawyers.com was purchased by Martindale-Hubbell, the leading commercial legal directory, because they could afford it; or
(b) Lawyers.com was registered by a solo practitioner in some jurisdiction not relevant to why you have typed “lawyers.com”.
The use of generic domain names as advertising portals also prevents their monopolization by one party, and provides advertisers with access to use the domain. Anyone selling cameras can participate in the advertising pool which results in links at, say, cameras.com. If it were owned by Jim-Bob’s camera shop, then a consumer visiting cameras.com would only have access to the merchandise and prices determined by Jim-Bob.
bernard says
What a fresh air!
“This seems strange; as if he’s saying the ISPs and web browser manufacturers should be able to monetize non-existent domains, instead of domainers.”
This is the case, domainers (in the US at most) are zero for website development
“But isn’t that like real property?”
Yes, liking grabing lands from the Cherokee for free, and pushing them again and again to the west.
small domainer says
If you ask my wife, fast food outlets add no value to the community.
You could substitute fast food outlets (instead of domainers) into Edelman’s argument and there are people that would agree.
But, fast food outlets do add value.
1. purchase of raw land (domain name)
2. construction of a building (simple website)
3. min. wage jobs and income for owner.
4. convenience to the person in a hurry
5. pay property taxes and income taxes
(this can go on and on)
Negatives –
1. customers spend time there
2. supply unhealthy food
3. constructs an ugly building
4. takes customers away from local restaurants
5. uses land that could be used by an upscale restaurant.
(on and on)
You can’t change the mind of people that feel they have a right to tell others what they should do best with their property.
I see this all of the time in my major metropolitan area.
bernard says
“And again, the entire economic function of a secondary market – allocating resources to their highest-valued use – is forgotten.”
Bla bla bla, what a pedantic approach, to appear as an established person to be respected! The reality of domainers is grabing their tons of domains for nothing, to occupy the space and create a rarety, and trying to grab money with parking revenues, fake domain auction, past domain tasting or kiting activities… more a kind of modern mobster as gentlemen.
Sam says
Great post!
small domainer says
SEE !!!
David J Castello says
Mr Edelman:
Before you continue to lump all Domainers into one category there is one type you need become familiar with ASAP: Domainer Developer.
Domainer Developers are Domainers. They are quickly becoming one of the most popular types of Domainers and to say they have not positively contibuted to the US/World economy would be quite incorrect.
Adam says
Depleting advertisers budgets. . .umm what? They don’t have a choice to spend their money elsewhere ?
It’s a slippery slope to say domainers are doing harm . By Edelman’s logic there are a lot of people besides domainers “causing harm”. I run across great domains every day that are used by someone that I personally think is wasting the domain. The are people that are happy to pass on 5-6 figure offers and sit on the domain while the traffic goes nowhere or to a page that has no relevance to the direct navigation search.
Bernard, “The reality of domainers is grabing their tons of domains for nothing, to occupy the space and create a rarety, and trying to grab money. . . fake auctions”
For nothing? Most domainers paid premiums on the domains they own or had the foresight to by them early and have been paying renewal fees since. Domainers do not create the rarity either. Look at the failures in the newTLD aftermarket space for examples of this. The consumers/buyers/advertisers who want a given domain for their business create a demand. With only so many logical type-in domains, the rarity increases as the buyers take these names out of circulation. The people creating the demand and rarity are the buyers/users of the good domains. To avoid this problem of rarity you can buy any number of alternatives can you not ?
Lastly, was the Toys.com auction a fake auction? I can tell you all the “fake auctions” I’ve bought domains at cost me REAL money and all the names I sold made me REAL money.
John Berryhill says
“Bla bla bla, what a pedantic approach, to appear as an established person to be respected!”
I can see why “Bernard” chooses not to use his actual identity in connection with such well-reasoned argumentation.
M. Menius says
I’ve been around for some time now and such arguments (from Edelman) are so old. One of the disappointments of growing older is recognizing how ignorant and petty a majority of people really are, including this Edelman. To each of his empty points, I simply say “whatever”. At least there’s a bit of humor in the idiocy of his assumptions and comments giving renewed creedance to the expression “won’t dignify that with a response”. There will come a day when criticisms such as his won’t get a second glance.
bernard says
Sorry guys, developers among domainers are rare, and these domainers achieve modest results.
Real web developers achieving big goals do it whatever dumb the domain is.
And as there won’t be ever any solution to monetize seriously a domain without having a savvy development strategy, domainers won’t be able to sustain high prices without revenues.
Furthermore concerning end users:
* I also noticed it is quite easy to find a very decent domain (even keyword based) for an innovative business (as domainers generally don’t get the idea before).
* For traditional businesses or/and local business, it is also very easy to find a brandable name
* Naming, and branding consultants working to create a new name for their customer will consider as a prerequisite the domain to be available. It is about their added-value to find an innovative idea, not as innovative as a domainer
* At least, end users can participate to expiring domain auctions and grab good quality domains (possibly with top backlinks) for a reasonable price
* and I could add many other lines
Adam says
@bernard. Great! it’s easy to find domains.
So what is it that you are complaining about again ?
I’ve sold several domains to branding consultants. You are right though, many of these companies end up buying a mediocre domain and spending money branding a bad name and suffering traffic leaks, when they could have bought the right domain for about the same price they paid and spent less on driving traffic and had a more recognizable and memorable brand.
Ms Domainer says
*
I’m just glad that the likes of Edelman and bernard don’t get to decide free speech and free enterprise policies.
😉
*
Charlie says
These guys (Moore and Edleman) are Harvard researcher. The bastion of liberal views and anti-capitalism. They have zero creditability in my eyes and I would assume they’ve spent their whole careers in research. Long live the free market and free choice!
Domaining.PRO says
Isn’t it “Cybersquatters cause harm” instead of “Domainers cause harm” ?
IrishDomainer says
bernard,
Are you a domainer? You seem to cough*know*cough a bit about the process: “And as there won’t be ever any solution to monetize seriously a domain without having a savvy development strategy, domainers won’t be able to sustain high prices without revenues.”
PS: where can we pick up domains for free? Everyone would love to know!
iD
bernard says
I would be interested to see the complete figures of domainers. The tend to talk big for a domain sale or a small success with a dumb monetization tool, but prefer to keep the figures as a secret. I am rather sure they are laughable, compare to the costs, not to say compared to the supposed value of these assets.
Andrew Allemann says
@ Bernard – can you ask a clear question? I have no idea what your comment has to do with this tory.
bernard says
Sure, you are bashing Edelman saying domainer mob has near zo zero added value. My question is: can show your figures in domaining activities to prove he is false?
Adam says
what figures do you want BerNard ? I’d be happy to give you some.
Andrew Allemann says
@ Bernard – Edelman gave qualitative reasons. So it’s hard to respond with data. But if you have a specific data point you want, we might be able to get it.
bernard says
The figures I hope to get for a domaining activity only:
Expenses: Domain purchases, registration costs, domainer development services purchases
Revenues: Domain sales, Parking revenues, developed websites revenues
And if possible: number of domains for the portfolio, and supposed global value of the portfolio.
Andrew Allemann says
@ Bernard – so your asking if domainers make money, not if they “add value”
Louise says
My comment there is awaiting moderation:
Where is the accountability of ICANN and the Registrars? Ben Edelman lumps law-breaking typosquatters with owners of legitimate domains that may be queued for development. A typical registration agreement prohibits “activities designed to impersonate the identity of a third party.” This covers typosquatting! The legal agreement is in accord with with ICANN’s Registrar Accreditation Agreement for Registrars, which specifies for Registrants:
3.7.7.9 The Registered Name Holder shall represent that, to the best of the Registered Name Holder’s knowledge and belief, neither the registration of the Registered Name nor the manner in which it is directly or indirectly used infringes the legal rights of any third party.
Both ICANN and the Registrars prohibit, therefore, infringing on the legal rights of a 3rd party . . . Typosquatting, trademark infringement fall in that category. Where is the enforcement arm of ICANN or the Registrars? Nonexistent! Registrars even participate in the typosquatting/trademark infringement for pay-for-clicks! For example, uBid, Inc. v. GoDaddy Group, Inc., 1:09-cv-02123 (N.D. Ill. complaint filed April 6, 2009)
When will Registrars be called to account for operating outside the law and standard ethics?
To release domains from “domainers” into the hands of Registrars will compound security and trademark infringement issues, not alleviate them!
Stephen Douglas says
Dub-A,
You know what is really disturbing about your searing article on this guy’s lobbying against domainers?
You posted the damaging article’s link and nobody responded to it, including yourself.
I went and looked at the article, and expected to see a cascade of comments supporting the domain community and ripping Edelman a new orifice.
And guess what? None of the people commenting here, including the experts, answered on that web site. Nobody. There is NOT ONE COMMENT as of this writing, of anyone supporting or arguing the points against Edelman.
No worries, I posted a direct link here to at least show that we’re all “together” *cough* on defending our image.
Come on, people. Write your comments where they’ll be read by people who will learn something, not just preach to the choir.
Okay, I’m prepared for the attack responses.
bernard says
@andrew
For sure, an industry that makes money an industry that adds value. I would say it belongs to economics 101.
Still waiting for some examples…
Andrew Allemann says
I think the easiest source for publicly available data would be Sedo’s financial statements. Most of the revenue is from domain parking for their clients.
Andrew Allemann says
@ Stephen Douglas – last time one of the report’s authors stopped by here
Louise says
It’s sinister that domainers get the blame for all the wrong on the internet, when Registrars do exactly the same thing! Bob Parsons of Go Daddy admit in a 2007 CNN Money interview that parked pages earn Go Daddy $12,000/day (wonder what they earn now). All the Registrars earn from parked pages. Why are Domainers being singled out? Registrars ARE domainers! Registrars pick up dropped names, preventing them from being released – what’s the difference?
Domainers are the weaker target compared to Registrars, so it’s easy to go after you!
Lucy says
@ David C. (6) Domain Developers – I get it. You do it. You get it. But, how many others truely develop their ‘portfolio’. Aside from the domain bloggers and news agregators, who from the domainer world actual built a website, or sites, of original content that provides a quality experince to the web surfer.
@ Anyone else – please list domainers and their developed websites. Let’s showcase the cream of the crop. And it will be very few sites, amongst the millions of sites in teh collective portfolio’s.
Until there is a Domain Developer index that highlights the great builds of the community, you can not overcome the stigma of being a typo squator, or PPC page owner, or owner of a great-generic-type-in-keyword-domain, that’s worth a gazilion dollars to someone else.
For the old timers – remember the NCSA new website pages? Remember it’s early days, where a new website meant a new website, not a PPC, CPA, redirect site. Ahh the memories…
Stephen Douglas says
@Dub-A,
Did you leave a link for him to follow back? I think the point is to catch the readers of the blog by immediately becoming a rebuttal “witness” (so to speak), on the site that the perpetrator has spewed his idiotic comments.
Everybody here should go to the link and make at least a single clear point shooting Edelman’s circus balloon down.