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The service was created especially for marketers to obtain a high-quality domain name from Tucows inventory. [41] Customers have the option of purchasing a premium domain name outright or leasing the name. [41] In 2009 one of Tucows' subsidiaries, Buydomains Holdings, sold another premium domain name for a record $50,000 for Myhomepage.com. [42]
A number of factors have contributed to the rise in popularity of the domain name auction. The personalization of the web resulted in domain names being purchased by more private individuals and businesses than originally anticipated; and as a result there was also a rise in speculation and domain name warehousing.
The registrar subsequently assumes registration of the domain name. The registrant purchases the domain name through fraud and the registrar assumes registration of the name to resell in order to minimize losses. The registrar registers the domain in its own name outright.
In 1993 the U.S. Department of Commerce, in conjunction with several public and private entities, created InterNIC to maintain a central database that contains all the registered domain names and the associated IP addresses in the U.S. (other countries maintain their own NICs (Network Information Centers) -- there is a link below that discusses Canada's system, for example).
Domain name front running is the practice whereby a domain name registrar uses insider information to register domains for the purpose of re-selling them or earning revenue via ads placed on the domain's landing page. By registering the domains, the registrar locks out other potential registrars from selling the domain to a customer.
The domain aftermarket has grown substantially, as an increasing number of generic domains names that promise 'marketing appeal' and 'desirability' are registered by domain warehouses, or resellers. The domain aftermarket is facilitated by auction houses which provide communication methods for buyers and sellers to interact, often anonymously ...
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