What’s Wrong w/ Domain Brokers
Friday, August 24th, 2007So I’ve come up with this great business idea that will revolutionize the world, abolish hunger, and set in an era of universal peace never seen before. Well, ok, not quite… but almost, I swear!
Now, of course you need the catchy domain name to go with it. Think again, my web-clicking friend! Over 90% of all domain names have been snatched up by so-called domain brokers who make a living off of others wanting to buy a particular name.
Sure, I promote free markets as much (or maybe more) than the next guy, but I actually caught myself thinking “they should have laws against this sort of stuff”. Wow! I actually caught myself thinking in ways that totally contradict my political beliefs (liberty, freedom, and free markets). This caused me to question my presumption: what right do I have to a domain name that someone else purchased legally? Of course I have none! Is it underhanded and nefarious, or enterprising?
Sure, they aim to take advantage of you wanting your domain name, but don’t all businesses do that now-a-days? I mean, really, isn’t advertising doing the same thing: creating a perceived desire so that you go out and buy it from them? OK, so there’s a slight difference in how the company operates: domain brokers take advantage of the shortcomings of existing markets without having to do any campaigning or marketing for their “product”, but other companies do that as well.
On the other hand, it is near impossible for one business to register all business names in a given state and act as a business name broker. Why is that? This is because registering a business name is in most places a legal requirement that mandates paperwork. And quite often lots of it (articles of incorporation, registration application, etc.). Who wants to start up 100 businesses with all the involved paperwork just to get a monopoly on the names in the off-chance that someone will buy it from you? I highly doubt that the effort pays off.
Should similar registration requirements be placed on domain names? I believe they should. Whoa… wait, wait… let me explain! I believe they should … in certain situations and to a certain degree. All top-level domains should be assigned according to their purpose designation (currently it is more hap-hazard than a chicken coop), as described here. Additionally, I would also enforce the following restrictions:
- .com: require that it be registered by a business and that it cannot be resold (instead it must be relinquished to the domain registration authority if the business closes).
- .net: may only be registered by network companies (IT, communications, internet providers, etc.), otherwise same as .com.
- .org: may only be registered by non-profit organizations, otherwise same as .com.
- .edu: may only be registered by educational institutions, otherwise same as .com.
All names used for business purposes should require additional registration requirements (not government controlled!), e.g. the above-mentioned. These requirements should effect a verification procedure that makes sure the information provided is accurate. Now, this would admittedly upset many domain registrants, such as individuals and those that do not fit the mold as described above, but it would accomplish the goals of the top-level domains in the first place: to effectively categorize the internet. In addition it would free up domain names and put an ill-gotten industry out of business without harming the liberties of individuals. Well, that, and of course I would be able to get the domain name I’m looking for. ![]()