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Here's what I think happens and please accept my appologies if this has been discussed before.
I perform the search, and then if I do not buy the domain name at that time it could potentially get bought.
The registrars can pull a query or run a report to see what domain names have been searhed that day. If the domain name looks good they will buy it. Now they won't buy it under thier name, but they will register the domain name under a different registrar. This loses the connection that they could have bought it and they may buy the domain name using different names.
The a few things may happen once they buy the domain name. It might get parked...cha ching, they make the money from it OR they may try and make the domain name a "premium" domain name and upsell or put a higher price tag on the domain.
This just kills me. I searched the domain, came back about 30 minutes later to find that the domains were bought. Coincidence maybe, but this has happened so many freaking times to me.
I'm not trying to sound like a crazy man, but they know about domains too, and I know they can see in some table what domain names get searched. I am picturing a boiler room, lol with a bunch of people saying "oh that one looks great! Let's buy it quicky before our customer comes back"
I yes, I am sure some way or another they have everyright to register a domain name too, but man they are sneakey and it just does not sit right.
[edited by: PPC_Player at 5:20 pm (utc) on May 9, 2008]
NetSol is evil with this, though. If you do a search with them they'll "reserve" (they openly admit to this) the domain and park it (parked page, I wonder where the revenue goes?) so it cannot be registered with another registrar, for 5 days.
There is also a rumor (RUMOR only) that #*$! does this also.
If you have this issue, check back in 5-6 days to see if it was released. Some may just "test" it to see for traffic then drop it if it doesn't have any.
It's extremely unlikely this is really happening (except for NetSol automatcally "reserving" names for the 5 day 'tasting' time period and hoping the inquiring part will end up reg'ing it because it is on 'hold' for them).
In order to stop this practice ICANN is proposing to terminate the AGP (aka free domain tasting) and wants to require a non-refundable service charge for any domain being returned (effectively killing domain tasting for free). In fact, the matter is open for public comments between 7 May 2008 and 21 May 2008 (ICANN website>News>Announcements). Also, Google announced in January or February that they will not pay any revenue earned under an Adsense account for ads served on any domain that is less than five days old.
I think this problem is just about handled.
[edited by: neverUmind at 12:38 am (utc) on May 10, 2008]
personally now i search for domains on sedo or any other non registrant just in case they still do front running.