System would discount price of domain names until a buyer is found.
VeriSign has devised a system to sell more dropping domain names by discounting their price over time.
Details of the idea are in a patent application the company filed in 2009 that was just published today.
U.S. patent application number 12/504396 (pdf) for “METHOD AND SYSTEM FOR SALE OF DOMAIN NAMES” describes a way that a domain name registry can discount the price of domain names within a short window after a domain name deletes in an effort to find a new registrant for the new domain.
It’s sort of like a reverse auction. As an example, for the three hours after a domain deletes it would be available at the standard registration price. During the next three hours the price would drop perhaps 50 cents, repeating every so many hours until the price hits a floor.
Practically speaking this would allow registrants to buy a domain name that they estimate will earn less than the normal registration cost in parking revenue during the first year. If I estimate that a domain name will earn $5 in the first year then I would wait until the price on the domain dropped to below $5 before registering it.
In VeriSign’s example, the price of the domain name would return to full price after a short time period, such as the end of the drop day.
I should stress that this is merely a patent application and I’m not aware of any plans by VeriSign to introduce such a system.
VeriSign also filed a patent application for a system that would estimate the likelihood of a domain name being renewed.
Joe says
It looks like a ‘dutch action’. We’ll see.
Joe says
Sorry, it’s ‘dutch auction’ of course.
mrx says
Doesn’t Godaddy already do this?
Andrew Allemann says
@ mrx – GoDaddy does its own “closeouts” before deleting domains. VeriSign’s system would be after domains go through pending delete, and it would be available to all registrars.
Kevin Ohashi says
New service coming — drop reg timing. Competing at those intervals to grab names that are marginally profitable!
John Berryhill says
@Joe has had a little too much “Dutch action”
Ms Domainer says
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I believe that Snapnames does this on a limited basis–I have seen some domain names dropping in price.
Perhaps these are private sellers on Snap?
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DNabc says
This would certainly be confusing when applied to all domains that are pending delete, no matter the registrar. How would this affect regular backorders?