Dynadot Grace Policy Change – How Will It Change Your Business Model?

Posted on | March 23, 2009 | 4 Comments

We recently had an outtage from Dynadot which left a semi-bitter taste in the mouths of some.

What is going on now is a domain grace delete policy change. Now this isn’t exactly the fault of Dynadot, but it’s in reply to the domain tasters in mass. You know, the average joe that buys 1-3 domains every day and tastes them for 4-5 days and let’s them go. Just kidding. It’s for the people that taste HUNDREDS of domains per day and now we are at the mercy of them because registrars like Dynadot now have to change their policies to better accomodate changes made at ICANN.

- COM, NET, ORG, INFO, and NAME will start enforcing ICANN’s AGP Limits Policy on April 1.
- ASIA and MOBI have delayed their adoption of ICANN’s AGP Limits Policy until May 1, 2009.
- BIZ will not be changing their current grace deletion policy since they have already implemented ICANN’s AGP Limits Policy last year.
- TEL will be enforcing ICANN’s AGP Limits Policy on March 24, 2009 (General Availability).

Each TLD affected by this policy will be restricted to the following:

- The deletion rate will be limited to 10% of all new domain registrations for that TLD. (The 10% limit applies to our whole system.) Therefore, we cannot always guarantee a grace deletion.

- The deletion fee will be increased from $0.20 to $1.00.

Please note that we may opt to increase the deletion fee further depending on demand. A list of the current deletion fees will be shown on our Grace Deletions page:

Grace Deletions
http://www.dynadot.com/domain/grace_deletion.html

Whatever for some who don’t domain taste, but I’m just wondering, how is this going to affect the many tasters of hundreds (if not thousands) of domains at Dynadot? That rate hike is 5x and when it was only at .20cents, people were groaning and moaning. Whatever will they do now?

Not really a post to sit there and offer a solution for those types (since I obviously don’t agree with their business model… a bit too risky and borderlined annoying), but is it something these people are thinking about? I don’t know any domain tasters personally, but would sort of be interested in hearing what happens now. Is this the end of the road?

Comments

4 Responses to “Dynadot Grace Policy Change – How Will It Change Your Business Model?”

  1. Jason
    March 23rd, 2009 @ 10:40 pm

    Moniker has been $2.00 for a while now, GoDaddy I last tried was still zero fee. Haven’t heard any news from them, though….

    I do expect to see changes in the behavior of large tasters like eNom on the daily drop.

    There are others who don’t _taste_ on the drop, but who are nearly as fast and market the names they grab within the grace period and if they get just one sale, it’s more than worth the fee. I don’t expect the behavior of these drop-catchers to change at all.

  2. Sammy Ashouri
    March 23rd, 2009 @ 11:41 pm

    The marketers are a different story. I’m not sure about their turn around rate on buying domains and offering them to people if the name is worth it, but those that buy 200-300 in one shot for a reason and send out mass e-mails, it should change something depending on their business model. Depending on percentage of profit, this will definitely eat up some cash if they end up grace deleting 175 names ($175 fee now), but if they do sell those 25 at 100 a pop, it might be worth it.

    When you really look at it, it might have some sort of minor affect depending on some people and the way they have their domain turnaround techniques. So I was wondering what they might think in regards to this situation. But $175/day loss due to fees? Definitely something to think about.

    Of course, this is all an assumption. I had ONE time where I stupidly decided to “act” like a domain taster and reg’d like 75 names in one night. Completely worthless for me and I felt like an @$$ after I deleted all the domains. Of course, I was tasting for domain parking and not reselling.
    :)

    Thanks for the comment! Wondering what GD is going to do!

  3. noah
    March 24th, 2009 @ 1:43 am

    check it out: http://www.weboasis.ae now offers dubai’s .ae domain online.

    You have heard about the real estate goldrush but the webspace landgrab is just beginning.

  4. Dean Saliba
    March 24th, 2009 @ 8:42 am

    I hope Godaddy don’t do this. :(

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