news Verisign Blog Calls Us All "Domain Scalpers"

[Bob Hawkes]

It appears that Verisign are feeling pretty secure now that they have their 6 year agreement with 4x7% price increases on .com and their stock popped up 18% today. In a blog post today Verisign say:

"Flipping domain names or warehousing them to create scarcity adds nothing to the industry and merely allows those engaged in this questionable practice to enrich themselves at the expense of consumers and businesses." - Verisign today​

Andrew has written an excellent column on it here, or you can read their blog post (I wonder if it will get revised?) here.

As Andrew points out:

Verisign has been catering to this market for years. Sponsoring its conferences, promoting domain investing, creating the very tools designed to let domain investors know which domains to register…and now it wants to pretend it has nothing to do with this “questionable practice”. C’mon.
​

This is almost unbelievable and I can't believe it will not anger many. At least for those of us who were trying to decide whether we call ourselves domainers (not a dictionary term),domain investors, domain service agents, domain experts, domain originators, etc. no longer need to worry about that. We are all scalpers according to Verisign.

Seriously, amazingly insensitive of Verisign.

Bob (grrrr... feeling angry )

ps I always try to find the bright side of everything. A good day for ngTLD and country code extensions I guess?

 

[offthehandle]

Most all of you complain here, but you should realize that @GeorgeK seems to be the only one who has been working for the RPM working group. He needs support. I don’t own enough valued domains to get involved as anything but observer status, but have invested numerous hours in reviewing the problems.

Anyone else who is observer status, Correct me if I am wrong, but I have watched the Trademark lawyers beat him up, they want to push their domain rights agenda favoring big corporations and who they represent, meanwhile nobody here (not one person this thread) has been involved, George is really vocal. The URS process, UDRP changes, etc. There are some really big issues being discussed.

Sure a couple other stackholders with valuable portfolios are on the mailing list, but few comments that I have seen. And, one major player person mentioned above conflicted with him as well. You all should join the ICANN working groups to voice your concerns.

George even posted this on threads here. Few of you participate, so you might consider getting involved instead of just complaining.

https://www.namepros.com/threads/im...ain-name-legal-rights-to-due-process.1003885/

Nat Cohen posted information on various right protections months ago.

https://www.namepros.com/threads/ic...ge-domain-owners-rights.1048344/#post-6420035

 

[DomainRecap]

so is me domain investor or domain scalper now?

Check your desk for a tomahawk.

Someone should advise Verisign that the term "scalper" is very insulting to our Native American friends and the author should probably apologize for using that term as an insult.

 

[Bob Hawkes]

The speculation re long term (get rid of any caps) and short term (divert attention from Veerisign to domainers) reasons why they made the blog post both make sense.

However, when I think about it, it is strange that they want the freedom of the ngTLD registries to have no caps. I bet any of the ngTLD registries would jump at the chance to change places, give up variable pricing to get a stable,highly respected, huge domain registry where your operating costs were way less than the money you get, even without increases, for them.

I was wondering how Verisign was doing profit wise. No expert on reading financial statements, but the fraction that gross profits are of revenue seems astounding to me (2017 is last full statement). Available here:

 

[ShyGuy404]

Talk about biting the hands that feed them.

Should we consider real estate investors "house scalpers" too?

 

[Bob Hawkes]

I have no idea if Verisign follows this thread, but if they do, I would like to seriously and politely suggest that they should take down their blog post and apologize to the domain community. I respect organizations who admit when they are wrong. If they do we should politely accept the apology and try to move on together to improve how the world uses domains.

Bob

 

[Internet.Domains]

I totally understand the concern and anger, but please let's not lower this to an attack on individuals who work for Verisign, please.

I think our community should work together to develop a compelling argument offered in a unified voice showing how wrong the statements in the blog are, and the value that domainers offer the broader community.

I think this could be an opportunity to educate a wider group on what services domainers can, and do, offer.

I realize I don't have nearly the experience that many on this list do, or the expertise, nor the investment in a large portfolio. I feel ultimately if we take the high road of saying why the statements are inaccurate and incomplete will have more effect long term.

Just my humble opinion, and I totally accept that others can view this differently.

Bob

Lots of lessons can be learned. Lets hope Verisign sees the mistake.

Quite simply Verisign was hoping they could increase prices in an unlimited fashion. Just like the New Gtld's can. They were hoping to put "premium" labels and hold hostage many business's that have built on the .com foundation. They did not get what they want. They are angry and that shows in their blog post. The same anger they have is the same anger many investors are feeling. Since there is so much anger in the community I will leave with a quote that follows me, "Anger is the biggest waste of time."

 

[equity78]

This is the source of their anger:

The bottom line is this: Since our government continues to regulate .com prices, then we should make sure that price regulation actually benefits consumers, instead of contributing over a billion dollars to domain speculators every year.

This angers them to no end, they want to be who they were with .tv or Donuts, no price caps, we do what we want, we become the speculators and eliminate an unnecessary link in the chain.

 

[Bob Hawkes]

I am glad that .org was split out from the packagel in 2003, but it is unfortunate that .net and .com are held by the same party. Just too much control over valuable digital real estate. Having .cc and .tv and .name makes it even moreso.

 

[Leo Angelo]

It appears that Verisign are feeling pretty secure now that they have their 6 year agreement with 4x7% price increases on .com and their stock popped up 18% today. In a blog post today Verisign say:

"Flipping domain names or warehousing them to create scarcity adds nothing to the industry and merely allows those engaged in this questionable practice to enrich themselves at the expense of consumers and businesses." - Verisign today​

Andrew has written an excellent column on it here, or you can read their blog post (I wonder if it will get revised?) here.

As Andrew points out:

Verisign has been catering to this market for years. Sponsoring its conferences, promoting domain investing, creating the very tools designed to let domain investors know which domains to register…and now it wants to pretend it has nothing to do with this “questionable practice”. C’mon.
​

This is almost unbelievable and I can't believe it will not anger many. At least for those of us who were trying to decide whether we call ourselves domainers (not a dictionary term),domain investors, domain service agents, domain experts, domain originators, etc. no longer need to worry about that. We are all scalpers according to Verisign.

Seriously, amazingly insensitive of Verisign.

Bob (grrrr... feeling angry )

ps I always try to find the bright side of everything. A good day for ngTLD and country code extensions I guess?

No company can insult the majority of its customers without losing sooner or later. I have trouble believing that it is a sanctioned tactical move, or part of any strategy. That employee probably went rogue. I expect that they will reconsider and will retract within a month or two, before the NamesCon in Vegas.

 

[kam]

Absolutely disgusting piece, every one of you should be commenting and sharing your thoughts on this attack piece by someone who willows in her own hypocrisy.

We are Domain Collectors, not Domain Scalpers

 

[Bob Hawkes]

Rick has now spoken re the Verisign blog post, calling for an apology:

" ..it was mean spirited, it was uncalled for and most of all it’s simply not true.."

http://www.ricksblog.com/2018/11/ve...-bus-fck-you-verisign-apologize/#.W92zeWJKgiY

 

[MapleDots]

You can call me anything you like but you're still not getting my domain until you meet my price.

 

[werty]

They have us all on their hands; that's why they can get away saying stupid stuff like that. Sucks.

 

[alcy]

so anyone taking bets if she'll change her cv from domain name colector to domain scalper?

 

[alcy]

i think one of coments I read on the net hit nail on the head..
she just try shift attention from price increase to blame it all domainer investors.. or domain scalpers.. or whatever the new name is.

its pretty clever marketing... but I guess domain scalpers aren't stupid either.

 

[pokainc]

I see on twitter some of us expressed our views and pushed back... but so many are commenting on namepros but not pushing back on twitter where there's a more global audience... namepros, as much as I love it is pretty much for domainers.. get out there

 

[Kate]

I think we can setup a registrar ourselves and charge say Verisign fee + max ten cents and run it as a co-op. We could then move as a bit more of a block.

Actually, a few domainers have set up registrars that cater to domainers. For some reason I don't trust them a lot. Maybe it's because they too are competing against their customers.
The prices that we get from mainstream registrars are already rock-bottom anyway. But we still have to deal with the same registry, we don't have a choice.

It's ironic that the NSI monopoly was broken up 20 years ago, but we are now in a similar situation again with Verisign driving prices up, how long will it take to revert to 1995 pricing... Icann has failed its mission and become an impediment to competition. Why perpetuate a no-bid contract. This is just too good a gift.

 

[tomcarl]

There's always some new genius that comes along within an established company that calls for some drastic business model changes to shake up a market that's already doing well, leading, and standing the test of time, and as the majority of the time, it eventually backfires.

It's kind of true what they said though, "scalpers" are creating a scarcity, a scarcity for garbage names that no one else wants. When the pros adapt their business model and "scalpers" can no longer afford to juggle their hundreds/thousands of crap registrations and release it to an open market never to be registered again, VeriSign will feel the burn.

 

[Kate]

The intent expressed in the blog is pretty clear: they want to get rid of pricing controls, and perhaps run the registry more like they used to with .tv. Or have more leeway like the nTLD registries.
But as Brad @bmugford mentioned there is a fundamental difference: they do not own the .com/.net registry, they are caretakers.

Maybe Rick forgot several years ago it was reported Godaddy offered to do the .com contract at only $1.99 year per domain but their offer went nowhere. Even at that low price it's still believed today there would be good profit margin.

I am not sure if it is @GeorgeK who mentioned it, toll-free numbers cost less than $1/year. The database of toll-free numbers is quite similar to a domain registry by some aspects. The SMS800 system has registrars, that are called RespOrgs and offer numbers to consumers either directly or through resellers. It also suffers from the warehousing of phone numbers (against FCC rules) and a rather opaque system of ownership. If you have ever tried to get a 800 number, especially vanity numbers - you know what I mean. Yup they are all taken, hoarded whatever. Some fuzzy pricing practices going on too in this arcane universe.

Running a registry is a bit more than administering a database though. It has to be super-resilient and DDOS-resistant. The investments required in infrastructure and organization are not trivial. We are talking about critical Internet infrastructure and a huge responsibility. There has to be a reward for it.
But the margins recorded by VRSN speak for themselves. They also run smaller registries (.net .cc etc) plus two DNS roots. So they are able to achieve economies of scale.

And when they raise prices, they don't have to face the wrath of registrants. It is up to the registrars to announce the bad news and pass the fees on to their customers. Registrants don't even know what the registry is.
Maybe as a PR exercise VRSN could tell their customers what do they get in return for the price hikes or what is the justification, other than making shareholders happy ?

 

[wwwweb]

Well..She updated her LinkedIn Profile!!

Show attachment 101641

Well she isn't developing so maybe we can call her / hoarder

 

[wwwweb]

This was very tactfully done, and anyone who gives it leniency is backing it.

So, that pretty much means down with Vsign until they make this right AND MORE.

This is out of bounds. Just shows what abuse at the highest levels can spark.

It's all politics, and they are HQ'd in the center of it. The swamp was never drained, the floodwaters if anything just inched a bit higher.

Verisign is offering nothing new for the price increase it is being given, no concessions, they act as if they own the extension, they are simply are property managers who are trying to hijack the extension, most likely by making longterm promises.

 

[Haykay2005]

Domain investors creatively come up with word combinations that are effective, original and valuable, and bring these combinations to the attention of those in branding, marketing, and management that could benefit from their acquisition.

Domain name investors make domain names available in an orderly way through marketplaces, brokers, company websites, and other means. Without domain name investors it would be much more difficult for companies or organizations that want a name to find it, and domain investors also efficiently make the variety of available alternatives obvious so the best business decisions can be made.

Domain investors have expertise in the value and importance of digital assets, the regulations surrounding domains, new trends and opportunities, etc.

My start to a list I hope many with long term expertise and involvement can improve and add to. What do we do of value?

Thanks,
Bob (not a scalper)

That's corporate branding in summary

 

[Internet.Domains]

 

[Internet.Domains]

Check your desk for a tomahawk.

Someone should advise Verisign that the term "scalper" is very insulting to our Native American friends and the author should probably apologize for using that as term as an insult.

Being well versed in American history I knew it was only a matter of time before that came up.
FYI - I do believe the term was removed from the post.

 

[Internet.Domains]

What they changed was from domain scalpers to domain scalping.

scalp
/skalp/
verb
historical
gerund or present participle: scalping

1. take the scalp of (an enemy).
   • informal
     punish severely.
     "if I ever heard anybody doing that, I'd scalp them"
   • informal•North American
     sell (a ticket) for a popular event at a price higher than the official one.
     "tickets were scalped for forty times their face value"

Origin Dictionary