Domain name warehousing is the act of a domain name register obtaining control of any and all domains with the intent to hold or warehouse the names for their own use or profit (making a buck).
In most cases this happens after the domain name has expired and the previous domain name owner did not renew that domain within the given amount of time. This time frame is usually 45 days after expiration. There are also several types of ways they can cheat you using this dirty and under-handed practice.
Different Types of Domain Name Warehousing?
There are three different types of domain name warehousing in practice these days. The first is when the registrant allows the domain name to lapse but the domain name register fails to delete the domain during the grace period. The end result is a paid renewal to the registry. Then the domain name register assumes the registration of the domain name. The second would be when the customer purchases the domain name through “dirty means” or fraud, and then the domain name register assumes the registration of the domain to be able to resell it and recover financial losses with the deal. The last is when the domain name register just goes out and registers domains in it own name to store them for later.
How do Regular People get Caught? How Can We Avoid It?
Now why and how does this happen? Well with some, but not all, domain name registers they make the renewal process so confusing and difficult to get through the client gives up and leaves. This probably couldn’t happen to people with established businesses or web sites Online but it could with those who might not know any better. I am reminded of the older gentleman who will hang up on a phone call anytime he is faced with a multiple choice pre-recorded option rather than a real person to answer his problems. That type of person is more likely to fall for this type of scam.
Another concern would be that the domain name warehousing domain register would be sitting there waiting for domain names to expire, and conduct domain tasting without having to pay a thing. That would be so they could see which domains did the best with traffic, advertising and branding. So you should be aware the domain name warehousing is out there and web hosting experts and novices alike can be caught by it.
