I would like to know the answer too. Anyone here know what is the right answer to your question. I'll do some poking around and get back to you if I bump into an useful answer. You should email the people at 123 reg as they probably can answer it..
Zilch ... "tasting" is the latest snake oil in domaining..
The economics of "tasting", except for registrars, just doesn't make sense:.
Ie. 999 tastes X $0.25 each = $249.75 + $6.25 for 1 reg = $256.
What is the odds of finding 1 HostGator in 1000 very crappy ones, many of which other tasters already tried and chose to toss back, that's going to earn more than $256 in 1 year?.
In my view, one would do better to simply take that $256 and buy a decent name, or even a bunch, on the forums here..
The large HostGator tasters do not pay such a fee for every dropped domain. They will have arrangements with registrars to not apply such a fee (registrars can drop a name within the 1st 5 days and not be charged)...
I don't agree with this, but we're each entitled to our own viewpoint. I think your comment on tasting being the snake oil in domaining is really offbase. You're lumping GOOD business practices with those that are doing questionable things..
I'm not going to get into my own numbers here or methodology but it takes me nowhere near 1000 domains to find one that at least has SOME revenue. It's more like 1 in 3 in general and 1 in 10 make over reg fee..
If anything, I think the biggest mistake I made in the past is not putting enough focus on domains with revenue. Why? Because I was around during the dot-com bust, had a sizable portfolio then and sales just dried up for a long time. Unless the worldwide economy totally falls apart, there will always be a way to monetize domains with traffic. I think we are past that point - where domains are finally being recognized as having solid value on their own - regardless of market conditions. But individual sellers still have to contend with slow periods..
Have you ever been in a position where you HAD to sell domains below what you felt they were worth or could be worth simply because of bad cash flow for a short period?.
MOST domainers I know that haven't put enough focus on revenue have been. I know I've been there myself. I've sold domains where less than a month later the buyer resold them for 3-10x what they paid..
It is getting more difficult to find domains with built in revenue and traffic because of the number of people entering the business and the amount of tasting going on. But does that mean you should avoid fresh registrations and ignore traffic? It's about balance in a portfolio and building up cash flow..
BTW I'm sure if I looked back on older threads on Namepros, I can find people that made similar remarks to yours in 2005. And you know what - I'm sure since 2005, there have been tens of millions of dollars in parking revenue earned alone on fresh registrations..
I wasn't making these comments to be argumentative but to perhaps show a different perspective. Personally, I am building my portfolio in a balanced fashion now - partly fresh registrations, partly backorders, partly acquisitions.... but it's at the point where I can use half of my parking revenue to pay for fresh regs/renewals and use the other half on backorders/acquisitions. That means sales are pure profit for me at this point. It's not a bad place to be IMHO..
I spend about about $3 a day max,,, I don't agree with it either, But I couldn't beat the tasters, So I joined them, I have picked some super names with awesome back links and incoming traffic...
I don't spend any money on tasting. I go broke if I was spending the above figures on tasting!..
Same here... I have no memory and would eventually end up forgetting to drop the names..
Nothing is wrong with tasting. I have conducted many sales till date using this method...
I read this article. Not sure what it means. Are ICA and CADNA persuading ICANN to remove the 5 days for refund?.
In a word yes that is what they are trying to do. I.C.A.N.N. recently started giving people the opportunity to voice their concerns over HostGator tasting:-.
This is the most likely reason they have jumped on this...
Some have replied saying that "tasting" economically works out for them, which I find amazing ....
What amount of traffic on average makes a HostGator worth keeping?.
If you register a HostGator for $7 you would need to make roughly $0.10 in the 5 day period for it to cover it's own registration fee over a year. That is of course working on the assumption that it will maintain the income at a steady rate over the year...
So about 2 to 3 cents per day; 15 or so cents per week; 1 to a handful of clicks per week... never thought of the economics quite that way....
I'm a novice when it comes to parking, since much of the 1300+ domains I have, despite having some traffic, points to a blank page or even nowhere ....
Am in the process of parking most everything - I'm amazed parking is as profitable as some indicate - sounds like I may be missing the boat on "tasting", but even if I am, it's a business I'd likely not do well in, since it's volume driven, which mine isn't - my expertise is in buying resale, drops, and occasional new regs based on in-depth research..
With that said, thank you again for answering my question - I learn something new everyday..
Zero. I find tasting distasteful..
Overall, I think it's bad for the industry. The extra bandwidth and database burden has to be paid for by someone. I think is somewhat contributes to the reason the cost of registrations is going up in October? Not the only reason, but at least a minor one...
$0 I buy new registrations, used domains from fellow domainers and grab a few expired domains as well, think I have only requested a refund twice over the years, 1 because of a typo mistake and another because of a strong trademark I overlooked...