Before I begin this controversial 2 part post, I would like to ask readers to keep an open mind. As many of you already know, I am not one to steer away from controversy to expose the truth and I believe in laying content on the table for others to digest when they are ready and for the history books. This often does not make me the popular guy in upper circles. However, I have never been one to compete in popularity contests. This post is in regards to all the news in the industry about companies with unethical practices. My comments may ruffle some feathers, but they are necessary to “assist” in building the next challenging level for domainers in the industry. A unified front, that so many have refused to build over the years. Perhaps, positive disruptive CHANGE can occur now. Of course, this is a very optimistic statement when talking to domainers who are set in their ways, with so many having egos bigger than the domain industry itself.
These are great articles to read and absorb to understand why I am blogging on this topic today. A wealth of knowledge is contained in each of them, especially in the comments sections. Here is a run down for you to read before reading the rest of my post.
Expired Domain Services Let Employees Bid Against Customers (DomainNameWire.com)
Ethics of Domain Drop Auctions (TheDomains.com)
Tucows Response to our Post: Not Good Enough And Here’s Why (TheDomains.com)
I’m Just Saying….Something You Might Not Know About Afternic DLS (Dotweekly.com)
In the last 7 days, a lot of information has surfaced in the domain industry on unethical behavior and practices at many of the top domaining companies in the industry. These practices are nothing new and have been happening for years, but they are finally getting the attention they deserve and are mainstream. You can anticipate that there will be much more of this stuff to come as domains continue to increase in value and domain service companies consolidate to take up larger market share. (more on this in part 2)
Without industry regulations in place to enforce standards, companies in the emerging domain industry will continue to abuse the system and conduct unethical behavior. If you want examples and answers, look at history. History has proven this with the rail companies during the wild wild west days. They had vision and understood the future of rail to man kind. They did what ever it took to build their empires acquiring land and to remain in a position of power. Individuals (ranch owners) who were only interested in making money empowered these rail companies to continue to grow and cross the lines by killing, stealing, and threatening land owners for their property in the rail companies path. Eventually, regulations were passed and standards enforced because land owners were fed up with the unethical behavior and United as one voice that was heard. Rail became the dominant mode of transportation for over a 100 years and rail companies still remain very powerful today. All because of individual players.
History has many answers to those who have their minds and eyes wide open, does the above example sound familiar? Though there is no killing(yet), there is stealing and threatening happening in the domain industry on all fronts. Welcome to the Wild Wild West of the domain industry!
This is only the tip of the iceberg of future problems that will arise if domainers continue to do business as usual and do not cause disruptive change.
In this world of the “Me” era, it is near impossible for domainers (past and present) to be held accountable and admit they are at fault for what has occurred throughout the years with all domain companies. Many domainers are outraged because of recent unethical events, but no one with power has done anything about these actions that have been ongoing for years. This is because most of those with power in the domain industry have working relationships with most companies. They would not dare battle those who provide great incentives to their livelihoods. It took this happening to Major/Serious domainers with an industry voice to finally deliver the outcry of the domain community because now they are being affected. Many of these companies may suffer major reprocussions from the community due to their recent activities.
There is so much more to this unethical arena that has not been discussed so openly by major players. PPC Companies are a whole other animal of unethical practices. Insider trading at its finest. Special deals with for those with elite portfolios, but not for those with crappy ones. We do not hear major players complaining about this unfair advantage of insider trading. This in itself is an unethical practice by major domainers, yet they cry wolf when wrong is done to them. It is all about the money and double standards can not be used as a defense. Funny how things work in this industry. The list goes on and I will discuss all in Part 2.
The small time domainer has complained about these same issues for years and many more, but few have paid any attention to them. Why, because they were small time domainers and of course, it could never happen to the major/serious players. Instead of acting at this early stage, seasoned domainers formed private forums, niche dominance, secretive discussions on domain opportunities, limited education on domain strategy, to include drops, exclusive conference events, closed circles, private ppc deals with these same companies, and the list goes on. Keeping the small time domainer and industry growth crippled to bring more money into major players pockets. All of this focusing on the individual, instead of the industry that provides all the opportunity and wealth. An industry with a solid moral foundation will deliver opportunity and wealth for eternity. This does not exist in the domain industry, and this is why the industry is at risk from corporate america and lawmakers. Additionally, it is the same reason why companies will continue to do unethical practices. The domain industry was built on unethical practices. More on this in part 2.
Now domainers want to rally and make a disruptive change, but how long will this last? My guess is this will last 2 weeks max before the same “Me” mentality and Ego’s kick back in and business as usual continues. Some say vote with your wallet, but this is a temporary fix to a problem that will continue. Why? Entrepreneurs will take advantaged and exploit any opportunity that presents itself due to a movement. If 100 major players stop buying drop domains at Tucows.com, guess what, 1000 other small time domainers will move in to make up the difference because there is limited competition from major players. It is a vicious cycle of entrepreneurship. However, if domainers unite, promote and support regulations and get them passed, these will have lasting effects for the life of the industry. Which one makes more sense to do?
How did we get here? That is the question that demands to be addressed and will reveal the correct courses of action to embrace to make change. The second question I have for you, What are you willing to do to cause disruptive change? I am interested in hearing your comments and will stop here and post part 2 tomorrow after hearing your comments.
I will hit on 5 key controversial areas tomorrow after hearing your thoughts.
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