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October 29th, 2007 by 
Jay Westerdal
One of the questions I am often asked is how does someone register a single letter domain name. They are not owned by anyone, those domains are mostly registered to ICANN as “reserved”. The predecessor to ICANN was one man, Jon Postel. He reserved them for future growth. The idea was that if a zonefile got too big, it could be broken into chunks. Domains would look like this… www.domaintools.d.com. ICANN reserves the right to use these single character domain names. However, it is very clear at this point they will never need to be used the way they were intended. So the question is, why is ICANN still reserving these domains?
Jon Postel made 6 exceptions for the single letter domain names. He allowed trademark holders to claim a few of the single character domain names. Qwest Communications (NYSE: Q) got Q.com, X Bank got X.com (now PayPal/eBay), Nissan’s “Z Car” got Z.com, Inet Corp. got I.net (not currently resolving), The Open Group got x.org (now X.Org foundation).
I know several companies that have personally told me they would pay over a million dollars for the a single letter domain name. They are not all big companies that everyone knows, they are silent stealth companies that know the value of generic domain names. There is a huge demand for these domains and there is such a limited supply. I would like to propose an auction for these domains. The money raised goes towards improving and running ICANN, so the idea is to raise as much as possible from the auction. I personally think the best way to raise the most is to hold one auction slot a month. DomainTools would auction off the ability for the winner of a month auction slot to pick any letter from the available pool they want. We would auction off one letter a month from each TLD.
Every month there would be one less letter to pick from and the press about the auctions would continue to grow as we approached the last letter. The companies that secure a spot to pick first would pay a premium for it. And the companies that pick last would be fighting not to be left out. The guys in the middle might get the best deal, but would have to choose their letter from what is left.
The DomainTools auction system is very flexible and allows for bidders around the world to bid on domain names. We would want to insure that everyone has the ability to bid, but to keep shill bids out, a pre-registration would be required for all bidders. The bidders would be able to watch a live feed of the auction process and see the other bids coming in as they happen, like we have done for our previous auction where we sold over $3 Million dollars in domains in one day. I would expect the first letter to be sold for 2 Million dollars.
We will be running an auction like this very soon and it should prove the model. The winner gets the pick from any name available in the auction. We have seen that there are a limited number of high ticket bidders. So if we get multiple high caliber bidders and multiple high caliber domains it should set the market correctly. We find that domains often go cheaper at auction because not all the right bidders are in the room. This process is one way to offset that lack of bidders. The delay in not selling them all in one sitting also has the effect of getting more bidders in the room as press spreads of the event each month.
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Posted in DomainTools Auction |
October 29th, 2007 at 5:00 am
The heck with paying ICANNt again. They have proven to be a complete disappointment and frustration in their overall incompentence. The cozy contracts with Verisign and the failure to act in time in the case of Registerfly (even though they were warned years in advance)are just two of many many examples. They take in way to much money now to fund their globe trotting parties via the 22 cent tax on domain registration. They allow no voice by domainers / registrants and this equates to taxation without representation. How the hell do they get away with it in the US?
Now I realize that you’d like to handle the auction of these 1 character domains Jay, but please don’t play up to ICANNt to do it. They have NOT been anywhere near a friend to the domain industry that supports you. I’d like to see something closer to a lottery drawing for these names, but would also like to see the funds go to the “reduction” in the cost of registration and renewal along with a cancellation of both the ICANNt tax and their contract to boot.
October 29th, 2007 at 6:12 am
Jay is of course quoting the proposal I made several weeks ago to ICANN in the public period at:
http://forum.icann.org/lists/allocationmethods/
(see the post by George Kirikos on October 16th) and had mentioned to him in private discusssions. Of course, if that allocation method was chosen (over a lottery, which I also proposed, but which ICANN would likely reject as there’s no money in it for them), the choice of auctioneer would be up to ICANN. I can foresee a tender process for the right to hold the auction, if ICANN wants to outsource it and not handle it in-house, and perhaps the auctioneers would actually pay for the right to hold the auction, given that it would provide their venue with immeasurable publicity.
Update by Jay: I was not quoting the email. George, we have brainstormed about this type of idea well before the email. I think you have some great ideas and were one of the seeds that sparked the concept. I give you full credit for sparking my idea! We need more smart people like George.
October 29th, 2007 at 7:54 am
With the right publicity, to get the right bidders, single letter .com’s would get much more than 1 million. There are now, and always be, less than 20 of those. Easy access, and to me a piece of art, would get a premium price.
Nuno Oliveira
CatalogDomains.com
October 29th, 2007 at 10:10 am
How much would Oprah pay for O.com?
October 29th, 2007 at 12:23 pm
Shouldn’t it be called single-character auctions, because, I would imagine that one should be able to buy a-z, 1-0, and the hyphen character, as well.
October 29th, 2007 at 1:28 pm
Sound good to me.
Personally I think these domains are worth a bit more than you are suggesting.
I like the model and may consider go this route later with the Arabic Alphabet. Like ICANN we are missing the odd letter.
October 29th, 2007 at 1:50 pm
I want to change the code to open my safe. Can anybody help me with this… I had to give the code to somebody when I was in the hospital and now I am worried something important might disappear.
October 29th, 2007 at 1:51 pm
you can just send me the info thru my email, I would sleep so much better being a widow and disabled to boot. Never know who u can trust this days anymore
October 29th, 2007 at 2:27 pm
hippyj07112u Said: “I want to change the code to open my safe. Can anybody help me with this…”
Be very careful changing it yourself. Follow the manufacturers directions. Lock it open and test it atleast three times. Or hire a reputable locksmith.
Then register the new combination as a .com and auction it off here. You’ll remember it that way.
October 29th, 2007 at 2:55 pm
This all seems like great ideas but they also seem so far out of the scope of what ICANN does and is imho.
October 29th, 2007 at 3:05 pm
I think Icann should keep the single character domain names to themselves.
October 29th, 2007 at 4:59 pm
I agree with StockDoctor… I like the concept of a price “reduction” based on the revenue generated from selling these single character domains.
Kicking more money back into ICANN doesn’t make much sense.. It’s like with with any bureaucratic or governmental agency, the more money that is provided, results usually become less efficiently achieved, and more money is wasted..
I feel like there would be very little positive feedback from ICANN to us as domainers, in comparison to domain prices being “reduced” .25/per domain annually…
October 29th, 2007 at 6:20 pm
There’s a handful of single letter domains. And over the years probably thousands of people and businesses that would have registered them at the going rate or purchased them for a higher price from the rightful registrant.
Now they’re worth millions and it seems unfair to the people who would have bought them to make them available now just to line the coffers of ICANN. ICANN receives a fee for each domain registered and they are to fund ICANN from that. They need to stay within their core responsibilities and leave the sale of domains to the registrars and the aftermarket.
There’s only one fair way to distrubute these single character domains and that is some form of lottery or drawing run by a outside agency suppervised by several other concerns. Else they need to just keep them in reserve and the few that are registered already need to be locked to the present entity and not allowed back into the market if surrendered.
October 29th, 2007 at 8:58 pm
spambait85738: If they are just released into the Internet, they will all get snapped up and auctioned on Pool or what have you. If Google wants G.com/net/org and so does George, there has to be an auction. Icann is only doing what makes sense (to me). If an antique shop has a desk, and a patron knows it is worth big bucks, but the seller doesn’t, the patron will buy it and then sell it to a third party for big bucks.
However in this case, Icann does know that single character domain names are worth big bucks. Why just pass it off to some middleman when they know they can make big bucks?
Remember, this isn’t the Internet Non-profit-government-welfare-committee for Assigned Names and Numbers, it is the Internet CORPORATION for Assigned Names and Numbers.
October 29th, 2007 at 10:29 pm
HBaker: What I suggested was if they feel the need to get them out then they need to give me (with my $20.00 budget) as equal a chance at owning one of those names as the guy who might have wanted them some time back and the Googles and Georges with very deep pockets.
Say a period when anyone who wants to be in the running for one of the single character domains can request a serialized token or numbered certificate. Then when the specified time is up there’s a drawing for each name. If my number wins the rights to G.com then it’s mine. I can then auction it off, use it or even give it away.
And I could enter into a contract with someone else where they pay me to sign over my rights to any domain I might win before the final drawing.
Else I think they should stay reserved. Why should ICANN make a big windfall profit from holding back certain domains until they are worth a huge amount. What’s to stop them from then requiring all new domains to be at least 10 characters or eight then auctioning off the lower number domains when they feel they can make another windfall?
October 29th, 2007 at 10:35 pm
I should add that, under my plan, when I or someone else wins the rights to one of these single character domains the winner would still need to register that name with a ICANN approved registrar. Then ICANN gets their 22 cent fee.
update by Jay: For the record, it is a 20 fee.
October 30th, 2007 at 1:02 am
ICANN is a Not For Profit, so I really don’t think it matters that they get the money. Who knows they might subsidise some of your fees, but in my opinion that money could be better used to help get the undeveloped World online. The Internet delivers opportunities. Lets all deliver them to those that need them most.
October 30th, 2007 at 1:37 am
spambait, i’m glad you brought forth your lottery idea because it is something i’ve been thinking about. especially in that it should be done for ALL major domain drops so that we ALL have a chance at a great domain and not just the rich domainers with their corporate bank accounts and gluttonous hoards of domains.
October 30th, 2007 at 4:25 am
Sorry to break topic but, what is going on with i.net? hasnt resolved in some time was supposed to FMA’s private register?
October 30th, 2007 at 6:25 am
HBaker quote
“Remember, this isn’t the Internet Non-profit-government-welfare-committee for Assigned Names and Numbers, it is the Internet CORPORATION for Assigned Names and Numbers.”
ICANNt may be a corporation, but it is a non-profit and was contracted by the DoC to manage for “OUR” benefit, not to generate revenue off “OUR” backs with a tax, and fund their globetrotting parties. Who the heck said these 1 character domains are “owned” and can be sold by ICANNt? Seems to me “WE” own them and any of “OUR” sales revenue should go to reducing registration costs etc.
October 30th, 2007 at 7:20 am
castlebrake: Archive.org (FMA also owns archive.com), i.net is their personal registrar, however they use Moniker. Also the Icann list doesn’t mention FMA or I.net, and I can’t think of another name it might go by. I’m just glad it’s not parked.
October 30th, 2007 at 9:24 am
Jay,
What are your thoughts on companies like Overstock.com registering a trademark (which they do have and is live) on “O.com”. I see others have registered trademarks on “R.com” and “M.com” for example. Obviously this doesn’t guarantee them the domain, but what is ICANN to do…?
Thanks,
October 30th, 2007 at 2:08 pm
Yahoo already has a TM for Y.com…If I were to pay 3mil for Y.com, I would only open myself to an UDRP fight…why?
most Letter.com domains are already trademarked…so …why?
October 30th, 2007 at 2:18 pm
sivatag said: “… so that we ALL have a chance at a great domain and not just the rich domainers with their corporate bank accounts and gluttonous hoards of domains.”
I think the lottery would be good for this one shot release of domains and there’s probably a company that could handle that one time for just the prestige and publicity of running that one lottery. But a lottery of actual drops would incur ongoing expenses for who ever ran the lottery meaning a extra fee or some way of getting the expense taken care of. It’s a decent idea that could be workable!
But, if a drop actually happens, you and I both have a chance at getting the dropped domain. It’s when drops go straight to another entity through a mutual agreement before they ever hit the regular open domain market that seems unfair to me. Sorta like insider trading. And you’re right, it does take money to do that.
As to “gluttonous hoards of domains” well I’d like that for myself. Hee Hee. I have a gluttonous “micro hoard” of domains as it is.
October 30th, 2007 at 5:38 pm
If you want the most money generated it must be a lottery but advertized all over the world say $25 Us per chance but every chance gets you a gift certificate that doubles as your ticket as well as good for a domain registration at any registrar that sells them for $25 or less,do it like Jay says one per month with the winner getting choice of each remaining name this is an AMAZING way to get Domaining Aftermarket exposure as well as makes everyony that plays even once someone who now actually has learned what a Domain is there are no real losers here ICANN can pocket $15 on a registration chance and let the registrar that redeems it take the profit from the remaining $10 this could easily be done by registrars by a simple coupon code that most have already.THEN the Winner could keep the Domain won or sell it to the Guys with the DEEP POCKETS but technically all that played would get something out of it plus if you do additional sponserships you could have additional prizes given out overall a win win for everyone IMHO….
October 30th, 2007 at 5:46 pm
Ps think about the money generated how many people live on this rock we call Earth a few BILLION lets say at least 100 million chances are sold (i think alot more)100 million x 25 = ummm 2.5 Billion now thats what i call capitolism.Jay what do you think of this idea.
UPDATE BY JAY: You may remember the DotBiz lottery that was run a few years ago. That was later to be found to be an illegal lottery. In California you can’t just setup a lottery. So I doubt that any lottery would be allowed. Lottery law in California most likely says there is no purchase required to enter, please write to some address somewhere for a free chance at winning. Just to much hassle around a lottery.
October 30th, 2007 at 8:07 pm
danieldoi Said: “Yahoo already has a TM for Y.com…If I were to pay 3mil for Y.com, I would only open myself to an UDRP fight…why?”
Well, I’d say they have a TM on a sign or Logo that says “Y.com” in some fancy graphic or whatever but I doubt you could TM a non-existant domain name and you can’t trademark just a letter itself. It has to be a “Mark” as far as I know. So I’m thinking that might be very interesting.
Imagine a lawn full of suits, solicitors and reporters.
danieldoi went on to ask: “most Letter.com domains are already trademarked…so …why?”
If I won it I’d have a site up later that night at my new “Y.com” domain that asks Y am I so lucky to own this dumb one letter domain? Hee Hee
But the world would be watching and I’m thinking the Yahoo people would be most gracious in their offers and negotiations.
UPDATE BY JAY: If you auction a slot to pick there is no trademark risk. If the winner picked something that had a trademark on it. It would be up to the winner to defend any action against themselves. Of course in the case of Y.com, I very much doubt Yahoo has any chance trademarking their way into that domain. That gate closed a while ago.
In the case of a UDRP, you have 10 days to appeal the decision in court. So you would just need to be ready to file against a UDRPer that is trying to steal your domain with tricks. That is even if someone would dare try and steal a single letter domain with a UDRP.
October 30th, 2007 at 8:17 pm
Again, why would any sane person/organization sell a product to you for $15 just to see you turn around and sell it for $1,000,000+?
October 30th, 2007 at 8:21 pm
DREAMDEALER Said: “there are no real losers here ICANN can pocket $15 on a registration chance and let the registrar that redeems it take the profit from the remaining $10″
Why do you want to give ICANN an aditional $15.00 for doing their administrative duties that they are already funded for”
The lottery chances should be free on this small number of domains and handled by someone outside of ICANN with the world, the press, ICANN and any other interested parties watching. The company or organization handling the lottery would get huge publicity for this one act. I do realize the immense number of entries that would be placed and the expenses of making sure any one person (entrant) get just one chance. Maybe there’s a easy way around that.
And your suggested “$25.00″ ticket price is $5.00 over my budget. So here you are excluding me. Hee Hee. Wah!!!
And that’s if this ever should happen. And then the winner gets the priviledge to register the domain at the registrar of his choice.
October 30th, 2007 at 8:36 pm
HBaker Asks: Again, why would any sane person/organization sell a product to you for $15 just to see you turn around and sell it for $1,000,000+?
ICANN doesn’t sell domains. They administer and oversee the health of the IP and Domain space.
They are in the position of holding a handful of domains in reserve because the thinking early on was to use these single letters to expand the “big 8 TLDs” if needed. That was a prudent thought back then but now it seems unnecessary so the question is “Do we keep them or let them go?”.
If they decide to let them go then the question becomes “how?”
October 30th, 2007 at 10:44 pm
During the creation of Draft Postel in 1996, Jon explained how these single letter domains came about. They are historical accidents. NSI registered them (without IANA’s direct permission) when the total demand for single letter domains was 6 and the internet was relatively small. The other plan (i.e. domain.d.com) is completely unworkable. It is, however, always fun to throw at the TM lawyers and watch them gag.
Auctioning these domains off will set precedents that will have a domino effect all across the name space. It’s easier to keep them reserved and dormant.
October 31st, 2007 at 1:48 am
I would love to see them auctioned to can those Trademarks as bogus you could even use a couple of million from the lottery to fight it to the end to finally get some real Trademark/Domain Justice the Trademark system is being and has been being abused and needs reform heck that would be a good enough reason to do it alone and why would they let you buy it for a mere 15 dollar(ICANN cut) chance when you can sell it for millions because they would get more than a hundred times that from the volume(which can be used to upgrade equipment and cut registration prices and reform the Trademark issue concerning Domains Worldwide) and to those who say 1 man 1 chance be real thats not the way the world works anywhere there are and always will be people who are in charge at the top(by hook,crook,birthright,bankbook or at the end of a big stick) and then the rest under them we just hope those at the top share a reasonable part of the wealth everything has a price its just are you willing to pay it some of this sounds like just sour grapes the idea is to make the best out of what we have to work with,And if a corp wants to dump a mill on chances fine but i doubt they will id love to see that come up in a stockholder meeting.I thimk you would sell 50 million chances in the USA alone people throw money away in gambling for alot less a payoff and i dont see any lotteries closing up because people wont play.
October 31st, 2007 at 4:01 am
“HBaker Says: Again, why would any sane person/organization sell a product to you for $15 just to see you turn around and sell it for $1,000,000+?”
Again, they are NOT ICANNTs names to sell. I’m all for having them sell, but the issue here is really where the sales funds go. Seems to me OUR publicly owned names should be applied to a reduction in OUR registration costs. If nothing else, they should go toward the elimination of the domain tax put on by ICANNt. Who the heck ever approved that tax by ICANNt anyway?
October 31st, 2007 at 8:55 am
wow .. and G.com will go to google and Y.com will go to Yahoo and M to Microsoft .. that’s a cool fact
October 31st, 2007 at 9:47 am
Ok why can you not grasp the fact that they would get well over a Billion per Domain that you can sell for a Million at least if you won.
October 31st, 2007 at 5:29 pm
Of course, as you’re well-aware, if ICANN chooses to auction them off, they will issue an RFP for an auction provider and you’d be free to bid on that RFP like everyone else.
November 2nd, 2007 at 8:18 am
Sorry. I don’t know why some people here are so strongly in favor of a
million dollar auction. What would that actually say to a normal ‘user’, a smaller company ? You aint’t got the funds to get our ’special vintage’ domain?
If ICANN auctions these domains, it actually ignores about 99.999 percent of the Internet users it is supposed to serve. I have been a founding member of the DENIC cooperative society, the German central domain registry. During my membership and later, during my time as a member of the board, I have always believed in fair and equal treatment of all applicants.
As a matter of fact, the proposed auction might even set a dangerous
precedent for other domains that might become available in the future.
Before you know it, Mr. or Mrs. Small Company might see itself unable to get any domain unless it starts with qyz- .
I am deeply troubled by the idea that part of the ‘public’ Internet is
going to be ’sold’ to the highest bidder.
Michaela Merz
http://www.michaelamerz.com
November 2nd, 2007 at 11:26 am
I strongly suspect there will be no auction.
Every single letter has a trademark owner who will pre-empt any auction with their claim of priority based on the trademark.
Based on ICANN’s clear and long-standing policy with respect to trademarks, the only question will be which trademark holder gets the domain and how much they pay.
November 2nd, 2007 at 3:18 pm
Oh, to heck with all this expensive domain stuff! I’m going back to uucp.