Some time ago, I did a few tests on GoDaddy on available domain names and after some creative options, I came up with one that I liked.
I then compared the name with some other options against my targeted market and it turned out really popular. During the survey period, I checked the name a couple of times on GoDaddy to make sure it's still available. So when I today go to purchase the domain, hear hear, it is already taken. And WHOIS it if not GoDaddy owned company Domain's By Proxy?
Is this just a coincindence?
http://internic.net/whois.html
[From site footer:
InterNIC is a registered service mark of the U.S. Department of Commerce. It is licensed to the Internet Corporation for Assigned Names and Numbers, which operates this web site.]
I generally use them when I'm trying to iron down what domain I actually want, and don't hit a registrar until I've got credit card in hand, and am ready to buy.
According to the article they posted, ISPs also sell reports of popular mis-typed domains to would-be squatters as well. So in addition to avoiding most registrars, you should also avoid the popular urge of 'just type the url into your address bar' method of seeing if a domain is taken.
Here was my comment:
I'm not sure who doesn't do it. I just try to go to the domain and see if there is any server side activity (error page, holding page, etc).
From Wikipedia: http://en.wikipedia.org/wiki/Domain_tasting
"By February 2007, the CEO of Go Daddy reported that of 55.1 million domain names registered, 51.5 million were canceled and refunded just before the 5 day grace period expired and only 3.6 million domain names were actually kept."
"In January 2008, Network Solutions was publicly accused of this practice when the company began reserving all domain names searched on their website for five days,[7] a practice known as domain name front running."
It's perhaps slower than losing it to a registrar, but it's no safer.
I've NEVER had a domain snagged from me by going directly to the domain (even when I wound up registering it a week or two later). I've had a domain taken from me multiple times by the domain registration sites... sometimes within a few hours.
-HTH
Edit: Apparently there's a name for this practice. http://en.wikipedia.org/wiki/Domain_name_front_running
Since a huge chunk of the identity of businesses is their homepage, coming up with a great name (or several, so you can test them) that also has an available .com-address is probably the biggest headache in branding in my opinion.
Shouldn't this be controlled better? Shouldn't it even be illegal?
So... When you register a domain the registrar has to pay the registry com/net/org etc immediately. The registry will return the registration fees for any domains that are canceled. However if a registrar has >10% or their total monthly registrations cancelled within the 5 day grace, they do not get that money back.
This has essentially ended these practices.
HTH
Full Disclosure: I used to work for a registry.
For interesting results, whois google.com
There's no way for me to tell if it is truly a coincidence or not (especially without knowing the domain name), but I do want to let you know that Go Daddy absolutely does not participate in what is known as "domain front running". We have reviewed the domain name search system we have in place and are confident it is extremely secure. In other words, though there are potential explanations for what you experienced (including plain old coincidence), it is not the result of Go Daddy monitoring a domain search and registering the name before you could.
We encourage you and any other user to search for domains using our domain name search and/or WHOIS search system, and we would recommend NOT "searching" for a domain by simply typing it into your browser to see if a site resolves. In addition, you should maintain up-to-date protection on your computer to prevent malware/spyware that may infect it. And finally, we concur with others in this thread - as soon as you know you want a domain, register it immediately to avoid the possibility of someone else grabbing it first.
If you have other questions about our services, please feel free to contact GoDaddy.com Customer Support. They are available 24/7/365; contact info is here: http://x.co/Tz4q
As always, thank you for choosing GoDaddy.com.
Alon GoDaddy.com Social Media
If you see any of these zero value domains get registered you have your answer, or at least a very high confidence in your initial assumption.
That's not to say they don't register and own their own, but using your entries as a gauge to see if they want to register something is pretty unethical for a registrar I'd think, even for godaddy :).