Demand Media says Google change no big deal, yet

Demand Media has said that recent changes to Google’s search engine algorithm does not appear to have had a material impact on its business.
Google said yesterday that it has changed its code to demote “sites which are low-value add for users, copy content from other websites or sites that are just not very useful”.
This was widely interpreted as being designed to hit “content farms”, which make up one of Demand’s major revenue streams. The company also owns number two domain registrar eNom.
In a blog post, published less than four hours after Google announced the change, Demand executive vice president Larry Fitzgibbon wrote:

As might be expected, a content library as diverse as ours saw some content go up and some go down in Google search results… It’s impossible to speculate how these or any changes made by Google impact any online business in the long term – but at this point in time, we haven’t seen a material net impact on our Content & Media business.

It remains to be seen if the changes will have any impact on traffic and revenue at Demand, which recently executed an IPO, but Fitzgibbon played down the company’s focus on search traffic.
Demand also measures success based on metrics such as direct navigation, repeat visits and traffic from social media, he wrote.

DomainTools doubles prices, relaunches site

Whois specialist DomainTools has revamped its web site and raised the price of its services.
The price increase is quite substantial. The cheapest paid-for tier appears to be the $30-a-month Standard Membership, a 100% increase on the old $15 basic package.
Existing members have been grandfathered in at their current rates. DomainTools said that it’s the first price increase in five years.
It does appear that subscribers may get more bang for their buck under the new tiers. At least, my subscription appears to be buying me more services than it was before the relaunch.
But that may be because I was never entirely clear what I was paying for. The confusing old “unit”-based pricing has gone, and the new site is a lot clearer about what you get for the money.
Many of the other changes appear to be cosmetic. The site does look a bit slicker than before, while retaining its familiar look-and-feel.
The company also appears to have sorted out its dispute with Go Daddy, which recently started blocking Whois aggregators including DomainTools.
A few test look-ups I did for domains registered at Go Daddy returned full Whois results, not the stubs it was delivering following the block.
Given that registrars are allowed to charge $10,000 a year for access to bulk Whois records, I’m tempted to draw a connection between the Go Daddy situation and the price increase, but I have no hard information to support that conclusion.
UPDATE: I’ve heard from DomainTools that the Go Daddy situation has not yet been resolved.
DomainTools subscribers currently see full Whois records when they search for domains registered at Go Daddy. In order to throttle the vast majority of the traffic the site sends to Go Daddy’s servers, non-subscribers are still receiving incomplete data.
The dispute is evidently more complex than a simple $10k shakedown.

ICANN terminates another registrar

Another tiny domain name registrar has been given its marching orders by ICANN.
Best Bulk Register, which looks to have only a few hundred domains under management, will be shut down March 4, according to a letter (pdf) from ICANN’s compliance department.
The company had failed to pay over $10,000 in fees, and was not providing Whois services as required by the Registrar Accreditation Agreement, according to ICANN.
The registrar’s web site does not currently appear to resolve.
Best Bulk has until tomorrow to pick a registrar to take over its domains, or ICANN will pick one for it.

Gratuitous Go Daddy girl chest shot

I know, I know, I’m an utter hypocrite.
Complaining about the journalistic standards of The Sun in the morning and posting a photo that’s little better than a Page 3 shot in the evening.
I do so only in the spirit of crowd-sourced investigative journalism. And traffic, obviously.

In case you’re wondering, it’s the latest in the series of teaser shots Go Daddy has been releasing ahead of its Super Bowl 2011 commercial.
Note the strategic positioning of “.CO” on the T-shirt.
We’re supposed to start guessing who it is now.
Knock yourselves out.

.XXX demands approval in Brussels

ICM Registry has called on ICANN to quickly give final approval to its .xxx top-level domain contract after its meeting with governments next month.
Company president Stuart Lawley, in a letter to ICANN (pdf), said ICM has “invested extraordinary resources” in its TLD proposal and has waited almost seven years to get into the DNS root.
Its hopes of getting the nod from ICANN’s board of directors in Cartagena last month were dashed, when it was decided that a final consultation with the Governmental Advisory Committee was required.
That consultation is set to take place in Brussels at the end of February (although ICANN’s announcement of the meeting last Friday conspicuously made no mention of .xxx).
Lawley writes:

ICM Registry urges the ICANN Board to fulfill its explicit commitments to ICM Registry and to the ICANN community, and to uphold the integrity of the ICANN process by conducting and completing its consultations with the GAC
…
Neither ICM Registry nor the ICANN community can be expected to stand by while ICANN allows yet another self-imposed deadline on this matter to come and go without a plausible explanation.

The letter notes that it’s almost a year since ICANN’s Independent Review Panel told the organization that, despite its protestations to the contrary, .xxx had already been approved.
Lawley tells me ICM is spending, on average, $100,000 a month to keep the company ticking over. He believes that the proposed registry contract has dealt with all of the GAC’s concerns.
The one concern it will never be able to avoid, of course, is that .xxx is for porn, and there are plenty of governments (be they Middle Eastern theocracies, communist Asian states or conservative Western democracies) opposed to porn in principle.
The GAC said in an official Communique in 2006 that “several members of the GAC are emphatically opposed from a public policy perspective to the introduction of a .xxx sTLD.”
As far as I can tell, that’s pretty much the only major stumbling block remaining before ICM can sign a registry contract.
UK GAC rep Mark Carvell told me yesterday that the GAC believes the 2006 statement constitutes “advice” that ICANN is duty-bound to take into account, even though it was not a consensus GAC position.
In my opinion, ICANN has no choice but to disregard this advice.
If we suddenly start living in a world where the public policies of a handful of backward nations are sufficient to veto a TLD, then we may as well pack up the whole internet and move it to Saudi Arabia or Utah.

Verizon subpoenas DirectNIC whistleblower

Verizon has subpoenaed a former DirectNIC employee as part of its ongoing cybersquatting lawsuit against the domain name registrar.
Mark Deshong filed a “whistleblower” suit against his former employer – Keypath LLC, which he said shares ownership with DirectNIC – last August, but it was quickly settled out of court.
He alleged Keypath was engaged in a fraudulent domain arbitrage scheme using Yahoo Search Marketing and credit cards applied for in the name of bogus companies.
Keypath’s lawyers (who denied the links to DirectNIC) in turn accused Deshong of trying to extort the company for a larger severance package. The case was settled in October.
Now, in a Florida court filing (pdf), Verizon said it has subpoenaed Deshong for information related to its own case, which is currently tied up in pretrial discovery arguments.
He was scheduled to provide a deposition on Tuesday.
Verizon claims DirectNIC engaged in cybersquatting via shell companies such as Kenyatech/Kentech and Belize Domain WHOIS Service.
While there’s circumstantial evidence connecting the companies, CEO Sigmund Solares signed a sworn affidavit in a previous case denying Kenyatech and DirectNIC were affiliated.
Verizon’s interest in Deshong appears to be limited to information about DirectNIC’s ownership structure and its affiliations, rather than his allegations about domain arbitrage practices.

Surge in new domain registrars

ICANN is seeing a spike in newly accredited domain name registrars.
Since the start of the year, the organization has approved 16 new companies, compared to only about 40 in the whole of 2010.
About half a dozen of the new registrars appear to belong to domain investor Andrew Reberry of TurnCommerce, which owns domains such as Glossary.com, Bulldozers.com and Fluff.com.
Many of the others were accredited yesterday and have very generic registrar names, such as Host Name Services Inc, International Registration Services Inc and Online Name Services Inc.
There are no web sites associated with this latest batch yet, but I’d be surprised if many turn out to have sought accreditation with customer-facing domain services in mind.
This is pure speculation, but I wonder if any of this may be related to ICANN’s recent decision to loosen the restrictions on cross-ownership between registrars and registries.
If and when ICANN opens up its new top-level domains program to applications, which could happen as soon as August, potential registries will also be allowed to own registrars.
Could the market for flipping accredited companies return? It’s happened before, but it may not be the most efficient or economical way of achieving accreditation nowadays.
The uptick in newly approved registrars may of course just be an anomaly.

Network Solutions will sell .xxx domains

Network Solutions has become the first big-name registrar to show that it will support the proposed .xxx top-level domain.
This page has recently appeared on the NSI site, accessible from the company’s home page through the link “.xxx Coming Soon”.
NSI appears confident that ICANN will approve the TLD soon:

.XXX will be launching shortly and Network Solutions is working with ICM Registry to provide informational services for our customers that wish to take advantage of the launch and register domain names.

The TLD is currently being tied up by ICANN’s Governmental Advisory Committee, but many believe it’s likely to be a shoo-in at the San Francisco meeting in March or sooner.

eNom named “worst” for badware

Demand Media-owned eNom has been fingered as the worst company when it comes to hosting “badware”, according to the latest quarterly report from HostExploit.
The report puts eNom at number three in its overall league table of hosts involved (albeit generally unwittingly) in supporting malicious activity online, up from seven in the third quarter.
HostExploit conducts meta-research, looking at a number of factors (such as phishing and spam) normalizing and weighting data provided by a wide variety of sources.
eNom’s position on the list is based almost entirely on its ranking under the “badware” metric, which uses data supplied by StopBadware.org members Google, Sunbelt Software and Team Cymru.
Broken down by category, eNom scored 944 out of 1,000 in the fourth quarter, using HostExploit’s scoring system for badware. The network ranked second scored only 594.
What is badware? The report says:

Badware fundamentally disregards how users might choose to employ their own computer. Examples of such software include spyware, malware, rogues, and deceptive adware. It commonly appears in the form of free screensavers that surreptitiously generate advertisements, malicious web browser toolbars that take browsers to unexpected web pages and keylogger programs that transmit personal data to malicious third parties.

Other major domain name companies also rank in the top 50 worst hosts; 1&1, Oversee.net and Go Daddy occupy positions #35, #36 and #37. Google is at #28.
The HostExploit report appears to have been funded by the Nominet Trust.

Go Daddy files UDRP on “Mad Dog” host

Go Daddy has filed a UDRP complaint against a web hosting company that uses a similar brand to sell domain names, maddogwebhosting.com.
The domain appears to have been used by a small-time hosting reseller for about two years. Its mailing address is a flat in south London.
But Go Daddy subsidiary Mad Dog Domains, which also sells hosting, has been around for longer and appears to have a trademark on its brand.
It’s not really an open-and-shut case by UDRP standards, given that Mad Dog Web Hosting appears to be a legitimate site, but I suspect Go Daddy has a reasonably good chance of prevailing.
We’ll have to wait for the ruling to be made and published by WIPO to find out the full details.