Lessons for the Domain Name Industry — Bernie Madoff
What we can learn from the Bernie Madoff scandal.
If there’s one thing lacking in the business world these days, it’s trust. You can thank a lot of people for that, counting Bernie Madoff. Madoff stole over $50 billion of his clients’ money. Here are some lessons from the Madoff scandal that can be applied to the domain name world.
Even the best registrars ought to be watched. Madoff managed to push aside any attacks on his investment operations. He was considered an upstanding member of the community and was even the former chairman of the NASDAQ stock exchange. Madoff was never a good person, but he managed to get to high places and live a lie. That’s one of the reasons I’m glad ICANN’s proposed fresh registrar accreditation agreement includes the right for site audits. ICANN ought to perform site audits on registrars, and not just ones it suspects of wrong doing.
Don’t trust someone just since someone else does. Just since someone you know has done business with a particular domainer, don’t let your guard down. If you’re uncomfortable in a domain transaction, ask to use an intermediary or escrow service. Never let someone tell you “c’mon, you have nothing to worry regarding. Just wire me the money.”
Do your own due diligence. One thing I’ve noticed regarding rich people is they tend to pile into something like lemmings. They never want to be the first person to join a club or make an investment, but once someone else does they assume that person did his or her due diligence. Ahead of entering into a domain transaction or using a service, do your own due diligence.
If you think of any other lessons in this scandal that can be applied to domaining, please comment.
