A few months ago, ICANN decided to combat domain tasting by keeping a $0.20 fee for each registration, regardless of whether the name was eventually refunded. The old system was clearly being abused by large registrars and speculators who were buying domains, tracking them for 4 1/2 days, then refunding them if they didn’t get traffic or make money.

The problem was particularly acute in early 2008 when it was revealed that - at times - as many as 95% of all registered domains were being tasted.

There’s been a lot of speculation about whether this new “20-cent” policy would have an effect on the industry, but two months after the rule change, it’s clear we are seeing a number of changes:

• There are a LOT more decent domains dropping every day, and though they aren’t blockbusters or high search-volume names, many would make great site names, even brands. Actually, some of these names do get traffic, but since they are in emerging industries or are “long-tail keywords,” they don’t show up on the radar of the big tasters who only go after names with known search volume.

• The increase in overall inventory is pushing up the quality of names on drop services like Snap, Pool, and NameJet (as well as discussion boards and auctions) since so many “B-Level” names are no longer being tasted. To illustrate the point, notice how FreshDrop.net just added has a tab called “Reg Fee” that lists recent drops available for… well… reg fee;) And take a gander at the quality of names on free listing services like NameClerk.com and DNXpert.com (not to mention right here;)

• With the exception of premium domains that have established type-in traffic, prices for most classes of names are going down, which is difficult for large portfolio owners and sellers, but creates an opportunity for those who want to invest in domains.

What all this means if that it’s time to start buying again. The increased number of domains available along with the poor economic climate has put a damper on sales, and a number of large domain owners have started selling to generate cash.

Don’t believe me?

• Just look at the sales result from any recent auction and you’ll huge catalogs of pretty decent domains, yet 95% didn’t generate even one bid or meet their reserve.

• Take a trip over to discussion boards like DNForum.com, where amazing names become available every week for $100 - $500.

• Finally, notice how many “private sales” are popping up on NameJet and other marketplaces.

The bottom line is we are entering a wonderful period where you can finally swoop in and get the domains you have wanted for less.

But don’t wait too long, the global economy is driving domaining as much as the US economy, and while we may have a few more years to go in America, the International investing climate could improve much faster.

The time to strike is now!

Smash