Domain Kiting
You probably are already aware of the term domain kiting, but in case you are not aware, here’s a rundown.
* A domain kiter will set up shop by placing a large deposit at a registry (like verisign).
* The kiter will then register as many domains as it can afford based on the deposit. These domains are based on misspellings of common domains, company names, trademarks, catch phrases and the like.
* The kiter will use the domain to put up farms of link pages that drive ad-revenue.
* Since the registries allow a 5 day grace period to cancel the domain without penalty, the vast majority are canceled with no money charged.
* The domain can be immediately re-registered with no penalty in most cases. Amazingly, the registries allow this practice.
You can see that even modest success by the kiter could make it profitable. According to Mr. Parson’s, of the 35 million domains registered in May, 32 million of them were part of this kiting strategy.
http://mkruger.cfwebtools.com/index.cfm/2006/8/11/domain.kiting
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