Domain kiting

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Domain tasting, or domain kiting, is a practice of registrants using the period at the beginning of a domain registration for ICANN-regulated generic top-level domains to test the marketability of a domain name. During this period, when a registration can be fully refunded by the domain registry, a cost-benefit analysis is conducted by the registrant on the viability of deriving income from advertisements being placed on the domain's web site.

Domains that are retained are usually successful as they represent domains that were previously used and have since expired, represent misspellings of other popular sites, or are generic and may receive type-in traffic. These domains are usually still active in search engines and other hyperlinks and therefore derive enough traffic such that advertising revenue exceed the cost of the registration.

1 Controversy
2 Etymology
3 References
4 See also
5 External links

[edit] Controversy

The practice is controversial as practitioners typically register many hundreds of thousands of domain names under this practice, with these temporary registrations far exceeding the number of domain names actually licensed. In April 2006, out of 35 million registrations, only a little more than 2 million were permanent or actually purchased. The vast majority of the rest were part of the scheme ^[1].

Some claim domain name registries such as VeriSign and the Public Interest Registry have turned a blind eye to the practice as it has dramatically increased the number of registrations secured and renewed. However, this claim is inconsistent with proposals by registries to introduce measures that would reduce or eliminate the practice^[2].

[edit] Etymology

The commonly used industry term for the practice is domain tasting, although Bob Parsons (founder and chairman of GoDaddy.com, the largest registrar) coined an additional term of domain kiting in May 2006^[1].