"Domain Kiting", a fairly new term coined by GoDaddy.com CEO, Bob Parsons, refers to an outrageous practice, whereby few Registrars take advantage of AGP (Add Grace Period) provision in ICANN (Internet Corporation For Assigned Names and Numbers) rules, to monetize from and block thousands of domain names, without actually paying for them in long run.
The AGP is a five-day window period during which a newly registered domain name can be deleted/ dropped with full refund of registration fee. AGP was introduced to provide a mechanism for Registrars and registrants to correct mistakes, reverse fraudulent registrations. Registrars involved in kiting scam, register thousands of domains against the large amount of money they deposit with Registry. Domains registered are usually the expired ones, which have been indexed by search engine giants like Google, Yahoo etc. Appreciable volume of type-in-traffic is received for these domains, which have now been parked, to generate revenue. Domain Parking presents viable option for domainers to generate revenue from their unused domains, by hosting a single page web site with paid advertisement links. Clicks from visitors to such sites, generates money for the domainer.
Read this full article at Go Daddy
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