Google announced yesterday that Google Adsense will start looking for domain names that are repeatedly registered and refunded – a practice known as “domain tasting” or “domain kiting” – and as of February 11, 2008, will begin blocking Adsense ads from appearing on those domains.
Domain tasting is the practice of registering a domain and testing its marketability during the five-day grade period during which the registration is eligible for a refund. Income is generated by placing Google Adsense for Domains on the newly registered sites. On January 24th, 2008, Jay Westerdal of Domain Tools reported that “It was disclosed in court that one partner that Google had was generating as much as $3 million dollars a month from the practice and that was after Google’s revenue share“.
And the practice is extensive. According to Wikipedia, “By February 2007, the CEO of GoDaddy reported that of 55.1 million domain names registered, 51.5 million were canceled and refunded just before the 5 day grace period expired and only 3.6 million domain names were actually kept“.
Although I'm always thrilled to see a reduction in web crap, I can't help but wonder if Google's recent lowering of Adsense referal bounties (from $250 to $100) and eradication of the $2000 bonus was implemented to somewhat offset what they'll lose by by killing off the domain tasters. Goodness forbid that honest marketers should make a few pennies when the big revenue generators (profiteers) are removed from the mix.
What do you think?