$3 million a month from domain tasting
p2pnet news | Advertising:- It’s apparently the end of the line for a gravy train of free money.
Domain tasting is, "a practice of registrants using the five-day ‘grace period’ at the beginning of a domain registration for ICANN-regulated generic top-level domains to test the marketability of a domain name," says the Wikipedia.
"During this period, when a registration must 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."
Now, domain tasting could be stopped in its tracks, says Domain Tools Blog.
"A confidential informant says Google will stop monetizing all domains if they are less then five days old," says the story, going on:
The Add Grace Period (AGP) is a time period when registrars can delete a domain at no cost, but in this time frame a registrant could register millions of these temporary domains and place Google Adsense for Domains on them. The result is the ability to produce millions of temporary websites that literally generate millions of dollars in income per week for Google. 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.
Oversee.net and other companies have been using this practice for years and it will have a direct impact on them. The gravy train of free money might be coming to a halt very fast. This policy change at Google should be announced to the channel partners soon and it will have a huge echoing impact on the Industry.
But the quantity of advertising will be spread among fewer domains, "so those domain owners that actually own real full domains should receive more money if bid prices start to rise as a result of this," says Domain Tools Blog, adding:
"However some advocates of Domain Tasting say that perhaps no one will be able to serve the niche for some ads and no one will make money on the unserved ads."
Also See:
Domain Tools Blog – Google to kill Domain Tasting, January 24, 2008
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