Arbitrage and Domain Names

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it's been around for ages, actually.
nothing new here.

35 million names registered in May. Only 8% of registrations were paid. 32 million were part of a scam. It's called "domain kiting."

"In a nutshell, here's how domain kiting works.
Domain kiting registrars put up mini-Web sites — loaded with search engine links — for domains names for which they never pay. When people land on these Web sites and click on the links, money is made. It's easy to spot one of these registrars as the number of total registrations they make often far exceed the number of permanent registrations — or names for which they actually pay. This is why during the month of May 2006, out of 35 million registrations, only a little more than 2.7 million were permanent or actually purchased. The vast majority of the rest were part of the domain kiting scheme. "
 
wow. I heard about this before never knew it was so common. How difficult is it to do? can you do it with regular registrars?
 
Most registrars won't allow someone to kite domains over and over - especially a large amount.

One would need a large capital to get started in domain kiting and any "ethical" domain registrars are actively fighting the practice (i.e. GoDaddy)

Personally, I hate domain kiters. Either use it or fuck off.
 
These "domain kiters" are in a league of their own. They have large sums of $$$ and resources to pull this shit off and make it pay. And it isn't about registering only 100 domains a day. More like thousands of domains a day.

You could use this information to your advantage though. Here's a tip: Always when considering a domain to purchase from the deletion pool, make a list of the domains you want. If you could grab them when they become available great (which I doubt because of the kitters) . If not keep your list and check on them from time to time. More often than not they will become available. As these kitters have given up on it and moved on.
I purchased 3 domains like this in December and sold them from $600 to $1200 each in January. You just need to know what to look for. Enough said. Good Luck.
 
Here's another tip... Network Solutions has a link to domains that have expired (or are about to expire) or are on hold waiting release for re-registration. You can download the entire list as a CSV file. You can probably find a few you like in that list, and either put in a back-order request or wait a month and see if they've been released.
 
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