I got this from the web, it pretty much explains it ...
"Domain Kiting if you haven’t heard of it before, is the practice of registering a ton of domain names for five days, during which time you put up a bunch of made-for-Adsense (MFA) popup sites, then exploiting a systematic loophole to cancel the registration, get a refund, and re-register the domains a few milliseconds later. Basically, you get a free domain for five days, during which time you can measure whether it gets traffic and generates revenue. If it does, you either cycle it through another five days, or, if it’s a big money-spinner, register it properly (actually paying for it). "