Domain kiting is the process of deleting a domain name during the five-day ‘grace period’ and immediately re-registering it for another five-day period. This process is repeated any number of times with the end result of having the domain registered without ever actually paying for it.
The process of kiting is seen as abuse of the ‘domain tasting’ process and is hugely frowned upon by the majority in the domaining industry.
‘ICANN’ has recently (January 2008) introduced a fee for registered domains. This fee (usually around $0.20) has now been made non-refundable even if the domain is deleted within the five-day ‘grace period’. Many hope that the introduction of this fee will have a positive affect and reduce domain kiting.
Google has recently said that their AdSense program will now look for domain names that are repeatedly registered and dropped. They say they will drop these domains (but they don’t mention banning the users) from the AdSense program.
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