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Friday, January 25, 2008

Google Moving to De-monitize Domain Tasting?

Posted by Jim Hedger @ 11:50 am

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Google is rumored to be ending the monetization of controversial but lucrative practice known as domain tasting by ceasing to provide AdWords inventory to domains that are less than five days old. The move would place severe restrictions on the ability of a growing number of publishers to take advantage of the five-day grace period registrars grant domain buyers before registration fees are billed. Publishers use this time test the traffic-drawing potential of new domain names. Google cutting the flow of funds to the millions of burn and churn “made-for-AdSense” sites will ripple through the search marketing sector producing (mostly) positive change.  Change always comes at a price.

Here’s how the practice works. A domainer is a person who acquires a portfolio of domain names. The value of properties in the portfolio is determined by the traffic each draws. Domain registrars give a five-day grace period during registration domain name so buyers can test the marketability of the domains before purchase. Most use the grace period to determine traffic numbers but an increasing number of publishers use those five-days to post throw-away pages laden with AdWords advertising. This way, they monetize their research, keep the domains that convert and delete those that don’t.

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