Domain Tasting and Kiting the Rise and Fall of Early Internet Exploits

Domain tasting and kiting are two practices that emerged during the rapid commercialization of the internet in the early 2000s, exploiting loopholes in the domain registration process. Both phenomena played significant roles in the history of domain names, driven by speculative investment and the desire to monetize domain traffic. While they were once widespread, these practices ultimately led to industry reforms and policy changes due to their negative impact on the domain ecosystem and the internet as a whole. Understanding the history of domain tasting and kiting provides insight into how early internet entrepreneurs pushed the boundaries of regulation, sometimes to the detriment of users and businesses.

Domain tasting refers to the practice of registering a domain name for a short period—typically five days—without paying for it, allowing speculators to test its traffic and monetization potential. This tactic was made possible by a policy known as the Add Grace Period (AGP), which was originally intended to allow registrants to cancel domain registrations within five days without incurring a fee. The AGP was a safeguard designed to correct mistakes, such as misspelled domain names or unintentional purchases. However, enterprising domain investors soon realized they could exploit this policy to their advantage.

During the peak of domain tasting in the mid-2000s, speculators registered thousands or even millions of domains for free, using automated systems to analyze traffic and determine which ones were profitable. By placing ads on these temporary domains, they could quickly assess whether the domain generated enough revenue from pay-per-click (PPC) advertising to justify keeping it. If a domain proved unprofitable, it would simply be dropped within the grace period, incurring no cost. If it generated sufficient revenue, the speculator would retain it for long-term monetization or resale. This strategy allowed domain investors to build massive portfolios with minimal financial risk, essentially creating a “try before you buy” model for domain speculation.

Domain tasting quickly became a booming industry, with major players registering and testing tens of millions of domains every month. While the practice was lucrative for speculators, it caused significant problems for the broader internet community. Legitimate users and businesses often found that desirable domain names were perpetually unavailable due to constant cycling by tasters. This effectively locked up large portions of the domain namespace, making it difficult for genuine registrants to secure relevant or brandable domains. Additionally, many tasted domains were filled with low-quality or deceptive content designed solely to generate ad revenue, contributing to a decline in user experience.

Domain kiting was a related but even more aggressive practice that took domain tasting to an extreme. While domain tasting involved dropping unprofitable domains within the five-day grace period, domain kiting exploited the grace period to maintain perpetual control of domains without ever paying for them. This was accomplished by continuously re-registering the same domain as soon as it was dropped, effectively creating an endless loop of temporary ownership. By timing the registration and cancellation perfectly, domain kiters could hold onto high-traffic domains indefinitely without incurring any costs. This practice allowed them to monopolize valuable domains while avoiding the financial commitments associated with long-term registration.

Like domain tasting, domain kiting had a profoundly negative impact on the domain name industry. It created artificial scarcity, inflated demand for certain domains, and undermined the integrity of the domain registration system. Legitimate businesses and individuals were often locked out of the domain market, forced to either pay exorbitant prices on the aftermarket or settle for less desirable names. Meanwhile, kiters reaped the benefits of ad revenue generated by high-traffic domains that they never truly owned.

The rise of domain tasting and kiting did not go unnoticed. By the mid-2000s, industry stakeholders and internet governance organizations recognized that these practices were harming the domain ecosystem and needed to be addressed. The Internet Corporation for Assigned Names and Numbers (ICANN), the organization responsible for coordinating the domain name system, began investigating the issue and consulting with registries, registrars, and other stakeholders to develop solutions.

In 2008, ICANN introduced a policy change aimed at curbing domain tasting. The new rule imposed a fee on domain registrations that exceeded a certain threshold during the grace period. This effectively eliminated the financial incentive for large-scale tasting operations, as speculators could no longer drop massive numbers of domains without incurring significant costs. The policy change had an immediate and dramatic impact, reducing domain tasting activity by more than 99% almost overnight. Domain kiting also declined as a result, as the new fee structure made perpetual re-registration financially unsustainable.

The crackdown on domain tasting and kiting was widely praised by the internet community, restoring fairness and accessibility to the domain name market. Businesses and individuals once again had a fair chance to secure relevant domain names, and the overall quality of the domain namespace improved as speculative activity declined. While the practices of tasting and kiting are now largely relegated to history, their legacy serves as a cautionary tale about the unintended consequences of regulatory loopholes and the importance of proactive governance in maintaining the health of the internet.

Today, the lessons learned from domain tasting and kiting continue to inform policy decisions in the domain industry. ICANN and other organizations remain vigilant in monitoring new trends and behaviors that could disrupt the domain ecosystem. While the internet has evolved significantly since the days of rampant domain tasting, the underlying tension between innovation and regulation remains a constant challenge. As the domain name space continues to grow and diversify, striking the right balance between opportunity and oversight will be essential to preserving a fair and open internet for future generations.

Domain tasting and kiting are two practices that emerged during the rapid commercialization of the internet in the early 2000s, exploiting loopholes in the domain registration process. Both phenomena played significant roles in the history of domain names, driven by speculative investment and the desire to monetize domain traffic. While they were once widespread, these…