It's called "domaining", "domain Kiting", or "domain tasting". It is the art of buying domain names and parking them with adsense. I'm sure you know exactly what I'm talking about…so many times, I search for a domain name and see it taken, then I go to the website and find a single page parked with tons of ads on it. Frustrating, isn't it. need an example, look at domaining.com, it's a perfect example.

Domain tasting lets you try a domain name for about 5 days without having to buy it. Spammers have written automatic scripts to register as many domain names as possible. They immediately park ads on the site, and try to get some clicks. If the site does not produce they drop the name, or they drop it and re-register it immediatly…known as "domain kiting". So they can basically keep millions of domain names without paying for them. Of course the process is immediate so there is no chance for you to try to get a one of these domain names when they expire.

The spammers throw away the domain name if they do not generate any money, so how much does the domain need to generate in order to be kept? try $6 a year…not a day, not a month, $6 a year. Of course multiply that my thousands of websites and you are making some serious money.

With up to six million names tied up at any given time through a practice known as domain-name tasting, individuals and businesses are having even greater difficulty finding good names, particularly in the already-crowded dot-com space.

The practice has spiked, with an average tasting of 1.2 million names each day in December, compared with 7,200 two years earlier, according to data from Name Intelligence, which analyzes domain name patterns. Legitimate registrations made up 2 percent of the registrations at the end of 2006, down from about half in 2004.

Source: International Herald

Here is some good information about domain parking: Netbusinessblog.com 

How do you get an expired domain…old story, but a good read: expired domain auctions 

Bottom line is this, if it can earn 2 cents a day it can provide 6% ROI, at 3 cents a day that's a whopping 60% ROI and that's the bottom of the barrel, look and you can hand register much better than that daily.
Source: Webmasterworld forum on parking

so next time you try to get a domain name and find them all taken, just know you are not alone. 

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