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Domain Name Registration Systems

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DEFINITION: Domain kiting is the practice of repeatedly registering and deleting a domain name so that the registrant can, in effect, own the domain name without paying for it. Domain kiting, like domain tasting , exploits the five-day add grace period (AGP) in the domain name registration system. During the first five days after registering, a registrant can delete a given domain name without charge or penalty.  … 
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DOMAIN NAME REGISTRATION SYSTEMS DEFINITION (continued): … Domain kiting is the practice of repeatedly registering and deleting a domain name so that the registrant can, in effect, own the domain name without paying for it. Domain kiting, like domain tasting , exploits the five-day add grace period (AGP) in the domain name registration system. During the first five days after registering, a registrant can delete a given domain name without charge or penalty. ICANN , the organization responsible for the registration system, has proposed abolishment of the grace period as a means of making domain kiting and domain tasting unprofitable for the practitioner.Bob Parsons, CEO of Go Daddy!, is generally credited as the creator of the term. He chose it as a variation on check kiting, a scam in which funds -- both theoretical and actual -- are juggled back and forth between bank accounts at separate banks. Check kiting takes advantage of the time it takes for the one bank to collect funds from the another bank.
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