|Domain kiting is now dead. There is no longer any way to register and drop a domain without incurring a fee. Tasting operations now have a higher cost to operate, but they have not been stopped.Google And ICANN Did Not Kill Domain Tasting; Domain Kiting and NSI Front Running DOA|
Domain tasting operations register bulk batches of domain names and keep the domain name that they believe will make them a return and delete the rest. Often times the taster will use a search company to place ads on the domain for that 5 day period in order to assess whether a domain name is worth keeping. Currently if the domain is deleted within the 5 day window there is no fee involved. This led to the abusive practice known as domain kiting. The kiter would register a bulk list of domains and keep them for the 5 day period and then delete and re-register the domain for another 5 day period, never paying for the domain or a fee. The practice does tie up large sums of money, as the registry requires registrars to prepay for registering domains.
According to an ICANN report, 94% of all .com registrations in January 2007 were deleted.