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Domain kiting was very popular about 1 - 1.5 years ago. The biggest players in the game were the registrars themselves, who would catch domains coming off of registration, dump them onto parking pages, and keep them registered for a few days to see what their income level was. If the domain passes the test, it would get paid for, otherwise it would get dropped entirely.
The registrars got smarter. Now they put the domain on hold and put up a park page that says this domain hasn't been paid for. So instead of kiting the domain, they just hold it and take income while it sits, and if it makes enough money, they snap it up at the end of the expiration hold period. If it sucks, it actually drops.
Some companies also do this with the twist of putting the domains up for sale or auction, basically getting money from both ends, taking parking money while the domain is parked, and then taking the profit when it sells (usually anywhere from 5 to 100 times more than the profit from a standard .com registration), often selling them off before they even have to pay for them.
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