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Wednesday, 30 January 2008

No more domain testing websites in Google Adsense

A confidential informant says Google will stop monetizing all domains if they are less then five days old. This potential new policy change by Google could stop all Domain Tasting in its tracks. The Add Grace Period (AGP) is a time period when registrars can delete a domain at no cost, but in this time frame a registrant could register millions of these temporary domains and place Google Adsense for Domains on them. The result is the ability to produce millions of temporary websites that literally generate millions of dollars in income per week for Google. It was disclosed in court that one partner that Google had was generating as much as $3 million dollars a month from the practice and that was after Google’s revenue share. Oversee.net and other companies have been using this practice for years and it will have a direct impact on them. The gravy train of free money might be coming to a halt very fast. This policy change at Google should be announced to the channel partners soon and it will have a huge echoing impact on the Industry.
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The Good news is that the Quantity of advertising will be spread among fewer domains now and so those domain owners that actually own real full domains should receive more money if bid prices start to rise as a result of this. However some advocates of Domain Tasting say that perhaps no one will be able to serve the niche for some ads and no one will make money on the unserved ads.

I think this is a return of the “Be Good” motto Google had a few years ago. Google has been quietly enabling this practice for years now. This is a smart policy move on Google’s part to ward off impending litigation that might have hit them in the coming months. Trademark lawyers have been getting crafter at taking down Kiting by suing under other laws. The new weapon of choice is not using Trademark laws but Forgery laws. The penalty for forgery is much worse and cares a much higher fine per article that is forged. Dell, Yahoo, and BMW have all filed lawsuits in the last two months that ask for millions of dollars of damage from Google partners and I think Google sees the writing on the wall, they might be named next.

The question that remains, will Yahoo follow suit and block all advertising on domains less then 5 day old as well? I have a feeling Yahoo will because Yahoo was one of the groups that is suing Domain Tasters using the Forgery law tactic. Most of the big Domain Tasters are using Google ad syndication feeds to monetize the traffic right now and the money will come knocking on Yahoo’s door now.

UPDATE: The new Google policy will go into effect before the end of February.

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