Domain speculation

Domain speculation seems to be on the increase according to an article at CBRonline.

The increase in domain speculation is down to registrations by individuals or companies that intend to place pay-per-click ads relating to the domain names on a landing page. The idea being that if the income generated is greater than the cost of the yearly domain registration cost, they make money.

These speculators are using the Add Grace Period rule giving them a 5 day period they can use to test the domain names potential.

According to the article there are a substantial number of domains that end up getting dropped by the speculators due to poor performance.