I had a client send me some information about Domain Tasting and wanted to share what I have found out about it.
Domain Tasting is where a firm usually involved in spamming or AdSense Arbitrage buys many domain names from a domain name registrar. They then set up Google AdWords programs pointing to these domain names and use them for five days. Before five days is up, the user then returns the domain names that have not generated income to the registrar for a full domain name refund.
I had never heard of this most likely because my firm is only involved in legitimate business dealings. I asked the staff at www.GoDaddy.com about this specifically. GoDaddy.com told me that yes the five day grace period does exist and is honored by ICANN. A domain can be refunded during that period. But GoDaddy.com told me that domain name refunds are done on an individual case by case basis. If a number of domains were returned for refund or refunds requested on a regular basis, the account would be red flagged. GoDaddy at that point may choose not to allow the refund for the domains purchased or may choose to close the account or not have future dealings with the person involved in Domain Tasting.
Yes it appears that Domain Tasting does exist, but this is a shady area and one that some people are clearly using to their advantage and by people of possible questionable business intent. It is clear that anyone who is involved in Domain Tasting is not using a main stream registrar and is using one who has questionable business policies.
One good thing for the legitimate business person is that if you spell your domain name wrong when you sign up or realize that you got the wrong ending like .bz instead of .biz, you can quickly get with your registrar and correct the problem.