Do building sites on expired domains help?
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Many times I have wondered whether building sites on expired domains, which are sold at popular domain auction websites like TDNAM(Godaddy),SEDO etc. Is it of any worth ? Buying domains with existing parameters such as PR,Alexa ranks etc. and already indexed pages where these expired sites rank on keywords which one is looking forth and then building sites on these domains to promote your other sites. How successful would this trick be?
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I bought the expired domain of a competitor a year or so ago and redirected it to one of our main domains and it's done us fairly well. Unfortunately they left quite a few unhappy customers so there has been a bit of PR firefighting to do, but overall it's positive. If I were going to do it again I would have done a lot more research, I was just sloppy.
MaryAnneG is absolutely right, you need to do a lot of research before you buy one, there are plenty of people out there artifically making their domains look much better than they are.
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In theory, I believe Google drops PR if the domain expires. In practice, people have been successful with this tactic in the past...
A safer bet would be to buy the domain at auction before it actually expires. Word of warning: Some sellers resort to blackhat tactics to falsify TBPR and artificially boost traffic/Alexa stats so they can "pump 'n' dump" the domain. Do your homework and make sure what you're buying is the real deal.
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