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02|12|2008 03:19 pm EDT

Yahoo! to enforce Anti-Arbitrage rules for Domain Parking Companies

by Frank Michlick in Categories: PPC industry

As per an email we just received from Parked.com, Yahoo! has warned the parking companies using a Yahoo! feed that they need to enforce the anti-arbitrage (“no paid traffic”) rules in the future.

Parked.com had been the only parking company we were aware of that was able to allow small targeted amounts of arbitraged traffic.

The email references the parked.com terms of service:

“All other types of traffic including bought traffic, traffic driven by PPC campaigns, traffic directed from hyperlinks are not permitted. If your traffic originates from any sources other than type-in and search engine traffic, you will not be entitled to payment as per this Agreement. Regular checks are carried out and we reserve the right to suspend any domain from our Service at any time, on our sole discretion, if we reasonably believe that you have violated this Agreement; for example, if we suspect that the traffic on your domain is bought, generated or redirected in any way that contravenes these terms and conditions.”

The email goes on to say:

Accordingly, all arbitrage must stop effective 1pm PST on Thursday, February 14, 2008. Even though arbitrage will no longer be allowed, all accounts will still be paid.

With more and more feed providers being very strict about the quality of traffic, it appears that re-registered expired domains might be a future target of similar changes. Most of the parking companies’ agreements state that traffic that originates from hyperlinks is not acceptable either.

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