Here's a test I have in process.  I bought an old $5 closeout domain from Godaddy TDname expired auction.  I put a quick minisite up and linked to it with a crazy anchor text phrase.  The domain is ranking for that crazy term now.  It's gone through one pagerank update and I'm waiting for a second to come.  Then I'll redirect the domain to another minisite.  I suspect the second site won't rank for the anhor text, but we'll see.  

We are a LauncHUB funded Startup that focuses on big data research of domain names and Whois information. SEO experts can use our unique system for finding expired domains with authority and backlinks. Investigators can use the same database to find information for domain owners and hosts with Reverse Whois and Reverse IP tools. We can also offer brands trademark monitoring in the vast pool of ccTLD domain names.
However, Pool uses what some have called a “two-phase” auction system. This means that once you win your original backorder, Pool will then move you into the auction phase where you compete with other bidders for the domain. Pool doesn’t reveal how many bidders there are or what they’re bidding, so you have to offer the highest price you’re willing to if you want to get that dream domain.
Lately I've noticed a lot of questions in Q&A centering on purchasing expired domains. A lot of our members have expressed interest in buying old domains for a variety of prices (some are cheap, some are going for upwards of $50k) and want some advice on what to do with the domains once they've been purchased. I'm no domainer, nor am I an expert in such a business tactic, but I generally recommend one of three different options for an expired domain (and would love to hear more if you've got any).

Your course of action really depends on how much work and effort you can put into the expired domain. If you're barely able to maintain and optimize your current site, you probably want to just 301 redirect the old site (note: see my amended comment above about the link value not likely to be passed). If, however, you're more creative and have some time on your hands, you can try your hand at crafting a microsite. If you really know your stuff and are experienced at making money off various websites, you'd probably do well with the third option.
Great article on what to look for when buying expired domains! I’ve looked at the domain and page authority of expired domains but haven’t checked if they are blocked by Google like you’ve listed. I haven’t pulled the trigger yet to purchase one (probably good that I didn’t since I didn’t do all my homework) but this will make it easier to finally go. Thanks for the great info!
The other way you could profit off expired domain names is redirecting the traffic to your affiliate link. For illustration, if you have an affiliate link that sells beauty products, and the expired domain name was mentioned or ranked in a high authority website for terms related to beauty products you can redirect the traffic there to make sales. One sale is enough to make you a decent profit.
Much obliged Michael. Extremely supportive data. I have been reached by their specialists and need to pitch it to me for $3500. It just stays there and is not a high esteemed area name. Simply my name. I needed it for quite a long time, however not willing to fork out that sort of cash. Was truly trusting I could catch it consistently when it lapses.
There is a common misconception that domains expire on their expiration date. If a domain registration is not renewed by its expiration date, the domain simply goes into "expired" status, which means all services are shut off. Typically, we provide a 35-day grace period during which the current holder can still renew it for the standard renewal fee. For more information please review our domain deletion policy.
Domain Hunter Gatherer is a specialized software that helps internet marketers to easily find expired domains quickly and efficiently. First, you can use it to crawl multiple domain auction sites. You can easily monitor many different domain exchanges so you can scoop up the latest and greatest dropped domains. Secondly, you can use Domain Hunter Gatherer to crawl Web 2.0 sites. Now, you may be thinking, “I'm looking for drop domains here, what do Web 2.0 sites have to do with my search?” Well, you would be overlooking one of the best ways to add value to your private blog network. While you don't legally own your Web 2.0 site, you can use your accounts to redirect the links to your target sites. The best part is that many people who build up nice looking and high goodwill Web 2.0 pages end up abandoning them. Many Web 2.0 platforms enable people to re-register or claim abandoned Web 2.0 accounts. By using Domain Hunter Gatherer, you can find these accounts and filter them by niche as well as quality indicators and then redirect their links to your target sites. Your private blog network goes up in value because of a more diverse backlink footprint.

From a most basic perspective, any website or platform on the internet that allows people to post a link which goes to an outside site is a potential source of traffic. However, traffic sources are not created equal. Some traffic sources are very problematic. For example, if you were to go to social media sites and just share content and links, chances are, somebody at some time will object to that practice. They would say you’re spamming. It's very easy to get your affiliate account shut down because people complain. Similarly, you could be blogging for what seems like forever and fail to get much love from search engines.

What you really want to do first is scroll down to where it says, referring pages for anchor phrases. All that is is the anchor text distribution to that site. As you can see here this looks like a very natural link profile. Brand name, a product that they had, no text, URL, shopping cart, wireless government. These are the keywords that were related to what that site was about. Okay?
The bottom line is, drop domains deliver traffic. How come? When people register a drop domain and build a website on that domain, they often attract backlinks. They also can update their website and generate a community or a brand. Whatever the case is, there are four things that happen that results in traffic for those websites. They create a backlink footprint, which drives direct traffic. This backlink footprint also produces SEO benefits. The more these website owners promote their website, the more goodwill they build up in their target niches and online communities. Finally, the more they manage their online blog, website or information site, they gain some sort of presence on social media.

Hundreds of thousands of domains expire everyday. While most of them are trash, quite a few are aged domains having excellent backlinks. These can be easily filtered using metrics from Majestic (Trust Flow) & Moz (Domain Authority). These are great for your money sites or for building private blog networks. Some of these domains have natural organic traffic, that can be determined by their SEMrush rank or the SimilarWeb data. These are great for domain parking or for promoting affiliate offers.
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