Here's an old post on search engine roundtable that claims google's policy is to discount previous backlink juice when a domain changes ownership.  I'm not convinced whether this is actually true or something Google says to discourage excessive domain buying / 301 redirecting for SEO benefit.  The comments above seem to give varying opinions on this matter. Would be great to get to the bottom of that one!
A variety of things can happen to a domain once it expires. It can be renewed by the registrant, be purchased at auction, return to the registry (the master database for domain names), or become subject to domain squatting. Before any of those things happen, the party who was leasing the domain (the registrant) will usually have opportunities to buy back the rights to use their expired domain name. However, it's much simpler to renew the domain name before it expires.
Hey , Nice Article . Just have one query . I read your article and the issue is I want to buy one expired domain which is too good but how can I fill the reconsideration request as the domain is banned . I have not purchased the domain yet because I want to purchase it when the domain gets unbanned . So if you check Google.com/webmasters/tools/reconsideration – Requesting reconsideration of: which is only showing the websites I have in the account .. So how can I add the domain name there . OR first of all I have to buy the domain add in GWT and then send reconsideration request . If that is so then I guess you should have mentioned in the article I suppose ? Let me know thanks

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If you buy keyword specific domains, you're really buying the type in traffic.  I use the URL builder and redirect through that URL so you can see how much traffic your getting from the keyword domain.  There seems to be no rythme or reason to what keyword domains deliver traffic and what don't.  By tracking traffic with the Google URL builder you get a feel for what names are giving you traffic and which are not. ie. the plural, the singular, two words, three words, the possessive, etc.

Let's face it, if you want to make money off the internet, you have to wrap your mind around one central rule: no traffic means no money. Making money online is all about being able to generate traffic from social media sites, search engines, and all other sources of online traffic. It's impossible to make money as an affiliate if you don't have traffic to convert into cold hard dollars. There are, of course, many ways to generate traffic. You can write content and organically attract search engine traffic. You can post a unique blog post on willing third party blogs and enjoy direct traffic along with SEO benefits. You can also promote affiliate links on social media platforms and get traffic that way. In fact, if you really think about it hard enough, generating traffic is really not that difficult.
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.
The great thing about this is that it’s kind of like a metasearch engine for all the places that you can find expired domains around the web. First, let’s look at deleted domains. Okay? To do that, you go click on the deleted domains button here and then click on any top level domain that you want to get. I prefer .com because it’s obviously the most common top level domain.
Here’s examples of some of the other domains I remove from the list, domains that end in; .weebly.com .wordpress.com hop.clickbank.net .tumblr.com .webgarden.com .livejournal.com .webs.com .edu .yolasite.com .moonfruit.com .bravesites.com .webnode.com .web-gratis.net .tripod.com typepad.com blogs.com rinoweb.com jigsy.com google.com squarespace.com hubspot.com .forrester.com
The better quality links (From Google, Wikipedia) that a website has the higher will be its domain authority. New websites start with a ranking of one, and as the number of links increase the domain authority rises. For example, a sports website that has links to sports newspapers and sports reporting sites will have a higher domain authority than a sports website that only has links to other sports and sports blogging sites.
Lets look at some settiings, so you could enter a list of websites to crawl for expired domains on, or you can enter a search query say you're looking to form a pbn to boost your money site, that's about horse riding or something you could put horse riding down there and then it'll search, Google for horse riding and then crawl all the domains that Google brings back to you. Then we've got endless crawl and you basically you put in a few seed websites and then it will just crawl endlessly from those websites. So it will take all the domains off those websites. First they'll check whether they're expired or not. If they're not expired, then it'll start crawling them and then it will crawl the ones it finds from them and so on so on and so on. It will just keep going ok.
The second option requires a bit more time and effort than a 301 redirect. You could do a mini overhaul of the site and turn it into a microsite for your main domain. This option is good for exact-match domains for your targeted keyword, and there are other reasons for going the microsite route that Rand's highlighted in his post about root domains, subdomains, subfolders and microsites. This strategy also works better if the old domain has decent rankings for the keywords you're targeting.
Okay, so let's run it. I'm just going to copy those in there to give it a bit of a kick start, but I'm on modern fiber UK fiber, so that might actually be too slow still, but yeah just trial and error with the amoount of crawlng threads, because it depends what kind of resources your PC has, and what kind of connection you're on. Okay, so we'll come back in a minute, oh by the way also, you can get the DA and the PA for each result for any of the crawl types. As long as you put in your MOZ key in the settings, so I just paused the video because I want to play around with the settings, because I haven't used this on my home fibre and I found on my UK fibre, these things worked pretty well but, like I said it will vary from connection to connection and machines to machine as well. So because I want some results to show you pretty quickly. I swapped it for website list and we're going to crawl some directories because they're always really good for finding tons of expired domains.

Then the number is an HRL so it’ll be quite a bit different then you’ll see an expired domains because domain pop service is not very good compared to HREFs. Usually this shows about 20 percent of the total lengths. This shows more like 80. Okay? As you can see it has actually 162 referring domains which is quite a lot better than we saw in expired domains.
Finally, we’ll look at a bit of a different animal in the expired domains world and that’s pending delete. To do that just click on the pending delete button which is right next to the Go Daddy Auction’s button. What this does is it shows you domains that aren’t quite deleted yet. So, they’re right before they get into this deleted category in expired domains. They’re going to be deleted, so they haven’t been renewed by whoever registered them, so they’re going to get dropped.
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What I like to do is sort by DP which stands for domain pop, and this is basically the number of linking root domains. So, BL is the number of back links. As you know that can be somewhat misleading if they have a lot of site wide links or multiple links from the same domain. I like to sort by domain pop. What that does is it brings up the sites with the most amount of referring domains.
Of course, this does not happen equally across the board. Some site owners are lazy and barely put in any effort. As you can probably tell, the four situations I outlined above probably will not occur for website owners who are lazy. Now, for website owners who put in the work and the time for their online properties, you can bet that they would get to benefit from the four situations outlined above.
Thank you so much for giving everyone such a nice chance to read from this web site. It is always very sweet and also jam-packed with amusement for me and my office co-workers to search your site minimum thrice every week to learn the newest guides you will have. And of course, I’m just certainly astounded with your effective advice you give. Certain 1 areas in this article are in fact the most impressive I have had.

Lets look at some settiings, so you could enter a list of websites to crawl for expired domains on, or you can enter a search query say you're looking to form a pbn to boost your money site, that's about horse riding or something you could put horse riding down there and then it'll search, Google for horse riding and then crawl all the domains that Google brings back to you. Then we've got endless crawl and you basically you put in a few seed websites and then it will just crawl endlessly from those websites. So it will take all the domains off those websites. First they'll check whether they're expired or not. If they're not expired, then it'll start crawling them and then it will crawl the ones it finds from them and so on so on and so on. It will just keep going ok.
Domain name search results appear as you type. We can do domain lookups very quickly, and usually show domain search results in less than 100 milliseconds. We generate domain names and check .com and many other domain extensions instantly. We use artificial intelligence techniques to find domains for sale that you can buy today and expired domains to backorder. Just start typing!

If you buy a dropped domain from Snap or Namejet, the backlinks seem to be worthless for SEO.  They are valuable for traffic if it's targeted to your site.  Go ahead and 301 redirect into your site because it's the traffic from the back links that is worth something.  I use the Google URL builder to redirect these names so you can see the domain the traffic is coming from.
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.
Domain Hunter Gatherer gives you a lot of options when it comes to getting a starting point for your drop domain search. This amazing tool also makes filtering drop domains so much easier. You have to understand that the vast majority of drop domains out there are complete junk. You have no business buying them. Unfortunately, if you don’t know how to filter correctly, most of these domains would look very attractive. You end up wasting your money on domain names that do not recoup the dollars you invested in them. Domain Hunter Gatherer makes filtering so much easier. It incorporates Moz and Majestic API support without requiring you to have an account on those services*. It quickly lets you know how many social media mentions a particular domain has, it lists out the number of backlinks that the domain used to have, and so on down the line. It's a very fast piece of software because it is multi-threaded. Finally, once you've identified certain domains you'd like to track, you can save them very easily. If you are looking to take your online income to the next level, you should definitely get your copy of the Domain Hunter Gatherer today. It will definitely make your life easier.
If it contains any of those, then I am going to crawl it. Otherwise, I'm not going to because it's probably just something like an Amazon listing. Okay lets move on to the endless cruel. So this is the endless crawl. Basically, here you put your seed websites, one will do if it's a big website, because there's probably loads of domains on it. If it's a tiny, tiny a website, then you might want to stick a few more in so, as I was saying before, it will crawl on all the pages on these websites and then for each external domain that it finds on that website. It will check whether it's expired if it's not expired, it'll try and crawl it and then it will start the loop again, it'll try and take all the domains from there check that they are expired.
GoDaddy Auctions is a marketplace where GoDaddy lists domains that have expired and are in the renewal grace period. Apart from these GoDaddy also lists other domains, but the expiring auctions at GoDaddy are the most popular. Based on the percieved value of the domain, domainers and SEOs bid on these auctions. If the original owner does not renew the domain, the top bid wins the auction and gets the domain name.
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