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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.
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.
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!
Everybody going to start using old domains should also know how to get them, I'm going to post soon article about it on seomoz as there are several ways starting from online rankings and lists up to dedicated seo tools that you can run on your computer and get precise and actual data on demand for any domains lists. Anybody intersting in such tools please visit our website: http://en.exdomain.eu/
Why does this matter? What's the big deal? Well, unfortunately, the vast majority of domains registered are eventually abandoned. For some reason or another, people just fail to re-register or renew their domain name and that domain name drops or becomes available to the public. Of course, the obvious reason is that these people simply did not make money off the website that they put up with that domain. Other bloggers and website owners simply don't have the time, so they just gave up on their online projects. Whatever the case may be, by simply registering these expired domains, you can resurrect the value they bring to the table. With the four situations that I outlined above, you can benefit from those situations by simply registering a drop domain.
Sir I am a newbie and a lot interested in doing this business but I don’t know fron where and how to start it. How to purchase where I have to pay and how I have to pay all sort of questions are there in my mind. So sir if you could email me the details then it would be of great help. Its been months searching but I hadn’t purchased any domain yet.
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.
When a domain name that was previously registered expires, it goes through a grace period that allows the previous registrant one last chance to reclaim their domain before it becomes available to new buyers. If the previous registrant still has not renewed their domain after the 77 day deletion process, the domain name will officially expire and enter the Aftermarket.
Especially each and every Domain Name always renew after a year. While People make mistake sometimes or forget to renew their crucial domains. Therefore, these domains are available to purchase by others. Users spend years and lots of money in building and marketing their website. If they suddenly shut their business or don’t want to maintain their website anymore. As a result, these sites have considered Expired Domains. And you can pick up anyone. These domains may have high residual traffic, backlinks, and history. Hence, you can take advantage of these domains.
One of the ways to make the most of this strategy is to sign up for Mobidea. Whatever expired domain you may have, there are high odds that Mobidea would have an offer that’s relevant to your domain’s niche. You simply host your website on the expired domain, place Mobidea’s offers on your website and whenever you make a sale through your website, you receive an affiliate commission!
If you buy a domain from a 3rd party, the backlinks are valuable.  I always wait a few months before redirecting, so just set up a quick minisite until two page rank updates have passed and then go ahead and 301 redirect.  However, it seems that you'll get the link juice from the back links, the anchor text is ignored by Google.   Buying a domain at Godaddy TDName expired auctions, seem to not count as a dropped domain if you immediately set up a mini-site.
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.
Why does this matter? What's the big deal? Well, unfortunately, the vast majority of domains registered are eventually abandoned. For some reason or another, people just fail to re-register or renew their domain name and that domain name drops or becomes available to the public. Of course, the obvious reason is that these people simply did not make money off the website that they put up with that domain. Other bloggers and website owners simply don't have the time, so they just gave up on their online projects. Whatever the case may be, by simply registering these expired domains, you can resurrect the value they bring to the table. With the four situations that I outlined above, you can benefit from those situations by simply registering a drop domain.
While getting a new domain name will give your site a clean slate and allow you to start a fresh marketing campaign, you may not be aware of the fact that some expired domains come with a high Page Rank value. A company that buys such a domain will not have to work so hard on website promotion and backlink building techniques. Thanks for updating this really informative post!

Since high quality expired domains are in low supply, the huge numbers of marketers competing for those drop domains tend to drive prices up. Also, if you use an exchange, you’re basically lucky to get whatever you can afford. In other words, niche specificity isn't guaranteed. This is going to be a problem because as Google continues to evolve, it is cracking down on domain niche relevance. In other words, its software is fast evolving to the point that it can tell what the niche of a particular domain is. If your private blog network is a patchwork of expired domains that involve many different and dissimilar niches, then you might be in trouble. You are at great risk of being penalized by Google.
Your domain name is the greatest tool that can show your presence to the world and hence, you should be very careful while choosing it. Especially, when you have decided to go for an expired domain, you must be all the more careful. Though you may be spending the same amount as you would be doing when you buy a new domain name, your aim of having a head-start in your field will not be served if you choose a wrong expired domain. Only if you bestow utmost attention while choosing a good expired domain, you can achieve this aim.
Thousands of domain names expire every day. The reasons are different. Some owners forgot to renew the domains, some just don't want them anymore or they moved on to other projects. For most people these so called Expired Domains don't have any value. They just see a bunch of Domain Names someone else deleted and move on, but for the people who know about SEO or the value of good Backlinks, Expired Domain Names are money just waiting to get picked up from the street. The only problem is to separate the good ones from the bad ones. That is where ExpiredDomains.net comes into play.