In his "Domain Tools" blog, Jay Westerdal said a confidential source said Google will stop monetizing domains that are less than five days old.
"The ‘Add Grace Period' is a time period when registrars can delete a domain at no cost, but in this time frame, a registrant could register millions of these temporary domains and place Google Adsense for Domains on them," he wrote. "The result is the ability to produce millions of temporary websites that literally generate millions of dollars in income per week for Google."
Westerdal said it was disclosed in court that one of Google's partners was generating as much as $3 million a month from the practice, and that amount was after Google's revenue share.
Several companies, including Oversee.net, have used this practice for years, and, if true, the policy change could have a major impact on them, Westerdal said.
"The gravy train of free money might be coming to a halt very fast," he wrote. "This policy change at Google should be announced to the channel partners soon, and it will have a huge, echoing impact on the industry."
While Google is not the only company offering alternative advertising programs for domains, it is one of the largest.
There is no information in Westerdal's blog to indicate whether the "confidential informant" is an insider with Google or when the proposed policy change might take effect.