Testing a niche Without being Slapped?

I want to start a new niche, so I decided I would do a simple "mini site" of 5 pages, just to test out some keywords. However, about 3 days after I've put it up google raised my minimum bids from 0.3$ to 5$, obviously a slap.
Now, I know this site is of very poor quality (even though 50% of the ads generate about 1+% CTR).
BUT
I read many times before that before starting a site you should test out the niche with a simple landing page, or a direct linking campaign.
How do you do that? How is it even possible if 60 hours after launch you get slapped to oblivioun?
Do you have a "garbage" domain you do all the testing on?
Is my domain "Lost" now, and i need to buy a new one just to continue testing? I didn't get enough traffic for any proper results, and I have no idea what I am supposed to do to test a niche....
This is frustrating, because I assumed I would get SOME breathing space from google before it raises my bids so high.

"Now, I know this site is of very poor quality "
Your words, not mine...Apparently Google agrees?
Have you inserted your main kw's into your page title, meta tags, alt image tags, anchor text, ad copy?
If you have, and remain consistent by using those kws in your adwords ad copy, I would guess your site is promoting a niche already red flagged in their system, such as online surveys or some bogus health product that has been complained about directly to google by THEIR non paying customers, the ones that use the search engine to find what they're looking for online every single day, and will rightly complain when they feel they have been screwed.
Does that make sense?
Barry
Yeah, ok, I've been slapped by google once, no need to add to that....
I was naive enouph to think that I will have some sort of "breathing space" from the time I put it up to the time google slaps me to oblivioun, but I guees I was wrong.
I was also wondering if others actually managed to put up a "mini-site" of 4-5 pages and run it as test without being slapped at all or punished because they don't have a full functioning site.
I guess the answer is "yes" then...