Earning by Cybersquatting

Started by Piyush, Sep 07, 2022, 12:20 AM

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PiyushTopic starter

The type of business carried out on the Internet, and implying the registration or acquisition of registered domain names, is called cybersquatting. Experts are still arguing about the legality of the activities of such businessmen.
Some believe that this type of business is quite legitimate from the legal side. And some experts say that such a business is illegal.

The essence of cybersquatting

It is considered that at the beginning of the organization of business in the network and domain registration, the latter must meet the following conditions:

    It must not be occupied by another user in order to complete the registration process.
    It is desirable to have a certain semantic load.

We talked with the some project team about what cybersquatting is, how they earn money on it and other ways to earn money on the Internet. Cybersquatter searches for domain names that will be of interest to entrepreneurs when entering the Internet market (or to those businessmen who already carry out their activities, but want to expand their spheres of influence in the market), with the aim of subsequent sale and earnings on the difference between the purchase price and the sale price.

Types of Cybersquatting

Over the entire period of the existence of cybersquatting, it has divided into several directions.


This type of business involves the registration of domain names under names that correspond to industries or certain goods. This type is the most practical, since there is a myth that search engines initially give out web sites that are consonant with the names of goods and services. Therefore, entrepreneurs prefer that type of domain , trying to stand out among many others.


With this type of cybersquatter chooses a domain name associated with some region name. In that case, the profit is not as great as in the industry, but sometimes that  method serves as a good source of income. The demand for territorial domains appears with the regional expansion of business. The names associated with the name of the territory are most important for the tourism business.

Branded and registered

This type of cybersquatting often causes it to be recognized as an illegal activity. The essence of branded cybersquatting consists in assigning domain names that are consonant with the names of brands (trademarks). When selecting domains for branded cybersquatting, domain names correspond to the names of famous people. You can earn a lot on that type of cybersquatting, but there are also a lot of risks. The copyright holder can go to court and then the domain will be withdrawn from the cybesquatter. Usually that does not happen, since the legal costs are too high, and it is easier for the copyright holder to buy the domain directly. This way the issue is solved faster and much cheaper.

Type squatting

This type is not associated with the classic registration of domains for further sale. With type squatting, a domain is often difficult to sell, and it is not created for sale. This type is based on incorrect search by users for well-known domains. For instance, some are typing pepci.ru instead of pepsi.ru . This is due to the fact that many people do not speak English at the proper level, which is widely used when forming a domain name.

Type squatters use such mistakes for their own benefit. Once there was a situation in which Yandex had a "competitor" — a domain jandex.ru . And Yandex was able to sue that domain from cybersquatting.
Many users searched for the Yandex web site by typing Yaldex in the search, as a result, in a short time the domain name gained significant traffic and received a lot of revenue from advertising. After all, the amount of traffic is the most important for making a profit in the business of types cotters.

Legislation cannot yet recognize the actions of cybersquatting and type squatting as illegal. In court proceedings, rulings made in favor of copyright holders are based on non-compliance with copyright and related rights. Employees of internal organs, commenting on cybersquatting, say that they do not see an obvious threat in it yet.


First of all, the cybersquatter needs to choose the most promising domains for subsequent registration. There are several ways to search for such names.
The first method is to get access to the statistics of popular queries in Internet search engines. If there is an increase in the popularity of some words or names, then they are likely to appear soon in the most common domain zones, for instance, com. In addition, if some name appeared in the com zone, then there is a high probability that the same name will appear in another zone in the future.

An interesting method of cybersquatters' work is to monitor data on future mergers of large companies and corporations in order to pre-purchase a future address. For instance, if information about the merger of the companies Benq and Siemens appears in the media, it is not difficult to guess that the future name of the new company may be Benq- Siemens, Siemens-Benq, BenqSiemens, or SiemensBenq. That is used by cybersquatters and prudently buy up these domains , with the hope that the domain name will be registered in the com zone.
If the merger of the companies really happens, the squatter can expect to receive a round sum from the new corporation. That is why experienced cybersquatters pay a lot of attention to studying the market situation, future development trends and strategies of large companies.


Another variant of cybersquatting is the purchase of domain names for which the subscription fee is overdue. Among such options, quite often quite attractive names can come across, for which, for one reason or another, they forgot to pay.
But, it will not be possible to register a "cool" domain in this way, since such domains are intercepted by special services for payment. For such domains, sometimes there is a whole struggle among cybersquatters.

I also advise you to pay attention to typesquatting – the purchase of domains similar in spelling to popular sites based on user error when entering a name. For example, when typing in the address bar of the site fb.com some make a mistake, do not get the letter and go to the site fb.co . Typesquatters own this resource and place ads there, earning money from it.

In addition, when reselling the site, they can get good dividends. But this example can also be attributed to another type of cybersquatting, when the names of popular sites in other domain zones are engaged. There is a high probability that the holders of the resource or other companies will want to buy out a popular domain name.