Domain Investors or Squatters?

I was reading an old CNN article on domain investors this morning. Whilst I was well aware of this practice it got me thinking as to why Google hasn’t been all over these crappy link sites that are pulling in tens of millions of dollars a year using ‘bait and switch’ tactics.

I am struggling to see a parallel investment model for domain trading. When one considers property investment or share investment, there is a legitimate business behind it. Not that domain investment is not a legitimate business, but it is certainly in the black hat arena along with other tactics that Google has slapped all over the show.

Of course, we then have the other extreme, where in Australia you cannot get a ‘.com.au’ domain without it being attached to an Australian registered business – owned by an Australian domicile. This sort of builds a wall around international business which is frustrating for those attempting a legitimate entry into that market.

So what are your views on domain investors? Are they investors or squatters?

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