Legal definitions · market evidence · consumer impact

THE INTERNET HAS A LANDLORD PROBLEM.

Cybersquatting has a specific legal meaning tied to trademarks and bad faith. This project examines a wider, usually lawful market: acquiring domain names as inventory, parking them, brokering them, and reselling them at a premium. We document where investment ends and control of scarce digital names begins to look like squatting in the broader, everyday sense.

The distinction that matters

CYBERSQUATTING UNDER LAW IS NARROWER THAN THIS PROJECT.

The site name is deliberately blunt. It does not mean that every domain investor, broker, parked page, or high asking price violates the law. “Cybersquatting” has legal and administrative tests. Our criticism also reaches conduct that can be lawful while still restricting access to useful names.

03
This project’s broader critique

Lawful can still be extractive

A generic, descriptive, or invented name held for resale may fall outside those trademark-based tests. That may keep it outside these cybersquatting standards; it does not resolve the economic question. We examine whether long-term control without productive use creates value, blocks productive use, or lets scarcity itself become the product.

See the full comparison →
Built and used Productive domain
Transfer facilitated Brokerage
Held for resale Domain investing
Protected mark targeted in bad faith Cybersquatting under law
How we use the word: Unless a case has evidence supporting a trademark and bad-faith claim, this site uses squatter as an editorial label for a domain held primarily for resale with little or no productive use. We identify legal allegations separately. The disputed territory between lawful investment and legal cybersquatting is where this project asks its policy question: when does control of unused digital property become socially or economically extractive?
The market we are examining

Acquire. Park. Broker. Resell.

This is the domain aftermarket: investment, portfolio ownership, brokerage, parking, and resale. Those activities are not automatically cybersquatting. Our question is whether controlling scarce identifiers without productive use creates value, extracts value, or some mixture of both.

Productive path

Domain → Website → Product → Customers → Revenue

The name becomes infrastructure for an operating activity.

→
Speculative path

Domain → Parking page → Waiting → Resale

The name becomes inventory whose value depends heavily on someone else eventually wanting it.

The question

What exactly was created?

$15
Illustrative registration

A low acquisition cost can control a commercially useful name.

$15,000
Illustrative ask

The resale price can be orders of magnitude higher.

?
Value added

That gap is the part we want to investigate rather than simply assume.

Illustrative figures only. The research database will use sourced, date-stamped observations.

How big is this thing?

THIS IS NOT A NICHE SIDE HUSTLE.

The aftermarket is large enough to shape what names ordinary businesses can realistically obtain. The numbers below describe marketplace inventory and global registrations. They are not estimates that one company owns every domain it lists, and marketplace inventories can overlap.

401.6M
Domains worldwide

Verisign reported 401.6 million domain registrations across all top-level domains at the end of Q2 2026.

Verisign source ↗
24M
Sedo domains for sale

Sedo says its marketplace contains 24 million domains for sale and separately reports 6 million parked domains.

Sedo source ↗
23M+
Afternic listings

Afternic, a GoDaddy brand, says its aftermarket contains more than 23 million listings distributed through a large registrar network.

Afternic source ↗
5M+
HugeDomains catalog

HugeDomains advertises more than 5 million domains available. Its FAQ says it owns many domains it sells and also brokers domains for others.

Do not add those marketplace numbers together. A domain can be cross-listed, and a marketplace listing is not proof that the marketplace itself owns the domain. One of this project's research goals is to measure the part nobody publishes cleanly: how much commercially useful domain inventory is actually being held primarily for resale.
Follow the money

CHEAP TO HOLD. EXPENSIVE TO RELEASE.

The economics are unusual because a domain can be inexpensive to keep registered while carrying an asking price thousands of times larger. That does not make the transaction illegal, and it does not prove tax wrongdoing. It does make the financial mechanics worth examining.

01

Inventory or investment?

Federal tax treatment depends on what the property actually is to the taxpayer. The IRS says inventory and other property held mainly for sale to customers in a trade or business are not capital assets.

IRS Publication 544 ↗
02

Domains do not have their own magical tax code.

An IRS Chief Counsel memo addressed domain names acquired from the secondary market for use in a business. Notably, that memo says its analysis does not address domains acquired for resale or investment.

IRS Chief Counsel memo ↗
03

The warehouse is extremely light.

A physical inventory business pays for buildings, storage, handling, shrinkage and logistics. A domain portfolio has its own costs and risks, but the asset itself can remain controlled through recurring registration renewals rather than physical storage.

That raises the question we care about: how much of the eventual price reflects productive value added, and how much reflects control of scarcity?

What we are investigating

Not whether domain sellers are secretly committing tax crimes. We have no evidence of that. We are investigating the lawful financial structure that can make warehousing digital identifiers profitable in the first place: acquisition cost, renewal cost, holding time, asking price, sale price, marketplace fees, tax classification, and the cost pushed onto the eventual productive user.

Interactive research tool

Compare an asking price with a carrying-cost benchmark.

Enter a first-year registration cost, renewal price, number of renewals and seller asking price. The calculator shows the size of the spread under those assumptions. It cannot tell you what the seller paid or what the domain is worth to a particular buyer.

Run the numbers yourself

Illustrative values are loaded. Change them to examine a specific listing.

Equivalent carrying-cost benchmark
Spread above benchmark
Markup on benchmark

This simplified comparison does not include acquisition price, historic renewal rates, unsold inventory, commissions, taxes, financing or other costs. A spread is not a profit calculation or an appraisal.

The other side

The case for domain investing deserves to be shown too.

Risk

Many acquired domains never sell, while renewal costs continue.

Price discovery

Secondary markets can reveal what buyers are willing to pay for scarce names.

Liquidity & brokering

Brokers can help connect buyers and sellers and handle complex transfers.

Our job is to test those claims against data, not erase them. The project is strongest when a visitor can see both the justification and the criticism.

Common domain problems

START WITH THE PROBLEM YOU ACTUALLY HAVE.

The domain aftermarket is easier to research when the question is specific. These guides separate observable facts from the assumptions that tend to pile up around them.

“I searched it, then it disappeared.”

What domain front running means, what historical ICANN research found, and what evidence can actually support the claim.

Read the front-running guide →

“The domain is parked.”

What parking tells you, what it does not tell you, and what technical evidence is worth preserving.

Read the parked-domain guide →

“Is this legally cybersquatting?”

Why trademark-based UDRP disputes use a narrower test than everyday complaints about domain speculation.

Compare the terms →

“They want how much?”

An evidence-first checklist before negotiating with a reseller, broker, or aftermarket listing.

Read the buyer checklist →

“How much should I actually pay?”

Separate the seller's asking price from completed sales, carrying-cost benchmarks, alternatives, and your own walk-away number.

Evaluate the asking price →

“Does WHOIS show the whole history?”

Why current RDAP or WHOIS data should be treated as a present registration snapshot rather than a complete historical title chain.

Read the registration-history guide →

“Who owns this domain now?”

How to use RDAP, registrar data, nameservers, archives, and marketplace evidence when public registrant details are limited.

Investigate current control →

“My domain expired. Can I get it back?”

Understand renewal windows, redemption, pending deletion, auctions, and what changes after someone else registers the name.

Read the expiration guide →

Behind the project

How this came about

A domain I wanted became the first case study for this research. The registration and account review that followed became a story of their own. Here is the documented sequence, in my words.

Keep the receipts coming

SUPPORT THE RESEARCH.

No paywall. No subscription. No contribution required. The reports are yours either way. Support simply helps pay for the research, keep the site running, improve the tools, and fund whatever useful thing gets built next.

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Civic action

Think the rules should change?

Use official government channels. Find your representatives, state legislators, consumer-protection offices, or relevant federal agencies and tell them what you think in your own words.