Posted by Melanie Phung on Monday, May 21, 2007 at 10:07 am
Domain squatting is becoming more sophisticated. Companies like Sendori are going beyond parking AdSense ads on good web real estate, instead opting to lease their in-demand domains to the highest bidder. The winner of a Sendori auction gets the domain to redirect to his own site.
It’s a service big brands will want to take advantage of (this being the next best thing to actually being able to buy the domain from the squatter) but I have a real problem with it.
The domain owner is basically just a parasite. They add nothing of value. Sendori has no interest in selling the domain, because they get to hold on to all the control. It’s not like the other company will want to build links or brand recognition for that URL since it doesn’t own it and that would be doing the equivalent of major remodeling on a rental unit — not a good investment.
Companies like Sendori are basically just holding those good domains hostage. Well… on the bright side, at least if they are redirecting to other sites those URLs won’t just be ugly, AdSense-stuffed (and often misleading) landing pages.
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