Domain Squatting: When Your Perfect .com Is Held Hostage

The Frustration of the Perfect Name

I have lost count of the number of times I have seen domain squatting play out over the years, and now most painfully on a project I am personally involved in. We found the ideal .com domain: short and memorable, instantly conveying who we are and what we stand for. Then we clicked through and found a blank parking page. There was no website or content, just a smug "For Sale" notice from a nasty domain squatter who has been holding it hostage for the last decade.

We were not competing against another company. We were faced with a ransom note. Needless to say, it left us feeling utterly deflated.

Am I the only one who thinks this feels more like a subtle tax on ambition than a market?

How the System Operates

These domain speculators — often politely referred to as "investors" or "flippers" — use automated tools to monitor trademark filings, trend reports and startup name generators. They register promising names in bulk at low cost, park them, and wait. It is your polite enquiry that triggers them: prices climb overnight, routed through anonymous companies in tax-friendly jurisdictions and shielded by privacy services. More often than not, the "buy now" button leads to the same auction house. I will not mention it by name, but you probably know which one it is.

It is a well-organised, patient and remarkably profitable practice. However, it depends entirely on people being willing to fall for it and take the bait.

The Persistent .com Myth

We are still told that a .com is essential for credibility. However, I am starting to think that this is an increasingly outdated idea. This .com myth is a story from another decade, yet it keeps the whole racket alive. The moment any of us believes that our brand will appear inferior without those three letters, the pirates have already won.

Even major companies have paid the price. In 2017, Walmart paid $9 million for Shoes.com, and in 2016, Tesla spent $11 million on Tesla.com.¹ These deals made headlines at the time, and now they serve as gentle warnings rather than inspiration.

Meanwhile, the brands that are winning today never paid a penny in ransom.

Consider one of my previous employers, for example: a perfectly respectable, mid-sized business that eventually paid a substantial sum to secure the .com domain from one of these pirates, simply because someone felt that their old .net domain was no longer fit for their marketing strategy. At the time, it felt like the "grown-up" move. In hindsight, however, we all agree that the money would have been far better spent on improving the customer journey.

GitHub.io, bit.ly and proton.me are a few examples of well-established companies that built their success without a branded, heavily advertised .com domain. However, it is true that they may own the .com domain for redirection purposes. Other examples are BBC.co.uk, Claude.ai and Wikipedia.org. There are plenty of them!

Customers do not notice the extension. What they notice is speed, clarity and trust.

Practical Ways to Navigate Around It

You are not powerless. Here is how we and many other teams are choosing to respond:

• Choose a modern extension and wear it proudly. Alternative domain extensions such as .app, .io, .ai, .co and others often feel fresher and more relevant than another recycled .com.
• Turn your story into brand folklore. Nothing is more powerful in marketing than turning a bumpy story into a success. "We were quoted £18,000 by domain speculators, but we chose an .app domain for £6 and invested the difference in improving our service." People love that kind of honesty.
• Secure matching handles everywhere else on day one – consistency across platforms matters far more than the domain ending.
• Consider trademarks as a way to reduce the pirate's leverage.
• Brainstorm slight variations or entirely new names that have not been taken – they are often cleaner, cheaper and more original.

Linking to related CX strategy lessons—such as focusing on the real customer problems you solve instead of perfectionist optics—reinforces the story while helping readers dig deeper. Posts like “Unlocking Customer Experience: A Strategic Approach to Business Success” are natural companions.

The True Advantage

Paying thousands, tens of thousands or even millions for a domain name does not make you look more serious. In fact, it could now be seen as a sign of outdated thinking. Brands that walk away emerge lighter, sharper and more authentic.

So, if you are currently looking at a parked page, close the tab. Your real name is still available. It might end in .app or .io, and that is no longer a compromise — it is a declaration of independence.

Count me in the rebellion; we are done feeding the .com pirates. From now on, every single pound goes straight into building a better name, a sharper brand, and a customer experience that actually matters.

The not-dot-com revolution has begun!

References

¹ “Most Expensive Domain Names.” Bluehost.