Microsoft is using its heft to go after so-called cybersquatters and typosquatters. Basically, these are firms that buy domain names that look similar to a major brand name, say Starbucks or Apple. Often, these domain names have misspellings.

In other words, this is a cheap way to get lots of traffic. And, then with things like Google's AdWords, you can make a good amount of money from pay-per-click ads.

Example: When Microsoft announced news about Zune, there were thousands of purchases for similar-sounding domain names.

Interestingly enough, if the domain names do not generate lots of revenue - or the revenue burns out - then they typically wind up on auction sites. Yes, there is a whole ecosystem to cybersquatting and typosquatting.

Well, Microsoft is now serving some of these firms with lawsuits - claiming trademark infringement. Apparently, one of Microsoft's top researchers, Yi-Min Wang, has built a pretty cool piece of software (called "Strider") that hunts down cybersquatters and typosquatters. Micorosft says about 2,000 domains a day are registered using the company's brands.

I talked to John Gotts, a big-time domain name buyer who recently paid $2.8 million for Wiki.com. According to him: "You might also wonder why a company with the resources of MSFT wouldn't just buy the typos of its domains."

He points out that if, while using Internet Explorer, you type in a non-registered domain name, you will get a Microsoft default page that asks you if you want to buy it. He gives the example of www.miiicrosssoft.com:

Microsoft Squats on Cybersquatters originally appeared on BloggingStocks on Fri, 25 Aug 2006 14:50:00 EST. Please see our terms for use of feeds.

Things have been kind of crazy in the dot-com world lately. Apparently, there have been mega offers for sites like Digg, Bebo, and YouTube. And, of course, MySpace snagged $900 million from Google.

But there also appears to be some inflation with domain name prices. John Gotts, a big-time domain name buyer, has committed $2.8 million for Wiki.com. Actually, wikis are pretty hot right now, especially with the success of Wikipedia, which I recently wrote about in Bloggingstocks.com.

Kind of crazy? Maybe not. Traffic is getting expensive. Portals like AOL.com and MSN know they can charge top dollar. The thing about a domain like wiki.com is that lots of people are likely to type it in. It can be a great advertising vehicle.

Part of Gotts' master plan is that there are tons of people that would love to have personal wikis. So, let's say I want my own. If the URL is Taulli.wiki.com, it's a lot easier for me to remember, right?

Actually, I did just that. And it took about 20 seconds to set up. Also, in the setup, they asked me for my zip code. That's pretty smart - given that the business model is based on advertising (in other words, there can be local ads).

The site uses a technology from MindTouch, which focuses on wikis for major corporations. Also, there are certainly lots of wiki systems on the market, such as Near-Time and Jot.

So, I interviewed brand expert Lynn Altman. She has a firm called Brandmaker Express and has a new book coming out, Brand It Yourself: The Fast, Focused Way to Marketplace Magic. According to her: "Frigidaire...Kleenex...and now the Wiki. Turning your product name into a generic descriptor (or vice versa) is one of the most coveted results a marketer could hope for. Thanks to improved browser technology and the likes of Google, the value of these descriptors intensifies. Today, we use the address bar as a navigation tool, knowing that the keywords we type in will lead us to what we seek. And unlike the bricks and mortar marketplace where consumers see brands next to one another on the shelves, the browser does the searching-and often the navigating-for you, and the higher up your homepage can come back on that list, the better. In this scenario, a generic website could become more valuable than a specific brand site. If a 'wiki' does indeed become a descriptor of this pumped up, next generation 'blog,' then to John Gotts' point he has made a very savvy business decision. Let's just hope that he gets his money's worth before something else becomes the new 'wiki'."

Would You Pay $2.8 Mil for Wiki.com? originally appeared on BloggingStocks on Fri, 18 Aug 2006 15:16:00 EST. Please see our terms for use of feeds.