First of, typo domain names are not something you would go and take for granted. This is a very shady area with many bad players and bad businesses. That said, there are actually good, ethical and most important legal ways you can pursue and still make profit of typo domain names. We at Vastus Domains have had few sales of perfectly legal typo domain names in the last time. The most important factor in this area is that domain name is not a typo of a registered trademark or brand. This is the single most important thing you need to take look into when you decide that you want to purchase and use a typo domain name.
Let us first clear our what exactly a typo domain name is. For example we will use flowers.com – this is a common dictionary word meaning it can not really be branded or trademarked (the site itself can however and you need to do a proper research first). A typo domain name would be fkowers.com. This is a typo because letter “k” is the next closest letter on the keyboard you can wrongly press typing flowers.com in a hurry. Now, since this word “fkowers” is not a word and most probably does not exist as a registered trademark (this is a thing you need to do a research on) it is a clear, ethical and most importantly legal way to piggyback on a flowers.com typo.
You have seen that I have stressed an important fact before actually making use of a typo. This is its legality – one need to conduct a proper research both on the typo itself and domain name the typo is referring to. Both names should not be trademarks or branded. Only in that case typo is legal. From the ethical standpoint, there is actually nothing stopping you to register even gogle.com. However this endeavor would be very costly for you. A proper research is a must if you really want to explore typo domain name market.
Typo domain name squatting is not a novel idea though. Typo domain name squatting is present since Internet inception. Note that squatting is different from domain name investment for resale or profit in that that domain names registered for legal uses is not part or typo part of any registered trademark or brand. We have already discussed more about domain name squatting.
So what is the expected profit you can expect for a dictionary word typo domain. Let us try to run some numbers. Suppose we have an eye on a dictionary word flowers.com – according to Google it has 437 million hits. This means that every 10th search on Google is about flowers. However this number is just an indicator showing us what interest actually is about the dictionary word we hunt. To be able to asses real direct hits – we have no use from search engines without some form of SEO – we need to see how many people visit flowers.com directly. Typing in “site:flowers.com” will show us how many pages from the actual domain are indexed. There are 1 (one). Hm, this is an indicator that this dictionary word is on a site which is most probably already parked. Using “link:flowers.com” sets this indicator even more so – showing no backlinks to the site. Conclusion is that actual domain flowers.com is most probably portal or gateway page with no real content and no links pointing to it. That said, we have no real lead to hunt for flowers.com typo domain because all the direct traffic we would get will be dismal.