Domaining Revenue Model

In a previous domaining revenue model article we stated that revenue from domain names aka domain parking, was one of the three principal components of the domaining revenue model. For ease of reference we are restating our definition here.

Domain Parking (Revenue from Domain Names) – an individual domain name or a portfolio of domain names are parked on a server as one page websites until they are required for future use, either for selling or developing. These one page websites are monetised with Google Adsense or similar advertising before they are sold. There is an added benefit in that good generic domain names are appreciating at the approximate rate of 22% per annum.

So what are the advantages and disadvantages of the domain parking component of the Domaining Revenue Model?

Advantages of the Domaining Revenue Model component “Domain Parking”:

• Low Cost Entry or No Cost Entry Fee;
• Easy to Set up and Manage;
• Does Not Require Much time to Maintain i.e. not time or labor intensive;
• Literally Set Up and Forget. Just Collect your monthly earnings;
• Passive Income;
• Useful Strategy to “Battle” test the popularity of your Domain Name (s);
• Earnings potential more than covers the annual domain renewal fees;

Disadvantages of the Domaining Revenue Model component “Domain Parking”:

• Income Potential Not Maximised;
• You get only a maximum of 80% of the Revenue generated;
• You get only PPC Income;
• No Affiliate Income possibilities;
• No CPA Income possibilities;
• No Text Link Income possibilities;
• No Subscription Income possibilities;
• Impossible to Build a list or develop a relationship with your visitors;
• Parking Company Restrictions on driving traffic to the website;
• Limited SEO Optimization possibilities; and
• Little or No Search Engine Traffic;
• Low Return on Investment;
• Requires a Large Portfolio to generate any meaningful income;

In addition to the above disadvantages, the Domaining Revenue Model component “Domain Parking” carries a number of risks including:

• Possibility of being penalised by the search engines for lack of meaningful content;
• Potential risk of losing your domain name (s) due to possible future legislation as proposed by Senator Snowe Bill’s proposed “Anti-Phishing Consumer Protection Act”;

Additional Reading:

Free Web Site – I purchased several domains following the Revenue Domain model a few weeks ago and they are all producing income. Some of the sites became profitable within weeks. As I honed my experience and understanding of the Revenue Domain model …

Digital Marketing Resource for Week May-19 – FlipSquare Blog: 5 Domain Buying Mistakes. So hopefully this short article will help you avoid some basic mistakes that I’ve made. To give you some ideas of where I’m at as a domainer here some rounded portfolio stats. …

Anti-Abortion Group Uses Cybersquatting Tactics To Divert Traffic … – It is always interesting to see a case involving real world companies and organizations who engage in cybersquatting outside the traditional PPC parking page revenue model. These are always the clearest examples of bad faith …

BPHG Launches Prices.com – The site revenue is still based on a pay-per-click model but it provides an enhanced experience to a typical parking page pay-per-click model. “We help shoppers make quick, easy and informed shopping decisions by presenting them with a …

Need developer to completely take over project management on a … – Here’s the deal. Domain is premium. Cartoonopia.com . I am stuck for months as I am clueless on how to make up either a revenue model or a site with potential to cash in on traffic by forgoing revenue for future revenue model. …

Wikipedia: Definition of Domaining and Domainer – They consider their conduct in buying, selling, and developing domain names to be in the same spirit as real estate investing. Domainers generate revenue via domain parking, through the resale of domain names and by developing domain …

Advertising downturn and long term profitability – So the rise in domain sales covers the drop in advertising revenue but you can only sell a domain once, finding and buying domains with traffic is getting harder and less abundant than it would have been. …

How Cybersquatters Make Money from Your Children’s and Your Own … – The success of companies that practice Cybersquatter points out some serious flaws in the Internet’s domain name system and in two of the web’s most prominent revenue models: Affiliate Programs and Advertising Reselling. …

Making Money Parking Domains – Alternatively you can forward your domain to parking site such as www.sedoparking.com/yourdomain . But thanks to parking sites such as godaddy.com , Sedo.com , name drive and parked.com , the domainers have been able to earn the revenue …

Domain names: The 21st century real estate – 1. Purchase a domain name. 2. Build a website based on the name, and establish Web links to related sites. 3. Place ads on your website. 4. Add content. 5. Sell products on site, establishing an e-commerce model.

Domain name parking going pay per action ( pPA ) – That is why for the addtional growth of domain name parking and revenue or money for these domain names the domain names need to produce results. domain name parking will have a mixture of ppa and ppc. i think the best and fairest model …

The Swinging Pendulum Between Distribution and Monetization – After the crash at the end of the last decade, web startups clamped down to focus on their core value proposition and were forced out of necessity for survival to hone their revenue models. However, for the past couple years, …

All about SHARED WEB HOSTING – A few companies have offered cheap domain names, low-cost domain names, below-cost domain names or even free domain registrations, with a variety of models adopted to recoup the costs to the provider. These usually require that domains …

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Tags: domain flipping, Domain Names, domain parking, Domaining, domaining revenue model