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Old 10-27-2005, 09:48 PM   #36 (permalink)
Edwin
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Name: Edwin Hayward
Last Online: 08-24-2008 01:43 AM
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Join Date: Jun 2002
Posts: 1,381
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Location: Tokyo, Japan


Re: Domain Parking Industry Faces A Shakeout

Right now,

A) worthless and low-value traffic is generally getting over-compensated.
B) high-quality, and super-high-quality traffic is generally getting under-compensated.

The companies that will survive in the parking game are those that can successfully and continuously decrease the amounts they pay out to A) category domain traffic while continuously upping the amounts they pay out to B) category domain traffic.

Even within B) there should be more progression than there is. Just one example: on a per-click basis, pure typein traffic from insurance.com should be worth less than pure typein traffic to lifeinsurance.com which should be worth less than pure typein traffic to lifeinsurancequote.com. Of course, insurance.com can also send travel insurance leads, health insurance leads, and will get TONS more traffic than lifeinsurancequote.com would, but the specificity of the traffic (and hence it's nominal value) is less so the value of any single visitor should be less.

Right now, the differential doesn't increase as fast as the traffic quality improves, for the top-tier targeted generics.
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