| Of course they will, as unlike PPC the advertisers Pay On Qualified results, its pretty much 100% Conversion for the CPA advertisers.
PPC has been a great moneyspinner for the likes of Google and Yahoo, however advertisers are getting smarter as the economy shrinks.
Lessons should be learned from the the 80s and early 90s, where Pepsi cut back on its advertising which resulted in losing top position against Coca Cola, the same is true now as it was then, this time we have a new medium.
PPC will soon only be suited to increase Brand Awareness, and the rest of the eTailers and Finance Brokers and others will move over to a better return in the CPA marketplace.
These advertisers need publishers and until the majority of Domain Owners and Site owners move away from a PPC based structure to generate revenue we will be stuck with PPC for now.
That being said with google's aquisition of DoubleClick, on the face of it, it looks like google have seen the future.
If you do the maths, an advertiser can brand and advertise its products or services for free to Millions of users and only pay out when a service or product is sold. In the current format the Advertiser Pays for every click and for Every $1000 spent they are not guaranteed to make that back; on the other hand with CPA for every $1000 spent they potentially make $9000 based on an average 10% Commission fee.
Parking Companies are the just Proxies, and it was only a matter of time before they bring it all in house. This can be seen with companies like ENOM, instead of factoring out its expired domains they have created a whole new platform. Snapnames are becoming somewhat of a distant Memory, which its down to their own fault for not listening to its customers and failing to manage its marketplace effectivley.
Domainers are the Bread and Butter of the Parking Companies, and yet our revenue shares are 50% or in most cases less. These companies, and I do generalise, are not interested in your the domainer, they are interested in your domains and they fail to see the person behind the domains.
Smoke and Mirrors is the Modus Operandi, claiming non disclosure when asked about revenue shares, and citing Traffic Quality or "Its down to our feed provider". Companies that run a business in this way will not be in business long.
I have said it all along, domainers can live without the parking companies, however the parking companies can not live without domainers.
Google does its business well, and looks to see what is failing in the Parking industry, once it has all this information it will take them out of the equation and start its own. However you can expect them to be tough on TMs and a zero tollerance policy will apply.
I really believe that the Parking industry needs a clean up, not just for its reputation but to allow true domainers to get a better deal.
If you have a million domains earning $6.95 Million a year, your turnover will be high but your profits will be Zero.
Each parked domain must earn you 2c a day to break even, however with CPA it only has to make a single sale in a year to become profitable. Statistically were you to have a targetted domain then for every 1000 clickthroughs you should convert a sale at the very least 8 times. If the average sale had a $99 value you would be looking at netting around $72 for every 1000 Clicks, in PPC you would average less than $20 by the time you get your share.
One sale a year on CPA can potentially earn back your Reg Fee investment. Where as it could take 2 years on PPC to break even. |