Domain Parking Industry Faces A Shakeout

[Focus]

they are about to launch there own payment gateway

as in google wallet right?

 

[Theo]

Odd, my SedoPro earnings are soaring. Must be the tailwind from DomainSponsor's PR.

 

[namestrands]

or its that spoonful of sugar and you are the subject of SEDO PR

 

[Theo]

Sorry to see you're so bitter about Sedo, Namestrands. Did you get a C&D for Sedont.com?

 

[namestrands]

No but someone did offer me $2500 for it ;-)

 

[Theo]

You should have taken it, I hear UDRP costs will be lowered very soon.

 

[namestrands]

fortunately my integrity does not allow me to be blinded or bought. I am pleased that you have great results with this new program, I think its fantastic when domainers get the better end for once.. I would never begrudge anyone that.

And I totally understand and forgive your attempts to taunt me.

Its always a pleasure Speaking with you Theo...

 

[Theo]

I'm the first one to bark at Sedo when they screw up and the first one to praise when they do something right. Overall, they're doing something rather well. Nobody's perfect. I just don't understand why you're so bitter about it all. Frankly, the Sedont.com is over the top.

 

[mole]

hahaha Sedon't

 

[namestrands]

I'm the first one to bark at Sedo when they screw up and the first one to praise when they do something right. Overall, they're doing something rather well. Nobody's perfect. I just don't understand why you're so bitter about it all. Frankly, the Sedont.com is over the top.

Perhaps... however back on topic.

 

[JMJ]

whether we like it or not, we don't write the checks..

But the key to the whole senario is the TRAFFIC. There's always going to be a demand for it. How it will be dispersed is up to the owner of said traffic. How much that owner feels he/she deserves for their traffic is what they will get. The checks will be written either way.

Sign me up for one of these proposed programs where you send me traffic all day long and you not get any money from it. Regardless of whether or not a sale is made a live body is walking in their door. It's not the traffic providers responsibility to close a sale.

Lets use a company I use to work for as an example. We ran promotions for car lots. Our whole objective was to get people to come to the car lot however we could. We got paid very nicely for each head we brought in regardless of whether a sale was made or not because that wasn't our job.

only 6% of the advertising dollar goes on internet advertising.

And this going going to increase massively in the future. I personally can't tell you the last time I turned on a TV and I can reach from where I'm sitting now and flip it on if I wanted. Same goes for Newspapers. I don't get one why should I when I can read or view whatever I need to know online. You and I are a growing breed.

 

[namestrands]

There is a demand for good traffic. I once worked in TimeShare when I was 17.. Same concept I got paid a finders fee when I sent TARGETED traffic to the unit and then I would get an override on any sales.

I work for an international Media/Advertising/Publishing and Events company who spends $1000s each day on net advertising.. now out of all that traffic you could expect to get 8 signups a week, however you end up paying for 800-1000 click throughs a day.

Now to advertise in one of our magazines would cost a company $15,000 or to Speak at one of our events would cost anything over $35,000.. However our clients can expect to get there money back and more.. because we take the time to filter the right people for the circulation and we filter the delegation for the conference.

Traffic on domains is to Chaotic.. the ROI is a huge issue at the moment.. the world is in economic slowdown, budgets get cut and Advertisers want more return for there dollar..

Now answer this.. would your client of paid you if you were sending them homeless bums and kids.. or where you given a brief as to the type of person to target?

If your traffic is however good with no kids or bums then you are in the minority. However you would deserve to get rewarded for your traffic.. the industry knows that if you buy a domain for $6 and make $60 a year from it then your have a great business model.. registrars and advertising companies are buying domains in the tens of thousands each day to park on there own programs and forward the traffic on to there clients.

If we can do it then there is no reason why they cant also.. what we are talking about is quality and not so much quantity.. this is what the industry will pay for and its what they will reward. Good qualiry Targeted Generic domains will be the ones to watch..

But the key to the whole senario is the TRAFFIC. There's always going to be a demand for it. How it will be dispersed is up to the owner of said traffic. How much that owner feels he/she deserves for their traffic is what they will get. The checks will be written either way.

Sign me up for one of these proposed programs where you send me traffic all day long and you not get any money from it. Regardless of whether or not a sale is made a live body is walking in their door. It's not the traffic providers responsibility to close a sale.

Lets use a company I use to work for as an example. We ran promotions for car lots. Our whole objective was to get people to come to the car lot however we could. We got paid very nicely for each head we brought in regardless of whether a sale was made or not because that wasn't our job.

 

[mole]

I agree with strands, my work involves online advertising, and 90%+ of .COM curious type-in traffic is rubbish.

 

[JMJ]

Now answer this.. would your client of paid you if you were sending them homeless bums and kids.. or where you given a brief as to the type of person to target?

Yes and no. They were qualified in a sense that they had bought car before and had some sort of credit history whether that was good or bad. In any business it's a numbers game. The more people you have on the lot the more applications you will take and the more cars you will sell.

Don't get me wrong I do understand where you're going and it's quite obvious we didn't drag bums off the street. Those "targeted users" who will type in a domain name are internet savvy people and those are also the type of people who will shop around for the best deal. Just as in the car industry. Those people with the best credit are going to "wheel and deal."

Lets throw another senario out there for you to ponder over.

In a pay-per-sale senario who decides which company gets top positioning? Different companies will want the same keyword, selling a different product and offering different % of that products sale. What happens when the company that has top positioning in your keyword is the least paying per sale? If the provider gets some sort of reward for positioning how does that help you the traffic provider? Wouldn't a company spend their money on getting positioning and decrease their per sale %?

Isn't that the whole point of PPC in reality to get good positioning under a keyword over playing the optimization game?

 

[namestrands]

Interesting Scenario.. and I am sure there are many answers.. however we just dont know how it will work. And its not something I will worry about, let the advertisers fight over my traffic as long as a domainer I get the best deal.. and speaking from and advertiser then I agree its a numbers game as if I can pay one 1% over my competitor I should make enough sales to drive the bottom line wholesale price of the product down..

As a domainer.. I get a better deal and I dont have a three way split. I take a bigger share of the pie and rightly so.

PPC was the next best thing to email marketing.. I know if I send out 1 million emails I will get at least 2% return in sales.. however the Cost of Ownership on email marketing is minimal.. PPC prices are being driven up by fraudsters and competitors, now its not only the advertisers but its the affilliates that are also out bidding the actual trademark owners for there own products.. so not only are they loosing out to themselves they are having to pay an affiliate for the pleasure

 

[Edwin]

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.

 

[namestrands]

Because Certain programs are about RPM.. and are therefore rewarding the junk and penalising the quality.

 

[JMJ]

Unfortunately the middleman is gambling on your future instead of solving the problem. If you want to eliminate the "trademark owners" from having to pay for their keyword thats the simplest solution. Reinventing the wheel isn't. If a company can't take the competition they shouldn't be in business. If you want to combat the fraudsters then again reinventing won't solve it. As I said earlier they just become the advertisers and won't pay you for the sale.

Personally I don't know what goes on behind the closed doors of the PPC providers but there is a term used "shaving." Do you think they are shaving your traffic or shaving the bill they send the advertiser?

In a per sale senario the middleman and I don't know whats going on behind the advertisers door. Will they be doing shaving of their own? Do you think they will shave your pay check or will the suck up their loses?

 

[namestrands]

well for years man believed the world was flat.. so let hope a solution can be found.

 

[Equalizer]

Worldwide Ad Spending to Top $400 Billion

http://www.emarketer.com/Article.aspx?1003650
Still meek numbers for Internet ads.