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In just about every domain forum there are investors bemoaning the fact that they believe that domain parking is dead. But is this deluge of negativity justified or have a great many investors been conned into believing that domain traffic monetisation is a thing of the past?
To come to grips with the question we need to fully understand what is going on with the two major business models of monetising domains. The two dominant models of traffic monetisation and domain sales have been the staple of the domain investment industry for years so let’s try and dimension them so that we can see if there is some truth to the “dead” theory.
We recently saw that Parking Crew announced that they had a gross revenue line of $23m that was largely derived from parking. We have found at ParkLogic, Parking Crew win approximately 6% of the traffic which means the traffic monetisation industry is around $400m ($23 / 6%). We may debate whether its $400m or $500m but my guess is that it’s pretty close to the actual size of the market. I remember hearing that the domain parking industry was dimensioned by RBC Capital a number of years ago as being close to $1.1b in size. So it has definitely shrunk…..but it’s far from dead.
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