labrocca said ...I believe it's fragile for a number of reasons.
1. The search engines don't like to index parked pages.
Those that have type-in names don't need to be indexed by search engines. And besides, who cares if you indexed and are found on pages 10 - 10,000 of the search engine as 99.999% of sites are.
2. Most traffic is pulled only from type-ins or typos. Type-in domains that are good imho would do well to be developed. Typos can have a legal risk to them.
Sure type-in names would be worth more developed ... but that sound like work and many don't want to ceate a "job". Plus, there's plenty of time for development for those that want to.
3. The competition in the PPC arena is growing. Hence the advertisers may be able to negotiate better and better deals. Which could skim the domain owner.
I think the opposite is true. As more and more advertisers and more and more advertising dollars come into the market, PPC income is going to go up, not down. The companies that delivery the best quality traffic, will be the leaders.
4. Surfers are getting wise to parked pages and while parked templates can change I can easily see surfers getting even more wise to PPC and how it's useless...thus less clicks.
Useless? .. please!! Most PPC pages from the major suppliers deliver very relevant content and links to what surfers are looking for. Very often better than the so called "Search Engine" results.
5. Advertisers who use PPC may find better more targetted methods of advertising. The quality of advertisrs on PPC imho is very poor and I don't see this changing.
Huh? ... see answer number 3.
6. Yahoo and MSN have yet to enter the PPC full force but Yahoo has a beta and MSN is rumored. Eventually you can make more money imho with developed targetted sites running a PPC like adsense vs parking.
Ummm... Yahoo just months ago bought "Overture" ... so I think they are already in "full force". I guess by buying the biggest player in the PPC business they saw a decent future. Again, if someone with type-in domains wanted to develop "targetted sites" with Adsense, they could... but again that sounds like they're creating work for themselves.
One thing that's nice about generic type-ins names. You have MANY options on what to do... because they come with built in traffic, which can be instantly turned in revenue streams.
Shaun