The Truth About Domainers

[foundrstack]

Good read on Owen's blog today. Anyone know where this is originally posted?

EXCELLENT EDITORIAL-- George Pickering shaking things up on Name Pros:

"During the last economic downtown, many domainers made millions by acquiring domains being dropped that had direct navigation traffic. While I believe the rules of the game are different, I still believe there is large sums of money that can be made if you have the right strategy.

I think domaining has entered a new, more challenging phase. First generation domainers had the benefit of direct navigation, long reg histories, SEO advantages that allowed them to generate revenue without much work. Hence the advent of parking companies.

Second generation domainers can still make money, they just can't make easy money. They will need to do some work to garner enough traffic, invest, and do some development to monetize their domains. That is why we see the launch of companies offering minisites, wordpress templates, and other tools that allow for easy creation of sites - even for non-techies.

As we move from first to second generation, some domainers have to change their mental approach to the business. Here is what needs to change IMHO

1) Time - The opinion that domaining requires little or no work. Second generation domaining is more about building a business that investing in assets which have aggregate collective value (as is)"

2) PPC - Those who have direct relationships with advertisers will always make more than people who take an affliate share.
The best of both worlds is to blend both types of revenue. However, the days of depending 100% on PPC revenue is circa 2003 thinking.

At the end of the day, the web is not very different than investing in real estate. Those who make the most money buy great addresses, that are poorly developed, they strip down the old, and effectively develop their location.

After all, you wouldn't put a junk yard next to Time Square.

But many domainers don't have a problem putting a parking page on great domain that could become a great brand - if properly utilized."

 

[ecomindia]

well said , but one point - parking works mostly as a junk yard ,... why?
As classified, 2nd gen domainers domains are more of mid, mid-low and low quality and they buy in lots on assuming 1 domain will pull out cost of x number of domains resulting in many domains been dumped in parking , not optimized, not utilized and becoming a junk in the e-realestate!

 

[Poker]

Thanks for posting...good stuff