Michael had a fantastic speech and covered off a variety of metrics and calculations. Keep your eye out on Whizzbangsblog for the presentation. In the meantime here are some key points:
Risks vs Business Models
- Risks depend upon the business model being adopted.
- Each business model has its own risk profile that will or will not suit the domain owner. For example: stock items, high value sales, traffic and development.
Risks To The Domain Name Industry
- Advertising aggregators (Google / Yahoo)
- Traffic Aggregators (Parking)
- Domain Sales Models
- Regulatory and Legal
Regulatory and Legal Risk
- Every domainer needs to evaluate their portfolio from a legal risk perspective.
- Asset protection is crucial to long-term success.
- ICANN & Registries will change the rules.
- Get rid of those domains that are unprofitable and with legal risk
Revenue Share
- Google is paying less for traffic
- Based on calculations looking at the mean (curve) the average cost of traffic is 27.9% (what Google pays network partners) and the domain Industry gets 17.6%
Rules For Dealing With Advertisers
- Quality: Google and Yahoo will smart price your whole portfolio up and down.
- Watch out for fraudulent behavior.
- Do not put high paying non-performing keywords on high volume low CTR traffic.
- Match advertisers to traffic.
- Its no longer good enough to set a keyword and never touch the domain again.
- Think about how our behavior effects the advertiser.
Measuring Performance
Parking companies use different metrics. For example, how is an IP address measured?
- 18 Hours - Parking Company 1
- 24 Hours - Parking Company 2
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Tags: aggregators, domain name management, parking, risk, trends
November 18th, 2008 at 1:55 am
I look forward to seeing the presentation!
Regards,
Robbie
Founder
RegFeeNames.com