Over the past week or so I’ve observed a number of premium names in the drop process. While not unusual I was surprised at how low they went for.
I’ve always maintained that now is a great time to buy domains. Those that are focused on the short term (or need cash to pay off their mortgages) are selling or simply not renewing. Those with cash (who are buying), have less competitors in auctions because some people don’t want to spend.
Here is an example of a name that went for more than $2,300 this morning over at NameJet. It was InternetMarketing.org. To be honest, I was in the auction but decided to sleep in on Sunday. The drop times are not that attractive to those outside the USA.
After I got up and had a coffee, I decided to have a look over at Snapnames and found some great domains with low starting prices. Check them out:
My favorite is of course tuition.com, followed by ferriswheel.com. Tuition is highly searched on, just think of all the college students! People are addicted to going on FerrisWheels, so having FerrisWheel.com might be a good novelty / niche site.
With the news that Adsense for Domains is now available to all publishers, it may be tempting to think “Screw my parking company – I’m leaving and going direct”.
Before temptation takes over and you jump into bed with Google, think about what you are doing:
Weakening An Industry – Ending Collective Bargaining
Parking companies negotiate rates with Google. Think of it as collective bargaining in the context of a union. What Google has essentially done, is to commence a breakup of an industry, which in the long run will weaken it. If you look at past behavior, I’d suggest they will:
Establish their own rules
Decrease payouts over time once they get a handle on where the traffic is
Landing Pages Not Optimized
The Google landing pages are not going to convert very well (see the image below). I’d assume they will update them over time but right now you might be better off financially, by not moving.
Parking companies spend $$$$ on optimising landing pages, getting the right graphics, colours etc.. so the page can convert. Its in the parking companies interest for your portfolio to work. If they make $$, you make $$$.
Customer Support
If something goes wrong, or if I have a question, I know I can call my Account Manager and get a response within 24 hours. Good luck in getting this from Google.
Long Term Strategy and Intent
So how does Google monopolise Internet traffic increase profits? Google analytics knows about your traffic flows. Adsense and Adwords tracks advertising and what you click on. Google search knows what you search on, GMail knows the contents of your emails. All this information is stored and used by Google. The big unknown for Google is obviously anything outside its network. In this case its direct navigation (type it in traffic).
What happens long term when Google knows where your traffic is coming from and decides to alter search results, payouts and change traffic flows? If your domains depend on links from other sites, why wouldn’t Google cut YOU out, because you are the middleman!
Domains You Can’t Park With Google
In case you didn’t know, Google has restrictions on the keywords found in a domain. “Terms in the URL may not contain or be related to any of the following:
Pornography, adult, or mature terms. This includes, but is not limited to, any terms that refer to or suggest nudity, partial nudity, sexual imagery/acts, lewd/graphic or profane language.
Violent or racially intolerant language or any other form of hate speech directed against an individual, group, or organization
Excessive profanity
Illicit drugs and drug paraphernalia
Gambling or casino-related content
Weapons, such as firearms, ammunition, balisongs, butterfly knives, and brass knuckles
Beer or hard alcohol
Tobacco or tobacco-related products
Prescription drugs
Promotion of an illegal activity or an activity that infringes on the legal rights of others.
References to tragedies or other sensitive current events
Any other terms that are illegal, promote illegal activity, or infringe on the legal rights of others.
Summary
I believe that competition is good. Some of the greedy parking companies will probably reduce their % as people will start to compare going direct with Google vs the parking company. That’s good for the industry.
Right now I wouldn’t do anything. It’s a “wait and see” approach for me. The big question is will Yahoo and MSN follow?
OMG the world is going to end – your domains will be worthless! That’s what a number of attention seeking ill informed, oxygen thieving, wannabe amateur domainers will have you believe. Am I being a little bit harsh?
While the kids have been crying about their parking revenue, I’ve been buying BIG time and making a profit. Some of you who know me will know that I’ve only ever sold a handful of few domain names. Why? Because
a) I don’t buy rubbish
b) In the past people have made me offers that I just couldn’t refuse
c) I have made mistakes! Who would believe it eh?
Here is an example of one such mistake. A couple of months ago I purchased a domain with traffic in a gambling related niche. I thought it would make money and couldn’t get it working with traditional parking. It would have been a good name to develop, but I just don’t have the time and I wasn’t 100% convinced that my efforts would be rewarded. As such, I left the domain parked and wasn’t going to do anything with it. A couple of weeks after I purchased the domain I received an offer of just on 400% more than what I paid for it. I thought about it for 24 hours (you have to sleep on these things) and sold it.
There is a well known saying “When everyone zigs, you should zag” and that’s just what I’ve been doing. But you shouldn’t, because then there wouldn’t be any opportunities for me. Go and join the herd. Baaaaa.
Legal sales of .com.au domain names are on our doorstep. Where are the opportunities and what are the issues? Will we see sales like the $12M sex.com ?
This is the podcast from an event I attended at the Churchill Club in Melbourne. The panelists were:
Richard Moore – CEO, Dark Blue Sea Ltd
Bruce Tonkin – CTO, Melbourne IT Ltd
Jo Lim – Chief Policy Officer, .au Domain Administration Ltd (auDA)
Thanks for Brendan Lewis (who was also the moderator) for permission to reproduce the podcast of the event.
Traffic Down Under 2008 is being held from November 18-20 at the Gold Coast in Australia. It’s going to be absolutely huge!
For Aussies, it’s the first real domaining conference to be held in Asia/Pacific. This makes it especially attractive for those people who have not previously attended the US Traffic conferences.
For International guests its a great opportunity to get to know the Australian domaining market and enjoy one of Australia’s best holiday destinations. With beaches and ocean views like this, you can see why the Gold Coast is so popular.
In an exclusive interview with DomainerIncome.com, Mike Robertson (Business Development Manager for Fabulous) and Andrew Wright (Marketing Manager for Fabulous), cover everything you need to know about the conference. A full transcript of the interview will be made available shortly.
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