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