Attention all PPC Marketers

Matt Mickiewicz

Business 2.0 Magazine has an in-depth article about the domainers – the people who hold thousands, sometimes hundreds of thousands of them, and then resell their traffic to Google and Yahoo, and ultimately you – the PPC Advertiser.

Why is this important?

Simply put, of the hundreds of thousands of advertisers on Google and Yahoo, few have any clues that they are paying good money for traffic from massive domain name portfolios, held by individuals and corporations such as NameAdmin and Marchex, who are profitingly richly from their established niche:

Schwartz owns about 5,000 names, with less than a third falling into the “adult” category. He’s the industry’s biggest promoter, preaching the power of domains to anyone who will listen and bringing domainers together with moneymen and execs from the likes of Google (GOOG) and Yahoo (YHOO). He sports a $65,000 Rolex on his left wrist, a $32,000 diamond bracelet on his right, and is astounded that he — a community college dropout — is living like a king in a waterfront house in Boca Raton.

Read the full story here.

But hey, if you have a few spare domain names lying around, check out AdSense for Parked Domains. Maybe you too can get some fancy jewlery ;-)

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  • Anonymously

    Thanks Matt – Keep’em coming!

    Did you have a change to review the article in the same issue of Business 2.0 named “The Return of Monetized Eyeballs“?

    Seems like the numbers are off, but I’m not sure. They list “the value of a unique monthly website visitor currently hovers around $38″ and “amount spent per connected family” as $38. While it is posible that these numbers would be the same… I’m thinking that it is a typo.

    Also, does the “Internet ad spending should reach $12 billion this year” still represent 1-2% of the total market for AD spending in the and do you know of a source for current trends for the other 99-98%?

    Thanks & Happy Holidays!

  • http://www.dvdverdict.com/ mjackson42

    Note to self: Track down this Schwartz guy in Boca Raton. Slap him upside the head for being a pox upon the internet. Oh, and yeah, steal his $97K worth of jewelry.

  • http://www.SitePoint.com Matt Mickiewicz

    Just edited my post to add this a link to this: http://www.google.com/domainpark/ … they certainly make no secret of it.

  • Anonymously

    Cool thanks for the link Matt!

    A quick link search to the URL pointed out the following:

    (1) your domain must generate more than 750,000 page views per month
    (2) Google domainPark DOES follow AdSense TOS rules; that is that you CAN use a domain which ONLY purpose is for showing adds.
    (3) enom, sedo, dotster, RegisterFly, Register.com, Network Solutions, DomainSponsor are some of their well known partners.

  • Anonymously

    showing adds.

    showing ADs… That what I get for cut-n-pasting!

  • Sojan80

    But what is a “parked domain”?

  • cholmon

    From Google’s FAQ:

    Your network of sites should generate 750,000 page views per month to be eligible for the AdSense for domains service.

    …not just a single domain that generates 750,000.

    I’ve got to wonder how effective this is though. What criteria would you use to decide whether to park your domain at one of these services versus building an actual web site with it (content, ecommerce, whatever)? For example, it seems ridiculous to park a domain like “cars.com” when you could build an enormous site like the one that actually exists (http://www.cars.com).

    When does it make sense to use a parking service?

  • Anonymously

    @ cholmon

    When does it make sense to use a parking service?

    Given that Schwartz pulls in 20 million per year with the 5,000 names he owns – I would say so…

  • Anonymously

    Given that Schwartz pulls in 20 million per year with the 5,000 names he owns—I would say so…

    Oops! My memory is going… That was 2 million not 20 million.

  • http://www.dangrossman.info Dan Grossman

    Where’s the news here? Didn’t SitePoint have, and recently pull (because of links to an abandoned site), an article in 2003 about buying expired domains with info about the big ‘domain parker’ of the time and his search portals?

  • Anonymously

    Where’s the news here? Didn’t SitePoint have, and recently pull (because of links to an abandoned site), an article in 2003 about buying expired domains with info about the big ‘domain parker’ of the time and his search portals?

    Yep, I remember that too. Here it is:

    Case Study – Create Income With Expired Domain Traffic
    By Ken Johar
    January 20th 2003
    Reader Rating: 8.3

    Cache of Pages 1 2 3

    Comments in Sitepoint Forum

  • Domainiaxxxxx

    First off… domain registrants came in the game and registered 1 or more domains and took all the risks that they were challenged with through ICANN/ NETWORK SOLUTIONS confusion back in the day, and all the problems that made them wondering.

    However, now if you missed out on catching the names, well, too bad, you can’t be jealous or have hatred for those who registered them.

    Yes, some of the big holders had insider connection to systems which allowed them to gain a higher ground.

    Power goes to Domain Registrants for “walking the walk”, and now, they must avoid those who are “talking the talk”!!! There are seriously a lot of people who cannot digest the fact that you have domain names because they are purely a jealous person and cannot accept the fact. They are insecure and are ways paranoid about other people’s financial stability.

  • Lord Brar

    Just a FYI, Rick Schwartz is the guy who sold Men.com… you could see some of his portfolio at DomainKing.com.

    DN Journal carried a pretty nice article about him at http://dnjournal.com/columns/cover020204.htm. :D

  • cholmon

    Given that Schwartz pulls in 20 million per year with the 5,000 names he owns—I would say so…

    My question wasn’t “Does it make sense?”, but rather “When does it make sense?”

    Obviously pulling down 2 million a year screams, “I know what I’m doing”, but for those of us who can’t afford to drop $100,000 on a single high-profile name (even if it is a great deal), that sort of income is quite a ways off.

    Let’s say I find out that “thisgreatdomainname.com” is available, so I register it. I immediately park it with DomainSponsor and a few months later I’ve received a trickle of traffic, and no click throughs. I then try to sell the name, but months go by with no offers.

    Then I decide to develop a site around the name. I come up with unique content, I optimize the site for the search engines, I spend a modest amount marketing the site to drive up its pagerank, and I try to attract a loyal membership. I put ads in various places on the site, I sell books and other related products, and I actually start to generate revenue.

    When does it make sense to simply park a domain name instead of building an actual site around it? It seems to me the simple answer is just “when you can make more money at it”. I just find it hard to imagine any given domain generating more revenue by simply being parked than it does by having an original web site developed around it.

  • Anonymously

    @ cholmon

    When does it make sense to simply park a domain name instead of building an actual site around it?

    There was never a point at which it made sense to acquire domains for resell or traffic, the market simply happen and some people had taken the risk. Maybe they had experience in real estate or 800 numbers, who knows.

    If your asking if it makes sense now, I would say NO

  • Anonymously

    When does it make sense to simply park a domain name instead of building an actual site around it? It seems to me the simple answer is just “when you can make more money at it”. I just find it hard to imagine any given domain generating more revenue by simply being parked than it does by having an original web site developed around it.

    Also, Schwartz goal was not to work – making money was secondary.

  • http://www.redflystudios.com Cianuro

    Thats a great article. Long, but inspirational.
    I wonder how much you’d need to invest to get a foot in the door in this market.

    And I too want to be a mysterious industry giant that sends people to meetings in bars pretending to be me :)

  • http://www.SitePoint.com Matt Mickiewicz

    The DNJournal article is very interesting, as is Rick Schwartz’s Website. According to the “History” article on his Website, he values his domain names at $1 billion dollars.

    Even if the true market value is only half of that, his yield is a measly 4% on his entire domain name portfolio.

  • Anonymously

    The DNJournal article is very interesting, as is Rick Schwartz’s Website. According to the “History” article on his Website, he values his domain names at $1 billion dollars.

    Even if the true market value is only half of that, his yield is a measly 4% on his entire domain name portfolio.

    Too funny. I keep seeing the same sources that you point out, but not reading looking into them… ;)

    If he is right about the current market value of his domain name portfolio, then he should sell his names and diversify his holds; e.g. the returns are pretty low and he’s got all his eggs in one basket. This also points to the fact the he just got lucky, although I’m guessing that his portfolio of names is not worth .5 or 1 billion…

  • Anonymously
  • gericsb

    hello,

    can someone explain to me how this is done. I have some very high quality type-in domain names and common misspellings that I would like to make money from.

    Please email me at: spdrus at yahoo dot com

  • http://www.canadajobfishing.com siezma

    I hope that i am not too late to start this kind of business:-)(Almost after one year).

    Thanks for the information

  • Symbiotic

    Thanks for all the info. Has anyone tried ? It is a really neat FREE tool used for google adsense.