A Great article on DNJournal...

[PeterMan]

A lot of you may have read this already, what a great article...

I really like this quote:

"In my opinion, there is no comparison between parking a name and developing one. I find premium domains analogous to real estate. Parking a premium domain name is the same as using prime real estate to build a parking lot. People pay you to park their car and they walk off the lot to bring their business elsewhere. Can you make money this way? Of course. But let's say that instead of a parking lot you built a luxury hotel. Not only will you generate more revenue and keep people on your site, but you've also enhanced the value of your property. The same rule applies to a premium domain name.”

http://dnjournal.com/cover/2006/december.htm

 

[seanboy]

Good article. I'd love to develop every single name that I own, but finding the time is difficult.

 

[JuniperPark]

Not a great analogy - parking lots in prime real estate areas can be cash cows. Think New York City - $100 per day to park a car, 10,000 cars, expenses are 2 minimum wage attendants and property tax, $1 million/day income, no product to inventory/ship/bill, no hassles, no theft problems.

A lot of you may have read this already, what a great article...

I really like this quote:

"In my opinion, there is no comparison between parking a name and developing one. I find premium domains analogous to real estate. Parking a premium domain name is the same as using prime real estate to build a parking lot. People pay you to park their car and they walk off the lot to bring their business elsewhere. Can you make money this way? Of course. But let's say that instead of a parking lot you built a luxury hotel. Not only will you generate more revenue and keep people on your site, but you've also enhanced the value of your property. The same rule applies to a premium domain name.”

http://dnjournal.com/cover/2006/december.htm

 

[Irish31]

I think you are taking it a bit too literal, or anaylizing it too much. The point is if they are coming to the internet to shop, you just parking your name, they will come, take a look and then leave and go spend their money elsewhere likely.

If you dev it, they will end up finding you as the destination, not just some place to drop the car off.

While you are right about certain unique areas having anything worth money, including parking spaces/lots, I think the analogy rings true still overall.

 

[3ammary]

good article

 

[Onward]

Developing has a much better return...but takes much more time. I have found that I can do it with a few names, but I have 500+ names and just can't keep up with developing most of them. They earn their keep by parking them...I do have plans to develop each name I have though.

 

[mikess]

It is a nice article. The parts that I am not being able to understand are how the are generating such an ad revenues? How are they approaching these companies to advertise? What are they charging? For example, palmsprings.com on overture show about 375 with extention on Overture for last month. If the system was using ppc, it would be probably generating 100 times less than what was mentioned. The traffic does not seem much compared to what the advertisers are paying?