- Joined
- Oct 12, 2005
- Messages
- 93
- Reaction score
- 0
Domain name leasing can be more lucrative than parking for certain types of domain names. The advantages are outlined below.
Parking can be a cheap marketing venue for advertisers and bad for domain name owners. From the perspective of parked domain name owners, advertisers may be free riding on your domain names. Even with rank-competition among advertisers, they may still be paying below their maximum viable capacity, i.e., for certain keywords, they may be willing to pay much more to receive such traffic. Moreover, there are services such as BunledPPC.com, that strive to eliminate pay-per-click (PPC) price wars, considerably pushing down bids on top ranks, and in the process, reducing revenue from parked domain names. Furthermore, the leading ad aggregators, such as Overture, have a $100 cost-per-click (CPC) limit.
On the other hand, for advertisers, leasing is a preemptive strategy that prevents competitors from gaining access to such a targeted advertising venue.
Possible explanations for the increase in the number of parking compared to leasing domain name include:
(1) Advertisers and domain name owners are unaware of existing mechanisms that facilitate leasing.
(2) A large number of domain name keywords favor parking to leasing as a better source of revenue.
Parking can be a cheap marketing venue for advertisers and bad for domain name owners. From the perspective of parked domain name owners, advertisers may be free riding on your domain names. Even with rank-competition among advertisers, they may still be paying below their maximum viable capacity, i.e., for certain keywords, they may be willing to pay much more to receive such traffic. Moreover, there are services such as BunledPPC.com, that strive to eliminate pay-per-click (PPC) price wars, considerably pushing down bids on top ranks, and in the process, reducing revenue from parked domain names. Furthermore, the leading ad aggregators, such as Overture, have a $100 cost-per-click (CPC) limit.
On the other hand, for advertisers, leasing is a preemptive strategy that prevents competitors from gaining access to such a targeted advertising venue.
Possible explanations for the increase in the number of parking compared to leasing domain name include:
(1) Advertisers and domain name owners are unaware of existing mechanisms that facilitate leasing.
(2) A large number of domain name keywords favor parking to leasing as a better source of revenue.
