What percentage of advertising revenue does Sedo pay out - could it be less than 10%?

[Bill Roy]

Sometime ago I seem to remember reading a thread where it was divulged that of the money per click an advertiser paid Google that Sedo was paid 42.5% of that fee.

This started me thinking, at no time has Sedo ever announced publicly to my knowledge just what percentage they pay out to the domainer per click through.

Let us assume we are dealing with an advert where the advertiser pays $5 to Google per click, from this it would appear that Sedo is paid $2.125, so what is the payment to the domainer? Well as it seems that most click payments are below $0.10 we will be generous to Sedo and double that to $0.20, but this still represents less than 10% of what Sedo's revenue from that single click is!

Now Sedo also only pays on the first 'click-through' by a visitor, any subsequent clicks on adverts on the parked page Sedo keeps entirely for themselves. Let us guess that the average person who lands on a parked page and clicks through on adverts visits 3 sites before they either find what they want or give up. Let us further assume that the value of each advert reduces slightly in correspondance to its place in the list (i.e. higher up the page equates to more expensive cost per click). If we now reduce the click through costs at the rate of 50% each this would make the first $5.00, the second $2.50, and the 3rd $1.25, making a total cost of $8.75 in revenue to Google and $3.17 to Sedo, and yet even with our generous assumption above that the payment to the domainer is $0.20 the amount Sedo pay the domainer parking that name is just over 6.03% of their revenue.

So what do Sedo actually do or provide for taking such a massive percentage of the click-through earnings?

Well it would seem not a great deal. They provide you with a parking page that looks just like a parking page, they also.......... well, to be honest I cannot think what else they provide for taking over 90% of the revenue from the Google advertising revenue!

I would love some hard and fast figures here, so if Sedo would care to elaborate with numbers then please do so publicly (I give fair warning that any PM or email from Sedo on this matter I will publish here on this thread as I consider this a public discussion).

 

[Dorin]

Good post. support you!

 

[Bill Roy]

Strange isn't it, I posted the original post about a week ago and yet no reply of any kind from Sedo!

Don't tell me they would rather this thread died and were not made aware of just how little they as a company actually pay the domainer for their investment. There is an old saying 'You can fool all of the people some of the time, you can fool some of the people all of the time, but you cannot fool all of the people all of the time!'

It is obviously the second of these that Sedo believes in and as long as new domainers keep coming along they are happy to blow their own trumpet as to how marvelous they are and what great payouts they give. Yes, sure!!!!!!

Or is it a case that they actually pay out less than the figures above and would rather people thought they paid out these amounts than even less amounts?

 

[alex75]

Strange isn't it, I posted the original post about a week ago and yet no reply of any kind from Sedo!

Don't tell me they would rather this thread died and were not made aware of just how little they as a company actually pay the domainer for their investment. There is an old saying 'You can fool all of the people some of the time, you can fool some of the people all of the time, but you cannot fool all of the people all of the time!'

It is obviously the second of these that Sedo believes in and as long as new domainers keep coming along they are happy to blow their own trumpet as to how marvelous they are and what great payouts they give. Yes, sure!!!!!!

Or is it a case that they actually pay out less than the figures above and would rather people thought they paid out these amounts than even less amounts?

Sedo have a big luck; for some odd reason they are the most known parking company. If it wasn't for this, I am sure their business would be completely dead, considering what they pay to the domainers compared to what they give to them.

Somebody will tell you that they choosed Sedo because it's not just about PPC revenue but also about domain sales. Well, many, many other parking sites are better than Sedo for the domain sales.

But now let's consider something: Sedo is an open parking site. You go there, you sign up, and you have an account with them. Many, many other parking companies are NOT like this. They ask to see AT LEAST the user's portfolio before to admit the parker in. So I suppose Sedo must have a HUGE amount of click fraud going on, and maybe these terrible low rates that they give are to "cover" the possible chargebacks from Google?

But on the other hand, it could just be greedy.

 

[Theo]

PPC right now at Sedo is at a slump.

 

[Dr Nump]

I believe most ppl currently parking at sedo for domain sales rather than domain parking. Infact most of my domain sales come through sedo.

 

[DomainingCom]

The guys at SEDO are not very pleasant with me lately so I am not specially motivated to defend them.
Now what is true it's true, I don't like to complaint just for be bad, so here are my results:
For the domains I am using their feed, the average ppc is 25 cents/click.
For some domains the average earnings per click is above $1.20
I think they are paying the domainer around half of their gross revenue.
It's not outstanding but they are not abusing, I think that's the norm.
I guess if you have a huge portfolio and you cry then you can get better rates.

Now, if you want better rates then look at Bodis a new parking service done by a domainer, they are offering 100% gross revenue.
They just purchased us an ad campaign in DNF and NP, so you should see their banner ads broadcasting very soon.

P.S:
Bilbo, by experience I don't think you will get any response from SEDO complaining here.


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[Bill Roy]

Hi Francois,

I do not expect to get a reply from Sedo, 2 years have taught me 'never' to expect a response from Sedo! I guess that especially goes on the markets main domaining forum and a section especially about Sedo.

One of my reasons for posting was that newbies could be warned not to believe the hype and advertising about Sedo (99% initiated by Sedo). It is the fact that Sedo deliberately insinuate that they make high PPC payouts (something that is total rubbish), it is a bit like the old USSR saying that it was a democratic country with free elections, sounds good but considering there was only ever one candidate and one party shows what an insult to the intelligence the statement actually is.

Newbies be warned, all that glitters is not gold, and in the same way all that Sedo say is not true.

Finally, I will add that the Sedo auction 'idea' is a boost to the aftermarket, just a pity it is not better organized, just like Sedo's sales system generally, it is pathetic to useless with no substance at all when it comes to fake offers and bids.