Last year we entered into a profit sharing partnership with a large online bedding company to brand a few domains to sell bedding products, including LuxuryBedding.com.
Up to that point the domains were parked.
A domain like luxurybedding.com, although highly brandable, does not get a lot of type in traffic and was making lets say $40-50 a month in PPC.
The deal is simply. The developer puts up the site, the manufacturers dropship everything direct to the customers, so the developer has no inventory.
He marks up his price (cost) by 10% for his company and 10% for us.
So the customer basically pay cost plus 20%. So the prices are very good. Certainly much cheaper than you will find in any store on or off line.
The results have been tremendous.
Revenues from the developed site have outperformed the parking revenues by more than 10x consistently for the year. (and that was based on parking revenues from over a year ago)
So this brings us back to what is a click worth.
Well if the domain luxurybedding.com was still parked I would have earned around $1 for the customer it had today.
But it not parked.
It accepts orders for merchandise.
Checkout this order from today:
1. BTS Mission Copper: Bath Accessory: Soap Dish
Sku: 22302
URL: http://www.luxurybedding.com/show_product/107163
Unit Price: $104.00
Quantity: 2
Price: $208.00
2. BTS Mission Copper: Bath Accessory: Tray
Sku: 22306
URL: http://www.luxurybedding.com/show_product/107164
Unit Price: $112.00
Quantity: 2
Price: $224.00
3. BTS Mission Copper: Bath Accessory: Cotton Holder
Sku: 22305
URL: http://www.luxurybedding.com/show_product/107165
Unit Price: $160.00
Quantity: 1
Price: $160.00
4. BTS Mission Copper: Bath Accessory: Boutique Tissue
Sku: 22301
URL: http://www.luxurybedding.com/show_product/107167
Unit Price: $212.00
Quantity: 1
Price: $212.00
5. BTS Mission Copper: Bath Accessory: Waste Basket
Sku: 22300
URL: http://www.luxurybedding.com/show_product/107168
Unit Price: $260.00
Quantity: 3
Price: $780.00
6. BTS Lodge Copper: Bath Accessory: Waste Basket: Copper
Sku: 38298
URL: http://www.luxurybedding.com/show_product/158543
Unit Price: $260.00
Quantity: 1
Price: $260.00
7. BTS Lodge Copper: Bath Accessory: Boutique Tissue: Copper
Sku: 38299
URL: http://www.luxurybedding.com/show_product/158544
Unit Price: $212.00
Quantity: 1
Price: $212.00
8. BTS Lodge Copper: Bath Accessory: Soap Dish: Copper
Sku: 38303
URL: http://www.luxurybedding.com/show_product/158548
Unit Price: $104.00
Quantity: 1
Price: $104.00
9. BTS Lodge Copper: Bath Accessory: Tray: Copper
Sku: 38304
URL: http://www.luxurybedding.com/show_product/158549
Unit Price: $112.00
Quantity: 1
Price: $112.00
10. BTS Pebble Natural: Bath Accessory: Waste Basket: Natural
Sku: 32958
URL: http://www.luxurybedding.com/show_product/158560
Unit Price: $352.00
Quantity: 1
Price: $352.00
11. BTS Pebble Natural: Bath Accessory: Boutique Tissue: Natural
Sku: 32959
URL: http://www.luxurybedding.com/show_product/158561
Unit Price: $220.00
Quantity: 1
Price: $220.00
12. BTS Pebble Natural: Bath Accessory: Soap Dish: Natural
Sku: 32963
URL: http://www.luxurybedding.com/show_product/158565
Unit Price: $92.00
Quantity: 1
Price: $92.00
13. BTS Perfection Towels: Towel: Hand Towel: Copper
Sku: 11007
URL: http://www.luxurybedding.com/show_product/193046
Unit Price: $15.96
Quantity: 6
Price: $95.76
———————————————————————-
Subtotal: $3,031.76
Shipping: $0.00(standard)
Tax: $0.00
Total: $3,031.76
Your eyes are not playing tricks on you.
Its a $3K sale and a $300 commission to us.
So how much is a click worth?
And how much are we all losing by parking our domains?
That’s fantastic Michael and will probably be the way that many will develop their names. Thanks for sharing.
Was the deal struck with the online bedding company a standard one that they offer, or was it something new that you worked out mutually?
Really fantastic!
So it´s TorreyCommerce.com that provides with everything. Do you know of other sites that will provide same sort of solutions, but for different branches?
Excellent example of the potential that exists above and beyond parking. I think this applies to domain valuation in many instances. So many times I have heard unimaginative folks use base traffic metrics to valuate domains. When the real value is many times greater than that dollar-a-day click you mention. Might take some development to reap that reward. Nonetheless.
Now…. if there was just a network where we could all come together to make these deals happen across tons of domains…. that would be cool.
that is awesome, I love watching orders like that come in.
Lawrance/Walt
Yes Torry handles everything, and I do not know what they typically offer you would have to contact them
Johnny
There is no network as such, but there are deals out there.
If we let each other know about what we find then we can start to develop a network
Michael,
thanks for the transparency model.
I APPRECIATE IT,
Ed – Michigan
Thanks for sharing. That’s generous of you.
Nice. It might motivate me to work harder. But I’m sort of busy lately so I might just hit WhyPark to get some SE traffic and I won’t lose all traffic from expired domains.
Great info.
I am so surprised how many great domains are still undeveloped.
J.R.
Thanks for sharing.
Good job…creativity at its best.
Nice info – creativity at it’s best – sure it is
Fascinating to see the breakdown and it really is nice to see value created by development. I think you’ve probably opened quite a few eyes towards an easy path to profitable development. Thanks
And the huge advantage of this is having targeted SE traffic You’ll never get with parking as domain parking will drop You efw hudnred results lower in google which means almost zero SE traffic.
We would be very interested to work with you or if you can recommend a developer to JV with us as we have some great sites not earning much money