Over the last few weeks, I have written several post involving, directly or indirectly, domain parking.
All the comments I received to these posts can be categorized into three camps.
One group basically says; we don’t park our domains, parking is dead get over it.
The second group basically says; develop your domains, parking is dead.
The third group basically says, parking is off 50% but its still a huge moneymaker.
My concerns are with the first two group of commentators.
Why?
It troubles me that so many people so willing to causally write off the parking industry.
Whether you park your domains or not, domain parking has a huge impact on the domain industry in many ways.
Take the upcoming TRAFFIC show.
Almost every major sponsor of this year’s show is a parking company.
Actually almost every major sponsor for every TRAFFIC show has been a parking company or a company which a substantial part of its revenue comes directly or indirectly from parking.
Of course most of the other major domain shows are put on by parking companies such as DomainFest, DomainRoundTable, and the Domainer Mardi Gras.
How many developed sites have stepped up to sponsor a show?
Not many
So I think its fair to say at this point, without parking companies, there are no domain shows.
No domain shows, no live domain auctions.
Love them or hate them, live domain auctions generate publicity for the industry, domain names in general, and have produced in the past, over $10 million dollars in sales in just a few hours.
Live domain auctions have gone from over $10M in sales to under $2M in less than a couple of years, and has at its root cause, the drop in parking revenues.
If parking goes away, the domain resale market will continue to dry up.
End user buyers will always be there.
Matter of fact as we have discussed on many occasions, end user buyers are growing both in dollar volume and total transactions.
Yet the ability for domainers to liquidate part of their inventory through live domain auctions and online domain auctions is heavily dependent on domain parking.
Take NameJet.com for example.
Months ago there were so many five figure sales, that some weeks I had to write two posts a week to cover them all.
According to my records, I have to go all the way back to the beginning of September to find a .com which sold for five figures.
Sure if your buying domains, reduced parking means lower acquisition costs, but it also means lower sales prices if you have to sell into the domain marketplace.
For domain registrars reduced parking revenues are going to mean less registration and a lower renewal rate on existing domains.
The last time VeriSign reported on the number of parked domains, they reported that approximately 7% of all .com and .net registration were parked.
If parking goes away, that is going to lead to millions of domains not being renewed effecting registrars bottom line.
Moreover since registrars get a share of dropping domain auction revenues, their revenues will continue to decline as as parking revenue decline as there is less cash in the domain channel for acquisitions.
Finally there are a LOT of people in this industry whose livelihood is tied into domain parking.
We have met these people at shows, see them online on blogs and in forums.
Behind all these companies there are great people whose ability to feed their families depend on the continuation of domain parking.
Bottom line, realize that domain parking has widespread implications throughout the industry and effects all domainers whether they park their domains or not.
Domainers should not be so caviler in proclaiming the death of domain parking or take any joy in it.
Parking companies Must quickly find way(s) to monetize Other Than G & Y.
Yeah, that’s going to mean direct to advertiser options …a lot of work!
There also needs to be some sort of legal president indicating that “parking” is as legitimate as any other legal business you choose to operate with your domains.
Steve
You think that parking companies have not tried attempted to build out their own advertiser base?
You want a company to take on Google and get advertisers to move to their network?
Hell Microsoft has been throwing billions at it for years and hasn’t figured a way to do it.
Barry Dillers Ask.com tried too
Yahoo continues to lose market share
And these are public companies.
The best funded company in our space maybe received a couple of hundred million in capital, really what do you expect them to do?
There are a ton of legal precedents in the UDRP and WIPO community that says that domain parking is legitmate, within the legal limitations placed on it
Its easy to say these
“Why?”
Here’s a few good reasons:
A growing general distrust of the parking companies. There certainly is no transparency as to what percentage of PPC they’re paying the domain owners. Parking companies’ attitude seems to be, ‘you’ll take what we give you and be happy with it.’ Interesting read on the estibot blog today, BTW.
No transparency with regard to amount of traffic (show me the logs).
A valid sense that the general public, as well as Google and Yahoo think of domainers as “squatters” – forget the true meaning of the term, that’s what they think – they could give a crap about “domainers.”
A feeling that by developing, they are taking control of their own destinies for the long haul.
How much more can the domain resale market dry up than it already has? It’s crap already. Parking companies? What have you done for me lately?
Obviously, the post is a bit biased as you have a vested interest in parking and parking companies. And there is nothing wrong with that and those who still make a decent living from parking and those that can still invest in buying high-income providing names this is a timely and true blog post. However, those with less than stellar .coms and those investing in alternative tlds where parking revenue is non-existent, it means nothing. They will embrace development and there will be a healthy reseller market for developed names. And they can start their own conventions if they want or not. And the two can coexist side by side.
Domain parking is currently my only income. If it goes away I like many others will have to start dropping names. =(
My brother and I don’t park many names and have trumpeted the advantages of developing portfolios before anyone else (if there is another major domainer who has been doing this with the majority of their portfolio before 1995 please let me know).
That being said, I agree with you that parking has played a critical role in the evolution of our industry and I am certainly not in favor of seeing it go. On the other hand, parking is the past not the future. When you park a name – especially a really good one – you are essentially consigning it to a slow death. Even worse, parking a name allows competitors to develop their names and future dilute the value of your name (a perfect example of this is the parked PalmBeach.com vs our developed WestPalmBeach.com).
I could go on and on, but the bottom line is that anyone parking a name in 2009 with a value of over 100K is essentially making a terrible business decision.
PS: The answer to this is YES and it will happen in the next twelve months (I know this for a fact): “You want a company to take on Google and get advertisers to move to their network?”
Pat
“There certainly is no transparency as to what percentage of PPC they’re paying the domain owners. Parking companies’ attitude seems to be, ‘you’ll take what we give you and be happy with it.”
This starts with the upstream providers Google and Yahoo.
It’s those company’s they fail to give parking companies or those with direct contracts any transparency that created the “take what we give you” situation.
Nothing against parking companies who want to stick with G &Y links.
It just seems like parking is going to have to evolve into systems that allow domainers to “develop” their domains into more of a full site.
Devhub has a system that is something along these lines.
Also been hearing something about (Domain Advertising .com I think).
Sounds interesting and promising.
Yep, they’ll have their hands full trying to compete with Google and Yahoo.
But, if somebody can make it work, they’ll be sitting on a gold mine.
Chris
Obviously those with substantial income streams from parking feel the effects of the reduction in parking revenue more.
However the whole purpose of the post was to point out how those with little to no parking revenue are going to suffer negative effects as well if and when parking goes away.
Parking Companies took my money so they can have lavish parties at Key West and they did not even invite me. They seem to invite the same “OLD” folks.
Go look at the pictures…always the same old bunch of “geezers” aka free loaders.
Heck why not–free food!!!
Bull
Don’t feel bad.
I’m an old geezer and I didn’t get to go to Key West
There will always be a demand for domains that make money whether through parking or development. The shift to development is not a negative merely a game changer. Those big players who’ve relied heavily on domain parking revenue will just have to tart working for a living, lol. As Bob Dylan sang in The Times They are a Changin’, “Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone.
If your time to you
Is worth savin’
Then you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’.” That being said, I don’t think parking is going away anytime soon.
Here an idea for the Parking Companies esp SEDO.
If you really want to bring in new blood – why not hold a contest(all expenses paid) and bring the winners in so they can have a taste of what the domain industry is like.
Don’t be a cheapo!!!
Let me be clear(taken from Obama), I am so sick and tired of seeing the same old geezers in every damn conferences and I bet you even know how they smell like!!
Great insight MIke. Most domainers, including many who commented here, don’t see the bigger picture. Yes, there has been a lack of transparency by the parking companies, but if you have domains that are not e-commerce shopping cart type domains, development is either not an option, or a very expensive one. The only other way at this time to monetize these domains is through parking companies.
There are a number of companies that will be revealing new monetization programs and platforms at T.R.A.F.F.I.C. NEW YORK. Those in attendance will be on the inside track to more income.
“but if you have domains that are not e-commerce shopping cart type domains, development is either not an option, or a very expensive one.”
In short, the domains are BS domains which produce BullS**&^ websites aka useless domains! LMAO
In Short too…99.99999% of the sites are BS sites–self serving sites.
The only site that is not BS is Mr.Google because I get a big fat check from him every month.
BullS=BullShitWebsites dot com
Howard, allow me to translate what you are saying, “Those of us with huge portfolios of worthless domains (whose only worth comes from parking) will be shit out of luck if parking collapsed.”
Hey Chris
You can always sell them to some unsuspecting newbie :-))
True dat, lol. But seriously, these comment threads do seem to devolve into arguments between the haves and have-nots which is not the best thing for the industry. There needs to be constructive discourse, obviously, but the problem lies with parking companies and not with domainers (though they both should be working together) and parking companies have to/are evolving and will continue to evolve and everything will be alright in the end and we’ll all be better for it. There will be much rejoicing and gnashing of teeth (and who doesn’t like gnashing their teeth?). And they lived happily ever after. The end.
If parking ever dies, I’ll be ready for the gold rush. eom
Nice insight and analysis, Mike.
Thankfully for us all, parking and the companies which provide it will always play a very worthwhile and important part in the domain field/industry . . .
. . . and as you point out, we wouldn’t be where we are today were it not for all that they provide and support.
You don’t like how much your PPC income is down? Me either.
How do you think the parking cos feel about it?
The bottom line is that the more monetization options available in the marketplace, the better.
For everyone.
Whether you use them or not.
Many of those saying PPC is dead were never making much with PPC to begin with.
There are even so called domainers that were never into PPC saying it’s dead.
It’s not dead, it’s down.
I blame the recession for the beating my PPC took.
When things start booming again, it’ll be back up.
It has hit bottom here for now and starting to trend upwards slightly. It should continue to do so unless we enter into a global depression which I suspect we are.
That won’t be PPC’s fault though.
How bout’ a little icing with our cake …(if it’s ok to post this story link here)
http://tech.yahoo.com/news/ap/20091016/ap_on_hi_te/us_earns_google_11
SAN FRANCISCO –
Google Inc.’s earnings and stock price are soaring again — and so is the Internet search leader’s optimism.
The reason: A third-quarter profit that was the largest yet in the company’s 11-year history combined with revenue growth accelerating for the first time since the U.S. recession began in December 2007.
I am really grateful to Traffic for it’s impact on PPC. Like clockwork, two weeks before every conference– your payouts begin to magically rise- so that you will greet your rep with a smile and continue to bet on the sure thing rather then being lured by the promises of dozens of competitors who handout t-shirts that are very cool to sleep in.
Owen
Your right I Love to sleep in those XL shirts
Steve- Your comment got me fired up
T.R.A.F.F.I.C– Remember to say You’re Welcome Messrs. Yahoo and Google
http://fragerfactor.blogspot.com/2009/10/traffic-youre-welcome-yahoo.html
Good post, the majority of the industry is reliant on parking in one way or another, either directly or indirectly as you suggest, it is a major source of outside money, with enduser sales being the second source. Take one of those engines of the industry out and every other area is going to be effected.
For those who say PPC itself is dead (as opposed to just parking), well if that happens alot of the net would fall over. It would be like the dot com bust all over again in my view.
“but the problem lies with parking companies and not with domainers”
Let me guess you are a domainer and not a parking company. Alot of the issues in the parking world stem fairly directly from domainers. For one issues with low quality traffic and trademarks.
I am developing more but still have alot parked.Actually the more I develop the better I am getting.I also developed for some local businesses and business is picking up..
If parking was still paying the same I would be relaxing, since the decline I have been doing light development on my good domains using ebay, amazon, cj, linkshare etc… Parking companies demanding transparency would work but none of them have the balls to risk upsetting their upstream provider and losing their feed. Parked.com can have dinners where they only invite florida domainers and other companies can only invite certain people as well but I’m done contributing to their madness, I will light develop all of my product related generic domains I own and the ones I can’t develop as easily (service domains) can rot at sedo or my own site for the sales potential, parking can die today as I have been selling domains for 7 years in the xxxx-xxxxx to end users and most of my biggest sales had no parking earnings, development and increasing your end user sales will make you not even care about standard ppc parking, parking companies sucking up my profits is over.
Last week I clicked the link atop your page and joined ddc. Today I got a surprise bonus having discovered the social networking component. This is big progress for parking. New feature of DDC.com Parking allows customers to share link with their circles on social networking with CHOICE of a great thumbnail. Like FREE advertising that gets spread virally. That’s progress!
New feature of DDC.com Parking allows customers to share link with their circles on social networking with CHOICE of a great thumbnail. Like FREE advertising. That’s progress! Thank you for calling my attention to DDC which I joined through your link at the top.
PPC magically rise too when you first park your domains and then Zzzzzzzzzzzzz
This is to lure to put in more.
Suckers!!
BullS, so you’re telling everyone Google will leave them high and dry in 10 years and be their daddy? Who knew?
I love trolling 10 year from the future. 🙂