Saturday, May 16, 2009

Domaineering vs Domaining

Welcome to the world of "domaineering". This new term described in wikipedia as:
Domaineering is the web-based marketing business of acquiring and monetizing Internet domain names focusing on their use specifically as an advertising medium rather than primarily speculating on domains as intellectual property investments for resale as in domaining where generating advertising revenue is considered more of a bonus while awaiting a sale
I guess people eventually figure out there is a better way to make money with their domain name other then just sales of the name itself. It's a natural progression that makes perfect sense. Why not derive extra income while waiting for your "property" to sell. I would use the real estate analogy. Your domain name is your Internet property. Why just let it be vacant while you're waiting for the value of your property to appreciate. Why not rent it out and get extra income. Perhaps the steady income you derived from your property is more valuable than if you sell it outright.

To further clarify, the "Domaining" owner have being putting up web page full of advertisement while it's "parked" pretty much since the beginning of cyber-squatting. What is new NOW is they can make more moeny by better utilizing their domain name. After all these years, people have gotten to know the "parked domain" template, which contain absolutely no useful information, and simply close the window if they do indeed land on that web page by accident. The Click-Through-Rate (CTR), ratio of visitor actually clicking on a advertisement link, for these websites are steady going down. Not to mention the Pay-Per-Click (PPC) value, amount domain owner gets pay per click, is also going down fast as advertiser beginning to realize many of these clicks are NOT result of genuen interest but user click by accident or even "click-fraud". Hold the thought on click-fraud, that another topic for another time. The point is, domain owner have now realize that they do need to have some useful information to attract people to view their web page, which in turn increase the likely hood that they'll click on some advertisement link.

The current new domain parking trend is to create "mini-site." Website with few pages of information related to the domain name. For example, if you sitting on "buildNetWorth.net," instead of a generic template, you will actually have articles about building net worth or investment strategy. Once the domain owner starts to think in this direction suddenly it opens up more money making possibility. One popular format of these mini-sites is 1 menu tab which leads to articles with paid advertisement (such as google adsense) sprinkle through out. Another tab, maybe a list of Youtube videos, 3rd tab a list of "ebook" you can buy (there is a popular money making program for that too). Of course, you can always add Ebay or/and Amazon referral program. The idea here is you'll have a list a items for sale just like a real web store. Except it's just a referral to Ebay or Amazon. The domain owner collects commission if Ebay or Amazon makes the sale. All of a sudden, what you have looks like a real legitimate website.

Thus transformation from a low earning (oops, I click on the link by accident) incoming to an almost real website with just enough information to have people take a look. My personal opinion is there are money to be made here by small entrepreneur that's willing to spend the time to develop these website.

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