65% of domain name owners anticipate receiving more income from current advertising than domain sales.
[Editors note: this is the fourth in a series of posts with results from the 2006 Domain Name Wire survey. The complete results of the survey will be posted soon.]
What’s driving the increase in domain name values? Current revenue from domain names is more important that resale value right nowâ€”or so says the typical domain investor. 65% of domain name owners said that income from ads on their sites would be greater than resale revenue over the next 5 years. Note that advertising revenue goes beyond domain name parking and includes domains with real web sites and content.
Unfortunately, most domain name owners are not receiving high revenue from parked domains. This is most likely because of the quality of traffic the domains are receiving (i.e. type-in vs. residual traffic). Fully 39% of survey participants are receiving less than $10 per 1,000 views (RPM) of their domain names. On the positive side, 15% are receiving greater than $50 per 1,000 views. The distribution of revenue from parked domains (on a per owner basis) is illustrated in the pie chart below:
Which parking services are the most popular? Stay tuned for more results from the 2006 Domain Name Wire Survey.