Representatives of several domain name companies discuss how to make more money from domain names.
A panel of domain industry experts discussed domain revenue beyond pay-per-click this morning at the TRAFFIC conference in New York. Panelists included Ofer Ronen, CEO of Sendori, Jonathan Boswell, CEO of LeaseThis.com, Anthony Pepper of Startup Capital, Sahar Sarid of Recall Media Group, Rick Latona, CEO of Offshoring.com, and Joe Alagna, GM of CentralNic.
The general consensus was that Google and Yahoo have a stranglehold on the industry. They could quickly turn off domain owner’s revenue. Domain owners need to find alternatives to Google and Yahoo’s pay-per-click services. These alternatives may actually generate more revenue than pay-per-click.
Ofer Ronen of Sendori: Ronen Discussed his company’s so-called “Zero Click”. Instead of creating a landing page full of pay-per-click links, Sendori sends type-ins directly to an advertisers’ site, which he claims will increase your revenues compared to pay-per-click. Ronen gave an example showing how you basically get a 100% click through rate with his service. He used a $.15 per redirect example to show how much money you can make with Sendori. Ronen says that’s their average redirect price. However, Ronen said that if advertisers aren’t bidding high for your domain then they will send your page to a traditional parking page. A number of services similar to Sendori have been launched and failed in the past. But Sendori is taking a different approach by linking in with a number of advertiser networks and offering domain portolio owners an API to manage their domains.
Jonathan Boswell of LeaseThis: Domains are rarely in the hands of the person who would get the most value from it. LeaseThis goes directly to advertisers who can lease a domain for a specified amount of time. For example, he pointed to a new movie by Sony called Vacancy. The official web site for this domain is http://www.sonypictures.com/movies/vacancy/. But Sony has leased Vacancy.com during the launch of the movie (the Vacancy.com lease was not through LeaseThis). Boswell also disclosed breaking news: NameMedia is offering its entire portfolio through LeaseThis for short term leases.
Anthony Pepper of StartupCapital.com: (Anthony was not in the program, I’m unsure of his last name spelling). He has invested in Blogster.com, UncleSam.com, and OL.com and works with Rick Latona.
Sahar Sarid, co-founder of Recall Media Group: Development is hard. It requires a different skillset than being a simple property owner using pay-per-click. Recall Media helps companies develop their domains. Sarid also noted that having a good domain name is nice but not critical when you are launching a site. Think of all of the branded domains, such as Travelocity.com and Expedia.com.
Rick Latona of Offshoring.com and DigiPawn.com: Most of the time, developing a domain you have into a simple site is a smart way to increase your revenue. You can use affiliate programs, sell advertising directly, use Google Adsense, etc. to make money from these sites. Creating sites for your domains is critical because it delivers search traffic. If you want to see Latona’s developed domains, visit AEIOU.com.
Joe Alagna of CentralNic: CentralNic sells subdomains, such as name.us.com. CentralNic offers a service whereby anyone can become a subdomain seller using one of their domains. CentralNic has close to 200,000 registered subdomains at about $50-$100 per registration. However, Alagna says selling subdomains isn’t right for everyone. If you plan to sell a domain then you can’t sell subdomains for it. It works best with short names, geo-names, professional affiliation names, etc. You should consider selling subdomains if you regularly get offers for your domain.