| Domain name
leasing can be more lucrative than parking for certain types of
domain names. The advantages are outlined below.
Parking can be a cheap marketing venue for advertisers
and bad for domain name owners. From the perspective of parked domain
name owners, advertisers may be free riding on your domain names.
Even with rank-competition among advertisers, they may still be
paying below their maximum viable capacity, i.e., for certain keywords,
they may be willing to pay much more to receive such traffic. Moreover,
there are services such as BunledPPC.com,
that strive to eliminate pay-per-click (PPC) price wars, considerably
pushing down bids on top ranks, and in the process, reducing revenue
from parked domain names. Furthermore, the leading ad aggregators,
such as Overture, have a $100 cost-per-click (CPC) limit, typical
for legal related keywords.
On the other hand, for advertisers, leasing is
a preemptive strategy that prevents competitors from gaining access
to such a targeted advertising venue.
Possible explanations for the increase in the
number of parking compared to leasing domain name include:
-
Advertisers and domain name owners are unaware
of existing mechanisms, such as DomainMart’s leasing program,
that facilitate leasing.
-
A large number of domain name keywords favor
parking to leasing as a better source of revenue.
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