DomainMartAppraisal, ValuationCorporate TrainingAbout Us
d
Contact Us

Why Us?

Studies & Opinions
.
Appraisal/Valuation
. Infrastructure
. Marketplace
. Monetization
. Protection+Legal
. Search Engines
. Lighter Side
. Other

Connect & Share
Facebook Twitter Tell A Friend

Google

Web DomainMart



 
 

Studies & Opinions

Leasing vs. Parking

Alex Tajirian
June 17, 2005

 

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 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:

    1. Advertisers and domain name owners are unaware of existing mechanisms, such as DomainMart’s leasing program, that facilitate leasing.

    2. A large number of domain name keywords favor parking to leasing as a better source of revenue.

Topic tags: leasing, parking