Monday, March 19, 2007

Domain Parking Revenue Potential

Alright, so you're thinking of parking some of your domains in order to earn some extra revenue. I'm sure that by this point, the ...

Alright, so you're thinking of parking some of your domains in order to earn some extra revenue. I'm sure that by this point, the inevitable question must have crossed your mind - "Just how much can I earn with this?"

Well, the answer to that question depends on a number of factors. One of them is what kind of keywords your domains relate to. A history-related domain name, for example, wouldn't bring in nearly as much money per click as a domain containing a highly competitive keyword, such as "mortgages".

The other important variable in the equation is traffic. The number of visitors you get will determine your domain's overall exposure, and how targeted those visitors are will affect your click-through rate (the percentage of visitors that end up clicking an ad).

The easiest way to calculate how much money you will make with a domain is to set it up, and analyze your statistics once you have received a few hundred visitors. The number you want to find is your average revenue per thousand visitors. In order to do this, you will need to know what click-through rate (CTR) you are getting, as well as your average revenue per click (RPC), then multiply your CTR (as a decimal) by your RPC, and multiply the product by 1000. For example, if your CTR is 0.05 (5%) and your RPC is $0.50, your earnings per thousand visitors would be $25. (0.05*0.50)*1000=25.00

Although your earnings per 1000 visitors will obviously change over time, it is still a good baseline when making estimates of future revenue. If your average earnings per 1000 visitors is $25, and you have a domain that gets 10,000 visitors/month, you can logically expect to earn around $250/month in click revenue with that domain name.

Also keep in mind that many domain parking programs, offer "popunder revenue" in addition to the money you earn from clicks. Popunder revenue is based entirely on traffic, and usually works out to about $2 per 1000 visitors. Although this might not seem like much, it can certainly add up if you are able to get a lot of visitors.

When it comes right down to it, your revenue potential with domain parking programs is whatever you want it to be. All you need to do is get an account with a good domain parking program, and start generating traffic, which can be done by either purchasing expired/expring domains, or promoting existing ones.

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