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A historical look back shows that companies’ conversion rates with domain ads were double that of search ads. Additionally, our data has shown that domain park sites generally convert at a rate of more than 5%, while search and content conversion rates are about half that.
Furthermore, we’ve found that companies are paying for CPCs equal to that of search ads, but for conversions that are coming in at twice the rate on domain park sites. Frankly, we were shocked. We didn’t expect domain park sites to bring in the quality of traffic necessary to result in twice the conversion rates, at a CPC equal to that of search.
From MediaPost.com [blogs.mediapost.com]
Funny thing is that I didn't go looking for this little gem of an article. I just sort of stumbled across it.
Not that "the story" is anything new to me. The story is that the truth about the value of the traffic may be seeping out into the broader business community.
I went for things like:
Now, the city has about 50,000 people but is growing rapidly. It is also a major tourist hub in the summer. I hope I'm doing right. Now to decide who to park with . . .
[edited by: Webwork at 9:03 pm (utc) on May 22, 2007]
[edit reason] WebmasterWorld TOS [/edit]
Regarding parking there's a couple of approaches.
First, you need to confirm that your domain portfolio meets the requirements of "Parking Company X". Some require a bit of traffic. Some will apparently take all comers.
After you confirm where you qualify you can either go looking for the best company OR you can sample any number by moving your domains around.
If you check the message boards you will see lots of people saying "Company Y" or "Company A" is the best. They can't all be the best, but if you check surveys, blogs, online zines, etc. you will see lots of claims that one or the other is the best. So they're all the best, right? Wrong.
Some use a Google feed. Some use a Yahoo feed. Some add other feeds into the mix. Some domains do better with Yahoo. Some do better with Google. That's why testing may matter. However, as a rule, I see fairly consistent favorable reports of Google>Yahoo from domainers that I know and respect. OTOH, IF you have a big enough portfolio you can negotiate special deals (percentage share, etc.) that may result in Yahoo>Google. It's all in the details.
IF you have more or better converting traffic you may be able to negotiate a better deal with a parking company. So, person 1 may have a 50% share and person 2 may have a 70% share of the parking company's income stream.
Here's a neet test: Look for signals of quality. In other words, take a look at the quality of the portfolios parked at the different firms. (You typically can identify parking companies by their landers OR by the DNS pointing of a domain.) Some companies have members that love to post up about their great earnings with ParkingCompanyX . . but when I dig into what the domains are that are supposedly making the money . . well, sometimes I'm just not all that impressed and I'm left with the feeling that the reports of riches are a bit inflated.
Do you homework. Shop around. Move them around. That's the best way.