Comments on: It’s Happening As Predicted, Now What? http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/ Sun, 06 Jul 2008 12:57:38 +0000 http://wordpress.org/?v=2.5.1 By: Gordon http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-572 Gordon Thu, 28 Feb 2008 17:56:52 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-572 My earnings are down about 15% in the past 2 months. My google adsense earnings haven't changed however. This is great news...for people like me who want to develop. Perhaps there will be some nice buying opportunities in the near future. Development isn't easy - it takes a lot of work, knowledge and (usually) money. My earnings are down about 15% in the past 2 months. My google adsense earnings haven’t changed however.

This is great news…for people like me who want to develop. Perhaps there will be some nice buying opportunities in the near future.

Development isn’t easy - it takes a lot of work, knowledge and (usually) money.

]]> By: George Pickering http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-569 George Pickering Wed, 27 Feb 2008 19:22:22 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-569 and that is why we are building pay per lead parking pages. and that is why we are building pay per lead parking pages.

]]> By: Andrew Allemann http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-567 Andrew Allemann Wed, 27 Feb 2008 16:04:42 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-567 I agree in general with your philosophy and statements. I, too, and a believer in geo domains. I, too, believe that development is the next wave. This is one of the reasons I don't think that people who sold their portfolios for 5x-7x earnings made particularly bad decisions. Although I think this is a bit low, it gives a return of at least 20% annually. There's a lot of risk here; the value of those portfolios can go down especially if it includes a lot of two or three word type-in domains that would be difficult to monetize through anything other than PPC. The one thing I'm not sure about is your statement " PPC is down across all platforms and at least 50% has to do with Google and Yahoo improving strategies to give advertisers more bang for their buck". Do you have any stats to back that up? I just don't think it's true, and it's certainly not what I've seen. ***SMO*** Andrew, This is based on my own portfolio performance, I should have mentioned this. It has dropped imensely. There have been many people who have said their earnings are way down as well. To all, how much have your PPC earnings dropped in the last 2 months? I agree in general with your philosophy and statements. I, too, and a believer in geo domains. I, too, believe that development is the next wave.

This is one of the reasons I don’t think that people who sold their portfolios for 5x-7x earnings made particularly bad decisions. Although I think this is a bit low, it gives a return of at least 20% annually. There’s a lot of risk here; the value of those portfolios can go down especially if it includes a lot of two or three word type-in domains that would be difficult to monetize through anything other than PPC.

The one thing I’m not sure about is your statement ” PPC is down across all platforms and at least 50% has to do with Google and Yahoo improving strategies to give advertisers more bang for their buck”. Do you have any stats to back that up? I just don’t think it’s true, and it’s certainly not what I’ve seen.

***SMO***

Andrew,

This is based on my own portfolio performance, I should have mentioned this. It has dropped imensely. There have been many people who have said their earnings are way down as well.

To all, how much have your PPC earnings dropped in the last 2 months?

]]> By: Peter Pinti http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-566 Peter Pinti Wed, 27 Feb 2008 14:54:08 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-566 Being new to the Domain industry, it seemed obvious that the glory days of parking a domain and watching the money flow in was going to come to an end. People want to see content on pages that they browse to, not just a bunch of links to other sites. I agree with the statement of Build Build Build, like the saying if you build it they will come!! Being new to the Domain industry, it seemed obvious that the glory days of parking a domain and watching the money flow in was going to come to an end. People want to see content on pages that they browse to, not just a bunch of links to other sites. I agree with the statement of Build Build Build, like the saying if you build it they will come!!

]]> By: Tommy Butler http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-564 Tommy Butler Wed, 27 Feb 2008 13:33:06 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-564 Been saying that for years. You have to Build Build Build. Been saying that for years.

You have to Build Build Build.

]]> By: Robert Franks http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-563 Robert Franks Wed, 27 Feb 2008 13:09:31 +0000 http://simplygeo.com/2008/02/27/its-happening-as-predicted-now-what/#comment-563 I posted this on Rick's blog a few days ago, and I'll post it here also. --- I foresee big changes in the coming year or two. The price of virtual real estate has been going up every year. Income generated from this real estate is going down (PPC income is lower, no more arbitrage, etc.). The old parking model that made many large domain portfolio owners very wealthy does not have a viable future. Bland parking pages will soon run their course as end users won't be clicking on those ads like they used to, reducing domainers’ revenue even further. So, large portfolio domain owners need to do something different to cover their annual renewal expenses. They either need to sell their assets while they can get a premium for them, or they need to invest serious money developing them into useful sites that will attract AND BRING BACK visitors. While some domainers are starting to develop sites that actually have value, most domainers don't have experience developing websites or building businesses. They only know how buy domains and park them. It behooves the high profile domainers like Rick and others to tout what a great investment domains are, as it keeps rasing the value of their holdings. Then, they will sell them for a premium. You will probably soon see the one word generics (such as candy.com) sell to a large corporation (such as Hershey) that will pay top dollar. Parked pages will start to disappear, as will the parking companies. I have a feeling that this phase of Rick's 20 year plan is to sell off his domains to these corporations who will pay the most. Smart guy... buy low, pump up the market, sell high. I posted this on Rick’s blog a few days ago, and I’ll post it here also.

—

I foresee big changes in the coming year or two.

The price of virtual real estate has been going up every year. Income generated from this real estate is going down (PPC income is lower, no more arbitrage, etc.).

The old parking model that made many large domain portfolio owners very wealthy does not have a viable future. Bland parking pages will soon run their course as end users won’t be clicking on those ads like they used to, reducing domainers’ revenue even further.

So, large portfolio domain owners need to do something different to cover their annual renewal expenses. They either need to sell their assets while they can get a premium for them, or they need to invest serious money developing them into useful sites that will attract AND BRING BACK visitors.

While some domainers are starting to develop sites that actually have value, most domainers don’t have experience developing websites or building businesses. They only know how buy domains and park them.

It behooves the high profile domainers like Rick and others to tout what a great investment domains are, as it keeps rasing the value of their holdings. Then, they will sell them for a premium. You will probably soon see the one word generics (such as candy.com) sell to a large corporation (such as Hershey) that will pay top dollar. Parked pages will start to disappear, as will the parking companies.

I have a feeling that this phase of Rick’s 20 year plan is to sell off his domains to these corporations who will pay the most. Smart guy… buy low, pump up the market, sell high.

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