This post originated from an RSS feed registered with Java Buzz
by Fred Grott.
Original Post: Domain Name Speculators
Feed Title: ShareMe Technologies LLC-The Mobile Future
Feed URL: http://www.jroller.com/shareme/feed/entries/rss
Feed Description: A Weblog about Java programming and digital convergence on mobile devices in such areas as P2P and collaborative technology.
Here is an interesting puzzle to figure out is how Domain Speculatos make revenue as most of the press get it wrong in the first place and is based on myself working unknowing working for an Indianapolis start-up that was and stil is a domain name speculator. First, figure on 1 Million hits per day.
Second, a click rate of 0.01% on the search spam that these firms generate on placeholder pages so that we have:
1 Million hits x 0.001(0.1%) = 1000 click throughs per day
Third, the pay rate per click through is quite low asy at 0.03 dollars:
1000 click throughs per day x $0.03 = $30.00
Fourth, now let us do that for a year:
$30.00 earned x 365 days = $10950 per year
Sixth, at let us say 11,000 domain names it cost approximately $150,000 in server hosting, domain name registration renewal fes, and etc per year. As you can see the business operates at a net loss. Of course the man or people hours to develop 11,000 domain name is at about 65,000 people hours.
Would it not be easier to spend the time to develoop a real website that offers a service and a real chance at revenue?
Previous Topic
