This post originated from an RSS feed registered with Java Buzz
by Fred Grott.
Original Post: Real Costs of Domain Name Speculation
Feed Title: ShareMe Technologies LLC-The Mobile Future
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Just to give you an idea how much it costs a start-up not to listen to expereince with the
Indy Domain Name Speculator Start-UP as an example(of course this start-up could clean up
the mess and fix the problems). Costs of supporting illogical and un-economic hording of 11,000 domain names:
DN register fees $10 per DN, total of $110,000 per year
Cost of hosting 11,000 sites with 1 million hits per day is $2,000 per month, total of $24,000 per year
Thus, over a ten-year period we have $134,000 times 10 for approximately $1,340,000 being wasted. It is not just a choice between 11,000 sites and holding 10 sites to develop and spending that development costs. It is the general lack of accountability in using strategies to monetize those 11,000 sites.
The choice of running someone else's ads does not work as the click fraud article I posted days earlier points out the abusers tend to be domain name speculators to make up for the fact that ad revenue is so low. To keep the 11,000 DN speculation alive would have required building an adserver that is automated which is impossible with only two management members that equate copying and pasting code as code development.
And of course two inexperienced people attempting to hire CS interns to do the heavy lifting with said interns not even having the habit of testing user inpuit always results in a disaster. Generally, when I teach someone programming they get an F- for handing in a program sample or assignment that does not verify user input.
Not to mention, but to a potential buyer which is more quanative and impressive 11,000 site generating 1 million hits total daily or one site generating 1 million hits daily. Not that a network of branded sites generating 1 million hits daily is not a good quality.
The difference between AOL buying weblogs and its sub-domains and the Indy start-up is that they never made any effort to learn how to manage limited resources correctly to build something in high tech. Weblogs INC by comparison actually completed marketing studies, surveys, and etc to understand how to implement a branded set of domains and sub-domains in order that the blogging competed on each domain name(site) would have some value to an media group when purchased as a collection.
Of course the costs of paying developer to produce a product and training two pretend managers in software development probably exactly equals the above stated $134,000 per year. Seems to me a year or two at $134,000 is far cheaper than 10 years at $1,340,000.
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