It seems like no matter what business industry you’re looking at, there’s always room for shady activities. Web hosting and the domain industry are no exceptions. However, most people are totally unaware of one such practice known as domain tasting. Domain Tasting is essentially when a someone buys a domain name for the sole purpose of seeing whether or not it can generate ad income. The domain registrant puts ads on the domain, and if the ads don’t make any money, the registrant has five days to request a refund.
There have been many big companies involved with Domain Tasting, and since they can pull off the above example on a much larger scale, they have been able to reap insane amounts of profits. This had affected us and our clients because millions of domains were getting tied up by ‘tasters’ and would appear unavailable when someone actually went to register their domain name.
To help curb this problem, since April of this year, ICANN has made their $.20 domain transaction fee non-refundable. So if a company wants to sample 50,000 domain names, for instance, then they’ll have to shell out $10,000 in registration fees even if they get a refund for the domains within the five day grace period. This change hasn’t eliminated the problem altogether, but it’s certainly helped.
Obviously domain tasting wouldn’t have gotten as out of control as it did, had it not been for the huge profits that people were reaping in. At HostGator, we don’t have that many domain registrations, since we specialize in web hosting. However, it’s still evident that there are major profits to be earned with a decent domain portfolio. One such way to monetize domain names, that we’ve explored recently, is via domain parking.
When you first buy a domain, the domain will be using the default name servers of the registrar generally. The default page you see, usually with ads all over it, is a good example of a parked page. What most people don’t realize though, is that even if they aren’t going to develop the domain right away, they can still make money from the domain while it waits to be developed.
The company we’ve been using for domain parking is DomainSponsor. Basically we use their name servers on inactive domain names in our account, and all traffic gets pointed to a domain parking page where relevant ads are displayed, giving us a percentage of the revenue made from the ads.
So just how much money can you make with Domain Parking? We were pleasantly surprised with the results.
The above check was for the month of May. We’ve been using Domain Sponsor for the last 3 months, and are consistently getting over $25,000/monthly with the domains that we have. Now these results may be unique since we do have roughly 12,000 domain names in our DomainSponsor portfolio, but many domainers have much more domains than this and can stand to make much more money.
Overall, we’re very happy with DomainSponsor. As you can see from the above image you can easily group domains into portfolios and track advanced statistics to the exact day. Getting started with domain parking is super easy, simply sign up, and start adding your domains that are currently doing nothing to your portfolio at DomainSponsor.