http://brontemedia.com/2007/11/23/how-much-domainers-earn/
This blogger does some digging. Not all domain portfolios are created equally of course. And earnings can be swung in many directions based on overhead (staff, salaries, fixed costs, offices) and implementation (PPC, CPA, revenue shares with upstream )
I have a friends with smaller >10000 name portfolios who make $314.28 per name per year, $923.07 per name per year. Then I have colleagues with larger portfolios who make between $18 and $48 per year.. It depends on the names in the portfolio, your rev-share deal, how you implement and whether you augment your paid-search revenue with domain name sales.
Lots of variables.
This entry was posted by frankschilling on Saturday, November 24th, 2007 at 4:09 PM and is filed under
Domain Names (Domains), Friends and Family, Monetization, Paid Search, Type In Traffic. You can follow any responses to this entry through the RSS 2.0 feed.
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Actually DBS’s net revenue is about $9.34 per domain.
***FS*** Ouch.. maybe they record name-sales differently than Namemedia does.. Revenue vs Capital disposition
Sorry, should have been less succint;
Using Sept Qtr figures:
annualised traffic revenue $8,040,000
annual renewal cost $3,370,000 (@ $6.74)
net traffic rev $4,670,000
500,000 plus names
net rev per domain from traffic revenue $9.34
Domain sales in Sept Qtr $857,000 (including bedroomfurniture.com for = or > $250k)
Essentially they’ve got a good portfolio of 153,000 names that generate $43.53 per domain. A crap portfolio of 347,000+ portfolio that costs them -$5.74 per domain. Combined its just $9.34 per domain.
Domain sales are increasing; last 5 qtrs:
297k, 318k, 333k, 638k, 857k (with DDN? influence evident in last 2 qtrs). The domain sales are across entire portfolio.
They need to make sales of about 500k per qtr to justify the crap portfolio.
We found this article interesting in that it validated what has been our thinking for some years now that just by having a large portfolio doesn’t automatically guarantee high revenue. It’s the old saying, ‘quality vs. quantity’.
We have only a small portfolio of some 1,200 domains that generate more revenue than some folks we know you have 10,000 domains. Through a very select criteria we have attained a ‘low cost’ and ‘high revenue’ domain portfolio. You can read about this and more concerning ‘keyword optimization’ at http://www.blog.xtraparking.com
David,
Sound to me they should be sifting the crap for potential drops. That is what you would do if these domains were human workers. You would bloody fire them!