1) Will InternetTraffic.com’s payout increases be consistent?

2) If so, will other parking companies end up decreasing expenses and increasing payouts?

What do you guys think?

BODIS.COM – 133,132
TRAFFICZ.COM – 172,678
WHYPARK.COM – 238,034
SMARTNAME.COM – 338,139
PARKED.COM – 457,131
FABULOUS.COM – 581,330

As you can see, most parking companies managed to secure a 6 figure number of domains after years of activity, while InternetTraffic.com managed to do it in a week.

If you think that what’s happening does not affect you, you’re wrong. Even if you won’t park your domains via Frank’s feed, you will have a lot to gain whenever a new player that puts higher payouts on the table emerges because if Frank’s results will be consistent, the market will do its thing and competitors will have two choices:

1) lose their top customers
2) increase payouts

Here’s a small “sample”:

wracraft.com
war-craft.com
wimbeldom.com
wikmedia.com
wikped.com
wheeloffortne.com
wheeloffrotune.com
wheeloffrtune.com
wheeoffortune.com
victoriasecretperfume.com
victoriaserect.com
victoriasicre.com

What do you guys think? Would removing all typo/TM domains (Frank doesn’t work with a lot of domainers since you need a LOT of traffic to be accepted, so enforcing such a rule would be fairly easy) be a good thing for the industry?

Why Facebook? And How?!?

Think about it: lots of people surf while logged into their Facebook account (definitely enough Internet users to make this solution scalable) and when they’re doing that, Facebook would be able to serve ads based on the information they have at their disposal about each and every user (age, marital status and so on).

In other words, here’s what would happen if Facebook were to launch an AdSense alternative:

1) They provide a code

2) Webmasters copy/paste that code, just like it’s done with let’s say AdSense ad units

3) If a user visits a website which contains Facebook ad units while logged into Facebook, ads would be displayed based on the data Facebook has about him or her. If they’re not logged in, then the webmaster would have two options:

a) Let Facebook serve whichever ads they want
b) Use another monetization method for those impressions (in other words, serve other ads to people who are not logged into their FB account)

Sounds simple enough?

Facebook vs. Google

The interesting part is that Facebook has a lot of data which Google doesn’t have access to (age, gender etc.) and this makes it possible to serve ads based on what each user wants to see. In other words:

1) AdSense serves ads based on what each page is about
2) Facebook could serve ads based on other variables

A Great Solution for Any Domain/Website?

Now you might be asking yourself: would a Facebook monetization method represent a great solution for any domain/website? Nope, I honestly doubt it could ever generate more than AdSense (and not just AdSense) for let’s say financial niches.

On the other hand, what about niches such as humor?

In my opinion, this is where Facebook can dominate. Let’s assume that you own the domain Jokes.com which receives lots of type-in traffic. Let’s also assume that your current parking revenue sucks due to the fact that advertisers just aren’t willing to pay more for this type of traffic.

You know that serving ads related to humor has low payouts as a result, right?

OK.

Then what if you knew more things about the visitor who just landed on your site?

Maybe that he recently broke up with his girlfriend? Then why not serve dating ads?

Maybe that he is experiencing financial problems (foreclosures, debt, whatever)? Then why not serve refinancing ads?

Crazy Enough to Work?

This is exactly what a Facebook monetization method could do IMO: help you monetize “problematic” domains. More competition, more revenue for problematic domains. Not bad at all, what do you guys think? Crazy enough to work?

It Could but It Won’t

Hope the previous headline hasn’t confused you TOO much, here’s what I mean: a product such as the iPad and app-based navigation in generally could represent a threat to type-in traffic but this specific product won’t (IMO). Leaving the fact that it has been over-hyped to say the least aside, here’s the main reason why I don’t think that domainers who rely on type-in traffic should lose sleep over this launch: there are FAR more important things to worry about.

I’ve written an article a while back which I think is extremely relevant today, I’ve basically explained why type-in traffic is not a long-term selling point. Definitely worth a read, be sure to check it out if you haven’t by now.

I’m Too Lazy to Read the Article, Cliff Notes Please!

Sure, no problem, here are some of the things which pose a far greater threat to type-in traffic:

1) the fact that parked pages do NOT provide value

2) the fact that lots of money is being spent marketing viable navigation options such as Google, Bing and so on

3) the fact that people who are not exactly Internet-savvy are being “educated” via TV programs, radio programs and so on

4) the fact that quite a few people/companies are trying their best to block parked pages (through browsers, plugins and all sorts of other applications)

The list could go on and on, check out the blog post I’ve recommended if you’re interested in a “from A to Z” type-in traffic analysis. And if we were to analyze things from the perspective of a person who relies on type-in traffic, let’s not forget that:

1) there’s a LOT of fraud involved and that ultimately has a negative impact on the quality or at the very least the perceived quality of type-in traffic in the eyes of advertisers as well as potential advertisers

2) leaving fraud aside, let’s not forget that in most cases, type-in traffic converts poorly (typo traffic, traffic from domains such as LOL.com, HaHa.com and so on – while domains such as WashingtonInsurance.com do indeed put targeted type-in traffic on the table, they are unfortunately just exceptions, a few drops of rain in a sea of junk traffic)

3) legal aspects such as TM issues put a lot of pressure on type-in traffic portfolio holders

4) monetizing type-in traffic via other methods (affiliate programs, partnerships and so on) is not as easy as most people think, it’s basically a completely different world if PPC parking used to be the center of your universe

The conclusion: if type-in traffic is an important part of your business model, worrying about the iPad at this point is like being lost in the middle of the desert without food or water and worrying that you might break a nail

1) Traffic Quality Issues

Look (I’ve mentioned this last week as well), if you own DallasLoans.com then yes, your type-in traffic probably CONVERTS. Aside from domainers who type in that term as well (they’re probably not from Dallas and not interested in loans), most people who land on your websites represent a great audience for companies from Dallas which are offering loans. Two words: targeted traffic!

People seem to forget that traffic which doesn’t convert is almost useless (and certainly not worth a lot of money). Out of the “type-in traffic pool”, how many domains put traffic which actually converts on the table? Unfortunately, only a small percentage.

What about traffic from domains like lol.com or haha.com? Legitimate traffic, poor conversion rates.

What about MySpace typos and similar domains? The conversions will be even worse than with traffic from domains like lol.com or haha.com. Just plain awful!

What about fraudulent traffic? I’ve explained everything here, check out the post if you haven’t by now and you’ll see what I mean.

For every domain with type-in traffic that converts, there are a handful which ruin its credibility as a traffic source. The result? A bad reputation. Maybe this type of traffic deserves its reputation, maybe it doesn’t. The situation is what it is, the reputation exists and will unfortunately continue to exist. Unless parking companies which are willing to filter crap from quality emerge and generate some serious buzz, traffic quality will always be something that will end up being used against domainers.

2) The “Average” End User Just Doesn’t Care

Assuming that you don’t own lots of 6-7 figure domains, the average end user represents your target audience. You know, the plumber from Chicago who just wants a nice domain name (ChicagoPlumber.com) for his business card or the small company who’s on the lookout for a decent billboard-worthy name.

How many times have YOU been contacted by an end user who asked about type-in traffic? In my case, it NEVER happened and I seriously doubt that it will. I keep in touch with lots of people who own quite a few domains and it never happened in their case either. The only exceptions are represented by domainers (first of all, they’re not end users anyway) who contacted me/them but it was more than obvious from the first email that they were resellers and let’s be honest for a moment: is it really beneficial if we continue selling domains to each other over and over again?

Remember: the average end user probably sees domain names as some sort of a vanity phone number. Nothing more, nothing less.

3) Technology – Our Enemy?

If your business model revolves around type-in traffic then yeah, it probably is. But here’s the thing: even if we as domainers are pissed off, the Web is evolving, it’s becoming BETTER!

Look at things from the perspective of a potential visitor for a moment, what would you rather do if you were from Dallas and wanted a loan:

1) Type in DallasLoan.com and/or DallasLoans.com in order to be taken to a site you know nothing about? Can it be trusted? Is the information accurate?

2) Search for the term “Dallas loan” and/or “Dallas loans” via Google/Yahoo/Bing and receive a list of “potential candidates” based on algorithms which are getting better and better? Again: search engines are getting better and better at connecting people with quality sites and from the perspective of the average Internet user, that’s great!

I’m sure the answer is more than obvious. Browsers can/could easily block parked pages and one important victory has already been secured. If you use Firefox, for example, and type in “Dallasloans” (without the .com ending), you’ll be taken to a search page (for the term “Dallasloans”) and NOT to DallasLoans.com! Let’s say 10 years ago, you would have been taken to DallasLoans.com but that has changed and it’s changes like this which will eventually cost us our type-in traffic.

Now blocking parked pages altogether would be a lot harder, that’s true, but let’s not forget that there are some major footprints involved. If the people from Mozilla want to all of a sudden block domains parked via Sedo or Parked.com, that would definitely be possible. If they want to block “sites” which only have one page, that would be possible as well.

Even though there are currently plugins which block parked sites, their effect isn’t devastating. But if/when browsers decide that enough is enough, say goodbye to a huge percentage of your type-in traffic. Will it happen today? No. Next year? Probably not. But it’s only a matter of time until it WILL.

Could Type-in Traffic Be “Saved”?

Parked pages don’t provide value to the average surfer, it’s as simple as that. They’re filled with ads which make money for us but the sites which are being advertised are usually not that great and as a result, visitors are not huge fans of such pages.

In theory yes, type-in traffic could be saved if the landing pages visitors are taken to would actually provide value. At this point, most of the domains which receive some decent type-in traffic are parked/not used. If that were to change (if the people who are currently not doing anything with their domains – in other words, people who haven’t even parked them – start using them and if parking companies start displaying landing pages which provide value) then sure, there would be no incentive for anyone who is interested in making the Web a better place to block such domains.

It’s obvious that there’s no way to convince everyone to start using the domains they own but if registrars would start using decent default landing pages and if parking companies would also switch to a business model which has providing value to the average visitor as its foundation, type-in traffic would definitely have a better reputation. In other words, something similar to what search engines are doing: if someone types in “DallasLoans.com”, he/she is taken to a page similar to what they see when they use Google, Yahoo or Bing. In other words, sites categorized based on well-defined algorithms (again, similar to what search engines are doing) and yes, sponsored listings as well BUT NOT EXCLUSIVELY!

Will something like this happen? Probably not and here’s why: you (or the registrars that currently use default landing pages for self-promotion) would end up making considerably less money, it’s a vicious circle! Parking/type-in traffic monetization in its current form has no long-term future because on the one hand, if you limit yourself to displaying sponsored listings, you’re not providing value (you’re only displaying links to sites which are there because the owners paid money, not because they’re good enough to be ranked based on a certain algorithm). On the other hand, if you add “organic” listings to the mix, considerably less people would click on the sponsored ads and you’ll make less money.

There are far too many things working against type-in traffic, the fundamentals are just not there. Again, this doesn’t mean that parking will disappear today, tomorrow, next year or five years from now. Nobody can tell for sure WHEN the inevitable will occur, we only know that the business model is fundamentally flawed and that it’s only a matter of time until there will be consequences.

OK Wise Guy: What IS Our Long-Term Selling Point?

I’m sorry to have to tell you this but again: most people see domains as the online version of vanity phone numbers and nothing more. Is that a bad thing? Not necessarily. No matter what happens, any plumber from Chicago would love to own ChicagoPlumber.com, for example.

We just have to keep that in mind when coming up with a business model. We’re marketers in a way: we’re trying to sell something (domains) to someone (the average end user who sees domains as something similar to vanity phone numbers) and need to come up with approaches which WORK.

The biggest mistake a marketer can make is not understanding what makes the people he/she will be selling to tick. A plumber from Chicago is interested in ChicagoPlumber.com because nothing would represent him better online than that domain. Type-in traffic is a nice bonus, sure, but that’s about it. Everyone wants to be #1 and owning ChicagoPlumber.com is what would make any plumber from Chicago feel (and rightfully so) that he has an edge over the competition when it comes to the Web. There’s your angle, stop focusing on things only domainers care about and start making money by giving people what they want!