What Domainers Make

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.

Posted on November 24th, 2007 in Domain Names (Domains), Friends and Family, Monetization, Paid Search, Type In Traffic |

Comments

  1. Posted by David | November 25th, 2007 at 2:59 am

    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

  2. Posted by David | November 25th, 2007 at 5:59 am

    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.

  3. Posted by David Harry | November 25th, 2007 at 8:15 am

    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

  4. Posted by David Wrixon | November 25th, 2007 at 4:11 pm

    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!

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