The Future of Pay-Per-Click Parking Income

Is pay-per-click revenue from parked domains a viable business model for the future? Or is it a short-term strategy that will soon fall out of favor? And can the whole business model be dismantled by a policy change at Google?

These questions are significant ones for the domain name industry, as PPC income is playing an increasingly large role in pricing for domain resales and market speculation. It's a big topic, and best discussed in small bites. A good starting point is the longevity of the PPC model, which was a hot topic of discussion at recent industry conferences.

In his updates for Domain Name Journal, Howard Hoffman of PPCIncome expressed surprise that a number of attendees at Traffic West weren't believers in the PPC revenue model that drives so much of the industry. "Some think parking pages are a waste of time," Hoffman said. A session at Domain Roundtable in Seattle looked at the quality of traffic on parking sites. The conclusion: falsified traffic is bad for the industry as a whole and that everyone will benefit when it decreases.

A recent comment on the DropWatch blog also reflected on the traffic quality issue and its impact on the future of the PPC Model.

PPC is a model that is quickly losing its legs as more and more fraud is uncovered and advertisers become ever more paranoid of this. Curious type-ins, the model that fuels PPC traffic, don’t convert well into sales, so the worry that people will soon uncover and discover 'truckloads of rotten traffic' is there as advertisers start looking more and more into conversion ratios.

Much more to say on this. What's your take? The comments are open.

  Posted by RichM June 3, 2005 | Permalink | Newsletter

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