Domain name assets are soaring which is good news for those individuals who advocate parking a domain is the road to riches. In March 2009 Business Wire announced that the company, Live Current Media, a business that owns in excess of 800 domain names, has been selling off a couple of its domain names, after already making $500,000 from the sale of a previous domain name. Parking a domain, when you eventually rake in half a million dollars, is clearly worth the small annual parking fee. The latest two sales netted $1.65 million dollars so, if parking a domain for a little while until the time is right to sell can net you more than $2 million, then it is clearly something we should all be doing.
Domain Names are an Investment
Sales of non essential domain names are clearly a successful management strategy for this company. This maintains a positive cash flow during the worst of the recession, enabling Live Current Media to continue to operate on without having to resort to dipping into their shareholdings. It’s clearly an effective strategy and one that other large companies are probably making without making a song and dance about their domain name sales. Not all domain parking, however, is for hanging onto a domain until it reaches an acceptable price to sell. An essential ingredient to the success of any domain portfolio is parking a domain.
The domain name, ‘megayachts.com’ which was purchased for $150,000 – only to be used as an advertising site with links pointing towards other yachting companies. Parking a domain is clearly good for business, whether you use the facility for parking a domain and waiting for the price of your domain to rise or whether you take advantage of the full domain parking facilities and use your registered domain for advertising purposes.
Business Model
The law associated with domain names has become clearer now the industry has aged a bit more: after all, in terms of longevity, this industry really is only about 10 years old – despite one or two individuals who recognized the advantages to parking a domain as much as 20 years’ ago: the previous owner of ‘pizza.com’, Chris Clark, who recently sold this domain name for £1.3 million [British pounds not dollars]. The rough rule of thumb, in terms of the law, is not to infringe somebody’s trademark and avoid cybersquatting.
As with any business model, there is a lifespan: all businesses have their prime time before technology overtakes their usefulness and parking a domain then making money from it – either from advertising or from future domain sales – is no different to any other business models. A lot of this industry’s current popularity lies in the concept of direct navigation. Once that becomes replaced by something more efficient or more effective the lucrative industry of parking a domain and waiting for cash to roll in from advertising could well be a thing of the past: it remains to be seen.
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