Profit From Domain Parking

November 24, 2011 by  Filed under: Domain 

In the beginning of 2008 year I read a book! I got it from my wife as a Christmas present, but I started reading only few weeks later. It was very good book – Bodo Schafer’s “The Road to Financial Freedom”.

It was like a light at the end of tunnel 🙂 I started looking for ways how to generate passive income. I attended rapid reading courses, tried to work on self training to get to higher level. All my effort’s took my minds to this mind:

I want to work for myself when I want and I want to feel free not to work, enjoy myself being with my family! Recently I read an article how anyone can make ROI (revenue on investment) at about 1000% in a month on domain parking. To start you need only 10$ (to buy a domain).

It looked great, but too great. That’s why I did my own calculations on domain profit form domain parking.

Let’s say we buy a domain for average price 10 $ (as Moniker.com offers .com domain for ~ 10$, .net domain for ~ 6$, .org domain for 11$ and .info domain for ~ 5$). We park it at Sedo.com or Parked.com (I prefer Parked.com, cause it is based by Yahoo, and most of my domains have many Yahoo links). I could calculate for a maximum revenue, but i would calculate for minimum revenue. Because I want to show you, that YOU can do this as your secondary way of income and after some time, when you’ll fell confident to work only for yourself, it will become you first income way. Usually we won’t get much from parking on first month, let it be 4$. After first month our domain’s keywords and look would be optimized and Click rate would be greater. But I won’t tell you – “from now on you’ll be a millionaire”. Of course we can be, but a little bit later. It depends on how hard you’ll try to do this, and how many bucks you going to put in.

So let’s start calculating ..

First we buy domain research services (there are many vendors and later I’ll write some reviews) for 37$ per month. We buy a number of domains (let it be 30 for the start). First month you should get average 4$. And for other months we’ll do calculations. We count on average unique visitors – 600 per month (it will be 20 visitors per day, 1 visitor per 1,2 hours). If average click rate is 10%, which is low rate, usually it is at about 20-25%, and average pay per click rate 0,10 $, which usually is at 0.25-0.5$ – we get 6$ from one domain per month. Remember you bought a domain for 10 $, and you get revenue of 10 $ in 2 months.

We bought 30 domains first month, so we would get 30*10 = 300 $ in 2 months. What it should be for 12 months ? After optimization your domain’s click rate should go high. As working on minimum case, we count on 2% profit increase. But it can as high as 20 %. But let’s stay on minimum case. After 12 months we will have ~ 2310 $. Remember we started from 337$. So we have ROI (revenue on investment) equal to 685%.

Imagine if you would buy domains next month and then next month? What should you get after that?

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