When I was a young trader I had a “split” with the person that put the money up necessary to enable me to trade. The split was 80-20. Eighty percent of everything I made went to him and I kept 20%. I made $300,000 of profit on my own trading and I got to keep 60K and he made $240,000. Doesn’t sound fair does it? Yet it was completely fair to me. He provided me an opportunity that I couldn’t afford myself. I didn’t mind the split and most importantly, I knew my split when I signed up. Do you know your split with your parking company? I sure don’t. I know its much better with Internet Traffic but I still don’t know the actual split.
I have to say I have always been puzzled that none of the parking companies I deal with let their users know their split. It’s the only business relationship I’ve entered where I have no idea what you I’m going to be paid at any point in time. I realize you never know what they are going to click but after they do it would be nice to know how much is being shared. Of course the true measurement is really how much did the site make at the end of the day or month. The share is of little concern as long as the parking company makes you more than another parking company. I find it amazing that I have sites with insurance ads all over them and usually I get paid .12 cents a click. Twelve cents on ads I know are paying much more because I have personal sites with the exact same ads paying much more. As a customer you have one recourse. Take your business elsewhere.
I’m not saying that the parking companies are ripping me off. But I’m also not saying they aren’t. I really have no idea and no way to find out if they are. Now that I’ve gotten to know some of the owners I guess all I’d have to do is ask. I would imagine that if the numbers get high enough the customer would demand it. Really it has never effected me as I am a developer and a flipper and don’t have many names that receive much traffic. In fact my parking revenues haven’t been over $100 in the last 12 months. Peanuts. I really don’t have much value to a parking company.
People talk often of the transparency in the domain industry and although I think private business is private and there is no need to share, but when you enter a business agreement with someone, both parties need to know exactly how income is to be earned. The present business model? You give me your name, I will put ads on it and I’ll pay you something. I’ll keep track of everything and give you the details but you’re going to have to trust me what all those numbers are. Take it or leave. Again, I don’t have the income to demand information and perhaps the large portfolio holders already get it, but otherwise it’s a very unusual business relationship.
Again I will say, I like and trust the parking companies I work with or know. It’s just as a businessman it goes against everything I know to not know exact numbers in business relationship.
PS: For those that say the reason is Google I don’t agree. I have Adsense as well and I am allowed to see what each click paid. The parking company can merely say you will receive 85% of click revenue whatever that may be.
That’s exactly right, and it’s even more sinister than you portray. I have no doubt that the main reason why businesses such as Google and the like changed their business model to cut out the domain industry is due to the shady characters populated in practically all aspects of the chain; how can any legitimate entity partner with sharks that give absolutely no break to the vulnerable, naive domainers? Up till now, I challenge you to find any aspect of domainer that is above board. Not the parkers, not the after market auction houses, nobody! Buy and sell domains at your own peril!
Curious if you’d trust the PPC companies more or less, if you made considerably more money through parking. While revenue has shrunk since 2008, it’s not because the PPC companies make more, it’s because almighty Google pays less.
Acro,
My parking is up 5 fold since joining Internet Traffic. I do have some better names but the $500 a month I make between my two parking companies isn’t much I realize but it pays a few bills. Trust has nothing to do with how much money I make. Not once did I mention getting paid less or even mention getting paid. You seem to not read my articles. The article is about the absence of revenue share numbers. Nobody knows what percentage they are paying out to the parking companies. Can you tell me what percentage you make? Name one other business or agreement that you have no idea what your commission rate is?
Acro,
You present a false choice. There is a third possibility: both Google and the PPC crew could be both at blame, or even dubious.
The points that Cultra made are completely proper viz that the lack of transparency is unfortunate, and alien to normal business partnerships, period. Now, you raise another legitimate issue, mutually exclusive from Shane’s: that Google cut back drastically on payments. I concurred, and suggest that Google had the impetus to do so because it lacks respect for the PPC companies. If I have one criticism for Cultra, it will be that this post came way tooooooooooo late. I recall jumping from board to board yelling at all these characters for what is being addressed now – a few years ago.
Uzoma,
You got me 🙂 I wrote this post 2 years ago and never did post it but felt it was still relevant……(added Internet traffic info to update it)
Cultra,
No need to call me names, as you can see Acro intelligently called dealt with you by practically implying that how much money you make determine which way your opinion goes; I didn’t call you names. I deal with the issues at hand, I am not in a popularity contest. If the domain industry is negative, I will be negative, when it’s positive I will be positive. I will help try to change it, what about you? You keep trying to belong to the domain hallelujah choir boys, count me out. I’m a maverick business man.
I read the article alright, and made a specific question: if you made MORE through parking, would that make you trust a parking company (Sedo, Internet Traffic, whatever) more, or would you trust them less?
Not sure what Uzoma is ranting about.
In the past, Parked disclosed the % you end up with, it was 60% for you and 40% for them. I am sure Sedo gets the flip numbers. I can ask Donny at VooDoo the same question he asked when he was at Parked. How much is Internet Traffic give you as a % ?
Acro,
I have no idea. I admit I have never asked Frank what it is but when I asked the previous people at Sedo and Domain Sponsor (been many years ago) the answer came back “depends” with no exact answer. Never seen a documented split
I can’t believe the typos I’m making today 😀
And Uzoma, when Google turns the faucets off, Sedo pays you the same % still. The same % of something is less, when that something becomes…lesser. Makes sense?
Ok, cool. Yes, there is little to no transparency.
As you know, I enjoy playing devil’s advocate. My point is, when one makes large amounts of money, they don’t ask questions at those who pay 🙂 Questions of trust arise when the checks get smaller.
The PPC industry is suffering, because Google dictates what’s being paid out. Simple as that.
Acro,
Yes, makes sense that the percentage controls the magnitude, and is directly proportional, however, the larger point is percentage of what? Cultra intimated that “insurance” PPC, by his experience with his other Google ad sense experience, pays more money than say “GoDaddy” or domain name registration ads, and that he still received .12 cents for the insurance ads as he does with name registration types; therefore something is missing, at least data, and transparency, as to determine the true percentile. 60% of $18 a click for insurance PPC should not be the same as 60% of $1.50 for the domain registration ones. Does that make sense?
Uzoma – without facts and figures and financial analytics, we can argue until the cows come home. E.g. I make $2 for the insurance ads, so where is the disconnect?
As Rick Schwartz says, numbers don’t lie. We need the numbers to determine what is going on. Since there is no transparency in the industry, good luck with that.
Percentage does not matter. How much you make does.
The reason is different percentage payout deals are made between each parking company and Google/Yahoo, so although it is a nice thing to know as more as a curiosity than anything else, the only thing that really matters is the bottom line.
Some parking companies don’t count as many uniques as others. That is my experience with Bodis.com. They don’t appear to count all the uniques so your RPM seems high, etc… but you make less.
Parked.com used to have 40/60 split for beginners, so I guess that is what you got from them ACRO. I was at 89% split for me.
And, ACRO, you say, “I read the article alright, and made a specific question: if you made MORE through parking, would that make you trust a parking company (Sedo, Internet Traffic, whatever) more, or would you trust them less?
That’s a clown question bro!!!
Orangelo – nice trolling, “bro”. But since you have the name of a juicy citrus, I will focus on the juice.
You use Bodis and call me a beginner? 😀 Thanks for the laugh.
Of course how much one makes from PPC matters, but what matters also is knowing how much they leave on the table, “bro.”
it’s alot like online poker… i know i’m bein’ cheated… but i’m still makin’ some money. yesterday i had 146 unique type-in visitors over 62 domains and i made 36 cents.
that’s money in my pocket. i’m thinkin’ about how to spend it right now.
Very timely article (I have seen a few lately). Can’t be a properly functioning market with so little transparency.
It’s not a stretch for Domainers to consider some oversight body to start laying the foundation to regulate the industry…
Maybe I’m just ignorant…if something is in place, the framework needs to come faster.