Domain Parking Performance: Should you Sell Instead?

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Managing an ever-increasing domain name portfolio requires the constant balancing of several performance parameters.

Most domains fall in the category of standard pricing, but there are domains that are premium priced; some arrive with an elevated domain renewal cost per year.

It's important to leverage a portfolio's maintenance cost and be aware of how much money it takes to sustain these domain names. As I mentioned before, incorporating your domain activity in the form of an LLC or other standard business is a crucial step to successful domain investing.

While the ultimate goal of most domain investors is to score sales that bring in substantial revenue via a sale, one should not discount revenue from domain parking. The PPC performance provided by the Uniregistry platform can be substantial and requires very little tweaking; once this is complete, your domain portfolio's parking can run on autopilot for the most part.

Still, domain parking is a secondary form of revenue for the most serious domain investors. Return on investment via the sale of valuable domain assets tends to be the "bull's eye" on the target and there are some ways to gauge whether a domain should be permanently parked or be sold instead.

First, one has to determine the domain's parking performance by comparing it to a rental property such as an apartment, in a residential building. Does your rental property cover its mortgage payment month after month, and on top of that it produces extra money? In that case, selling the property would not be advisable, as it's running on a financial autopilot.

On the other hand, if the monthly revenue stream is not sustainable, is erratic, or none at all, then you might want to consider selling it. A domain can still have great potential when its PPC revenue is erratic or non-existent. There are many domains that for one reason or another produce very little revenue via parking, but have huge potential when developed, or when used as brands.

It's true that domain parking's peak years are gone, and while you can still generate ample revenue from domain monetization, the domains would have to receive a considerable amount of traffic.

In this case, you need to determine if the current revenue from parking can be tweaked: Change the keywords used, the categories that define the ads showing, and give it a test period of a few days or weeks. If that fails, you have an answer; the domain is not good for monetizing but it might be great as an asset for sale.

Conclusion: Test your domain portfolio's parking performance, tweak the keywords, and get some numbers indicating the potential of every domain's parked performance. If these numbers aren't great, move those domains to a sub-portfolio that's exclusively for development, or sale. The Uni Broker team is able to help you sell your domain assets and keep your portfolio lean.

The information contained in this blog is provided for general informational purposes about domains. It is not specific advice tailored to your situation and should not be treated as such.

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