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DomainSponsor Review, Domain Parking and Tasting

Written by Chad Bean

Monday, June 22nd, 2009

It seems like no matter what business industry you’re looking at, there’s always room for shady activities. Web hosting and the domain industry are no exceptions. However, most people are totally unaware of one such practice known as domain tasting. Domain Tasting is essentially when a someone buys a domain name for the sole purpose of seeing whether or not it can generate ad income. The domain registrant puts ads on the domain, and if the ads don’t make any money, the registrant has five days to request a refund.

There have been many big companies involved with Domain Tasting, and since they can pull off the above example on a much larger scale, they have been able to reap insane amounts of profits. This had affected us and our clients because millions of domains were getting tied up by ‘tasters’ and would appear unavailable when someone actually went to register their domain name.

To help curb this problem, since April of this year, ICANN has made their $.20 domain transaction fee non-refundable. So if a company wants to sample 50,000 domain names, for instance, then they’ll have to shell out $10,000 in registration fees even if they get a refund for the domains within the five day grace period. This change hasn’t eliminated the problem altogether, but it’s certainly helped.

Obviously domain tasting wouldn’t have gotten as out of control as it did, had it not been for the huge profits that people were reaping in. At HostGator, we don’t have that many domain registrations, since we specialize in web hosting. However, it’s still evident that there are major profits to be earned with a decent domain portfolio. One such way to monetize domain names, that we’ve explored recently, is via domain parking.

When you first buy a domain, the domain will be using the default name servers of the registrar generally. The default page you see, usually with ads all over it, is a good example of a parked page. What most people don’t realize though, is that even if they aren’t going to develop the domain right away, they can still make money from the domain while it waits to be developed.

The company we’ve been using for domain parking is DomainSponsor. Basically we use their name servers on inactive domain names in our account, and all traffic gets pointed to a domain parking page where relevant ads are displayed, giving us a percentage of the revenue made from the ads.

So just how much money can you make with Domain Parking? We were pleasantly surprised with the results.

Domain Sponsor Affiliate Check

The above check was for the month of May. We’ve been using Domain Sponsor for the last 3 months, and are consistently getting over $25,000/monthly with the domains that we have. Now these results may be unique since we do have roughly 12,000 domain names in our DomainSponsor portfolio, but many domainers have much more domains than this and can stand to make much more money.

Domain Sponsor Dashboard Stats

Overall, we’re very happy with DomainSponsor. As you can see from the above image you can easily group domains into portfolios and track advanced statistics to the exact day. Getting started with domain parking is super easy, simply sign up, and start adding your domains that are currently doing nothing to your portfolio at DomainSponsor.

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Comments
  • Gonzalo

    Wow, that’s amazing, really. Is the earning mostly equally balanced throughout all the domains, or are there some of them who make most of the cash? How long does it take for domains to start giving some earnings, in general? Thanks for the informative post :)

  • Chad Bean

    Gonzalo, thanks for your comment/questions. Some domains perform better, just because it’s based on traffic. If the domain gets type-in traffic or was an expired domain that received traffic in the past then you’ll generally see more money to be made from them. Once the domain is on DomainSponsor, you’ll get a quick idea of how much can be earned from that domain within a day or so.

  • http://sem-group.net Gerald Weber

    This is definitely interesting. I don’t really have that many domains but I could see how this would be a good idea for someone with many domains.

    • Nicoles Winter

      i’m a client with many domains ,if you have intersting,please get in touch with me!my Gamil is NicolesWinter@Gmail.com

  • fatcow

    Chad,

    what type of advertising are you putting on these pages? are they adsense?

  • Chad Bean

    The advertising is actually all done through DomainSponsor. They run ads on any domains you set up through their parking program.

  • Mark

    Are the domains you’re using for this all domains that HostGator bought for marketing etc or are these domains purchased by HostGator customers that they haven’t setup yet?

  • http://babypictures.com Steven

    I am in Houston as well and very active in the domain space. I have been involved for 5 years. I attend the shows and know the major players to put deals together and maximize rev share. I would be interested in talking more with you about domain parking, domain registration and other monitization strategies to maximize the Hostgator bottom line. Please send me an email so we can chat further.

    • Nicoles Winter

      I have about a hundred good domain name, I wonder if you are interested, can you tell me your facebook name it, my name is Yaolin, if you are interested in my domain name, you add me

  • Chad Bean

    @Mark : It’s a bit of both.

    @Steven : Please get in touch with us. Send an email to sales@hostgator.com with the subject “ATTN: Chad”. We’d love to hear from you.

  • JP Maroney

    Good idea. Been looking into this lately. Have about 160 domains. If nothing else looks like it might help offset annual reg charges.

    I question the ethics of HG profiting from customer’s unused domains. Of course everyone does it … Godaddy etc.

    I would recommend hg form a joint venture with a parking co and share revenue automatically with customers. Would be a cool competitive edge for HG.

    JP Maroney
    aka “Mr Monetizer”

  • http://stephenhultquist.com/ Stephen Hultquist

    Beware!

    Do NOT park domains which are trademarks or permutations/misspelling of trademarks! Such actions are illegal (15-USC1125) and can cost you a LOT when the trademark owner comes after you.

    Don’t do it.

  • http://www.easytech.in Neeraj

    Domain parking companies usually look for big portfolios of generic TLD domain and they ignore ccTLDs & people with less than 100 domains.

  • http://www.imagineconsultation.com Darcy

    hi Gerald Weber, I do agree with you that this would be a good idea for someone with many domains. and thanks for the little for the little knowledge neeraj.

  • Tex

    I hope this is a good company and generates good views and income and pays on time and correctly without ripping you. I’m taking Hostgators word on this one as i am completely with Hostgator and thought they could park my domains with ads but i guess not.

  • Nancy

    I DONT like the fact that this is actually advertising DomainSponsor through a Hostgator affiliate link to make them money.

    How can I be sure the figures are true?

  • http://carinsurancemyths.com/ CI

    hi Gerald Weber, I do agree with you that this would be a good idea for someone with many domains. and thanks for the little for the little knowledge neeraj.

  • http://primesoft.co.ke fred

    wonderful

  • http://www.cherished-number-plates.info/ James

    $27,000 is phenomenal. I haven’t earned a bean on my parked domains. I must be missing something.

  • http://www.simplyreg.com/blog/ Reg

    Man I could do with that $27k in my account right now. Managing all those domains, registrations, transfers etc. must be an admin nightmare.

  • Sam Morris

    DomainSponsor is the biggest bastard of the internet, buying domain names and then selling them off at extortionate prices. I once inquired into buying a domain from them, that they owned. £200. I hope this company collapes, though, lets face it, they won’t.

  • Beach Spa Resorts

    I was wondering how many domain names it took to generate this 27K? Obviously if you only have 5 it may not amount to much. I wish there was an approximate breakdown.

    Now I am also confused. We sign up for your hosting company and “you” park our pages somewhere else and “you” get paid, not us? So, how exactly do we host our domain names with you but get our parked pages to pay us? visit us at Beach Spa Resorts

    Regards, R. Terry

  • gary davidson

    Domain sponsor are using my url for their benefit without my consent they should be shut down. they are sending out malware to people sites

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