I just received some interesting information from
Domain Sponsor where they are announcing a promotion to entice more traffic into their network.
Essentially the sponsorship deal allows new clients to establish an account and get an immediate 20% bonus on domains parked at
Domain Sponsor. Existing clients can also get a 20% bonus on all new domains parked. I find that this separation of new and existing customers is interesting as many domainers will simply establish a new account and move the domains into that account.
What program such as this one clearly show is that parking companies require more traffic for greater growth. One reason for this could be that
Domain Sponsor is a little short of the next level in their Google contract (this is hypothetical). The increase in traffic from the promotion may push them up the next Google tier giving them an extra bonus of 1% across their whole portfolio. Giving a little away on a few accounts may result in a little increase across ALL of their traffic. This is a good deal for them and for domainers.
Here's some food for thought. I don't know any parking company that publishes their tier levels for domain owners. Each agreement is normally kept secret. For example, let's imagine I knew that I would get a 3% increase in my portfolio's income at
Domain Sponsor if I just moved 5% of my traffic away from another
Sedo. The mathematics becomes pretty simple to calculate and what's more than that it becomes a self monitoring system.
This could mean that rather than having a 20/20 promotion that all the parking
Domain Sponsor actually needed to do was publish their tier structure and give away far less.
What's more, by providing domain owners with a published tier structure automatically creates a lock-in. Domain owners are less likely to move their domains away if they know that their whole portfolio will suffer. This is why flat rate pricing fails. What will be really interesting is to see what happens in April after the promotion. In the meantime you may want to consider taking advantage of the 20/20 deal. :-)
Wiki:
Domain Sponsor,
Sedo
Source: Posted by Michael Gilmour — Original post on on
Whizzbangsblog — March 3, 2008
