This week I was invited to attend a quorum where the subject of domaining and “domain traffic” was the topic for discussion. I wont bore you with the name of the company that held this get together but, sufficed to say, they are a big enough deal for me to bother getting off my arse and actually attending (ahem, i mean “contributing” and not just being there for the buffet).
Actually, my main interest was why this particular organisation would choose to hold such a meeting in the first place, why so many employees of said organisation were at this “quorum” [didnt understand its meaning until i wikipedia'd it] and what their take was on the subject. Perhaps, you might say, I was looking for a “windows” of opportunity… Errm, i mean “window” 
What transpired was a very informative 6hr long meeting which not only felt like about 20 mins but also gave me some fascinating information on the state of the industry, how this silent, yet big player has been watching all along and where they perceive the source to be for all our lovely traffic. In fact, I wasnt so much contributing, more digesting (if you can excuse my hors d’ourves based double entendre). I think i spoke twice actually.
Anyhow, I took a few notes: (not my data)
165,000,000 registered TLD’s (100,000,000 GTLDs, 65,000,000 ccTLDs)
75% of all domains are renewed
110,000,000 domains are developed (67%)
37,000,000 domains are parked (22%)
18,000,000 domains have no DNS settings (11%)
$2.8bn is the annualised total domain parking revenue.
10% of all parked domains earn 90% of the total revenue
75% of parked domains receive no type in traffic
72% of the total parking revenue comes from domains which are a typo of another site
21% of domain traffic is fraudulent (down from 38% 2 yrs ago)
Domain traffic converts at 28% to that of search traffic
From this I made the following observations:
Why on earth does the industry exist…..???
Oh, i get it $2.8bn..
And, are there anymore prawn volauvents left..???
When i enquired about the entry point or potential entry point for this company I was courteously informed that “if” entry was going to happen, then its 12months away. Sooner perhaps if a certain acquisition comes its way.
Some interesting notes you are providing here Julia.
*I’m Rubbing My Hands Together With Evil Glee*
it’s the Webdesigners, programmers who are going to hit the jackpot soon i see
HUH ?
“Domain traffic converts at 28% to that of search traffic”
Intersting facts to see – this is very factual and I look forward to hearing more from this company.
Regards,
Robbie
some interesting and intriguing facts.. I’m curious and would like to know more about this company!
Thanks for the word Julia
Great article! Can you share where the company got it’s statistics from?
[...] I believe when it comes to domain sales the domain name industry is doing well. Coverage from DNJournal, NameBio, Sedo, Moniker, and Name Media are all contributing factor when one need to sell a domain name, however, what if one need to educate the other about the value of domain traffic? [...]
Yeah, as usual, i got a few disgruntled emails from people questioning my negativity towards domaining. *sigh*
let me say, I think the figures quoted are positive on the whole..
In fact, better than i assumed. Click fraud is coming down in the domain channel.. Good news..
Domain traffic converts at 28% to that of search.. Thats an excellent rate.. Remember, these figures are talking about the market as a whole. I can tell you, if domainers got 28% of the bidded price there would be a lot of smiling and rich domainers floating about. But you/we dont!
Also if, as i intimated, some group of parking companies actively sold traffic directly to advertisers at 28% of what Google charges – again, we’d all be smiling.
Calm your ferosity people, open your eyes, digest the numbers and get real. If you think this is some sort of negative propoganda made up by me, heres an open question to you -
What, exactly would you have guessed the conversion numbers to be in the domain channel ??
Hi,
Is it M and Y you are talking of?
If yes, then I would like to point out that the small business division of the big company is up to something that has much to do with domaining and not many people have caught on to it yet!
Nice post MATT … Erm , I mean Julia. Useless info , but thanks anyway.
Great article.
I found these most interesting.
10% of all parked domains earn 90% of the total revenue
Seems like this company might be interested to buy a certain 10% of domains
75% of parked domains receive no type in traffic
Yeah, I can believe that. 80/20 rule? 80% of my domains suck.
72% of the total parking revenue comes from domains which are a typo of another site.
This is surprising. I find this hard to believe. This would mean that a huge majority of these names would be TM violations or at least a bit unethical unless they are geo typos.
Keep the info coming Mr. Softie
I believe google is the only ones that know the true statistic on domain traffic conversions.
They sell the ads and they provide the “free” google analytics application. I believe most advertisers on google use google’s analytics thus giving google the full 360 picture of most paid internet traffic on search, content and domains.
I think you were scooped on this:
http://fragerfactor.blogspot.com/search/label/Microsoft
*sigh*
I often read your blog and everytime I read it I wonder where you get your “figures” or your “stats” from?! I do not know what your real agenda is but I can say that most of your figures and facts are plain rubbish. However your posts seem to get spread through domainers which is in my opinion not a good thing because you mislead people.
72% of the total parking revenue comes from domains which are a typo of another site
-> Is this figure from CADNA?!? This would explain this number.
21% of domain traffic is fraudulent (down from 38% 2 yrs ago)
-> A bit high IMHO
Domain traffic converts at 28% to that of search traffic
-> Domain traffic converts better than search traffic. It’s a well known fact. You do not seem to come from the online advertizing world do you?
so my explanation for this blog is:
a) you have no clue (then please get some facts)
b) you have a clue but have a different agenda (CADNA? self-employed webdev ? Frustrated domainer? Unlucky Fraudster? Fired employee?)
I’m getting the distinct impression that you’re hinting about Microsoft’s future involvement in the domain industry?
Ah, sorry – should have clicked jay bean’s link first!
If anyone found that info “useless,” they shouldn’t be reading domain blogs anymore.
[...] übernehmen möchte. Es geht um den Blog-Eintrag eines GoogleEngineers. Hier die Quelle: Where the money is at.. « Is it me or is everyone else stupid? Quote: 165,000,000 registered TLD’s (100,000,000 GTLDs, 65,000,000 ccTLDs) 75% of all domains are [...]
@domainer – I think you aren’t right about Julia
Author of this blog is very intelligent person and deliver a lot of interesting information on this blog. Julia also underlined that presented data is not hers.
Daniel Dryzek, you missed the point made by Domainer, he’s dead on. If this information is coming from an employee of the big G, then I would advise everyone to take it in with a giant grain of salt.
Offer the source of the data, and let public scrutiny do it job.
Its funny, Ive written this blog for over a year now and ever since its conception its always been the anonymous posters who rant to me for more transparency, further disclosure and additional clarification when they themselves cant even extend to me the minor courtesy of introducing themselves.. Ironically its also these types who go about spinning these wild conspiracy theories.. Get a life guys, its only blog, dont like it, dont read it.. Simple..!
Even this domainer guy above with all the unkind comments hes made towards me, when all ive done is print somebody elses data (Microsoft’s to be precise, if you were stupid enough to not get the clue in the original article).
His comments – which i thought twice about before approving – make me smile because they show a complete lack of understanding. “Domain traffic converting better than search.. ” Did he really just say that.. ??
Its either ignorance or his comments are written by someone with an avid interest in promoting the domain channel… Hmm, well, call me old miss suspicious but mr domainer you have great English grammar for someone from Germany.. Are you there on holiday??
[...] Sedo oder Namedrive direkt an und versucht auch etwas von den täglich generierten Einnahmen der 37,000,000 geparkten Domains abzubekommen. Ich kann diese Entscheidung leider nicht nach vollziehen und sehe es als einen [...]
Julia,
I love your blog and attitude. But one thing you can clear up for everyone (or just me if you want to email it to me) is why your domain name was originally registered in Matt Cutts’ name. Some people think you are actually Matt Cutts, to which I say Matt has some wicked good British writing
But since people are talking about it, just hitting he issue head on would be helpful.
[...] may have read a few rumors lately that Microsoft (NASDAQ: MSFT) may be getting into the domain name [...]
[...] may have read a few rumors lately that Microsoft (NASDAQ: MSFT) may be getting into the domain name [...]
[...] What transpired was a very informative 6hr long meeting which not only felt like about 20 mins but also gave me some fascinating information on the state of the industry, how this silent, yet big player has been watching all along and where they perceive the source to be for all our lovely traffic. In fact, I wasnt so much contributing, more digesting (if you can excuse my hors d’ourves based double entendre). I think i spoke twice actually. More… [...]
[...] to get the inside track on events before they happen. Now if she’d only answer the question I posed on her site last week: why does the initial registration record for her blog show Google’s Matt [...]
[...] MacKenzie opublikowała na swoim blogu dane przedstawione przez Microsoft w czasie spotkania dotyczącego branży domenowej [...]