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Overcoming the Domain Development Challenge
The Internet has revolutionized and changed our everyday lives. Investors buy domains with the intention of being able to them to end-buyers at higher valuations. While they are marketing their domains, they leave their domains in the care of a traditional domain parking provider. The domain parking provider creates a one page website that contains nothing but advertisements. The parking provider creates such a page, in the hopes of being able to monetize the visitors, who come directly to the domain. In most cases, the amount of monthly advertising income generated to the domain owner is minimal. Even though the amounts are small, the income generated helps to defray the annual costs to renew the domain's registration.
Why don't domain investors convert their domain portfolios into developed websites? There are many reasons why they do not pursue domain development. Cost, expertise, time and, unclear return on investment are the major reasons why development is not done for the tens of millions of parked domains.
Of all the reasons listed above, cost and an unclear ROI are the biggest barriers to development. For even the most basic website, with a couple of pages, it can cost upwards of $500 to develop. If a domain owner is receiving less than a $1.00 per month in domain parking income, it is hard to see how spending up to $500 is going to bring an adequate return on capital. Even if a domain investor used a self-service domain development platform, the a la carte costs for original content creation, template development, search engine optimization and other required components still make the cost benefit analysis doubtful.
Expertise and time are also issues. Many domain investors are not experts in programming, site administration, design, content writing, or search engine optimization - all skills required to build and maintain a website. They may be an expert in a particular industry and have purchased domain names relevant to that industry. They may come from a certain profession and have taken advantage of their deep knowledge to purchase names that are uncommon to most people. Some investors are professional investors. They have developed an eye for spotting undervalued domain names, and invest in them accordingly.
Nearly all domain investors have some sort of "day job" that brings in most of their monthly income. Because of this, they do not have the time to sit down and convert their domains into websites. It is especially not practical to try and develop 100+ domains on their own. Simply the time required for ongoing maintenance would be overwhelming, even with some of the newer domain builder tools out there.
The net result is that domain owners tend to gravitate toward traditional domain parking companies because there is little work required on their part and limited cost investment required. The downside is that more often than not, they are not even generating enough income to cover the cost of their annual domain registration renewals.
With a combination of increasing domain registration renewal costs, reduced domain parking income and longer domain holding times before a profitable sale is made, domain investors are quickly realizing that their current approach may be short-lived.
Fortunately, a 3rd generation of solution is arriving onto the market, and just in the nick of time! Tempesta Media LLC (http://www.TempestaMedia.com) has launched a revolutionary approach to domain development. The service provides all of the convenience of traditional domain parking services, with the fully functional capability of an original content-based website, all for the onetime cost of about one cafe latte.
Although it sounds hard to believe, it is true. The company has been developing their solution for nearly three years. The Tempesta Media solution allows domain investors to control the monetization of their domain portfolio, something domain investors have been denied from doing with traditional domain parking companies. Be sure to learn more at http://www.TempestaMedia.com
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