By profitable, I mean generating at least $2.00 per $1.00 invested.
I figure the cost of running this model for 1,000 domains would be around $10,500 which is broken down as follow:
- Domains cost from a registrar that do free URL forwarding: $8,000 ($8 per domain)
- Creating a landing page: $1,000 (40 hours at $25/hour including script, design, content)
- Maintenance of the network: $1,300 (1 hour per week at $25/hour X 52 weeks)
- Hosting: $120 ($10 per month for virtual hosting)
The annual expense after the first year would be about $9,500 if we exclude the landing page cost which is a one time expense.
According to information I got from various people, I figure each domain will get about 10 hits per day (some said 2 other said 20+), so the total traffic per year I expect to get from the 1,000 acquired domains should be around 3,625,000 hits. From these hits going to the landing page, I figure about 5% (182,500) will click on one of the sponsors links.
From that 182,500 sponsors visits, I estimate a conversion ratio of 1:500, which comes out to 365 signups.
Assuming the average signup brings $30, the generated gross revenue from this model is $10,950 per year for an expense of $10,500 for the first year and $9,500 the following years.
If my numbers are correct, I don?t see how the expired domains game is a profitable business!
I figure the cost of running this model for 1,000 domains would be around $10,500 which is broken down as follow:
- Domains cost from a registrar that do free URL forwarding: $8,000 ($8 per domain)
- Creating a landing page: $1,000 (40 hours at $25/hour including script, design, content)
- Maintenance of the network: $1,300 (1 hour per week at $25/hour X 52 weeks)
- Hosting: $120 ($10 per month for virtual hosting)
The annual expense after the first year would be about $9,500 if we exclude the landing page cost which is a one time expense.
According to information I got from various people, I figure each domain will get about 10 hits per day (some said 2 other said 20+), so the total traffic per year I expect to get from the 1,000 acquired domains should be around 3,625,000 hits. From these hits going to the landing page, I figure about 5% (182,500) will click on one of the sponsors links.
From that 182,500 sponsors visits, I estimate a conversion ratio of 1:500, which comes out to 365 signups.
Assuming the average signup brings $30, the generated gross revenue from this model is $10,950 per year for an expense of $10,500 for the first year and $9,500 the following years.
If my numbers are correct, I don?t see how the expired domains game is a profitable business!
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