The web site
www.flashgames.com has no staff, spends no money on marketing and despite its name, offers no games. All it offers is a list of links to other game sites. Yet it earns revenue of more than $150,000 a year selling online ads.
These sites' ability to make lots of money for little investment is now attracting attention from big players. A group of investors led by former MySpace.com chairman Richard Rosenblatt is expected to announce today that it has raised $120 million from investors to build a new company, Demand Media Inc., centered on generic domain names like these. The venture has already acquired 150,000 domain names -- including flashgames.com -- and plans to aggressively acquire more. But, conscious of the limitations of these bare-bones sites, it plans to add some low-cost content in hopes of making the business even stronger.
http://online.wsj.com/article_print/...844940115.html
To provide the technology for offering upgraded content, Demand has also purchased eNom Inc., a large domain name registrar based in Bellevue, Wash. With better content, Mr. Rosenblatt says, the Web sites will appear higher in search-engine listings and thus attract more visitors. That in turn, will hopefully translate into more clicks on the links -- and more revenue.
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