Wednesday, August 10, 2005

Virtual Real Estate Causes an Explosion in "Do or Die" Domain Names!

Virtual Real Estate (VRE) a name coined by successful Internet Marketer John Reese is causing an explosion in "Do or Die" Domain Names. Virtual Real estate refers to websites designed to make advertising revenue largely with Google Adsense ads and Yahoo!'s recent intro publisher ad networks (although Reese suggests selling other digital assets like ebooks, audio and video products).

3 years ago many websites just weren't worth the time to publish because they generated no income for their developers. However, because of Google Adsense ads many sites have become more solvent.

Google's publisher ad network Adsense has been responsible for a steep increase in Google's sales and profits. Yahoo! and Google were recently reported to be catching up to the ad revenues of traditional advertising powerhouses NBC, ABC, and CBS (source Advertising Age magazine April 05).

NBC, ABC, and CBS have combined revenues of about 13.5 Billion dollars. Google and Yahoo!'s combined sales presently reach about 6.5 Billion dollars and are growing fast. A lot of their success is due to the expansion of their advertising inventory or reach beyond traditional search via their publishers advertising networks like Adsense.

Google is rumored to see a lot of its future success with Adsense publishers, and its ad network as becoming more important than its search engine advertising real estate. This seems to be the case despite nagging problems like click fraud and less sales conversion rates for advertisers in ratio between search prospects and Adsense driven ad network prospects.

Adsense runs by allowing webmasters and Internet publishers to insert code by Google into their web pages, and in turn receive content related ads on their websites. While most publishers only receive nominal income from the program Google is making hundreds of millions (if not billions of dollars) from the ad network of hundreds of thousands of site owners.

With some tweaking some publishers like Joel Comm are purportedly making hundreds of thousands of dollars in Adsense Revenue. Comm has written an excellent book on increasing your Adsense revenue that I can personally vouch for See Joel Comm's Adsense Book Here

One popular blogger Jason Calacanis of Weblogs Inc network even reported being on his way to generating a million dollars in Adsense Ads! Read an Interview of and See Some of His Insights Click Here

These lucrative stakes have generated a countless number of domain names being registered by a tidal wave of publishers -- looking for gold in them Adsense hills. According to an article on www.SearchEngineWatch.com there are over 250,000 domain names being registered a week. If the domains can generate over $7 or $8 dollars (the cost of their registration) in the few days grace period they are keep by the publishers. However if they fail to do so they are discarded. Therefore these domains are referred to as "Do or Die" Domains.

Here is another article explaining the challenges of Adsense ads USA on Adsense Ads and Spam

Many marketers may be again largely be running after a get rich quick scheme with these tactics. Remember you need a viable business and marketing strategy to build a long time business.

It won't be long before the search engine develop algorithms to marginalize VRE sites with only duplicate content or without unique and outstanding content. Tread on this new ad gold rush and wild frontier of Internet riches with a view to moderation and focus on strategies for your long term business growth.

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