domains.forprofit.com

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LA Times sent a reporter to DomainFest, the annual get together of domain name speculators, brokers and developers.

Two of the biggest practitioners, Oversee.net and Demand Media Inc., are based in the Los Angeles area and have collectively received more than $450 million in venture capital investment to fuel domain name buying sprees.
The bidding paddles flew Tuesday and Wednesday in the hotel ballroom at DomainFest. Individual speculators and deep-pocketed companies snapped up domains such as Porn.net for $400,000, Bookmarks.com for $300,000, Alimony.com for $75,000, Butcher.com for $50,000 and Satinpanties for $10,000.
The more than 600 people who paid as much as $995 to attend the conference also got to hear from one of the “domainer” idols: college dropout Frank Schilling of the Cayman Islands, who started buying Internet addresses with credit cards and eventually amassed 300,000 addresses valued by some would-be buyers at more than $100 million.
Schilling works out of his beach house, where he watches what was until recently the largest TV in the world, and clears about $20 million a year from sites as varied as Homeforeclosure.com and Crosswordpuzzles.com.


The article touches on the ad revenue domainers collect from parking their sites. A parked site–like Crosswordpuzzles.com–has no content, just ads.

“Intuitively, people believe you make more money putting up a building than you do leaving something as a parking lot,” Oversee Executive Vice President Jeff Kupietzky said. “But you can usually make more from parking lots.”

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.