The Panamanian company DomainCar has joined the small elite of companies in the world with more than 1 million domain names, growing faster than GoDaddy.com over the last 6 months. DomainCar is not a web hosting company or a registrar. Their business model is to earn money from the huge amount of traffic generated by their large portfolio of domain names.
The business model of DomainCar is often referred to as "domain name monetization." These companies use automated systems to register a large amount of domain names that are not renewed, a.k.a. domain name snapping. Their systems detect the domain names with a valuable amount of traffic and return the others, this without any additional cost.
This is possible because some registrars offer a 4- or 5-day window where they refund the registration fee if a domain name is returned within this period of time. This time frame is long enough for companies with the right tools to determine if the traffic value for a domain name is larger than its annual fee. The time frame is the result of a highly debated ICANN policy.
Without any overhead, and no need for technical support or large server farms, these companies can earn large amounts of money through parked ad pages, redirected traffic, and by selling domain names (usually high above market price). While traditional web hosting companies and registrars may use some of these methods, they still have the overhead of their main business to deal with.
DomainCar is not alone. Others, such as Oversee.net, have the same business model, and the amount of domain names they have is growing rapidly. More companies are becoming aware of this business model, which leads to an even stronger growth on the domain name monetization market.
Ipwalk.com
Ipwalk is a global information company providing statistics based on a continuously updated database. Ipwalk is processing and analyzing more than 60 million domain names and 50 million IP addresses on a daily basis. This information is provided through the Ipwalk.com website and through customized trend reports.
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