I received an email this morning from Nico Zeifang, Founder and CEO of ParkingCrew, a domain name parking company. In the email, Nico introduced a new back-end feature that is codenamed “Revenue Hero.” The goal of this feature is to allow domain owners to see how profitable individual domain names are compared to the annual renewal fee.
Here is how Nico illustrated how this feature works:
“One single red bar means the domain makes less than 80% of its renewal costs, two red bars mean the domain generates between 81% and 100% of its renewal costs, three red bars mean the domain makes more than 100% of it’s renewal costs. Users are able to change these default thresholds for the red bars according to their needs.“
One thing that would enhance this feature is if domain owners could enter their acquisition cost in addition to the annual renewal cost. It’s neat to know a domain name that earns $10/year is profitable, but it doesn’t give me all that much insight if I paid $5,000 for that domain name. Perhaps users could change the default thresholds to include the acquisition cost. For instance, if a user wants to see his ROI after 5 years, he could divide that acquisition cost by 5 and that will show him the % of earnings towards that ROI hurdle.
I don’t earn much money parking my domain names, but it seems like a nice bit of information to have without having to do the calculations on your own.