As a domainer your investments and their value should be your number one priority. After all, the number one benefit of domaining is having the ability to control and improve the value of your holdings. So, if your mind is on your ROI, you should be looking at potential value leaks.
For many domainers, parking their investments is the extent of their investment strategy, and when you have hundreds or even thousands of domains, anything else would just be to overwhelming.
Let's look at a couple IF's (Influencing Factors) for domain values:
Content - Quality and relevant content on a developed site can greatly improve the value of the attached domain. History/Reputation - The history and reputation of a domain has power to influence the value of a domain in either direction. Clean history and good reputation = improved value. Spotty history and poor reputation = degraded value.The typical parked domain has minimal if any relevant content and will usually include some form of advertising. Can you see where this is going?
Every IF or Influencing Factor that determines the value of a domain or website has the ability to increase or decrease value depending on the contents of those variables. So if a parked domain has no content, the IF of Content is not working for you. If the content is poor or not relevant, than the IF of Content is working against you.
A parked domain consisting of no, poor, and/or irrelevant content is building a spotty history and poor reputation. Search engines, directories, WhoIs, and various other sites will cache your parked site and rarely if ever update. They will make a record of your domain/site of the moment they encounter or crawl it and this record will be the foundation of the history and reputation for that domain.
Is parking devaluing your domain investment?
Yes.
The good news is that reputations can be repaired and improved and even though history can not be rewritten, it can be balanced with current and positive actions that will become part of the history.
Now, I know that creating quality and relevant content for hundreds or even thousands of domains is impractical or even impossible, but you can do this for some of your more promising investments. Ignoring the IF's that you can control is the same as throwing away money.
Pick a few of your domain investments to dedicate some time in controlling the IF's, plugging your potential value leaks, and improving your ROI. You don't need to develop full blown websites with hundreds of pages of content, mini sites with a few pages of relevant content and periodic updates is infinitely better than parking. You will not only plug your potential value leaks, but you will begin to build and increase the value of your investments.
Start small with just one or two domains and put together 4 - 8 pages of quality relevant content for each of them. Decide to make periodic updates with fresh content at regular intervals. This is not something that has to be done everyday or even every week, just putting something new on the sites will give the crawlers something to feed on.
When you get a spare moment, create some fresh content, and prepare to bring more of your investments into the profit zone and out of the dead zone of domain parking.
Enjoy knowing that you are actively improving the value of your holdings and that a positive ROI is completely in your hands.
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