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Friday, June 30, 2006

Q&A with Matt Bentley, CSO of SedoPro



Domaining Interview

Advancing Domain Name Parking for the Benefit of Domaining

Matt Bentley and his team at Sedo, the world's leading domain name marketplace, have been frantically testing their new revolutionary parking system known to us all as SedoPro. It has taken a year to perfect it and with the help of many beta testers it is finally here and the best news is it will increase the value of anybody's domain name portfolio guaranteed. Keep on reading to find out how.



Q: db - People have been beta testing SedoPro for quite sometime. How long exactly has SedoPro been underdevelopment?

A: MB - The idea was born out of the first TRAFFIC conference way back in October of 2004. We realized that there was a significant group of professional domainers who viewed Sedo as being an entry-level solution that wasn’t adequate for the needs of true professionals. The next year was spent on research and development, and we had the Beta version of SedoPro ready in October, 2005 just in time to wow the professionals at the second TRAFFIC East. The typical reaction went something like, “Wow, I can’t believe this is Sedo!”

Since October we’ve been working with a terrific group of Beta Testers, some of the smartest and most successful people in the domain industry, who have been helping us further refine the product and add new features such as sub-portfolios, greater customization options, and all sorts of new page designs.

We’re now ready to officially take the program out of Beta and finally open it up to all with quality traffic to try it out! Anyone interested in taking a peek can sign up HERE.

Q: db - How does SedoPro differ from Sedo's standard parking program?

A: MB - For professional Domain Investors who earn their bread and butter (and often a bit more) from their parking revenue, the typical park and pray approach doesn’t suffice: You need to know exactly what’s going on with your portfolio’s traffic, and have tools powerful enough to set up the very best parking page for every single domain, since no single cookie-cutter approach will work for all domains.

With this goal in mind, we set out to create a program with several distinct advantages over the standard Sedo program:

1) Better portfolio analysis tools: Find out exactly where your visitors are coming from, including referring URL so you can determine if the traffic was direct type-in, from a search engine listing, or from an old link. You also receive the geographic breakdown of visitors countries and languages, and Sedo will automatically translate your pages into 20 languages so that each visitor sees a page he understands. You see exactly which links on your pages the visitors are clicking on, what they are searching for, and which keywords are performing the best. We’ll also help you identify which domains need optimization, which domains are on the rise or declining, and which are under-monetizing relative to their traffic volume.

At Sedo we’re a strong believer in active portfolio management, which means constantly optimizing your overall earnings by selling under-performing domains and re-investing in high-performing domains. Our Portfolio analysis tools and seamless integration with the world’s largest domain marketplace will have you wheeling and dealing like a Wall Street trader in no time!

2) More control over your domains: Every domain is unique, and nobody knows your traffic as well as you do. The SedoPro Optimizer and Domain Configuration tools will help you create the perfect parking page for every single domain: choose layout, color scheme, photos, customize your links, adjust which elements are included on the page, etc. Or let our auto PageElements system choose the optimal configuration for you!

3) Higher Payouts: I think it's no secret that larger portfolio holders receive higher revenue shares, and SedoPro follows this rule. However, on top of that our Sedo QualityRank system provides additional bonuses for clicks from high quality traffic on generic, commercially-oriented domains.

4) Personal attention: Every SedoPro member is assigned a dedicated Account Manager to help them manage their domain portfolio. Account Managers provide personalized advice and assistance setting up and optimizing your account. In addition, they’ll often help connect SedoPro members with interesting deals on premium domains for sale through the Sedo marketplace, or help line up the support of Sedo’s sales staff behind the effort to sell one of your domains.



Q: db - Will Sedo's current parking program be totally shifted to SedoPro or will SedoPro be limited to those that meet a specific criteria? If so, what is that criteria?

A: MB - Professional domainer’s need a different set of tools than the average domainer, and SedoPro will always cater specifically to this audience, offering the most powerful tools available and the highest possible payouts. We do expect to eventually bring some of the most popular SedoPro features over to the standard Sedo system, but will be careful to maintain the identity of the standard Sedo system as one that is very easy to use and get started with many SedoPro features would be overkill for this user group.

The good news for those not yet on SedoPro is that now that the Beta phase is complete, we’re loosening somewhat the exclusivity any domain owner with at least 200 domains or $200 in monthly earnings is welcome to apply. However, the one area where we remain strict is traffic quality: the SedoPro program is set-up to reward high quality traffic (primarily targeted, commercially-oriented traffic from generic domain names, which converts well for advertisers). If your domains don’t meet the quality requirements, we may recommend that you park with our standard Sedo program for a while so that we can directly test traffic quality before upgrading you.

Q: db - For current members of Sedo that may not have participated in the beta testing of SedoPro, will their portfolios automatically be shifted to SedoPro at the official launch or will they have to apply for the SedoPro program shift their domains to a new platform?

A: MB - Currently we plan to keep SedoPro reserved for portfolio owners meeting our volume and quality requirements. Only by keeping the program limited to a reasonable size and rate of growth are we able to effectively deliver on the kind of personalized attention and proactive account management that professionals deserve.

Q: db - With SedoPro you are offering an unprecedented guarantee that the service will outperform all of the others by at least 10%. That really is great news for domain portfolio holders, as their domain portfolio will only become that more valuable with the launch of your new service. How is it that you can make this kind of guarantee?

A: MB - Parking earnings depend primarily on three main factors:

- The right advertisements: correctly-targeted keywords, proper language, and relevant high-paying related links

- Effective page design: Should allow users to quickly and easily find what they’re looking for. Needs to be fast-loading, but not so unattractive or bare that it scares people away.

- Advertiser relationship/ revenue share: Sedo was one of Google’s first partners in the domain parking space, and has built a strong relationship over the past years with our incessant focus on consistently delivering high-quality traffic. The revenue shares we offer to our SedoPro customers are among the most generous available in the parking industry.

We feel that we’ve put together the right combination of each of these factors (and our extensive testing during the Beta phase seems to confirm this), so we’re confident enough in the performance of the product to be able to put our money where our mouth is. Many programs out there will promise a revenue increase, but want you to take the risk yourself. We make it easier by taking the risk on our own shoulders, which also leaves us much more incentivized to make sure that your account performs!

Q: db - Your introduction of the QualityRank system is a great new feature. Can you tell everybody what the QualityRank system is and how it will help them earn more revenue with their domains?

A: MB - Advertisers will pay more for clicks that are more likely to convert to sales. Similarly, advertisers would rather have their ads promoted on a generic one-word .com than a typo, TM domain, etc. And, last but certainly not least, Google (through their SmartPricing parameter) pays more for high quality clicks. Sedo’s QualityRank parameter is intended to pass on these industry dynamics to domain owners, rewarding those with particularly high quality traffic and/ or high quality domains.

Q: db - PageElements is another new feature exclusive to SedoPro. Can you tell everybody what the PageElements system is and how it will help them earn more revenue with their domains?

A: MB - We’ve done a lot of testing on various page layouts over the past years, and the surprising result was that no single page layout works better for all domains. Instead, one domain might work best on a very simple page with just advertisements, another domain performs well when we add a photo, a third domain performs best with a very prominent search box but no related links, etc. PageElements allows the domain owners to control every single Element on their parking page designs: choose a layout, select a color theme, turn on and off elements like related links, search box and for sale sign, etc.

The next step for PageElements is that our system automatically configures each of these factors to generate maximum revenue for every single individual domain (currently this can only be done manually through our Domain Configuration).

Q: db - SedoPro is backed with cutting edge statistical analysis tools to maximize the ROI of each domainers individual domain name portfolio. Can you say how the new tools differ from the old? How exactly will these tools help one maximize their domain portfolio earnings?

A: MB - The new tools provide much more information on both an individual domain and portfolio level. On the portfolio level, our focus is on helping you improve your overall earnings: we’ll identify domains that are under performing and in needs of optimization; we’ll tell you which domains are on the rise and which are declining so that you can sell your dogs and re-invest in top-performers. You can group domains into portfolios to compare performance of similar domains eg., your .co.uk’s vs. your .com’s, or domains you acquired in drop-catching auctions vs. those you registered.

On the domain level, our focus is to help you determine exactly what the visitors are doing on your site, and where they’re coming from, so that you can use the SedoPro customization tools to set up the site in exactly the right way. For example, you might see that most of your visitors are coming from England and Germany, so you select high paying keywords in English and German one for each top language, if you prefer. Or you might notice that most of the visitors to your page are clicking on one specific related link, so you can make that link your master keyword and greatly improve your CTR.

These are just a few examples, the opportunities are limitless. One of the first thing new SedoPro members tell us when they join is, “I had no idea so much of my traffic was coming from site X, or country Y, once they’re able to observe the traffic in detail they gain a much better understanding of how to target it, and of course how much each of their domains are worth.

Don’t underestimate how much can be gained by investing some time in improving the targeting of your pages by optimizing the holy trinity of master keyword, related links, and language. We’ve regularly seen people double or triple their parking earnings overnight just by spending some time tweaking these three factors, they are much more important than eg. Page layouts (although you can adjust those as well!).

Q: db - Another thing that stands out about SedoPro is that every SedoPro member gets the personal attention of a dedicated account manager. What exactly are the account managers there to help domainers with and how exactly do you think these account managers will help one maximize their domain portfolio earnings?

SedoPro Account Managers are some of the most experienced people we have every day, all day long, they’re thinking about domain names (at least, that’s what they tell me!). Thus they have the advantage of having looked at hundreds of portfolios and many thousands of domain names, and know exactly what works well and what doesn’t. So your SedoPro Account Manager becomes your personal Domain Consultant, you can call them up anytime you like to get assistance setting up your portfolio, choosing the right layout, or selecting keywords.

Often SedoPro Account Managers will rally other resources within the organization on your behalf: for example, if you have a domain receiving a lot of French traffic but don't speak the language, they can ask one of our French-speaking staff members to choose appropriate keywords. They can also help fast-track any of your standard Sedo customer service requests.

For many people the biggest benefit they gain from their SedoPro Account Managers is assistance with buying and selling: they may help ensure that your domains receive extra marketing attention, or tip you off about a great deal on a domain in a category where you're particularly interested in buying.

Q: db - Are there any other benefits to being a SedoPro member that you can tell us about?

A: MB - Isn’t that enough?! Well, if higher payouts, better statistical analysis tools, more customization options, and personalized support isn’t enough, we can pull out the trump card, the one advantage that competitors will never be able to copy or replicate: seamless integration with the world’s largest domain marketplace. Many people appreciate the improved access that being a SedoPro member gives them to sales of premium domain names and portfolios managed by Sedo. Obviously we’d rather see a good name or a portfolio purchased by someone who is parked with us, so SedoPro members are often the first to know when a great domain becomes available. This can be a big advantage in today’s competitive buying environment.

Q: db - During the beta testing what kind of increases have you seen? Obviously the CPM has increased but what about the CTR and EPC?

A: MB - We’ve seen earnings increase anywhere from 10% to 200%. Some of this is due to higher EPC, but mostly people have been able dramatically improve their earnings by better optimizing their pages: choosing the right keywords, the right related links, and the right language for every domain. You only need to improve your CTR from 10% to 20% to result in earnings doubling, and that’s often achievable with the help of the SedoPro statistical analysis tools and some advice from your Account Manager.

Q: db - How do you think that the integration of affiliate links has enhanced the parking program?

A: MB - We’re currently only making very limited use of affiliate links, they work well in a few niches but still can’t compete with the payouts and targeting options offered by PPC. However, this trend may shift in the future, and if it does, we’ll be ready to move over.

Q: db - In the past Sedo's parking pages have been very simple, a model many players swear by. With SedoPro you are now offering the option of content-rich and the traditional Sedo simple page. Through your studies you have found that sometimes it is better to use a simple layout and sometimes it is better to use a content-rich layout. Can you give people pointers on how to use this new feature to maximize their domain portfolio earnings? How does one know when to use a simple page and when to use something content-rich?

A: MB - Our research consistently indicates that the best-performing parking page is one that helps the user quickly and easily find what he’s looking for. The goal is not to get the user to hang out on your page and look around a bit, the goal is to get him to click on a link!

However, I do think there’s a solid argument that visitors are more likely to click if they’re presented with an attractive, professional-looking parking page. Thus, we’ve tested many variations of parking page layouts and publicly launched the five most successful designs we’ve found so far. Using a variety of designs helps avoid layout fatigue (where users grow tired of always seeing the same parking page designs), plus, we’ve found that certain layouts do better for certain types of traffic: for example, adult traffic has performed very well on our "Phoenix Pink" layout, travel does well on "Phoenix Blue" and financial/ legal services traffic does particularly well on the "Lite" layout.

Q: db - If one is interested in joining SedoPro what exactly does one need to do?

A: MB - We encourage anyone with at least 200 quality generic domain names, or $200 in monthly earnings, to submit an application HERE. We’ll have someone take a look at your portfolio and get back to you as soon as possible. You can also send any questions or requests directly to us at info@sedopro.com.

Since traffic quality is the primary factor we look at, it’s definitely an advantage if you already have your domains parked with Sedo so that we can observe your traffic first hand, standard Sedo parking is self-service, and easy to get started at HERE.

We strongly recommended that you do take Matt's advice, after all Sedo has put a lot of time and resources into rigorously testing different means of monetizing domain name traffic. Their studies only benefit us all because they are helping each and every one of us increase the value of our domain name portfolios at the speed of light and that is a great news for all domainers.

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