Reglikedomain industry desk

Fabulous Follows the 80/20 Rule

Parking firm moves to invite only model.

Domain parking firm and domain registrar Fabulous is no longer accepting web applications for its domain name parking services and wholesale registration accounts. It will only accept referrals going forward. In fact, the sign-up button at Fabulous.com has been removed. (Fabulous clients who wish to transfer domains to buyers can send them a link to open a retail account).

You’re going to start seeing more of this in the future. 20% of domain parking clients provide 80% of the revenue to the parking firms. (It’s probably more like 5% and 95%). It’s the classic 80/20 rule. Since some domain parking firms use manual processes to get clients set up on their system, it doesn’t make financial sense to serve clients that won’t generate much lifetime revenue.

You’ll also see domain parking firms re-evaluating the buyout cost of getting fresh clients. They may shift more of their dollars to referral programs which don’t require upfront marketing dollars.

The Google Adsense for Domains “Online” model, on the other hand, is set up for clients with just a handful of domains. Some domain name parking firms with simple and automated onboarding procedures can also handle smaller clients.

A handful of domain name parking firms, such as HitFarm, Skenzo, and SmartName, have always restricted usage to the biggest domainers.

Also on the wire

Other reporting from the domain desk.