The Myth of Mass Development

Fairy Tale

Develop all your domains in one go and beat your parking revenue ten-fold, sounds great doesn’t it? While it sounds great and for a few years there from 2007 – 2010 it seemed like it was possible it’s time to put this myth to bed. Sorry but you can’t mass develop your domains and watch them all become wonderful successful businesses.

So what happened and why is the idea of mass development still lingering? 

In 2007 the sky fell for many Domainers who made a majority of their income parking domains. Now first, let me be clear. There are still plenty of people out there who do make hundreds of thousands of dollars a year parking. I used to think parking was dead until I looked under the hood and found out, holy shit, parking is incredibly alive and well…just for a very small group of people.

For the rest of the domain industry buying and selling domains is still the prevailing business model along with developing out one, two, or three larger sites.

When Domainers saw their parking revenue drop companies popped-up almost overnight promising investors a way to regain their lost revenue. Many people took the plunge only to find-out that every site is different and testing different monetization options was time-consuming and expensive.

I can’t tell you how many people I know who moved from parking to mass development and now are back to parking. It didn’t work. The dream was that along with better monetization options also came the chance to rank well on Google and get even more traffic, and more traffic meant more revenue. Google put an end to that pretty darn quickly.

Enter The WordPress Revolution

Boom! Then WordPress started to blow everyone’s minds and with WordPress multi-site the idea of running hundreds of blogs seemed like it could work.

WordPress development became the new craze. It’s easy, anyone can build a WordPress site, just slap on some affiliate ads and watch the money come rolling in, right? Wrong.

Once again investors found that while they could get one or two sites really cranking scaling this across their entire portfolio was not longer realistic…but the dream lived on.

Here’s the catch, the dream has stayed alive because their are companies that make money convincing Domainers that if they mass develop their whole portfolio then they will get more traffic and monetize better since they can now kick PPC to the curb. While you can make money with a handful of sites show me one domain owner with 500 sites all that are making good money, doesn’t exist.

I’m not saying that you shouldn’t develop your domains, do it, make some real champions that make good money. Just know that the idea of building a real business on hundreds of domains might sound like a great idea but at the end of the day it’s the people building the sites that will make the money, not the domain owner.

Agree? Disagree? Comment and let your voice be heard!

Photo Credit: katmary via Compfight cc

{ 11 comments… add one }

  • Tommy Butler November 6, 2013, 8:10 pm

    Hi Morgan

    Some intresting comments you made with regards mass development.
    Since we do mass development and will say have been doing it for last 14 years. it does work amd it works well if done correct. we have around 900 sites at moment they are doing good.

    Some people build it right some people build it wrong. we build it right. can tell you its bloody hard work. would say about mass development if you think you can manage over 1500 websites without any knowhow of programming ect, then you will fail.

    Also with regards mass development you have to have right domains. there is always going to be names that are a waste of time to build out. if you would like to see more of this network and how it works be Happy to discuss it Morgan.

    Reply
    • Morgan November 6, 2013, 8:22 pm

      @Tommy – very interesting, 900 domains…would love to hear more. Would you be open to doing an interview and sharing some more detailed stats?

      Reply
  • domaindeal November 6, 2013, 8:46 pm

    So then tell us what you do? You’re successful. What do reccomend?

    Reply
    • Morgan November 6, 2013, 9:38 pm

      I recommend you focus on turning one domain into a successful business. Look at what Warren did with bobbleheads.com. If he tried to create 100 sites like that I bet all of them combined wouldn’t make as much as that one.

      Reply
  • Domenclature.com November 6, 2013, 8:56 pm

    @Tom Butler

    Excellent looking glasgow.com there! If all your 900 looks like that, then it’s an awesome 900 indeed. Great job.

    @Morgan
    That is why I base all my posts on true or false, and some times, it comes out too harsh, but stands the test of time.

    I have recommended only one domainer as a true honest person, that new domainers should focus on in this industry, he is not only honest, he experiments, sells, and reveals all data without sugar coating it. That domainer is Eric Borgos of Impulse Corp. We are blessed to have that guy in this industry. Here’s an example at his site that covers you post, but in a timely manner, and with empirical date:
    http://www.impulsecorp.com/10-reasons-why-i-am-eager-to-sell-my-domains/comment-page-1#comment-4035

    Reply
  • Domenclature.com November 6, 2013, 9:00 pm

    Reply
  • Mike November 6, 2013, 9:55 pm

    You got the point there morgan, as a single person i wont be able to mass develop my domains even i have to admit that i dream about it. To put a company around it is a different story but still i think there would be only few gems.

    Reply
  • Domenclature.com November 6, 2013, 10:25 pm

    @Morgan

    That point is true, there’s a law of diminishing returns, and maximizing utility, true; but I think there is something more sinister than that: there’s a cabal hell bent on stopping the average domainer. You said it yourself, prior to 2008, folks were able to develop, park, and/or sell names to make a decent living; therefore it’s doable. It has been done. So, what happened?

    If it takes x effort, with x help to produce a good revenue-yielding site, the most it should take in an inefficient setting to derive 2x revenue-yielding sites should be 2xeffort plus 2x help….and for 900x revenue-yielding sites, we’re should be looking at 900x effort, at 900x help.

    I don’t want to name names here, but it’s obvious those undermining us.

    Reply
  • Tommy Butler November 7, 2013, 12:56 am

    Happy to Morgan

    Reply
  • Samit November 7, 2013, 2:33 am

    You can build a few sites into businesses, but you can’t mass develop businesses.

    Otoh, you can develop hundreds of websites and have them make enough to be self sustaining and profitable, it’s an entirely different approach and is possible if done correctly.

    Tommy has it absolutely right, depends on the domain and the approach.

    Reply
  • tommy Butler November 7, 2013, 5:37 am

    One first things we did is group our domains into networks, You can build networks but you cant build hundreds of domains same time. We turned out domains into say 9 networks. I can manage to run 9 business that control 1200 domains in total.
    Im sure Morgan has lots questions with regards to this be happy to give honest frank answers to it. It works for us but its not for everyone.

    Reply

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