Another reason is when I'm expecting end user offers (which is all I'm really interested in). I generally get involved with helping a client select a domain name in one of our CI or branding projects, and there are real issues with PPC parked names here. First it's a major put off. 99% of the clients say โsome cybersquatter registered my nameโ. I then have to explain that the name they thought up last week, which some speculator registered two years ago, is not โtheir nameโ. If they want it they are going to have to pay for it. By this time they are usually so annoyed that they just don't want to deal with the guy. I've had clients say they wouldn't even pay $500 of a really good name โon principalโ. Whatever!
And even if they do choose to negotiate the seller has lost a major edge. When he comes up with the story about how he has plans for development and really can't part with it for less than $x,xxx it's like dude. You've been parking at sedo for for two years, get two visitors per month and have never had another offer. I'll give you 50 bucks.
Most of the rest are pointed at a developed site, or a parking service that looks like a developed site. The last year or so I've been developing sites that change their look and content based on the domain name. The one that is fully up and running is doing pretty good. It's certainly a lot more work than parking at sedo but as soon as a get indexed and people start visiting and bookmarking it starts picking up traffic and revenue.
This is one of the most well thought out, best pieces of advice, I have seen, regarding how to position and "frame" a domain name to achieve optimum results in the enduser market. In the course of reading, (and rereading), primas comments, a light bulb clicked on. Although I can't be 100 % sure, I am almost certain the final sales price of, at least, three of my names were impacted because they were parked at a sales listing/ppc site. In fact, in one failed negotiation the initial inquiry, came via a written letter that began w/: "We noticed that you renewed the domain name, [example].com, on May_, and that is used to direct to a general listings portal page. Would you be interested...? " Nothing like kicking off a negotiation by having to quickly backpedal, to remove some tarnish off of your domain name.
I have been aware of this problem, and have hedged it, in the past, by explaining to the interested party that the domain was on the listing site for the purpose of gauging traffic and to help offset expenses, but despite my truthfulness, is this really the best way to showcase a name that I have aspirations of making a $xxxx(+?) sale on? Does offsetting yearly renewal fees justify risking the $xxx's, or more that a potential sale may generate? Additionally, unless the traffic for the name is substantial, having the traffic stats published on a link from the directory page is, also, most certainly, a detriment to the domain names overall "gestalt". I can also see where my "solution" of pulling the name off the directory site and quickly moving it to another server, *after* a direct offer has been received, could appear suspect and cause additional credibility issues.
A domain w/ an "Under Construction" or a relevant directory, (w/o a "This Domain May Be For Sale" link), whether on a registrar's, or one's own DNS, would have a significant advantage over having the name parked at a ppc listing site, relative to enduser sales. Maybe using a sales/ppc listing site as an interim solution to the problem of what to do w/ my names, "until I have time to get to them", is a solution worth reexamining.
Of course, there is also the short, (or not so short), term problem of gaining exposure for the names to prospective buyers, during the "sorting out" phase, which is also worth considering.
