Does the End of ‘Garbitrage’ Mean the Domain Parking Bubble Will Burst?

By Tad Miller | May 25, 2007
More Articles by Tad

Jennifer Slegg, JenSense, broke the story about Google disabling use of AdSense on PPC arbitrage sites and “Made for Adsense” sites or “MFAs” effective on June 1.

There has been lots of commentary about it, almost all of it favorable. I’m in agreement that the Google Content Network hasn’t been a productive place to advertise for most people because of people abusing AdSense.

Many of the owners of these sites are people who have bought domains for the purpose of speculation that someone might want to buy them someday and have used AdSense as a source of income or way to finance hosting or purchase of even more domains. For example the website would be a nice URL mispelling that Mazda may be interested in purchasing someday. It re-directs to a Made for AdSense site. You can’t even tell the listings are Google AdSense ads – but they are.

The question I’m wondering about. If the revenue stream for these sites disappears does that mean the price to buy the domain goes down immediately? Are the domains suddenly a little less valuable?

I think the answer is yes for the guys that have bought hundreds or even thousands of these domains. They are still valuable properties, but without that extra revenue stream the prices might be a little more “flexible” than they were before.

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