Income from Domain Portfolio
Tucows has three sources of income from their Domain portfolio: 1) Income from advertising from pages of domains within their domain name portfolio; 2) Income from sales of domains from their portfolio which is constantly being replenished; 3) Income from the auction of the steady stream of thousands of domain names that expire every day and become available for resale.
Income from ads
In Tucows' 10-Q filing with the SEC on November 14, 2007, Tucows disclosed that they offer pay-per-click advertising on the pages of domains within their domain name portfolio. When a user types one of these domain names into the command line of the browser (direct navigation), they are presented with dynamically generated links which are pay-per-click advertising. Every time a user clicks on one of the links listed on a web page, it generates revenue for Tucows through their partnership with third-parties who provide syndicated pay-per-click results. In their financial reports, Tucows does not break out their advertising income due to Direct Navigation from advertising income from other sources including the download site. However, Tucows announced $1,068,195 in total income from advertising during the quarter ending September 30, 2007.
On February 7, 2008 Tucows President Elliot Noss disclosed in the Q4 2008 conference call that Tucows switched from Google Ads to a new advertising partner in 2007 which led to a revenue increase of over one third. "It is important to note this increase was primarily the results of better yields," said Noss. "The Gem and Surname portions of our Domain Portfolio have not yet been optimized and over the coming months, we expect to improve performance there as well." Noss also disclosed that Tucows is doing a better job of monetizing parked pages and have new tools available "to grade and segment our inventory of domain names, [(which) will enable smarter decisions in domain transactions and therefore more and more profitable transactions."
Tucows has three sources of income from their Domain portfolio: 1) Income from advertising from pages of domains within their domain name portfolio; 2) Income from sales of domains from their portfolio which is constantly being replenished; 3) Income from the auction of the steady stream of thousands of domain names that expire every day and become available for resale.
Income from ads
In Tucows' 10-Q filing with the SEC on November 14, 2007, Tucows disclosed that they offer pay-per-click advertising on the pages of domains within their domain name portfolio. When a user types one of these domain names into the command line of the browser (direct navigation), they are presented with dynamically generated links which are pay-per-click advertising. Every time a user clicks on one of the links listed on a web page, it generates revenue for Tucows through their partnership with third-parties who provide syndicated pay-per-click results. In their financial reports, Tucows does not break out their advertising income due to Direct Navigation from advertising income from other sources including the download site. However, Tucows announced $1,068,195 in total income from advertising during the quarter ending September 30, 2007.
On February 7, 2008 Tucows President Elliot Noss disclosed in the Q4 2008 conference call that Tucows switched from Google Ads to a new advertising partner in 2007 which led to a revenue increase of over one third. "It is important to note this increase was primarily the results of better yields," said Noss. "The Gem and Surname portions of our Domain Portfolio have not yet been optimized and over the coming months, we expect to improve performance there as well." Noss also disclosed that Tucows is doing a better job of monetizing parked pages and have new tools available "to grade and segment our inventory of domain names, [(which) will enable smarter decisions in domain transactions and therefore more and more profitable transactions."