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The recent Sedo (wiki) Pro conference at Mohonk mansion was an outstanding success with the venue, atmosphere and events all contributing to a profitable business event. I would like to congratulate the organisers of the Sedo (wiki)Pro conference for hosting one of the best conferences that I've attended.
Now what's happened since the conference? It's been an interesting ride lately with domains parked at Sedo (wiki) with the instant climb of the EPC (Earnings Per Click) for new domains added to your account followed a linear decline over the following few days.
The below graph from ParkLogic (wiki) shows what happens to the EPC of 500 new domains added to your account. Initially the EPC was at 31 cents and within two days it skyrocketed to 73 cents. I thought that I was on a real winner here!
Over the next six days the Sedo (wiki) linear screw kicked in driving down the EPC in almost a straight line. Go figure?
Since the changes to the Sedo system last August domainers were told that their EPC was linked directly to what Google was paying and that there was not an interpolation layer between the the domain and what Google pays. The problem is the stats are telling us something entirely different to what is claimed.
Since the Google system is auction based the probability of the EPC for 500 plus domains behaving in the manner above is vanishingly small. What I believe is happening is that new domains are being rewarded and then punished as the Sedo system reacts. This clearly means that domain accounts at Sedo are not linked directly to the Google EPC.
What should you do about this. One of the first things that you can do is ask your Sedo account representative to establish a number of different accounts for you. Then about every 10 days simply move your domains from one account to another. Just wait for the ratchet down to kick in prior to moving the domains. I informed a number of the Sedo executives about this optimisation strategy and they are fully aware that it exists. I think that it's absolutely crazy that this is the case as it doesn't reward what I would call "true" optimisation. In my opinion it would be much better if Sedo closed the door on this one.
The second strategy you could have is to just move the domains out of Sedo to another parking company when the ratchet occurs. This isn't very good to Sedo but until the "loop hole" is corrected it's a rational decision.
I first picked up this problem last August and in the spirit of co-operation I sat down with the sales and tech guys at Sedo in Cologne to go through my findings. Nothing has happened since that time therefore I'm now convinced that strategy one or two are options that Sedo would like us all to implement. What I would prefer is if Sedo stopped releasing new features and fixed the existing problems. :-)
Refer: Sedo and linear downtrend in the forums for further information.
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