March 25, 2006
Expired Domain Names : UltSearch and his 164 Million Dollar System
It is the business of traffic. Traffic is king on the web and in 1998 Yun Ye realized just that. He figured out that by purchasing expired domain names [here's a book with some background on the domain name business] he could leverage all the links and bookmark traffic that still existed for that domain name.
He would research the names that were expiring and within purchase them the minute they expired. Then he would through up one of his template sites [picture here with link to here: http://www.ultsearch.com/%5D with a ton of links on it. The hope being that the person would continue to click on his pay per click links.
The plan worked. Considering that domain names can be registered and hosted for under
$20 a year, he would only need to make 5 cents a day to break even. Now Mr. Ye scaled out the concept to include over 50,000 domains that require no back links, no promotion, no search engine optimization and most importantly no maintenance.
This business apparently pulls in 6 figures….A DAY! Last fall Yun Ye cashed in and sold his business for $164 Million.
This is my idea of a perfect business model. Many people have tried and continue to try to imitate his model but in my opinion with the level of competition out there right now it will be difficult to scale out the degree that UltSearch was able to do. But even a fraction of that would be okay with me.
Here is some more background on UltSearch and the expired domain name industry.