Revenue Leakage

Two words that you really don’t like to see in the same sentence is “Revenue” and “Leakage”. This is a polite way of saying money that you should have been earning that you really aren’t. I have conversations with people day in and day out that revolves around how to stop the leakage and make more money….so what I have learned over the years.

Revenue leakage comes in many, many forms. It could be that the domains aren’t installed correctly at a parking company or they’ve been moved out of your account at a parking company (this happens a lot). The nameservers aren’t set correctly or cNames aren’t up to date if you are using a rotation service.

The most obvious revenue leakage is forgetting to add your W8/W9 tax form or even your bank details to your parking account. I don’t know how many times I’ve received an email from a person accusing me of taking their money and not paying them. I check their account and they’ve forgotten to provide bank details. Their tone usually changes dramatically at that point.

Another form of revenue leakage is not actually knowing what you own. The problem with domains is that they’re just so easy to forget about, drop and then lose. We had a client that had their domains littered across about fifty registrars and they had no idea what was going on. They asked for our help and over the next year we aggregated the domains into a single registrar, locked them down and saved them a fortune.

Another form of revenue leakage is sending all of your traffic to the same monetisation provider. Everyone knows that you can earn more by splitting your traffic but you don’t do it because it seems complicated. Nothing is further from the truth. We regularly see a 30-40% revenue uplift at ParkLogic (remember I’m a ParkLogic founder….so a disclaimer her).

We typically see a revenue leakage of between 10-15% in a portfolio. This is a lot of money and it’s going to waste. Feel free to give me a call if you have any questions about this.

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Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He is the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face.
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