Domain Investing - Investments That Pay Dividends (Part 1)
Domain investing has never been a great favorite not even amongst the most experienced marketers. There are various theories to just what domain investing is, but basically they all point at a need for casual traffic which therefore generates a poor return.
The importance played on domain names has never been very high as most people including myself thought that for example that PokkyBoy.Ws was as good as Property.Com if they both had identical content. I have recently discovered that this is just a myth and I will start to reveal all with just a few questions on the subject. Firstly Would you consider Google.com or Cellphones.com to be the the most valuable domain name, but strictly on a valuation basis?
If you said Google.com, which is the obvious answer, you would in fact be wrong, and here’s why… Ignore Google.com the “brand” for a moment, and think of “Google” as a keyword. Repeat after me, when you own the domain name, you own the keyword.
The domain name Google.com is one of the short names that sound cool and easy to remember and I too have several similar type domain names. They only receive minimum traffic as they are not proper words that people would use to find something and the same would have applied to Google. This type of domain name investment could cost millions of dollars in branding costs, otherwise it would only earn a couple of bucks a year through click revenue and at auction would only sell for about 2000 dollars.
Now try and just think what you could do with a domain name like Books.com and just how much casual traffic you would get. The is commonly known as type-in traffic or direct navigation. If I were to base this on established type-in click-through metrics for the domain industry plus my own personal experience, I would expect a domain name like Books.com would normally receive up to 5000 type-in visitors a day, which is an incredible 125,000 monthly hits. (All revealed in part 2)…coming soon.
Last 5 posts by Smash Masterson
- Site Flipping - Investments That Pay Dividends (Part 2) - July 16th, 2008
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