Domain Names – Successful Investments

November 24, 2011 by  Filed under: Domain 

When people first hear about domain investing, even experienced marketers, they often cringe. Some think it means buying trademark and typo terms to get “accidental” visitors looking for a different site. Some believe domains have little monetary value, and are instead traded on intrinsic characteristics like “cuteness” or scarcity.

And some still believe a domain name doesn’t matter, thinking JiggyPop.org is just as good as Hotels.com, provided the site’s content is the same. Listen, at one time I thought those things too, but those assumptions are dead wrong. Let me illustrate the real value of quality domain investments with a little quiz: Which domain name is most valuable on a strict valuation basis? a) Google com or b) CellPhones com

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.

I have several domains like Google.com, all cute, super fun-to-say, and memorable, but with no real definition. None get more than a few visitors a month – accidental, random traffic, at best. And since “Google” doesn’t historically mean anything, there’s almost no way to monetize a name like the without millions and millions of dollars worth of branding, and years of reputation building. At best, a domain like Google com – but with no existing name recognition – might earn a few dollars a year in click revenue and sell for a few thousand at auction.

But what if you owned CellPhones.com? How many visitors would you get then, and what might they be looking for? Welcome to the wonderful world of type-in traffic, also known as direct navigation. Based on established type-in click-through metrics for the domain industry, and my own personal experience, a domain like CellPhones.com probably gets between 3000 and 5000 type-in visitors a day or about 125,000 visitors a month.

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