Domain Investing - Investments That Pay Dividends (Part 1)

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Domain names have never really been the most sought after investments and that goes for Marketers too. Domain investing has never really been properly understood and the outlying factor that seems to turn people away is the understanding that accidental traffic will be the only visits the site gets, meaning that you can’t really expect to make much in the way of profit.

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

I expect most of you have answered Google.com as it does stand out just a bit, but incredibly it is not the correct answer and this is why. Google is as we know just the brand of a search engine and it is not very often used as a keyword. The important thing that comes out of this is that when you own a domain name, you have total power over your keyboard.

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 that 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.

After taking this into consideration you may just see how a domain name such as Flights.com could create a hell of a lot of casual visitors otherwise known as type-in traffic or direct navigation. If I had to calculate though my own results as well as established type-in click-through metrics for the domain industry, I would estimate an average of 5000 visitors a day for a domain name like Flights.com. This means that you would receive 125,000 visits a month just through type-in traffic. (Find out just how in part 2)…Published Soon.