Why does one name sell for six figures, while another languishes on an auction site with a $100 reserve for months, unable to get even a smidgen of interest? Sometimes the two domains are similar, with only a one or two character difference. Beds.com and Bedsx.com come to mind, the former being worth hundreds, even thousands of times more than the latter.
Keyword domain names become profitable investments if you follow these 6 golden rules and you must read them before buying your own domain name. It doesn’t matter which route you take to buy the domain name, good investigative work will guarantee a winner when it comes to selling.
1. Keyword volume: This involves keyword research which will reveal whether the words you use in the domain name are words that users like to type in the search box. Google for example get 2400 searches every month for “Hawaii Singles”. At the end of the day it is all down to volume regardless of the keyword tool you use and although they may give different results, you will soon see which words get traffic.
2. Commonality: A lot of people say domains are valued on their scarcity, but if you think about it, all domains, both good and bad, are one of a kind. What I like to look for is the commonality of the phrase the name represents within our society and existing lexicon. Usage, word order, and pluralization are huge factors in valuation. For example, “Discount” is not the same as “Discounted” which is not the same as “Discounts.” SportCars.com is valued less than SportsCars.com, and ShoesRunning.com is practically worthless when pitted against RunningShoes.com. Search for the phrase in quotes on Google to see if people are even using it, much less searching for it.
3. True type-in traffic: This information can be difficult to get, but it never hurts to ask, especially when the sale is private and you aren’t under stressful time constraints. You specifically want to know how much type-in traffic the name gets, not including visitors who are referred from search engines and links, both of which are unreliable in the long term.
4. Length: A further important consideration is the domain length. Short domain names will get better results because they are a lot easier to remember and spell and would convert into loads more traffic. Branding domains with takinf these important factors into account will increase drastically the domain name value which is great news if later sell your domain.
5. Prior use: If the domain has a past life, and was acquired through a drop service or from an expired list, you want to know about it. Forget perceived positives like search engine ranking and PR since those will likely disappear after the name is in your hands. Instead, delve into the name’s dark side. Was it ever used for spamming? Is it banned from Google’s index? Did it previously contain questionable content? Overcoming these negatives can be more work than you bargained for, even with an otherwise great name.
6. End user development potential: The one thing pretty much everyone in this business agrees on is a domain needs to be developable. In other words, you must always ask yourself this: Would I or anyone else be willing to spend money to put up a Web site on this name? If the answer is no, it will never truly be considered great.
Tags: Domains
1 responses to Domain Investing – Six Definitions of a Top Generic Domain Name
On the prior use thing, I have to agree. I have been investing in domains with PR and search engine ranking for years. In the past few months I noticed that if you don’t develop the site right away, like within a few days of reactivation, Google pretty much deletes you from their index and kills your PR. I had a few high PR names (PR6) parked for month back in 2007, and they still aren’t showing up even though they are real sites with unique content. Past PR is no indication of future profitability!
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