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Home > domain names > Domain Names - Investments That Pay Dividends (Part 1)

Domain Names - Investments That Pay Dividends (Part 1)

July 15th, 2008
by Smash Masterson

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.

The general consensus of opinion nowadays is that a domain name is not important and that NoggyDog.net is just as good as Banks.Com, with the understanding that the content on each site is identical. Now I too used to believe this but I can assure you now that I was completely mistaken. I will reveal the awesome value of domain investments with a couple of questions for you. Which domain name would you consider to be most valuable but strictly on a valuation basis? … Google.com or Books.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.

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.

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.

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