The Economics of Domain Traffic The “Old Way”: Buy the Traffic via Google AdWords WiFi.com 15,000 visitors 10% CTR 1,500 visitors Google $1,500 Sedo $1,200 Domain Owner $700 Advertiser pays $1,500 for 1,500 visitors Domain Owner gets $700, Sedo $500, Google $300
The Economics of Domain Traffic The “New Way”: Buy or Lease the Domain via Sedo WiFi.com 15,000 visitors 10% CTR 1,500 visitors Google $1,500 Sedo $1,200 Domain Owner $1,000 Advertiser pays $1,500 for 15,000 visitors Domain Owner gets $1,000, Sedo $500, Google $0 $1,500 $1,000 Option 1: Lease : Option 2: Buy the domain for $350,000: - ROI in about 2 years - Domain is an asset, not an expense - You’ll have the domain forever
- Generic - Descriptive
Role of Descriptive Domains in Purchase Funnel - Branded - Product-specific Keywords Used :
Generic Terms Account for Majority of Search Activity ComScore Study: “Generic product search terms (e.g. “camera,” “plasma television” or “PDA phone”) accounted for more than 70 percent of total search volume, while trademarked retailer terms (e.g. “Best Buy,” “Gateway.com”) accounted for 20 percent and specific product terms (e.g. “Canon digital camcorder,” “HP notebook nx9010”) accounted for 10 percent”
Your domain strategy must also encompass generic category terms!
Use direct navigation domains to reach customers early on in the purchase consideration funnel
Baby.com: A Well-implemented Advertising Vortal
A good first stop for those new to the category (early on in purchase consideration funnel!)
Premium domain adds to credibility and perception of independence
Focus is on education and information
Branding and introduction of company products is secondary
Rebrand on a Generic Descriptive Domain? “ By 1999, within 15 months of changing our name to WebHosting.com, we had registered over 150,000 domain names for tens of thousands of hosting customers in over 140 countries around the world. We were on track to surpass $10 million in annual sales, handily exceeding my predictions of 2 1/2 years earlier. Our headcount grew to approximately 100 staff and we were moving offices on an annual basis to accommodate our constant expansion.”
An extreme measure, but the benefits can be tremendous!
Example of DynamicWeb.com rebranding as Webhosting.com:
Like well-known brand names, descriptive domain names have an immediate recognition factor that generates increased CTR
Users assume sites with premium one-word .coms have greater credibility
Keyword repetition: title, description, URL
“ ClubMed had a 33% lift using keyword sub-domains...” Instant Recognition: Which ad would you click on? BONUS # 1
Better conversion rate : specific domains can be an exact match to the niche that the user’s looking for
Easier tracking : how many people visited the domain from that campaign?
Brand association : Bank of America is “Loans”
Brand dis association : RestlessLegs.com is an independent information source, not a pharma company sales pitch.
Why use campaign-specific domains? BONUS # 2 ClickZ: “78% of Ad Agencies preferred Campaign-Specific URLs...”
Most people still link with your domain name:
“ I buy domains at Sedo.com ”
“ I found a WiFi provider at Wifi.com ”
Therefore, if your domain contains your keywords, you automatically generate many incoming keyword links
Google interprets that as your site being a popular source for info on keyword
It’s not a guarantee, but there is solid evidence it helps! BONUS # 3 Better Organic Search Engine Placement
Putting it all together: A Portfolio of “Direct Navigation” Domains
“ Own” your niche: All domains and SE placements for the most relevant keywords (use keyword generation tools)
Perpetual stream of targeted traffic
Excellent organic search engine listings
Better CTR on search engine ads and organic listings
More granular tracking of ad campaigns
World’s largest domain marketplace with over 11.5 Million domains listed for sale
The average domain currently sells for around €1,500.
Our highest value domain sale was Vodka.com for $3 million.
Over 4 million direct navigation portals in thousands of verticals
About 700,000 members from dozens of countries buy and sell through Sedo
Over 2,500 domains are sold through Sedo each month
Offices in London, Cologne (Germany), and Boston (USA)
Also offer assistance with domain valuation, consultation on selecting appropriate domain names, domain acquisition, domain brokerage, and domain escrow/ transfer services
Some Quick Facts about Sedo
Identify your top keywords in each market
Develop a list of 200-300 target domains by pairing keyword + extension
Immediately register anything that’s still available!
Go to the secondary market (try eg. www.Sedo.co.uk ) to acquire any registered domains
Determine your offer value based upon the value of the traffic
Protect your purchase using an Escrow service (Sedo, Escrow.com, etc...)
Start Building your Domain Portfolio Today!
Or, try the easy way: Visit www.sedo.co.uk or contact me at [email_address] for assistance:
Coming up with a list of domains to buy
Determining how much to offer for those domains
Anonymously negotiating a purchase and securely transferring ownership