Choosing a Domain Name to Develop
Most domain investors have contemplated development at one point or another. Some people move forward with development projects and others opt to simply be a domain investor instead of trying their luck at development. Here are a few things to consider:
1) Cost of development and maintenance. Programming, security updates, and design work can be expensive. Weigh these costs against the realistic profitability expectation to see if it’s worth it.
2) Time commitment. Many websites aren’t (or shouldn’t be) “set it and forget it.” Think about how much time it will take to update the site (content, upgrades, inventory…etc) and determine if you’ll be able to commit that amount of time.
3) Advertising, marketing, and SEO budget. Even if you have a great website on a category defining domain name, you will still need to spend money advertising your new site and doing SEO work to get traffic. Think about whether you’ll be able to afford to do this – either with your own time or funds.
4) Add value to the domain name. If you develop the domain name, is it likely going to make an impact in search rankings? Will a potential buyer just scrap your website upon domain acquisition? It’s likely that your development won’t hurt the domain name, but if it doesn’t really enhance its value by more than you’re paying to develop it, you might want to reconsider.
5) Interesting topic. If the development topic isn’t of interest to you and you have no interest in learning more about it or dedicating time to it, you might want to pass. It’s not fun to have to research a topic you have no interest in … like tropical birds in my case.
There are a lot of considerations to make before devoting your time and your money to building a website. Sometimes we see huge sales like Diapers.com / Soap.com and we think we can easily take a big domain name, build it out, and sell it for a great ROI. The truth is that most of us won’t be able to do it.
Think about these things before you throw your good money after “bad.”
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