Domain Recognition – Buying Domains Smartly
After spending two weeks in Europe and the UK, and now thinking about the industry with a new “set of glasses,” I really think that relevance is more important than the extension – when it comes to developed domain names. With the current domain parking and monetization options, domain names that receive traffic will typically have some value, but as PPC revenue continues to decline, the safest and smartest domain acquisitions are those that are usable and recognizable by Internet users.
With few exceptions, no matter what the extension is, I think domain usability and visitor recognition are two of the most important things to consider when making a purchase. If you or someone else would be willing to spend thousands of dollars building a website on a particular domain name, it might be one in which you would want to invest at the right price. Intuitive names like Enoteca.it (wine bar in Italian), Mapas.es (maps in Spanish), Homes.tv, Burbank.com…etc are all great domain names on which to develop a website as people will presumably type them in searching for something familiar. People know the words, and if they are familiar with an extension, they will have no problem visiting a website on that domain name.
Sure, a domain name that receives traffic may be good, but a usable domain name with little traffic may be much more valuable. While some may argue that a name with inherent traffic is the most valuable, I would argue that a usable domain could be more valuable. If PPC continues to drop as it has, direct to business advertising and/or domain sales to end users will be the best way to make money on a domain name in the future. While names that receive traffic for unknown reasons may have value now, down the road, when they are more difficult to monetize, they may be worth less.
I always think it is smart to buy non-trademark, product-related, service-related, geographical, descriptive and other similar generic domain names. People will always want to build on these domain names (if you don’t), and they will always be salable. In tough economic times, it is important to make wise investment decisions. The deals you make now will allow you to be successful in the future.
I am still recovering from the trip, so please excuse typos or if this doesn’t make complete sense
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