Why domain names can be a good investment!
We have a number of generic finance related domain names and
have recently added to these through the £14,000 investment in
debtconsolidation.co.uk and the purchase of
debtfree.co.uk.
It's true that debt consolidation is one of the hottest terms
especially in respect of PPC's and we believe we will get free
traffic from people guessing the domains when they are looking
for debt consolidation or debt free i.e. people that are looking
for debt consolidation will enter debtconsolidation.co.uk in the
toolbar rather than searching for debt consolidation on a search
engine. Both debt consolidation and debt free are amongst the
most searched for terms on the internet and you would therefore
expect a percentage of people looking for these terms to guess
the domain. Many domain investors use the overture search rank
as a key to the potential value of a generic domain. i.e. if a
lot of people search for a term then a smaller proportion will
second-guess what the domain name will be.
A good generic domain name can also help with search engine
placement. Approximately 12 months ago debtconsolidation.co.uk
used to be at the top of google for debt consolidation but
someone must have failed to renew!
www.debtconsolidation.co.uk
is already on the 1st page of msn.co.uk for debt consolidation
out of 17,265,739 results. Debt Consolidation is a very hard
term to get to the top of especially only after website was
launched 2 weeks ago. (Website is still temporary!). So I
believe domain name has played a big part in it. This seems
especially true for msn. Try searching for debt consolidation
loans on msn and look at all the domains that are top! Only 1 in
the Top 10 doesn't have debt consolidation loan in the domain
name!! That's the beauty and the value of a generic domain!!
A domain name can also be of use through pay per click
advertising (PPC). We advertise extensively through google
adwords and what we have found is that the domain can have a
direct effect on your Click through ratios (CTR's) and hence the
amount you need to pay per click. We advertise on google and
where the domain is similar to the search terms you generate
significantly more traffic (hence why espotting (miva) insist
you include the search term in your title).
When you are valuing a domain for a business as well as looking
at how much people will pay for a PPC it is also worth looking
at how much they will pay for a successful application. This is
really where the true value can be seen.
We are therefore confident that generic domain names (that are
business related) are definitely good investments for the future
and it's wise to buy before others realise it too! We will
definitely be looking for new ones that come available.
I think some of the bigger companies aren't on the same page
yet. It is too difficult to get approval for a purchase off
someone who doesn't understand the potential value. Often they
also outsource their internet advertising so there is no one in
the business that understands the internet.
So to summarise a domain name can have considerable value if it
is able to generic free relevant traffic to your website. Also
as the internet grows and users become more sophisticated in how
they search then we would expect the value of domain names to
increase further.
About the author:
Director of Finance Websites
Debt Free
UK Debt Consolidation UK
