Ascertaining The Value of a Domain Name
Posted on Friday, Dec 03, 2010 in "Domain Names"
A common trend in the modern internet is something called Domain flipping. Domain names can carry incredible worth. They convey everything from what a company represents, to a niche. This makes a good domain name invaluable. Many times, people don’t really take the time to choose a proper domain name and this works to the advantage of those who do.
Domain Worth 1: Traffic Is Key
One of the key selling points for a domain is the residual traffic it produces. A good domain has links spread out through the internet and this results in a steady flow of traffic to the site. This traffic is one of the main elements that make a domain worth money. Traffic is essentially potential leads either for advertising, promoting or even selling your product.
Domain Worth 2: SEO Rankings
If the average person can’t find your site, they can’t find your product. A domain with good worth will have respectable search engine rankings for its particular niche and keywords. Usually a first page hit for a particular group of keywords is ideal. The exact spot isn’t as important as the actually occurrence on the 1st page.
Domain Worth 3: Production
Domain worth is also calculated on conversions for advertisement. Just about every website on the planet is an affiliate for someone. Everyone advertises, either through Google ads or a pay-per-click network. This means worth can be determined as a ratio of traffic produced to advertisement conversions. Some sites like ESPN are known to produce thousands of dollars a day in advertisement perks alone. While this is hard to estimate, a good rule of thumb is that about 10% convert to leads for advertisers.
How to Buy
Determining the worth of a domain can be very tricky. Of course, this causes purchasing the domain to be difficult. Make sure you review the steps above to have a better idea for its worth. To start, ask for traffic logs and look up the rankings for its keywords. Some domain flippers will even give you conversion logs so you can see just how much money the domain produces in advertisements.
If you don’t want to wait for search engines to recognize you, buying a domain might be a beneficial option. Just make sure you spend enough time researching the domain before you put in an offer.
