Home – New Forums Tech talk What’s in a domain name?

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  • #978429
    AgentMail
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    Hi All,

    For the second time in as many weeks, I have been approached by someone wanting to sell me a domain name, linked to my industry. Neither of them have websites set up on them, so as far as I can tell, I am just buying the domain name. What I can’t get my head around is, why would I want to buy it. I spend money on SEO and getting a decent site setup, what other benefit is there for me buying these domain names.

    I am curious and feel like perhaps I am missing something. Especially when one of the domains had a price tag of $2k – I just can’t see the value of it. Does a keyword rich URL really make that much of a difference?

    Thanks

    #1107001
    T J Madigan
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    AgentMail, post: 118698 wrote:
    Hi All,

    For the second time in as many weeks, I have been approached by someone wanting to sell me a domain name, linked to my industry. Neither of them have websites set up on them, so as far as I can tell, I am just buying the domain name. What I can’t get my head around is, why would I want to buy it. I spend money on SEO and getting a decent site setup, what other benefit is there for me buying these domain names.

    I am curious and feel like perhaps I am missing something. Especially when one of the domains had a price tag of $2k – I just can’t see the value of it. Does a keyword rich URL really make that much of a difference?

    Thanks

    The most common benefit of having a keyword rich domain is that whenever somebody links to your site, even if they just link to it using the URL (http://www.lucrativekeyword.com.au) you still get a keyword rich link pointing to your site.

    Another benefit (which is not so common) is people sometimes search by typing http://www.lucrativekeyword.com.au straight into the browser address bar in the hope that there is a site with the URL matching exactly what they’re looking for.

    A few years ago I had a website that was attracting more than 30,000 unique visitors per month via exact domain name searches in the browser address bar and on Google. But a website like that would sell for much more than $2k and they are few and far between.

    As far as SEO benefit. Unless it is a highly searched, high converting exact match keyword domain, your $2k could be much better spent elsewhere.

    #1107002
    Aidan
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    What TJ said and also – don’t forget to consider whether you can live with having a competitor pick up and use that name!

    #1107003
    seocourse
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    It depends what you sell.
    If you sell pedometers, recovering the investment of 2K will take a while

    if you sell mortgages…. mmm a bit faster …

    #1107004
    calebmarshall
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    Furthermore to what the people above have mentioned, if the domain doesn’t have any significant pre-existing SEO value associated with it, and it’s going to take a while to see a return on the investment there’s no reason to purchase it…

    …Well there is one other reason which hasn’t been mentioned and that’s the branding factor associated with it. If it has a strong brandable image associated with the keywords in the domain name it could be seen as a good investment. However that’s unlikely.

    #1107005
    FrankieT
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    Aidan, post: 118709 wrote:
    What TJ said and also – don’t forget to consider whether you can live with having a competitor pick up and use that name!

    I couldn’t put up with the idea my competitor could own any keyword rich domain names. So I spent nearly $10k buying up the major ones.

    Half of it was money well spent. I think. But I sleep better at night.

    #1107006
    Jenish Pandya
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    Hey Agent,

    There is a whole industry on domaining and people fork out more than 100k’s for a single name and even get sued over some.

    Domain Name = Brand, SEO, Ease, Recognizability, etc..

    Think of it as a shop location, the more prime location the shop is at the more customers and exposure.

    Ps. if you don’t wanna fork out money now, wait for it till it expires and buy it then. If the person is trying to sell it and doesn’t end up selling it, it will most likely expire.

    Cheers
    Jenish

    #1107007
    Geronimo
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    Not being a SEO junkie, I see it as a monumental waste of money.

    Business is largely about your brand, not the words that make up your name. I would suggest that spending $2-$10k on creating more loyal customers, or improving your image would be vastly more profitable.

    Let’s not forget domain names like bmw, mercedes, volvo, ford, holden etc etc. I’m sure they don’t care that someone else owns greatcar.com or thebestcarforyou.com, because they have built a brand.

    To be honest it reeks of the ostrich breeding blip of the mid 90’s in Queensland where the market creates it’s own market. Enough people convinced enough others that it was a great thing to invest in, and as long as enough people believed the story, there was a booming market in ostrich breading. After five years or so, when it emerged that there were now lots of ostriches, but no demand outside of the breading market, it all came crashing down.

    #1107009
    Aidan
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    Its impossible to tell someone else what is most important or profitable to their business unless you know everything about it!

    As for the car giants – try registering fordcarsaustralia.com.au or somesuch and we’ll see upset they get!

    Lets not forget that domains can be valuable in more ways than one, there is a pure demand factor and there are brand and seo factors, to some businesses those factors can be worth a huge wad of cash which is easily recouped in subsequent sales!

    There is no comparison to ostriches or tulips, the nearest I can think of is real estate but as there is little if any financing behind domain purchasing around the world I can’t see a big bubble effect.

    #1107010
    Geronimo
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    The similarity I was referring to is that with domain names and ostriches, people who stand to profit appear to be the only ones telling (and believing) how important it is that you have the perfect domain name.

    The fact that Ford hasn’t bothered to register fordcarsaustralia.com.au, just reinforces my view. :)

    #1107011
    Stephen Forde
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    Geronimo, post: 119148 wrote:
    The similarity I was referring to is that with domain names and ostriches, people who stand to profit appear to be the only ones telling (and believing) how important it is that you have the perfect domain name.

    The fact that Ford hasn’t bothered to register fordcarsaustralia.com.au, just reinforces my view. :)

    Ford doesn’t need to register that domain as their brand is strong enough to sustain itself. As mentioned above by others, the ability to include anchor text without penalisation is a major plus for keyword domains in my opinion now more so that ever.

    That said there are some resellers asking over what the domain is worth for example I recently enquired about the .com version of webhostingmelbourne. The seller wanted $3300usd and would only negotiate down to the 3k mark. I walked away as in this instance there were to many other factors like competing with companies like melbourneit for that term being 1 of them.

    The australian domain names industry is big and getting bigger. There are websites like netfleet.com.au and drop.com.au. You can also see a list of domains to be dropped at auda.org.au.

    I also like how someone mentioned that if you could live with your competitor having the domain you wanted. I would love to go back in time and get webhosting.com.au or even webhosting.com.

    You can still build a brand name and reach the keywords you want. It does without any doubt take more work…

    #1107012
    Aidan
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    LOL I recently tried to buy a .com for a friend and lucked out when the holder asked for over $300,000!

    It is currently parked and to my knowledge has no great demand for it! :rolleyes:

    #1107013
    SmartBizBlog
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    Aidan, post: 119206 wrote:
    LOL I recently tried to buy a .com for a friend and lucked out when the holder asked for over $300,000!

    It is currently parked and to my knowledge has no great demand for it! :rolleyes:

    This is like the tartars in southern Ukraine that puts a few bricks on a piece of land so that it can be claimed as title. Some have been there for 10 years with no development; but they now legally own the land… Waiting for some poor bugger to ask how much.

    #1107014
    Stephen Forde
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    SmartBizBlog, post: 119217 wrote:
    This is like the tartars in southern Ukraine that puts a few bricks on a piece of land so that it can be claimed as title. Some have been there for 10 years with no development; but they now legally own the land… Waiting for some poor bugger to ask how much.

    Company.net went for $100k a month ago. Just looking at it now, it looks like the buy has only bought it as real estate as well.

    If you’re interested about the domain industry and particularly the Australian domain industry. dntrade.com.au is a great place to start. You can find me over there as well.

    #1107015
    SmartBizBlog
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    Takes a fair bit of capital to do these days I would imagine. Given most things of any value have already been pinched at the drop; finding something original and possibly in demand would be a challenge to say the least.

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