Domain Investing - Investments That Pay Dividends (part 1)

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Domain names have never really been the most sought after investments and that goes for Marketers too. Domain investing has never really been properly understood and the outlying factor that seems to turn people away is the understanding that accidental traffic will be the only visits the site gets, meaning that you can't really expect to make much in the way of profit.

Some still believe a domain name doesn't matter, thinking JiggyPop.org is just as good as Hotels.com, provided the site's content is the same. Listen, at one time I thought those things too, but those assumptions are dead wrong. Let me illustrate the real value of quality domain investments with a little quiz: Which domain name is most valuable on a strict valuation basis? a) Google.com or b) CellPhones.com

I expect most of you have answered Google.com as it does stand out just a bit, but incredibly it is not the correct answer and this is why. Google is as we know just the brand of a search engine and it is not very often used as a keyword. The important thing that comes out of this is that when you own a domain name, you have total power over your keyboard.

If you just say the word Google, it is one of those words that are easy to remember and cool-like sounding and it certainly lead to me buying a few domain names which were on the same line. I soon saw that these sites were receiving very little traffic and realized it was because people were never going to use these words as a keyword. Google probably had a million dollar plus branding project to manage their success otherwise domain names like this are only like to generate poor profits and would only go for about 2000 dollars at auction.

But what if you owned CellPhones.com? How many visitors would you get then, and what might they be looking for? Welcome to the wonderful world of type-in traffic, also known as direct navigation. Based on established type-in click-through metrics for the domain industry, and my own personal experience, a domain like CellPhones.com probably gets between 3000 and 5000 type-in visitors a day or about 125,000 visitors a month. (Find out more in part 2)...coming soon.

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