Part 2 – Why Domain Portfolio Optimisation Works – Development

Part 2 – Why Domain Portfolio Optimisation Works – Development

In this article I will be further expanding on how to develop a domain into a business. This is the first business model that can be applied to domains, the other three are monetising traffic, treating domains as stock-items and the last selling domains at high values.

The first issue for me with any developmental project is working out how the domain is going to make money. This seems like an obvious question but many people approach developing a domain from an aesthetic perspective (ie. pretty website) rather than being focused on the business outcomes.

Escrow.com

Generally speaking, all business models hinge on getting not just new traffic to your website but repeat visitors. A repeat visitor is gold as they perceived a value in your site enough that they returned for a second look. It shows that there is something about your business offering that they want.

So here are some reasons why people will return to your website.

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Richard St Cyr
Hi Michael, You may not remember, but I have met you several times in Vegas and I would like to do business with you regarding my... Read More
29 June 2016
Michael Gilmour
Hi Richard, I sent you an email.
30 June 2016
Michael Gilmour
Hi Jeff, The .com domain is more natural for people to type-in BUT it is not the REASON why people will return to a website. It ju... Read More
30 June 2016
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Part 1 – Why Domain Portfolio Optimisation Works

Part 1 – Why Domain Portfolio Optimisation Works

I recently had the privilege of conducting a session at Domaining Europe on the topic of monetisation. Many domain investors have fallen into the trap that monetisation is dead and let me share with you that nothing is further from the truth. Domain monetisation is alive, well and thriving.

Escrow.com

What has happened, is like any industry there has been an evolution in technology. Those that have kept up with the technological curve remain successful while those that don’t struggle to remain in business.

This is not dissimilar to the days of the buggy whip manufacturer. During the days of horse drawn carts they made an absolute killing. Then a strange contraption initially known as a mechanical horse came onto the market. This technological innovation was really expensive so the buggy whip makers all laughed at the early version of the motor car and continued to make their whips. The rest is history and other than the handful of craftsman buggy whip makers are no more.

It’s the same thing in the domain industry. On one of my recent trips around the world I was talking to a domain owner that had been in the industry for years and he was decrying that monetisation was dead. I asked him one question, “What are you doing now that you weren’t doing five years ago?”

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John
Hi Michael-great post so thank you. We own the name eEconomist.com and have thought it would be a great name for a worldclass econ... Read More
27 June 2016
Michael Gilmour
John, I'm glad I could be of assistance. Feel free to reach out to me if you want to chat about your domain.
28 June 2016
Michael Gilmour
It's easy to say yes to money and then realise that you've made a BIG mistake.
28 June 2016
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Saturday Musings - In a World Gripped By Fear

Saturday Musings - In a World Gripped By Fear

Sadly, when I look at the world today I see that it’s largely been caught up in the hysteria of fear. It’s questions like the following that seem to be plaguing everyones mind as the media pumps out an endless litany of terror.

Who will win the presidential race? Does that person walking down the street carry a gun? What are the implications of Brexit? Will I keep my job? Will my kids love me when they’re older?

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Like the USA, Australia is in the middle of a federal election campaign. The two major parties here have finally devolved into, you guessed it, fear campaigns. You can almost feel fear's icy tentacles grip the nation as the attack commercials are shown time and time again on the television. It’s really quite sad.

Being bound by fear of the future and what may happen can be debilitating. One of my favourite science fiction books is Dune by Frank Herbert. In the book there is the following quote:

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Aslan Avdi
- and Dune is a classic.
25 June 2016
Michael Gilmour
One of my favourite books!
26 June 2016
Michael Gilmour
I completely agree with you on this. I think that in many respects the Central Banks have completely lost control of their economi... Read More
26 June 2016
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What Brexit Means For Domain Investors

What Brexit Means For Domain Investors

Well, the news is out! Britain has just exited the European Union and the global financial shockwaves are only rumbling through the markets. It’s only been hours since the announcement but what does this mean for Domain Investors?

For a start, the forex interest in the event has been so enormous that popular website XE.COM crashed. I spent the last ten minutes trying to get any sort of activity and finally gave up. My guess is that it’s experiencing the impact of a very real DDOS (Distributed Denial Of Service) attack from genuine requests rather than a large botnet.

Escrow.com

After flipping across to Yahoo Finance I was able to see that as of this article the Pound has dropped over 12.65% against the USD. Likewise, the Euro has fallen by 3.6% and this will mean a possible boom ride for European domain investors.

The majority of the online advertising market is still in the United States and so any advertising dollars earned will need to be converted to Euros or Pounds. If a UK based domainer earns $US1 they will effectively get an additional 12.65% free of charge.

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Aslan Avdi
Thanks for an interesting take on it Michael ... Read More
24 June 2016
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Using Analytics to Price Domains - Part 4

Using Analytics to Price Domains - Part 4

In the last article in this series I began to unpack the importance of the demand curve for accurately pricing domain names. My experience with domain sellers is that most of them price their domains more by gut then attempting to apply a process. In this article I want to move my line of thinking forward to help sellers more accurately price their domains and buyers know if their getting a fair deal.

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I should say out the outset that I’m going to keep everything as simple as possible by minimising the number of input data points and mathematics…..but hold onto your shirt as it can still get a little tricky! Remember the goal is to see if we can create a demand curve for a market vertical and then attribute pricing to this curve. So where to start?

We can use the google keyword tool (remember there are a LOT more other data points) to provide us with both quantity and price for an individual keyword. It just so happens that the price is more often than not a reflection of the demand for that keyword due to the Google auction system amongst advertisers. Google also provides a competitive index which is really interesting and bears a lot more thought…..I won’t be applying the index for this analysis.

So I entered a whole lot of “gaming” keywords into the keyword tool and out popped the data that I was after. After a bit of manipulation, I was able to produce the following chart (price is the vertical axis and quantity the horizontal). I really haven’t added a huge number of data points but it provides a reasonable picture of demand for the gaming market vertical.

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Michael Gilmour
Hi Jeff, Many thanks for your thoughts. I think what I was attempting to do with by using the Google data was to get a picture of ... Read More
21 June 2016
Michael Gilmour
Hi Adam, yes,,,,maths can be a pain at times. The methodology of pricing domains can be used for both buying and selling.
22 June 2016
Michael Gilmour
Hi Jeff, Couldn't agree with you more....and that is why we founded ParkLogic for traffic monetisation. It basically back fills wi... Read More
22 June 2016
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