We’ve recently been working with a client to better understand the underperformance of a number of their domain names compared to a few months earlier. What we discovered when we conducted an internal forensic analysis of the data was quite surprising.
The domain we will look at in this article has been renamed to A.COM for privacy purposes. Since the beginning of the year it has had a monthly revenue ranging from $183 to $1221 and a normalised RPM (revenue per thousand visitors) of $75 to a high of $488. So what was going on with this domain?
Upon closer inspection we found that A.COM was a domain from the travel industry. People were looking for the services the domain offered from May to July and this dramatically pushed RPM rates higher as advertisers competed more aggressively for the traffic during this time. In fact, the peak numbers were achieved by a direct advertising travel company.
So let’s imagine you bought the domain based on those very high July numbers? It wouldn’t be long before you discovered your investment was under water as the typical monthly revenue retreated to 20% of the peak! Our client isn’t unscrupulous so they would never do this…..but always remember, buyer beware!...