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.

Information
Users want to get access to information that you provide. This could be anything from technical documentation right through to an online training course or even an online newspaper.

Opinion
You and your business has developed a significant enough reputation that people are interested in what you have to say on issues, products and services. Before I buy anything I like to do my research by reading reviews on the product I’m interested in.

For example, when I write an article on the domain industry I try and not just report the news but understand what is happening and provide an opinion.

Useful
Google is the ultimate useful tool that allows us to effectively find things on the Internet but there are many, many other tools. How about domain tools, whatsmyipaddress.com or geoipview.com. These are all tools that I personally regularly use.

With the introduction of cloud computing there has been a blurring of the line between a site being useful and one that provides a service….which is our next item.

Services
Users will return to a website because that website provides a great service that they are willing to pay for. A website that is useful is one that often gives their service away for free because they earn money in other ways (eg. Advertising). Salesforce.com is an example of a massive company that provides CRM solutions to businesses all around the world. Businesses can subscribe to their base offering and pay more for additional features. Will your new venture offer a billable service?

Products
Put simply, I’m Amazon and I want to ship you as many physical or digital products as I possibly can. Gaming platform Steam saw the transition to pure downloads and built a whole ecosystem around selling software to gamers. If you have an exclusive product that people want, then they will return to your website to get it.

Funny
In many respects a website that is funny is a subset of the information category but it’s so big a segment then it’s worthwhile commenting on it. Websites that are genuinely funny provide content that you find irresistible to pass onto your friends. The good ones often have massive traffic and drive large amounts of cash from being paid pennies per visitor by advertisers. The challenge here is to ensure your website remains funny and not just become old-hat.

Social
A social website is centred on a community where the individual members can share their knowledge and expertise with the wider group. The first social communities were built using forums and Internet Relay Chat. This has quickly expanded to fully functional Facebook like applications that you can instantly install on any Joomla/Wordpress website. Beware, since Facebook is the eight-hundred-pound gorilla in this space, this segment is often a difficult one to crack but if you can then there can be some really big dividends.

 

There are a lot of other different methods to encourage users to return to your new venture but the above list should kickstart your thinking prior to you spending a whole lot of money. As I’ve mentioned before, I’m a bit of a SEO cynic and believe that if you give people what they want then Google will love you for it as well. So really think about why a person should return to your new venture.

I should mention that when I build an online business, I’ll often do combinations of the above. For example, I may have a social website backed up with regular blogging on topics that people find informative….so don’t think that each of the above items are completely separate from one another.

Whatever you do, pay attention to your statistics and interpret what they are telling you. It’s rare that growth is the answer you want. What most new businesses need is the right type of growth. If at all possible, do whatever you can to engage with real readers/customers as soon as you can as they will tell you so much about your business that you never even thought of.

Part 1 – Why Domain Portfolio Optimisation Works
Saturday Musings - Innovate or Die

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Comments

finddomains on 29 June 2016
lets do business

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 domains, you may contact me at dick03070@yahoo.com One of my websites is betterpaintings.com

Regards,
Richard

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 domains, you may contact me at dick03070@yahoo.com One of my websites is betterpaintings.com Regards, Richard
mgilmour on 30 June 2016

Hi Richard, I sent you an email.

Hi Richard, I sent you an email.
Guest - Jeff Schneider on 30 June 2016

Hello Michael,

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

Surely having a .COM Class Extension has to be another reason. Remember .COM is the most recognized BRAND Globally. The .COM Asset class is king in return Traffic, click throughs , #1Profit center revenues, #1 Online Marketing Strategy. #1 for sales Closures, #1 in traffic volume = Example:
Here are 2 theoretical Questions? 1 How much traffic would you lose using Google based SEM online Marketing Strategy ? 2 How much traffic would you lose using NON-.COM extensions ? our answer to 1 = (25 to 40% Traffic loss) our answer to 2 = (50 to 60% Traffic loss) NOW here is the Big Question ? Why would a savvy Online Marketing Strategist use either one of these strategies??

Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master http://www.UseBiz.com)

Hello Michael, " So here are some reasons why people will return to your website. " Surely having a .COM Class Extension has to be another reason. Remember .COM is the most recognized BRAND Globally. The .COM Asset class is king in return Traffic, click throughs , #1Profit center revenues, #1 Online Marketing Strategy. #1 for sales Closures, #1 in traffic volume = Example: Here are 2 theoretical Questions? 1 How much traffic would you lose using Google based SEM online Marketing Strategy ? 2 How much traffic would you lose using NON-.COM extensions ? our answer to 1 = (25 to 40% Traffic loss) our answer to 2 = (50 to 60% Traffic loss) NOW here is the Big Question ? Why would a savvy Online Marketing Strategist use either one of these strategies?? Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master www.UseBiz.com)
mgilmour on 30 June 2016

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 just helps them find you easier.

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 just helps them find you easier.
Guest - Jeff Schneider on 30 June 2016

Hello Michael,

We are confused at your reply. The .COM class sites that incorporate all your reasons = Information, Opinion, Useful, Services, Products, Funny, Social, together in a strategic orderly fashion have a strategic edge over Non - .COMs. which bleed Traffic using SEM to the tune of 25-40% and then lose 50-60% to .COM Profit Center businesses. Is this a strategy anyone knowingly should adopt, using a Non- .COM Address instead?

Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master http://www.UseBiz.com)

Hello Michael, We are confused at your reply. The .COM class sites that incorporate all your reasons = Information, Opinion, Useful, Services, Products, Funny, Social, together in a strategic orderly fashion have a strategic edge over Non - .COMs. which bleed Traffic using SEM to the tune of 25-40% and then lose 50-60% to .COM Profit Center businesses. Is this a strategy anyone knowingly should adopt, using a Non- .COM Address instead? Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master www.UseBiz.com)
mgilmour on 02 July 2016

Yes, the non .COM sites will bleed traffic to .com BUT this will generally be from traffic from people that have not been to the website before. If you have been to a website and want to return then you already recognise the site and have a motivation to find it again.

Yes, the non .COM sites will bleed traffic to .com BUT this will generally be from traffic from people that have not been to the website before. If you have been to a website and want to return then you already recognise the site and have a motivation to find it again.
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