Part 4 - Portfolio Optimisation - Products and Services

Part 4 - Portfolio Optimisation - Products and Services

In this series of articles, we are looking at how to optimise your domain portfolio across the different business models of sales (big and small), traffic and development. The first model I have been unpacking is development, not the technical aspects but the business aspects of domain development.

We’ve explored why people return to websites and how to earn money from advertisers. In this article I will be discussing how to build an online business selling services and products.

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The first thing we need to separate out is the different between building a business and conducting a transaction. Building a business is all about repeatable revenue that ideally grows over time while transactions are the big deal you hope to get one day.

My wife has a great saying, “Like clockwork.” What she means by this is that she would much rather have twenty dollars each month coming in from a customer than the big deal that may happen one day.

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Part 3 - Why Domain Portfolio Optimising Works - Advertisers

Part 3 - Why Domain Portfolio Optimising Works - Advertisers

Obviously there are a great multitude of business models that you can apply to your development project. Remember that we are looking at developing one of our domains into a business as part of our portfolio optimisation. The first business model that we will examine is advertising.

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In this business model you are trying to ramp your traffic so that it becomes worthwhile for advertisers to spend their money to reach your audience. A couple of things about audience, you can either provide mass numbers or the right people to advertisers. For instance, Whizzbangsblog doesn’t have millions of people visiting it every day but it does have the right people in the domain industry. This is valuable for sponsors.

With your new development you need to choose your approach and go mass volume of advertisers or a select few. If you have a mass of advertisers on your pages, then readers may revolt and advertisers won’t pay the big dollars. Less advertisers will potentially allow you to charge a higher rate and keep the readers onside. It’s a balancing act and it really depends upon your market vertical.

Remember that one person’s advertising can also be another person’s content. This is often the case in hobby publications where the advertising is just as valuable as the articles to the readers.

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