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.

Escrow.com

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.

Unless you have huge volumes of traffic then I would recommend staying clear of selling on a cost per view basis. Likewise, any other performance based advertising (eg. Pay per click) may not be suitable for a business you’re launching out of the gate. A reasonable charge per month is often palatable for advertisers as well as provide some necessary initial cashflow for your venture.

As you write your content what you really want to do is provide value to your sponsors/advertisers. For instance, I use both Escrow.com and Epik and I wouldn’t have a problem recommending them to readers. You need to be careful that you’re not writing advertorial pieces but sharing your own experiences of using their products and services.

You can add a lot of value beyond a banner on a webpage. For instance, earlier this year I conducted a video interview with Jackson Elsegood from Escrow.com about some of the developments that he’s introducing at Escrow.com. Likewise, I will be interviewing Rob Monster from Epik about what he is working on at Epik. If you are looking at adopting this strategy, then the number one issue that you should be focused on is whether this is providing value to readers. There’s no point in conducting an interview that’s merely a sales pitch.

On the flipside of the coin, the ultimate mass volume model is a directory. Once again the biggest challenge for anyone building a directory isn’t the actual building (there’s lots of directory software available) but getting the high volume of traffic to the directory so that advertisers get a return on their investment. As an aside, as a directory grows they can often morph into market vertical or hyper-local search engines…..hence why Google is very interested in this market.

So there are a lot of decisions that need to be made with the advertising business model but they all tend to boil down to providing value in the form of highly qualified traffic. The only way you will keep your traffic is if you are providing reasons (see the previous article) for people to return to your new business. So be really careful in looking after your audience....they have a lot of demands on their time and for them to spend some of it with your new venture is a privilege and should be respected.

In the next article we will look at products, services and how building one of these businesses isn’t actually as hard as you may think.

Recent Comments
mgilmour
Hi Elliot, Thanks for the heads up on the links! I'm still wrestling with getting rid of the index.php......I think it's a weekend... Read More
05 July 2016
2336 Hits
2 Comments