Where's the next dollar going to come from?

Where's the next dollar going to come from?

The first thing that I think about when I view my domains is not "where the next dollar will come from" but rather "Where the next dollar willl come from that sticks to my hands". In other words, show me the profit not just the revenue.

So let's take a look at the good old profit equation of revenue less expenses.

So where's the revenue going to come from in 2014 that will be past the dismal performance that many domainers experienced in 2013? Google will underpin much of the revenue as they have been doing for the last ten years of the industry but the real wins are going to come from direct advertisers and affiliates. We're seeing more and more traffic being won in our bidding system at ParkLogic by zero click solutions....which is always a good thing. If you don't have your domains in a program that has this to offer then give me a call as you're missing out on a bucket of revenue that's not dependent upon a single provider.

I'm not sure about you but I'm continuing to develop a number of websites.....just nudging them along bit by bit to get them to the point where they can then be a profit centre for me. If you aren't developing a website then once again you're potentially missing out on some good revenue.....but make sure that you develop something that you're interested in. I may have some great cosmetic domains but you know what? I have no interest in that industry other than when it relates to my wife and daughters.....then all husbands and dad's take an interest. :-)

Words of advice.......rainbows are pretty things but they are illusory. Likewise, if you plan on waiting for that ultimate huge sale then you may be waiting a LONG, LONG time. Price all your domains at what I would call fair rates and be prepared to sell them for those rates with NO seller's remorse. I work out my stock item domains from my high value you domains and I have a different strategy for each.....so get them into the marketplace and start selling. I'll have to do another blog on this concept.

On the expense side of your business most of them are locked in place. I'm sure that you can negotiate a better rate with your registrar but seriously, the margins for them with domainers are really slim. The biggest expense that is hidden is your time. The easiest thing in the world to do is keep a log of the amount of time that you spend on your domains (including checking stats) for a week and than multiply it by your hourly charge out rate to your business. That's a cost that you need to get down or technically your business may be unprofitable.....or you're earning $1 per hour.

Anyway.....I hope that this helps you out and provokes you into thinking about your domain business.

 

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Monday, 27 February 2017
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