I recently had the privilege of being asked to speak at TRAFFIC Downunder on the topic of “Risk Analysis”. This breadth of the topic was a little bit of challenge as each facet of risk is a specialist topic in itself.

You can also download the entire presentation by clicking here.
(registered users only) 

There are four dominant business models that have been adopted to a greater or lesser extent by the domaining community and they include treating domains as:

Stock Items
Having a large volume of domains where the goal is to move from 2% to 3% sales volume per year. The challenge is to develop the channel relationships for continuing to sell the domains while at the same time refresh your inventory for new potential purchasers.

High value sales
These are typically low volume high priced sales that are typically arranged via a broker. Often it is the case of the right domain at the right time in the right place.

Traffic
The goal is to identify domains with traffic that produce revenue in excess of the registration fee required to retain the domains profitably. Risks associated with these are centred around traffic decline and a reduction in earnings per click.

Development
Development is typically conducted in low volumes and requires turning a domain into a real business. True development has all of the problems associated with normal businesses – such as; staff, stock, customers etc. There is currently no scalable solution for large domain portfolios to be developed.

The business model that you choose for the development of your domains will greatly influence the levels of risk and types of risk associated with the domain.

TrackBack URI for this entry

Comments (0)

Subscribe to this comment's feed

Name

Email

Website

Title

Comment

smaller | bigger

Subscribe via email (registered users only)

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment Preview