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This article follows on from the previous two articles in the series that I've been developing on risk. I'd highly recommend that you read the previous articles that can be found be clicking on the links below:
Part 1 Risk - Domain Business Model Analysis
Part 2 Risk - Traffic Domains
 Here’s the other thing about traffic. You want to make sure that it continues. There’s no point in buying a domain name with thousands of uniques per day only to find out that the traffic vanishes the moment that you add it to your parking provider.
Why would this happen? Not surprisingly there are quite a number of very bad sellers in our industry that pump up traffic numbers via traffic from other domains or even advertising. As soon as the money has changed hands they turn the traffic off and you’re left holding the bag. It’s not very nice but it does happen.
To reduce the risk of this happening to me I normally only deal with people that I either know or who have a LOT of posts in the forums. It’s not a sure fire way ensuring that it never happens to me but I’ve discovered that if the domainer is right then ninety-nine percent of the time the traffic will be as well.
As well as ensuring that the traffic remains, potential investors need to consider where the traffic comes from. For example, a particular domain may have a lot of traffic that consistently comes to it but if that traffic is all from China then it will be difficult to monetize.
This means that the origin of the traffic is just as important as the volume and consistency of the traffic. It will also influence how much you may pay for the domain. For example, German traffic may be paid slightly more than UK traffic or vice versa. All of these need to be considered as potential elements of risk.
This then leads into the next topics associated with traffic domains and that is earnings per click and click through rates. I’ll cover these off in the next couple of articles.
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