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A lot of domainers don't optimise their portfolio of domains due to the work involved. It really makes sense considering that they have developed an expertise in acquiring domains and not optimisation.
Let me say from the outset that optimising a portfolio of domains is a specialist skill that requires constant maintenance. In addition, unless you have a sophisticated system from tracking data, processing the data and then managing the data across time your optimisation will always be sub-optimal, resulting in leaving money on the table.
So how much money could you not be reaping? Check out the below chart.
If you have a portfolio doing $100 per year in revenue then by the end of this year it should be generating $118 purely from increased traffic and low level targeting.
If optimised, it is expected that same portfolio will do $213. By 2010, the differential is $325, optimised to $180 not optimised. This means that a total of $484 has been left on the table in the space of 3.5 years for a $100 portfolio.
The real windfall comes when you compare sales prices. If you sell your unoptimised portfolio in 2010 for 4 time earnings (yes - I know that this is low) then you will get $720 while optimised $1300. This is an increase of 81%!
Here's the problem. As I stated earlier, optimisation is a specialised skill that most domainers don't want to spend the time doing or just don't have the systems to be able to crunch the data. My recommendation is to partner with a company that can do this for you. Give up 10-20% of your revenue because in the long run you'll be miles ahead.
Here's the shameless plug....this is exactly what we do at ParkLogic. We took the systems, skills and relationships that we developed as domainers for our own portfolio and opened them up for the wider domainer community. If you are interested in signing up then I should let you know that there is about a 4 week delay as we work through the back log of domains that we are optimising at the moment for customers. We do apologise for this but we are very concerned about managing ParkLogic's growth and providing superior results for our customers and to be quite honest we got swamped. Feel free to send an email expressing your interest so that we can contact you after the next 4 weeks.
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