Buying and Selling Traffic Portfolios - Part 3

In the previous two articles we looked at managing legal risk and also the different types of traffic that often flow through to domains. In this article I will be examining the other influencers on the returns from a traffic portfolio.

The first thing to look at is where the traffic is coming from. For example, is it mainly USA or is it from China? Chinese traffic tends to be paid much less than traffic from the USA.

A number of years ago I did an analysis on the penetration of credit cards in a specific geographic region and how this influenced earnings per click (EPC). Cash based economies like China tended to have a much lower EPC. The reason being that marketers have a much more difficult time tracking spending money online to ultimate sale of the goods if the transaction is constantly being pulled off-line.

I personally believe that over the years ahead many of these burgeoning economies will adopt credit cards and the online cycle will be complete for marketers. So watch this space!

When you buy a traffic portfolio you are always looking for any “free” upside. An example of this would be if you were getting paid 90% from a monetisation provider but the person selling the portfolio is only getting paid 80%.

We’ve had ParkLogic clients purchase portfolios that have been held at a single parking company and then placed on our system. From experience, typically no parking providers wins more than 20% of the traffic on our platform which means that the acquisition would receive more revenue 80% of the time if move to other platforms. This typically provides a 30% uplift in revenue via our algorithms and processes and this dramatically reduces the payback period for the investment.

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TRAFFIC - Happy 10th Anniversary

I would like to wish the team at TRAFFIC all the best for their 10th anniversary. It's been quite a journey for Rick and Howard and their families for the past 10 years. Sadly, due to my daughters 16th birthday I won't be able to make this one....the first TRAFFIC that I've missed since the very first conference run all those years ago.

If you haven't registered then make sure that you go to targetedtraffic.com.

Please enjoy the video below...

 

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mgilmour
The only reason why I didn't travel this time was due to my daughters 16th birthday....otherwise I would have been there. This is ... Read More
27 October 2014
mgilmour
Thank you for your kind words.....I must admit that when you travel across the Pacific the number of times that I have it does hav... Read More
27 October 2014
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Buying and Selling Traffic Portfolios – Part 2

This is the second part in a series on buying traffic domain names.

Once you’re comfortable that the legal side of the portfolio has been addressed then you really need to dive into the traffic numbers and do some research into where the traffic comes from.

So let’s get back to basics. You’re about to purchase a traffic portfolio. The first question that you should ask is, “Where does traffic come from?”

Traffic typically comes from the following sources:

1.    Direct type-in

Generic or short domain (eg. Beds.com, gx.com.au)

2.    Typos

Typo of a generic domain (eg. Fruit spelt fruit)

Typo of a weak trademark domain (eg. Joespizashop.com instead of Joespizzashop.com)

Typo of a brand (eg. Verison instead of Verizon)

3.    Link based traffic

4.    Purchased

5.    Hijacked traffic such as tool-bars and NXD traffic.

In the above list of places where traffic comes from I’m making no attempt to try and pontificate on whether they are appropriate traffic sources. I’m only indicating that they are sources of traffic. So please do not get upset at the mention of typo, trademark, purchased traffic etc.

Many years ago I purchased my second domain name and it failed miserably to provide any sort of return. Each and every year I faithfully registered the domain to remind myself to ALWAYS ask the question, “Where does the traffic come from?” In my case, the domain had a lot of Russian bot traffic that didn’t monetise at all. There’s nothing like a $10 annual learning course to remind you of an important lesson.

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ICANN Los Angeles Wrap Up

At long last I’ve finally returned from attending ICANN Los Angeles. So was the jetlag, long hours and sitting in a flying tin can for a day and half worth it?

I found that the main attraction for me was that there were a lot of domain owners at ICANN that were looking for a solution that ParkLogic provides. This was great news and we ended up doing a lot of business.

I spent the majority of my time either in meetings or hanging out in the lobby waiting for my next meeting. I think that we had about 30 scheduled meetings and many more that were impromptu while passing someone.

As always, I enjoyed catching up with the many, many friends that I’ve made over the years as well as making a bunch of new ones. Both Joe (from ParkLogic) and I have been working with many of the people that we met for years and putting a face to a skype voice was fantastic!

A real highlight for me was when a group of us hung around a fire pit at the Intercontinental hotel until about 2:30am. It was a chance to really get to know the .green team and hear about their passion for the extension. Dirk from .club was also there and it was great to hear his story and journey over the last few years. We sometimes forget that with all of these new gTLDs that there are real people with real lives behind them that have often put everything on the line to see the extension come alive.

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mgilmour
No I didn't meet anyone specifically from China....although there was a lot of people there. I think that it could be worth going ... Read More
25 October 2014
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Flying Across the Pond.....Again

Once again I find myself sitting in the Melbourne airport Qantas club. After a restless night’s sleep that was punctuated by dreams of perpetually trying to catch my flight, I finally groaned awake at about 5:54am.

When I say “groan” I really do mean the word in all its splendid definitions. I really did groan. Some people that are religiously minded say each morning, “Good morning Lord!” When my eyelids finally dragged themselves open I was more of a “Good Lord, its morning.”

So after packing the last of my things I then checked that I hadn’t unpacked anything by mistake. I’m always amazed at the number of times that I find my toothbrush wrested right next to my wife’s when it should be tucked away in my bag. Do you do this sort of thing as well?

In the end I find that I just give up and stop checking everything other than my credit card, passport and phone. If I have those then I’m all set.

Roselyn (my wife) drove me the forty minutes to the airport and for this I’m eternally grateful. Nothing against cabs but when you jump in one and ask the driver to take you to the airport and they respond with “Where’s that?” you know you’ve got a problem. Thankfully, Roselyn has done this journey many times and it wasn’t long before we’d said our good-byes and I find myself in the Qantas club.

The reason for putting my body through a 15 hour contortionist’s holiday (ie. QF 93 Plane flight) is that I’m heading off to ICANN in Los Angeles. My schedule is packed with meetings and it’s going to be great catching up with a whole lot of friends and making some new ones in the process.

In particular, after my series on a domain association I’m really looking forward to catching up with a director of the ICA and the CEO of thedna.org. It will be interesting to see if there is some way that we can all work towards bettering the domain industry.

I should add that the one good thing about the plane flight is that I will have a lot of time to work on my science fiction book….which is great! Sadly, I won’t have Internet connectivity over the middle of the Pacific ocean.

Back to business. If you’re at ICANN then please drop me a line here as I will be checking my blog regularly. In the meantime, I think that my flight was just called. Cheers!

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