Tuesday 16 March 2010

Invest in a good domain

Buying a domain name is an investment that will rarely lose you money. Of course there are exceptions to this, but in general a good domain name will hold its value quite well and sometimes even grow in value, particularly if you have built a site which has attracted a reasonable amount of traffic.

There are a number of factors that will determine whether a domain name is of any value or whether it will work well for you. So, it is important to determine which of these factors are of importance to you and your site project.

You may decide that a good keyword domain will limit your marketing spend as it will attract organic traffic. This approach doesn’t suit everyone.

How many people would use google if it was called mostrelevantsearchengine.com? OK, so maybe not such a good example. But you get the idea. Sometimes building a brand is your goal and so a memorable brand name will carry much more value. Sites such as Facebook.com, Bebo.com, Twitter.com are all good examples of branded sites whose names do not necessarily describe their purpose, but who have attracted such high volumes of traffic that the domains themselves probably hold a very high price tag.

By building volume of traffic to your domain you also increase the value of similar domains, misspellings and country specific domains. This is mostly because they will pick up some traffic from users seeking out your service. So, it is worthwhile buying up all possible variations to avoid paying a premium further down the line. This is particularly relevant if you are building up a brand.

A dating site can run pretty well on a keyword domain if you can manage to get a reasonable organic search placement. This is particularly relevant to niche dating sites. But, really, there is no replacement for a good memorable brand.

Check out the domain auctions at http://www.buydomains.com and www.sedo.com.

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