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What The Real Estate Market Can Teach Us About Domaining

by Dan on March 28, 2012

Domaining and Real EstateAlthough it has been showing signs of life in recent months, the American housing market remains just as stagnant and dismal as it’s been ever since the bubble burst. Foreclosure rates remain high, mortgages continue to be hard to get, and people are increasingly staying put or looking to rent instead of moving and buying a new home. For centuries characterized by mobility and property ownership, our country has found itself doing very little of either.

The lessons of the housing bubble can be applied to the practice of domaining. Those of us who buy and sell website domains know fully well that there are similarities between speculation of the virtual and the physical varieties. In both cases, we are buying a place with the hope of selling later. And, in both cases, the surrounding context (whether neighborhood or links) matter to the value of the place.

So what can the current real estate market teach us about domaining? Here are a few of the main lessons:

  • Go for value, not cache. In the 1990s, when home values were skyrocketing and the economy was good, many American families decided to outside their means and purchase the best house that credit could afford – not necessarily the best house for their individual needs. Similarly, a good number of domain speculators have the practice of targeting impressive keywords (ie “phones,” “sex,” and “money”) rather than looking for names that can confer the best resale and SEO value. Just as it is probably prudent to speak with a financial advisor before buying the biggest house in town, so too can it be beneficial to seek the services of seo consultants or an seo company before purchasing a domain name that carries more cache than value.
  • Look for saturation. Many families and investors who are currently dealing with plummeting home values are those who bought a house in a highly saturated market. These saturated markets included suburban Phoenix, exurban L.A., and condos in downtown Miami. Taking time to do some research in 2005 may have revealed such markets as far too saturated for purchase consideration. The same can be said of domaining. If you’re thinking of buying busymommy.com, for example, make sure to research similar domains and get a strong picture of the market.
  • Growth is not guaranteed. Perhaps the greatest lesson learned from the real estate crash is that perpetual growth is never a guarantee. Sure, home values generally tend to increase over time, but nobody should purchase a property on the assumption that it will do so quickly, substantially, and assuredly. The same can be said about domain names. If you invest in domaining, always remember that nothing is a given – even a domain that seems highly attractive at first glance.

These are just a few of the major domaining lessons we can learn from the current real estate market. Although buying and selling homes involves far more risk and reward, the practice of domaining can certainly still take these lessons and apply them on a smaller scale.

Tagged as: Domaining, How to

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Using the Four Ps of Marketing in a Domaining Strategy

by Dan on March 22, 2012

Domaining Marketing Mix

Within basic marketing principles there is a marketing concept called marketing mix. The marketing mix is the combination of four factors, known as the “four Ps,” that make up an organization’s strategic marketing program. The “four Ps” include product, promotion, pricing, and physical distribution, which can also be called “placement” or “place.” Organizations plan their marketing strategies based on the combination of these four variables and have the ability to exert control over these variables.

In a domaining strategy you can adopt these “four Ps” principles to drive websites traffic. Let’s start with product domains, considered to be highly effective, they are desired by top companies such as Johnson & Johnson (not affiliated). J&J uses generic domains like BabyPowder.com and BabyShampoo.com to strengthen their brand while driving type-in traffic to their site.

When considering the promotion element, there are several different concepts. One popular and covered extensively in an earlier post, is the use of slogans within a domain name. Another, is using a brand name + product line in a domain, for example going back to J&J’s case, is the use of JohnsonsBaby.com. Then there is external advertising such as promoting the domain on a billboard, radio or TV spot to send visitors to a site. There are no boundaries when promoting a domain so feel free to be creative and innovate with this “P”.

This one is important, the price element in domain name marketing strategy is to recognize premium quality names don’t come cheap, you get what you pay for. If your marketing budget doesn’t allow it, then use sweat equity. Do not just make stuff up by registering unmemorable and unpronounceable domain names. Be sure to give it a good long hard look and think it through. There are over 138 million domains registered, only 7-14 million are meaningful generics.

Last but not least is place, domain names are the virtual real estate of the web. The hot property is beach front, mall or highly trafficked location, not some deserted exit off the freeway. Successful online destinations add value to user experience, so keep renovating.

There are many other factors to consider when planing your domaining strategy, but implementing these basic “four Ps” is a good start.

Tagged as: Domaining, How to, Marketing

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