Good News for Domainers in a Bad Economy
By Nora Nanayakkara, Director of Business Development, Sedo UK
As countries like the US and the UK continue to suffer economic set-backs, the domain industry remains a steady and reliable investment in these markets. In fact, domain names that relate to the state of these economies are thriving. Sedo’s recent domain sales included onlinesavingsaccount.com (9,988 USD) and petrolprices.co.uk (8600 GBP). So how can your business utilize the secondary domain market to escape and even benefit from the current economic crisis? Below are a few things to keep mind as you move forward with domain investing.
PPC Proves to be Recession-Proof
While pressure to increase efficiency and curb spending is top priority in many businesses right now, savvy marketers continue to invest more money into their online resources, especially with Pay-Per-Click (PPC) advertising. While print advertising may be languishing and TV advertising budgets are being trimmed back, PPC enjoys a continuing stream of business as one of the top-converting advertising media. As PPC targets direct points of sales it survives cutbacks over marketing “non-essentials” like branding campaigns, trade event planning/attendance and TV advertising, which are more indirect forms of marketing. As it’s convenient to track and more transparent than other media forms and highly cost effective, PPC is set not only to survive, but to thrive over the coming months.
The Domain Market Trumps the Housing Market
In certain areas of the world like the UK, domain prices have outperformed property as an investment. The sliding property values over the last few months have left many property developers and buy-to-let investors reeling. Had they diversified their holdings into online real estate, however, they may be in a better financial state today.
Direct Navigation Traffic = Internet Gold
Domains are stable investments which offer appreciating book values, the chance to capture customers early in the purchase consideration funnel, instant recognition (e.g. In Google searches) and better organic search engine placement. In fact,. The New York Times found that direct navigation is the “best kind of traffic” – with more than 70% of the total search volume being comprised of generic search terms! Companies like Intel and Barnes and Noble recognized this long ago and snapped up pc.com and books.com respectively. Other examples include Neurofen’s domain, painrelief.co.uk, Russian Standard’s vodka.com, T-Mobile’s telecom.com and Johnson & Johnson’s baby.com.
During these recessionary times, as price comparison sites boom and more people go online in search of better deals, businesses continue to abandon print and commercial media to secure their bid to capture market share.
The continuing move online is likely to ensure the continued success of the domain market as a highly lucrative investment opportunity and revenue stream for businesses. Domains have proven themselves as high performing, appreciating assets and with their sale prices remaining steady, even in some of the world’s most unstable markets, we at Sedo are confident that the domain name market will continue to be a wise investment.
Source: Sedo.com -- Reprinted with permission -- August 12, 2008
As countries like the US and the UK continue to suffer economic set-backs, the domain industry remains a steady and reliable investment in these markets. In fact, domain names that relate to the state of these economies are thriving. Sedo’s recent domain sales included onlinesavingsaccount.com (9,988 USD) and petrolprices.co.uk (8600 GBP). So how can your business utilize the secondary domain market to escape and even benefit from the current economic crisis? Below are a few things to keep mind as you move forward with domain investing.
PPC Proves to be Recession-Proof
While pressure to increase efficiency and curb spending is top priority in many businesses right now, savvy marketers continue to invest more money into their online resources, especially with Pay-Per-Click (PPC) advertising. While print advertising may be languishing and TV advertising budgets are being trimmed back, PPC enjoys a continuing stream of business as one of the top-converting advertising media. As PPC targets direct points of sales it survives cutbacks over marketing “non-essentials” like branding campaigns, trade event planning/attendance and TV advertising, which are more indirect forms of marketing. As it’s convenient to track and more transparent than other media forms and highly cost effective, PPC is set not only to survive, but to thrive over the coming months.
The Domain Market Trumps the Housing Market
In certain areas of the world like the UK, domain prices have outperformed property as an investment. The sliding property values over the last few months have left many property developers and buy-to-let investors reeling. Had they diversified their holdings into online real estate, however, they may be in a better financial state today.
Direct Navigation Traffic = Internet Gold
Domains are stable investments which offer appreciating book values, the chance to capture customers early in the purchase consideration funnel, instant recognition (e.g. In Google searches) and better organic search engine placement. In fact,. The New York Times found that direct navigation is the “best kind of traffic” – with more than 70% of the total search volume being comprised of generic search terms! Companies like Intel and Barnes and Noble recognized this long ago and snapped up pc.com and books.com respectively. Other examples include Neurofen’s domain, painrelief.co.uk, Russian Standard’s vodka.com, T-Mobile’s telecom.com and Johnson & Johnson’s baby.com.
During these recessionary times, as price comparison sites boom and more people go online in search of better deals, businesses continue to abandon print and commercial media to secure their bid to capture market share.
The continuing move online is likely to ensure the continued success of the domain market as a highly lucrative investment opportunity and revenue stream for businesses. Domains have proven themselves as high performing, appreciating assets and with their sale prices remaining steady, even in some of the world’s most unstable markets, we at Sedo are confident that the domain name market will continue to be a wise investment.
Source: Sedo.com -- Reprinted with permission -- August 12, 2008