|Mike Fiol via DNJournal|
Via DomainConsultant: If there is any constant in domaining, it is that change is constant - and the domainer must adapt, adjust, stream the light fantastic.
Still, through this consistent flux and for the long term, there are some simple tips in domain buying one should at least consider when reviewing potential purchases:
- One worders
Generic or brandable one-word domains have always retained SOME value. That value has ebbed and flowed over the years but liquidating one word domains has been the easiest of them all over time. Consideration should always be given to good one-worders.
Several years ago I wrote a piece extolling the future value of brandable generics and much of it has largely come to pass. In fact, one of the rarest sights these days is a high-quality, well-known phrase (such as ‘One of a Kind’ or ‘Pirates Cove’) at auction. And when they do appear, like oneofakind.com and piratescove.com, the competition can be intense. ShiftingGears.com, on auction at Boxcar, is a good example.
- Resale, resale, resale
If there is any singular variable I consider when buying, it is resale value or the ‘pool’. The pool refers to the potential size and buying power of the ‘buyers pool’ opened by acquisition. A domain like Fiesta.com has a huge potential pool because there are so many companies globally using the term. A domain like Insulation.com has a smaller, industry-centric buying pool.
- Got an idea? Go ahead, overpay.
Nothing can determine the value of a domain purchase better than the idea behind it. I have historically spent far more for a domain if I have a development idea ready to implement. If you have tested the idea and proven its worth, then by all means pay what you have to as the right name can make ALL the difference.
- Go Quality
A recent post discussed some of the pits of holding very large portfolios and their renewal fees. I, instead, made an early choice to go for quality or quantity – I didn’t have the resources for both. Others chose quantity and thrived as well. Truth is there is no right or wrong answer here, point is that it’s important to make a choice, focus. Note: some of the best and most profitable portfolios I’ve ever seen had less than a 100 names.
- Ignore Traffic
Sometimes domainers get so caught up in figures and stats they miss some of the deeper value in a name. So for a second, for each, imagine it has no traffic and never will. What is it worth now? Anything? Good enough to put on the side of a bus?
- Radio Test
An old domain mainstay, I do think it is important but not always to vital to consider how it would play in a radio ad. Would people misspell? Would they understand the site content or service or product in 30 sec. or less?
- Mom Test
Even better than the ‘radio test’ is my own mother. If my mother, who is well read but older and very much a bellweather, knows what it it is, then the domain is good.
- Sniff Test
Do I need to explain? If the deal is too good, it’s probably hijacked.
- Use your Gut
More than any other tool, I use my gut instincts. Now, long ago, domainers had the Overture tool to give our guts back-up data but once it slipped away, we found that our resource is the same instinct that made us domainers in the first place. Listen to that beer gut.
Again, just a few things to consider when reviewing and working on acquisition – truth is it is important to consider all sides, of every domain, inside and out. Hopefully some of these tips help.