Information or Product Domains

[Ash]

Hi All,

I originally posed this as a question to Timmy and Geo under the 'recent registrations' thread but it was suggested it should have it's own thread so here it is...

I tend to try and register domains that are products or services that people will buy (usually basic stuff that you'll find on amazon or ebay quite easily) but I notice that other domainers list ones that seem to lend themselves more to informational sites.

What type of domain do you prefer to register - product related or informational?

If you register informational type domains (e.g. InternetCensorship.com.au or PPSR.net [an acronym for personal property security register]) what angle do you take with them, i.e. do you just post information about ppsr or internet censorship and run some adsense along with it? I have some semi decent domains on my maybe list that are similar to these informational domains but I keep telling myself they would be hard to monetise?

Thanks for any insight.

 

[Honan]

Hi All,

I originally posed this as a question to Timmy and Geo under the 'recent registrations' thread but it was suggested it should have it's own thread so here it is...

I tend to try and register domains that are products or services that people will buy (usually basic stuff that you'll find on amazon or ebay quite easily) but I notice that other domainers list ones that seem to lend themselves more to informational sites.

What type of domain do you prefer to register - product related or informational?

If you register informational type domains (e.g. InternetCensorship.com.au or PPSR.net [an acronym for personal property security register]) what angle do you take with them, i.e. do you just post information about ppsr or internet censorship and run some adsense along with it? I have some semi decent domains on my maybe list that are similar to these informational domains but I keep telling myself they would be hard to monetise?

Thanks for any insight.

Strictly Product
And I rarely reg
Prefer to buy from Domainers or the drop
( until bloody Roland raised his ugly mug

 

[geodomains]

Hi Ash,
Well everyone has a reason to buy or register a domain, in the the case of ppsr.net , my reason is traffic and adsense.
The term will eventually be the norm in years to come, rev check will be no more for cars, it will be ppsr check.
At the end of the day its still a product that can be purchased online.

Don

 

[snoopy]

Product domains.

Agree with what Joe has said, most of the time people would be better off buying in the aftermarket or the drop rather than registering fresh. In my view registering names fresh is a high risk game only suitable for very experienced domainers who like a gamble or are very sure of the name, because it is playing in a pool where almost everything is worthless.

 

[Chris.C]

I'm largely product focussed as well.

I do have some information based domains, but they need to be exceptionally high search volumes such that developing them would still generate income purely via advertising.

I think it often comes down to your ultimate goal. If your ultimate goal is to resell then informational based domains might not be a good option because they can be harder to find buyers for given there is no underlying product.

If you are just looking to setup a site that gets recurring income from advertising then they could be a great option.

 

[jhellyer]

As a fairly new domainer, why is it better to buy at the drop or in the aftermarket? Does it have to do with the strength of the domain name, and the time it has been registered for?

 

[FirstPageResults]

As a fairly new domainer, why is it better to buy at the drop or in the aftermarket? Does it have to do with the strength of the domain name, and the time it has been registered for?

It stems from the fact that that vast majority of good, generic names have already been registered.

I usually go for product names aswell, mostly from the aftermarket but still register domains for non-money making sites (ie. feeder sites) and the occasional niche.

 

[snoopy]

It stems from the fact that that vast majority of good, generic names have already been registered.

Added to that if the name is getting bidding that is probably a name worth something, whereas most names available that people register are not worth anything.

The other thing I'd say is if someone buys a name worth say $500 that name has far lower holding costs than putting $500 into reg fee names, reg fees kill it for names that aren't worth much. So even if a name were say worth $30 without holding (hypothetically) it is likely to be valued at $0 once holding costs of $10 per year are factored in. In other words it is going to need to be a pretty amazing find to really be worth anything which is why most new domainers lose money.

If someone is looking at hundreds/thousands of potential names and doing a heap of research to find each name then they have a chance.

 

[DavidL]

It stems from the fact that that vast majority of good, generic names have already been registered.
.

Although people did say that 2 years ago, and 2 years before that, and 2 years before that, and 2 years before that....

When there were 1,000,000 domains in 2007, domains like HomeWallStickers.com.au, LocalDailyDeals.com.au, SecretShopper.com.au (just picking a few examples from yesterday) would have been available to hand register. Now they are worth a few hundred on the drops.

Who's to say that won't happen again if demand for domain names continues to grow like it has in the last few years?

But yes paying a bit more for a domain on the drops or aftermarket will probably be a bit less of a gamble. At the very least if you buy in an auction format you shouldn't be paying more than market value... in theory anyway!

A better quality domain is also worthwhile developing too which is important as well as deliver some sort of return a lot quicker

 

[Shane]

I probably buck the trend little, because most of my sites are information based rather than product based. I don't have to worry about making a sale, I just have to make sure that users click on a Google ad after they're finished with my content.

I don't think they have to be high search volumes either, in fact my feelings are quite contrary. If you can find small niches that you have an interest in, it can be pretty easy to get up to position 1 or 2 in Google, where as for a really high volume (and therefore high competition) term it can be very difficult for a newcomer who can't afford the perfect generic domain.

I have dozens of sites that get bugger all traffic, but they get a few high paying clicks each week, and generally cover their annual holding costs every week or two. If I could find another investment that returned my investment that quickly I'd be all over it!

But all that said, I do think product based sites can be more profitable, but you'll generally pay more for a suitable domain and you'll need to put a lot more effort into development. For a newcomer I would definitely recommend information based sites so you can at least start covering your holding costs, as really that's the first step.

 

[snoopy]

When there were 1,000,000 domains in 2007, domains like HomeWallStickers.com.au, LocalDailyDeals.com.au, SecretShopper.com.au (just picking a few examples from yesterday) would have been available to hand register. Now they are worth a few hundred on the drops.

How many registrations did it take to generate those sales though?

Taking yesterday's drop as an example it looks like there was 2 names worth over $200, studysearch.com.au $458 (that looks to have been a developed site previously which I'm guessing is why it was worth something), also sams.com.au for $235. Wallsticker.com was caught by drop for $180. In total I counted 10 names deemed by the market to be worth over $50.

That is out of 342 names dropping (by my count)

Now that is far from scientific because it includes only the names people mistakenly didn't renew or decided to let go but it kind of shows the amount of money going in versus the value of those names.

ie in that case at least $7000 in reg fees (assuming all those names were 2009 reges at the cheapest registrars possible so it is probably badly undercounting what was spent) producing names worth maybe $1500 (and that is including the development value with stuff like studysearch.com.au)

I would say that figure is rough guide to the odds a reg fee buyer has unless that person's knowledge/skills regarding domains are above average.

 

[DavidL]

That logic is seriously flawed - reason being probably only a tiny % of those domains that dropped yesterday were registered by domainers or people hoping to make money on the domain itself.

I mean you can't include names like

widebayburnettdistributors.net.au
wma-websitedesign.com.au
studio1six.com.au

as examples of failed domainer investments

 

[Billy01]

I don't get the drop

Wallsticker.com.au selling you must be tossing possums

 

[DavidL]

Wallsticker.com.au selling you must be tossing possums

I got my Aussie citizenship a couple of years back but I still had to look that up!

Wallsticker.com.au is a great domain. Big(ish) business, perfectly suited to web sales. Heaps of Adwords advertisers

 

[snoopy]

That logic is seriously flawed - reason being probably only a tiny % of those domains that dropped yesterday were registered by domainers or people hoping to make money on the domain itself.

I mean you can't include names like

widebayburnettdistributors.net.au
wma-websitedesign.com.au
studio1six.com.au

as examples of failed domainer investments

I said "Now that is far from scientific", you've also got domainers holding names that should have been dropped but have kept renewing and all sorts of other factors, but it is pretty clear that the number of reg fee names that become worth anything is very low.

I challenge anyone to come up with figures showing that is not the case based on actual registration number or drops, not just on random sales without comparison to what people are actually spending to generate those sales. For every 3 figure sale there is 100 names that do not sell, the vast majority of people speculating on reg fee names lose and a very small minority win.

 

[DavidL]

I, but it is pretty clear that the number of reg fee names that become worth anything is very low.

I challenge anyone to come up with figures showing that is not the case ...

I'm not disputing that. Just, in this case, your logic to prove this point was waaay off. Not just far from scientific but off the planet. But I know that you know that too