After I explained why turning domains into businesses with actual products is not a scalable approach (it can work for a few domains but not for large portfolios), Mark Jeftovic left an interesting comment but one I disagree with. Through this post, I will explain why.
First of all, please click HERE and read the post I’m referring to if you haven’t by now.
Then, click HERE and read Mark’s comment. I’m going to quote one of his statements but I’d recommend reading all of it.
Domain Names – Anything But Unimportant
Here is one of Mark’s initial statements and the message he was communicating through his comment (again, I encourage you to read all of it because he raises some very interesting points) was that in his opinion, domains are not as important as domainers consider them:
“Even worse, if you successfully build the business, then the domain name you build it on is less important (dare I say, unimportant).”
Let’s leave the fact that I’m a domain investor aside for a moment.
As a business owner and a marketer, I disagree with this statement.
Simply because no matter how successful a project is, a domain will still represent a permanent asset.
If you buy a domain now, it’s yours forever as long as you renew it.
Unlike the average advertising expense (PPC, media buys, whatever), a domain is an investment which will always pay dividends:
Whenever you pay for traffic and have to display a domain, having a great one will significantly boost your CTR. This is not just an opinion, there is lots of data which makes it clear that when it comes to text ads as well as banners, a good domain represents a credibility boost which has a higher CTR as a result.
Why Should You Care
Because the higher your CTR is, the less you’ll end up paying.
This principle is valid when it comes to AdWords, Facebook Ads and pretty much any other platform.
Because these platforms display ads based on which generates the most money for them.
If you pay $1 per click but have a CTR of 0.1%, they will receive $1 for every 1,000 impressions.
If you only pay $0.2 per click but have a CTR of 1%, they will make $2 for every 1,000 impressions.
Which Ad Will They Display?
The $0.2/click one because even though the person in question is paying 5 times less per click, the ad network is making 2 times more by displaying that person’s ad ($2 per 1k impressions instead of $1 per 1k impressions).
Now crunch the numbers yourself.
Let’s assume you spend $10k/month on advertising, how much money will a good domain help you save monthly?
What about during the lifetime of your project?
The message I’m trying to get across is simple:
A Domain Name Will ALWAYS Help You Save Money When Buying Traffic
How much will you save? Well, that depends on your campaign but this much is certain: if two ads are identical and only the domain differs, the one with the better domain will always outperform the other ad.
But that’s not all.
What If You Decide to Sell Your Site?
If that is the case, then a domain will (yet again) pay for itself multiple times over. I helped several people sell their website and the domain makes a huge difference because again, it’s all about credibility.
A lot of time, people will buy your site because they believe in its long-term potential and it should come as no surprise that you’ll score considerably higher in the potential department if your website is called “BestShoes.com” as opposed to “The-Best-Shoes-Online.com”
What About SEO?
Once again, a domain will always help you develop an edge.
No matter how often search engines will change their algo, domains will still represent an edge directly AND indirectly.
How much will owning the exact match domain help SERP-wise and how will things change over time? Hard to say but this much is certain: it will always give you a boost. Search engine algos are constantly tweaked; sometimes a domain ends up counting more than with the previous algo, sometimes less but I have never EVER heard anyone say that domains shouldn’t count at all. Need I say more?
Also, let’s not forget about the credibility factor associated with SEO. Let’s say that you contact a website owner to ask for a link, don’t you agree that the likelihood of you being taken seriously increases significantly if you own a good domain?
Let’s Not Forget About Type-In Traffic
Some domains have lots of type-in traffic, some don’t but this much is certain: word of mouth advertising is important, it always was and it always will be. In other words, it’s in your best interest to make it easy for people to remember your website.
“The – Best – Dash – Shoes – Dash – Online – Dot – Com” or “BestShoes – Dot – Com”… which one do you think the average Joe will end up forgetting?
What About Partnerships?
Once again, a domain gives you the credibility you need to establish solid foundations.
Ask the Castello Brothers if the fact that they own the category killer geodomain made it easier for them to attract advertisers and I guarantee that they will confirm.
Maybe you’ll end up needing an investor, an advertiser and so on… credibility will play a HUGE role and owning a great domain is the edge you need to stand out.
A Short Recap
By owning a great domain, you will have a permanent edge when it comes to:
- paying for traffic
- selling your website
- word of mouth advertising
… and the list could go on and on.
While Mark’s comment is interesting and while the reasons why he thinks that domains are not as important as domainers think they are deserve to be analyzed and taken into consideration , my opinion is completely different.
In my opinion, a great domain represents the best investment you can possibly make. Competitors can copy your business model, they can find out where your traffic comes from, they can even steal your landing pages but the domain you have chosen is yours forever and they can never take it away from youAdvertisement: DomainingServers.com lets you host UNLIMITED domains at $0.98/month and we're putting a LIFETIME money back guarantee on the table (if you're not satisfied, we'll issue a full refund). To place an order, click HERE.