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Domain (De)Valuation Duality

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The process of valuating (or devaluating) domains has always struck me as "off" somehow and I was unable to put my finger on exactly why. This morning a thought... question really... struck me:

OVT search results and Google results are often discredited in value because the searched domain wasn't searched WITH the extension. Notebook PC would therefore NOT have the value of notebookpc.com. In fact NO value by some people's standards despite the hundreds of OVT (Overture Search Tool - Keyword Search Tool) or Millions of Google hits without quotes.

AT THE SAME TIME...

The entire PPC Rev & Parking industry relies on the fact that generics and other domains with inherent value are typed DIRECTLY into the Browser. In other words, notebookpc.com has value because the likelyhood of the visitor going directly to the browser and typing the domain with extension into the address line and going directly to the site in question.

This strikes me as not only a conflict of reasoning but also a massive disconnect between the Domaineer's (domain speculator or cybersquatter) view of how the general public searches, researches and navigates to the eventual site they visit on any given topic.

The question is really simple... Why would somebody take the time to type notebookpc.com into the search box when they can type it directly into the address bar? Why would somebody search notebookpc.com and restrict themselves to the single hit that is most likely going to be the ONLY result hitting that exact domain with extension? IS that the way the general public REALLY searches? Why would somebody restrict the avenues that visitors can find and visit their site?

If I, as a perspective visitor to any website, were interested in a notebook pc, wouldn't I first go to Google or Yahoo or where ever and type notebook pc into the search box? Wouldn't I be interested in finding out pretty much ALL that would be realized by the term Notebook PC. Maybe I'm looking to buy a notebook pc, maybe I'm looking to repair a notebook pc, maybe I'm looking for a used notebook pc...

Regardless, if I knew that notebookpc.com was exactly where I wanted to go, I sincerely doubt I would use the search engine and type notebookpc.com to find a link to get to notebookpc.com

From a valuation standpoint, I can see that notebookpc.com might get alot of inherent traffic and be valuable in and of itself. It would most likely get type-in traffic from curiosity seekers or former visitors looking for the contact tucked away directly at that domain... but...

That would have to be SO MANY LESS visitors than would access (with proper Search Engine Optimization and site development) my site via searching the unquoted, un-extended TERM of notebook pc

What this all says to me, and clears up that long standing misgiving about PPC Parking Rev, is that although there are a FEW direct type-in domains in existence, a even moderately developed website taking advantage of wide and random search terms will ALWAYS be more valuable and earn more PPC Rev than ANY parked site.

I think that great, search term specific sites, that aren't searched in quotes, aren't searched with extensions yet are parked at these park servers are severely HURTING your income capabilities. Read your TOS and see just what you can and can't do to promote your sites and what happens to your revenues if you are effective and promoting your site.

The fog is beginning to clear and the duality and cross-talk of this "industry" is saying volumes. There are alot of people out there underachieving their income potential by simply waiting for the Parked PPC Rev fantasy when they should be going out and doing something about these underdeveloped but GREAT domain names that generate search engine results and higher PPC Rev.

ANY domain can be a powerful income generation tool... It's what you DO with it that makes the difference.

Look at 2424milk.com... not a great domain, nothing that says "MILK" or implies some inherent value, nothing that should create or encourage generic type-in traffic, a domain that any one of us would have not given a reg fee for...

2434 OVT searches with extension!!!

It's what you DO with them that matters... not what they ARE. Now, more than ever, with ringer generic names virtually extinct.

It's time we woke up and smell the reality. It's time we stop considering the next generation of domain investors that a preaching development, complete nut jobs.

It's time we start thinking about how domains will be optimized and searched and used by end-users.

THIS is where the next wave of value will come in the domain after market... Developed Sites with solid traffic. Because THESE sites can be sold as PPC Rev sites to Advertisers based on their SPECIFIC traffic and points of interest. PPC Advertising can take a huge step forward in both value (return on investment AND monies paid to site owners) and in numbers when they can better market, target and guarantee specific exposure.

That's why tampons aren't advertised on Road & Track and why I think Google's ad values are going DOWN and why I think that rather than ads being contextual to sites, that sites will begin to be contextual to advertisers.

Sites will begin to be pre-qualified, selected and subject to standards to be "Awarded" advertising PPC Rev from Advertisers. Those that "win" these PPC Ads will make MUCH more per click and experience longer and more lucrative relationships because the advertisers will feel better about their exposure and return on investment.

Generic PPC advertising will begin to see consistent sub .15 cent clicks while targeted site advertising will see $10 per click or more.

Ask yourself which you would rather have? Target Advertising with higher PPC Rev or generic, low paying PPC Rev?

Now ask yourself how you will be selected for this high paying PPC ads? Is a domain name enough?

Just some thoughts... feel free to comment. I'm wearing nomex.

GoPC
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
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Interesting thoughts...here are some practical questions to help us with targeted sites:

What sort of targeted site do you recommend for people with, say, 100 domains and not much money?

Would the free sites that some providers offer suffice (even though they already have ads on them), or would people have to create their own one-page site for each domain?

What do you recommend putting on a one-page domain that makes it a targeted site?

How do you get ads placed on the site for people to click?

Thanks.
 
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