Just How Much Money is Out There?

[lexisdomains]

Just How Much Money is Out There?....​

A lot of people may wonder: "Just how much money are advertisers (endusers/endbuyers) willing to spend on the right keywords?"


Recalling my days as Director of marketing for an SEO firm, I remember speaking to many online businesses, namely in the debt settlement, debt relief industry that were spending upwards to $50,000 PER WEEK just on Pay-Per-Click alone. I even remember one company in particular that was spending about $150K per week on PPC.

Wow Isn't this simply amazing?


In most cases, these companies were trying to procure for themselves TOP Page Visibility and more website traffic on competitive keyword phrases. But what sticks out the most to me was that they all had sub-par domain names.

Usually, this is the case because most businesses build their company around brands instead of keyword domain names.

But the question is: "How can Domainers translate The Advertiser's Dollars into domain sales?"

Instead of suggesting that you have a better domain name for them, you can simply present your domain as a secondary URL domain resource that can marketed as an additional website Landing Page.

What are the benefits to them?

1. Your domain name contains the highly coveted "keyword phrase" that they are looking for.
2. They won't have to compete and or bid against competitors for this particular keyword phrase anymore.
3. This domain name represents future market initiatives which can potentially bring in more of their targeted customer segment.


Do you have additional tips in using this approach?

 

[Whogister]

Wow, I spent $35k on Adwords back in 2006 and thought that was alot.
Your benefits are right on... I use keyword domains for my products all the time and got alot of sales from them that I didn't have to spend on adwords.

The key is getting your keyword domain ranked well in the SE's.
Not all potential customers will type in the keywords directly in their browsers.

Great thread...

 

[ali123]

Wow, I spent $35k on Adwords back in 2006 and thought that was alot.
Your benefits are right on... I use keyword domains for my products all the time and got alot of sales from them that I didn't have to spend on adwords.

The key is getting your keyword domain ranked well in the SE's.
Not all potential customers will type in the keywords directly in their browsers.

Great thread...

holy 35k is alot lolz

 

[Michael]

If you use an affiliate program on your domain, you can even quote them your traffic stats and conversion rate. If you can quantify the benefits of owning the domain, they are more likely to be interested.

Every advertising department worth its salt would be able to tell you the amount of revenue a single new customer usually brings them. Let's say each new customer company A gets is worth $200 to them. Your domain ExampleKeywords.com gets 200 uniques per month that converts 5 sales per month on average for your affiliates. That domain is now worth $1,000/month to Company A. It wouldn't be hard to convince them to spend $24k on a domain with fairly low traffic and sales.

If you just park the domain, you can quote your traffic and click-through rate, but CTR isn't as compelling because you don't know how many of those clicks actually resulted in sales for the PPC advertiser.

Anyway, just some food for thought.

 

[TestCase]

...I spent $35k on Adwords back in 2006 and thought that was alot...

LOL, I spent $35 (no "K") that same year on Adwords for my first site. Being poorer than poor at the time, it pained me to no end.

Fortunately at that time the bids in my niche were 5-10 cents so I got sufficient play out of that paltry amount and within a month my site ranked on Y! and MSN so I was able to drop the ads. Consistent page 1 ranking on Google took about 7 mo's but the other SE's were good enough for the short term.

Good thread with some nice ideas, lexisdomains & Michael. Thanks for sharing!

 

[Whogister]

Mine was mostly for branding purposes for my product and plus it sold great!
Of course now that my product is well know in it's market, and I don't have to spend as much on Adwords, the economy has went down in the dumps! LOL

 

[localexperts]

Here is the simple answer. As someone who ran a seven figure a year marketing budget for a lead generation site. If you can drive traffic that converts and I'm able to make money. My weekly budget is unlimited.

 

[lexisdomains]

Think like a Marketer!!!

Every advertising department worth its salt would be able to tell you the amount of revenue a single new customer usually brings them. Let's say each new customer company A gets is worth $200 to them. Your domain ExampleKeywords.com gets 200 uniques per month that converts 5 sales per month on average for your affiliates. That domain is now worth $1,000/month to Company A. It wouldn't be hard to convince them to spend $24k on a domain with fairly low traffic and sales.

If you just park the domain, you can quote your traffic and click-through rate, but CTR isn't as compelling because you don't know how many of those clicks actually resulted in sales for the PPC advertiser.

Localexperts says: "Here is the simple answer. As someone who ran a seven figure a year marketing budget for a lead generation site. If you can drive traffic that converts and I'm able to make money. My weekly budget is unlimited."

Thanks Michael and localexperts.

I hope everyone read both Michaels and localexperts comments because they are right on the money.

The Point: In order to be successful selling your domain name to a Big Spending corporation, you must prove the ROI. Remember, for marketers its all about the bottom line or conversions. If you back your domain with measurable statistics, namely organic traffic w/affiliate conversions, you should have no problem selling your domain for TOP DOLLAR ($XX,XXX) to company ABC.

But to do this, you must think like a marketer; think measurable; think results!

 

[Aggro]

Just How Much Money is Out There?....​

What are the benefits to them?

1. Your domain name contains the highly coveted "keyword phrase" that they are looking for.
2. They won't have to compete and or bid against competitors for this particular keyword phrase anymore.
3. This domain name represents future market initiatives which can potentially bring in more of their targeted customer segment.


Do you have additional tips in using this approach?

Laughable...the idea that just b/c they have a domain with a string of letters that corresponds to the product, they no longer have to use Adwords.

I guess Walmart and Amazon must be in a blind panic b/c they don't have PlasticCups,com, colorLCDTv.com etc...and such domains held by guys in their bedroom with their domains/"media company".

And I guess Hotels.com wasted all that money on marketing off and online even when they have a great category-killer domain. Hmm, maybe they should have just relied on type-ins and organic SE ranking....? NOT
For a clue: they spent as much as Expedia.com (a made up name) on marketing off and online imo. So much for the "theory".

And some wonder why many domainers are misinformed, misguided and/or just deluded when it comes to the sharp end of marketing (not from some big picture textbook)... :wave:

 

[Greg]

And I guess Hotels.com wasted all that money on marketing off and online even when they have a great category-killer domain. Hmm, maybe they should have just relied on type-ins and organic SE ranking....? NOT For a clue: they spent as much as Expedia.com (a made up name) on marketing off and online imo. So much for the "theory".

Actually Hotels.com is Expedia. They are the same company so I guess this proves the point being made earlier in the thread

 

[lexisdomains]

Are you not thinking like a marketer?

Are you not thinking like a marketer?​

Thanks for your comments Aggro & Grina.

Remember, I said you have to think like a marketer?....

You have to enter negotiations on the pretense that you are giving company ABC an (ADDITIONAL) way to syndicate/market their brand.

Never would you want to discourage company ABC from discontinuing their PPC campaign as most companies depend on this for their basline revenue streams.

The point is that most companies do multiple marketing campaigns which include Pay-Per-Click, Blog Marketing, & Landing Page Optimization on a DAILY BASIS; spending thousands of dollars........

Our goal is to get a piece of the pie; a fraction of their WEEKLY budget; by selling to them a measurable keyword domain name.

Just remember: IF YOU DON"T, SOMEBODY ELSE WILL!!!

 

[localexperts]

I can tell you this. I have BanquetFacilities.com, PortraitPhotographers.com, and other pretty good DOT COM domains. When we sell to a Banquet Facility or Portrait Photographer, I still have to sell. The domain helps, but doesn't close the deal by itself.

 

[Greg]

Very interesting points made here. Thank you

 

[lexisdomains]

A Big Domain Sales to A Branded Corporation!

A Big Domain Sales to A Branded Corporation!​

Actually Hotels.com is Expedia. They are the same company so I guess this proves the point being made earlier in the thread

My point exactly. Adverstisers are looking for additional opportunities to maximize profits.

Here's another example:
It was previously reported that LiveDeal.com sold YP.com to Yellowpages.com. SEC filings by LiveDeal.com reveal that the recent sale of the YP.com website brought a sale price of $3.85 million. [Actual SEC Filing ]

Why was this a profitable move for yellow pages?



Troy Browning states:

"Yellowpages.com calculated that they’d make up the cost of buying YP.com in the first four months of owning it. By routing the missed traffic that YP.com absorbed, YPC lowered their monthly SEM budget 5%, producing the same amount of traffic. 3.8 mil was an easy price for them to swallow." [retrieved on January 31, 2009 from http://www.domainnamenews.com/]