Why Would a Business Buy Another Geo Domain?

[Maier]

I’ve been thinking about what could motivate a business owner to buy a geo domain name even when they already have a well-known website, or even multiple sites. Could it be local branding strength, higher search visibility, protecting market share, or capturing more targeted leads?
What other reasons do you think would convince a business to invest in an additional geo domain?

 

[biggie]

I’ve been thinking about what could motivate a business owner to buy a geo domain name even when they already have a well-known website, or even multiple sites. Could it be local branding strength, higher search visibility, protecting market share, or capturing more targeted leads?
What other reasons do you think would convince a business to invest in an additional geo domain?

Hi

if you have to convince them, then it’s unlikely they would want it
best if they contacted you first, then you would have some leverage

in situation you described, they’ve probably already acquired all the necessary alternatives.

you’d have to have something really special

imo …

 

[Eric Lyon]

I’ve been thinking about what could motivate a business owner to buy a geo domain name even when they already have a well-known website, or even multiple sites. Could it be local branding strength, higher search visibility, protecting market share, or capturing more targeted leads?
What other reasons do you think would convince a business to invest in an additional geo domain?

A few reasons that come to mind for me are:

• Targeted Marketing and Local Campaigns: Geo domains allow businesses to create highly targeted landing pages or separate microsites with content tailored to the specific needs, events, and cultural nuances of a region, which improves engagement and conversion rates (E.g. Lead Capture Campaigns).
• Competitive Advantage and Brand Protection: Acquiring key geo domains prevents competitors from using them to capture local market share. It helps the established brand monopolize its market online and safeguard its digital identity in key territories.
• Acquisition of High-Intent Traffic: Local searches often have high commercial intent (users are ready to act). A geo domain attracts this highly qualified, valuable traffic, which often results in more in-store visits, calls, and purchases (E.g. Lead Capture Campaigns).
• Easier Local Backlink Acquisition: Regional blogs, local news sites, and community directories are more likely to link to a website with a localized domain name, which further reinforces the business's local relevance and authority to search engines (E.g. Lead Capture Campaigns).

In short, most the reasons (Even those I didn't list above) are primarily part of lead capture campaigns and brand protection strategies. In my opinion.

 

[Brian L.]

As an owner of a company, I would want to own the geo equivalent of my .com for any country I had a substantial presence in.

 

[nicenic]

Hi, Maier

Local trust signals often close deals faster than any main brand domain can.

 

[Maier]

Hi, Maier

Local trust signals often close deals faster than any main brand domain can.

So, if a client has a brandable domain through which they manage their business in a specific area, they are still willing to have another geo domain for their company.

For example, I own a domain "hvacservicephoenix . com". Do you think I can still consider the owner of a big company in this location as a target client even if he has a well-known website??

 

[nicenic]

So, if a client has a brandable domain through which they manage their business in a specific area, they are still willing to have another geo domain for their company.

For example, I own a domain "hvacservicephoenix . com". Do you think I can still consider the owner of a big company in this location as a target client even if he has a well-known website??

I think even established businesses might still benefit from geo domains for local branding and SEO.

 

[fka1080405]

I’ve been thinking about what could motivate a business owner to buy a geo domain name even when they already have a well-known website, or even multiple sites. Could it be local branding strength, higher search visibility, protecting market share, or capturing more targeted leads?
What other reasons do you think would convince a business to invest in an additional geo domain?

Very little could motivate someone to buy such a domain. There is no evidence that these type of domains will provide any benefit to the business just by virtue of owning the domain name. Even if it is true that keyword domains rank better, for any value to be realised, they will need to use the domain name as part of a strategy. You're not just selling a domain name, you're also selling a commitment from the business to some sort of (as yet undefined) strategy.

For example, if you're pitching the domain name on the basis that the keywords are valuable for search engine optimization, you're asking the prospect to migrate their website to the new domain name or you're asking the prospect to build a new microsite dedicated to the keyword(s). For mos businesses, that means finding and paying an outside agency to do the work (which will cost more than the domain name).

Outbound domain name sales in general is very difficult, even when you have domain names that the buyer wants. Domain names are not considered valuable by most because, from their perspective, they can just go to GoDaddy and type in something and find a domain you can register for $20/year. What does it matter if it's .com or .net or .cool? For someone to choose to buy "hvacservicephoenix.com" from you for $1,000 you need to convince them that the domain name is going to deliver value to them and at the same time not convince them that going to GoDaddy and registering "besthvacservicephoenix.com" is going to deliver the same value to them.

The competition in outbound sales is also very high, there are a lot of people engaging in various different strategies to try that have matured over the years. There are people that have realised you don't even need to own the domain names you're selling, because if someone is convinced by the sales pitch, they are probably going to reply to your email rather than go to GoDaddy to check if the domain is available to register. Generate a list of available keyword domains, generate a list of prospects, send emails with your pitch, and then if someone responds positively, you register the domain name they're interested in to sell to them.

Personally, I think geo domains are a red herring for most novice domain name investors. They're attractive because they feel like something you can actively sell, and they appear often in daily sales reports... but they're almost entirely sales to other investors. According to NameBio, 24 geo+keyword domains were sold yesterday and every single one was bought by an investor[1].

I think that if you want to understand how to sell these type of domains to end users, you need to look for examples of where the domains are delivering value and then build a pitch around that. I would start by looking for successful websites using geo domains and then try to sell similar domains to similar businesses. For example, if "hvacserviceaustin.com" is the website of the most successful hvac service business in Austin, then I would build a pitch around that, taking it to different markets, suggesting that success in the Austin market can be replicated with a similar domain.

Ultimately, businesses don't want domain names, most domain names are a liability not an asset. Businesses want to make more money. You need to either convince a prospect that the domain name is an asset (which is all but impossible to do) or you need to convince the prospect that the domain name is the best use of their time and money to benefit the business.

And finally, unfortunately, the people who have managed to overcome these obstacles and make money from selling geo keyword domains do not have any incentive to share their strategy with you, in fact, they have a disincentive, as it's a zero sum game. The only way you are going to succeed is by finding your own way to the right strategy, with a lot of experimentation.

[1] The caveat here is that end user sales are less likely to be reported to NameBio so we can't conclude that there were 0 end user sales (maybe there were hundreds!) but we can conclude that all reported sales were to investors.

 

[ziad bld]

This topic is helpful. I appreciate the explanations

 

[Maier]

Very little could motivate someone to buy such a domain. There is no evidence that these type of domains will provide any benefit to the business just by virtue of owning the domain name. Even if it is true that keyword domains rank better, for any value to be realised, they will need to use the domain name as part of a strategy. You're not just selling a domain name, you're also selling a commitment from the business to some sort of (as yet undefined) strategy.

For example, if you're pitching the domain name on the basis that the keywords are valuable for search engine optimization, you're asking the prospect to migrate their website to the new domain name or you're asking the prospect to build a new microsite dedicated to the keyword(s). For mos businesses, that means finding and paying an outside agency to do the work (which will cost more than the domain name).

Outbound domain name sales in general is very difficult, even when you have domain names that the buyer wants. Domain names are not considered valuable by most because, from their perspective, they can just go to GoDaddy and type in something and find a domain you can register for $20/year. What does it matter if it's .com or .net or .cool? For someone to choose to buy "hvacservicephoenix.com" from you for $1,000 you need to convince them that the domain name is going to deliver value to them and at the same time not convince them that going to GoDaddy and registering "besthvacservicephoenix.com" is going to deliver the same value to them.

The competition in outbound sales is also very high, there are a lot of people engaging in various different strategies to try that have matured over the years. There are people that have realised you don't even need to own the domain names you're selling, because if someone is convinced by the sales pitch, they are probably going to reply to your email rather than go to GoDaddy to check if the domain is available to register. Generate a list of available keyword domains, generate a list of prospects, send emails with your pitch, and then if someone responds positively, you register the domain name they're interested in to sell to them.

Personally, I think geo domains are a red herring for most novice domain name investors. They're attractive because they feel like something you can actively sell, and they appear often in daily sales reports... but they're almost entirely sales to other investors. According to NameBio, 24 geo+keyword domains were sold yesterday and every single one was bought by an investor[1].

I think that if you want to understand how to sell these type of domains to end users, you need to look for examples of where the domains are delivering value and then build a pitch around that. I would start by looking for successful websites using geo domains and then try to sell similar domains to similar businesses. For example, if "hvacserviceaustin.com" is the website of the most successful hvac service business in Austin, then I would build a pitch around that, taking it to different markets, suggesting that success in the Austin market can be replicated with a similar domain.

Ultimately, businesses don't want domain names, most domain names are a liability not an asset. Businesses want to make more money. You need to either convince a prospect that the domain name is an asset (which is all but impossible to do) or you need to convince the prospect that the domain name is the best use of their time and money to benefit the business.

And finally, unfortunately, the people who have managed to overcome these obstacles and make money from selling geo keyword domains do not have any incentive to share their strategy with you, in fact, they have a disincentive, as it's a zero sum game. The only way you are going to succeed is by finding your own way to the right strategy, with a lot of experimentation.

[1] The caveat here is that end user sales are less likely to be reported to NameBio so we can't conclude that there were 0 end user sales (maybe there were hundreds!) but we can conclude that all reported sales were to investors.thanks

Very little could motivate someone to buy such a domain. There is no evidence that these type of domains will provide any benefit to the business just by virtue of owning the domain name. Even if it is true that keyword domains rank better, for any value to be realised, they will need to use the domain name as part of a strategy. You're not just selling a domain name, you're also selling a commitment from the business to some sort of (as yet undefined) strategy.

For example, if you're pitching the domain name on the basis that the keywords are valuable for search engine optimization, you're asking the prospect to migrate their website to the new domain name or you're asking the prospect to build a new microsite dedicated to the keyword(s). For mos businesses, that means finding and paying an outside agency to do the work (which will cost more than the domain name).

Outbound domain name sales in general is very difficult, even when you have domain names that the buyer wants. Domain names are not considered valuable by most because, from their perspective, they can just go to GoDaddy and type in something and find a domain you can register for $20/year. What does it matter if it's .com or .net or .cool? For someone to choose to buy "hvacservicephoenix.com" from you for $1,000 you need to convince them that the domain name is going to deliver value to them and at the same time not convince them that going to GoDaddy and registering "besthvacservicephoenix.com" is going to deliver the same value to them.

The competition in outbound sales is also very high, there are a lot of people engaging in various different strategies to try that have matured over the years. There are people that have realised you don't even need to own the domain names you're selling, because if someone is convinced by the sales pitch, they are probably going to reply to your email rather than go to GoDaddy to check if the domain is available to register. Generate a list of available keyword domains, generate a list of prospects, send emails with your pitch, and then if someone responds positively, you register the domain name they're interested in to sell to them.

Personally, I think geo domains are a red herring for most novice domain name investors. They're attractive because they feel like something you can actively sell, and they appear often in daily sales reports... but they're almost entirely sales to other investors. According to NameBio, 24 geo+keyword domains were sold yesterday and every single one was bought by an investor[1].

I think that if you want to understand how to sell these type of domains to end users, you need to look for examples of where the domains are delivering value and then build a pitch around that. I would start by looking for successful websites using geo domains and then try to sell similar domains to similar businesses. For example, if "hvacserviceaustin.com" is the website of the most successful hvac service business in Austin, then I would build a pitch around that, taking it to different markets, suggesting that success in the Austin market can be replicated with a similar domain.

Ultimately, businesses don't want domain names, most domain names are a liability not an asset. Businesses want to make more money. You need to either convince a prospect that the domain name is an asset (which is all but impossible to do) or you need to convince the prospect that the domain name is the best use of their time and money to benefit the business.

And finally, unfortunately, the people who have managed to overcome these obstacles and make money from selling geo keyword domains do not have any incentive to share their strategy with you, in fact, they have a disincentive, as it's a zero sum game. The only way you are going to succeed is by finding your own way to the right strategy, with a lot of experimentation.

[1] The caveat here is that end user sales are less likely to be reported to NameBio so we can't conclude that there were 0 end user sales (maybe there were hundreds!) but we can conclude that all reported sales were to investors.

Thanks, my friend, you explained almost everything. From your great answer, I understand that GEO domains aren't your favorite. What kind of domains do you think would be the best choice for a beginner domain investor? something to encourage me to continue in this career and gain some sales. Recently, I started to get some domains from DropCatch for rapid sales and to liquidate some dollars for renewals. Do you think this can keep me going??

 

[fka1080405]

Thanks, my friend, you explained almost everything. From your great answer, I understand that GEO domains aren't your favorite. What kind of domains do you think would be the best choice for a beginner domain investor? something to encourage me to continue in this career and gain some sales. Recently, I started to get some domains from DropCatch for rapid sales and to liquidate some dollars for renewals. Do you think this can keep me going??

Domain name investing is a zero sum game: every sale you make is a sale I can't make. For that reason, an investor with a good strategy is unlikely to share that strategy, and when an investor is shouting from the rooftops about their success it is likely to their own benefit, not yours. That said...

Any strategy that depends upon being able to sell a domain quickly is a bad strategy. Domain names are bought, not sold. A person decides they want a domain name and then they go out and register it or if it's taken, and they want the domain name enough, and they have money, they buy it from the owner. A domain name can only be sold if there is a buyer who wants it.

Liquidating domain names is, in most cases, a fallacy. Liquidating an asset involves pricing it below its accepted value so that someone who can be patient buys it at a discount immediately and profits from it later. If domains don't have an accepted value, and don't have the prospect of ever finding a buyer, how can they be liquidated?

There are a small number of domain names that have an established value and are therefore liquid (e.g: a 3L .com could find a buyer for $10k within a few hours) but these liquid domains make up such a small proportion of registered domains that they are exceptions. The majority of domains (more than 99% of domains) will never find someone who wants the domain even for free and therefore they cannot be sold quickly or slowly or for a little or a lot.

As an investor, you should acquire domain names that you think someone will someday decide they want and then they discover that you own it and then they buy it from you. The source of your domains can vary, some investors register, some investors buy from other investors, some investors acquire at auction. Regardless, to make money with domain names, you need to acquire domains and have a lot of patience.

I recently launched my own marketplace to try and address the lack of liquidity (yea.net, thread about it here) but even then, even with what I believe is an innovation that will benefit domain name investors, I do not think that the majority of domains can ever find a buyer, and so, "rapid sales" remain all but impossible[1].

My advice to a beginner is not about strategy, but expectations: expect that most of your domains will never sell. You need to invest on the basis that for every 100 domains you own, you would be lucky to sell more than 2 per year. If you are buying 10 domains at auction for $50 each and expecting to sell all of them for $100 each the next day, or the next week, or the next year, you're going to have a bad time. If you are buying 10 domains at auction for $50 each because you think someone might want one of them months/years in the future and be willing to pay you thousands of dollars for it, that's an expectation more aligned with reality.