Domain Value To An End User

[tekhunter]

I'm trying to get more understanding on the low end side of domain reselling...specifically the tangible benefits of purchasing a targeted domain name from an end user perspective.

Totally hypothetical example:
Say that there is a fence building company called fred's fences and they have a website currently at fredsfences.com... let's say that I want to sell them (city)fenceinstallation.com where the keyphrase "city fence installation" generates 500 queries per month - what would be the best way to use this to grow their business:
1. an SEO benefit if they just redirect the new domain to their existing website
2.create content on new domain and link to fredsfences.com
3. just use it for generating type-in traffic leads

Any insight would be helpful

 

[INFORG]

Using your example, it really depends on the competition and current state. If when you search for "city fence installation", FredsFences.com is the first result, then Fred really doesn't need your domain. If Fred is having a hard time competing, then a viable strategy might be to go with a keyword domain, build it out and try to outrank his competitors, or maybe get an additional result on the 1st page in addition to his own. Although, some extra SEO and marketing effort for FredsFences.com might be a better route for Fred.

If there is existing type-in traffic to CityFenceIntallation, then it can be sold as a lead generator that he could redirect to his site. Easier to sell under this scenario, since you can tie those leads into how much a sale is worth, and how much he may spend on other advertising to get a lead.

 

[tekhunter]

Thanks for the detailed response!

If there is existing type-in traffic to CityFenceIntallation, then it can be sold as a lead generator that he could redirect to his site. Easier to sell under this scenario, since you can tie those leads into how much a sale is worth, and how much he may spend on other advertising to get a lead.

For type-in traffic, if you were buying the domain from someone (for resale purposes) would you ask to see actual analytical data? Or would you just extrapolate somehow via keyword research?

I'm really trying to firm up my understanding of what makes it valuable...branding I understand (and not applicable in my example) but are the only other real metrics the amount of type-in traffic, and SEO benefits?

 

[INFORG]

You can't extrapolate traffic from search numbers - need to see actual analytical data to prove traffic numbers.

Using your example, a cityfenceinstallation domain could have value to an actual fence installer for just a few reasons:
1. It has existing traffic and therefore leads.
2. It can be used for SEO to increase rank and traffic to business site where they don't have top results already.
3. Defensive ownership to prevent someone else from starting a competing business and outranking them for the term.

Best hope would be that some newcomer to fence installation wants the name to jumpstart their business and gain an advantage in climbing the rankings or an installer that does not yet have a website. Those without a website seem to be where domainers successful with this type of domain put some effort. This requires some cold calling skills - someplace most domainers fall short or like me, are just too lazy to do as a hobbyist with a full time job.

For a CityService domain to have some value, I would want to see it in a very competitive service, in a very large city, or already developed and outranking the businesses for that city.

 

[Biggie]

You can't extrapolate traffic from search numbers - need to see actual analytical data to prove traffic numbers.

Good Point!
many don't understand search volume results, and assume those numbers equal actual traffic a domain will receive.

 

[PKumar]

When it comes to existing traffic, it is not necessary that the domain name is receiving targeted visitors, it depends on the promotion activities, how relevant sites the domain is linking too.

 

[PopCaro]

Fredsfence is not better because it's shorter? Doesn't Google already have lots of tools to know geolocalisation in a website's content ?