How to Build a Better Domain Portfolio

Dec 18th, 2010 | By | Category: Domain Sale and Parking Tips

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The game has changed.

That is the first thing to realize. For when PPC revenue began tanking, so did the value of ‘keyword-rich’ domains such as carpenternails.com and usedmedicalbooks.com that sold back in the day for tens of thousands. Sigh.

Dramatic? Indeed, the shift has been quick and violent but it has brought out some clarity for the future…perhaps.

Did all the value disappear? Not necessarily, it may have simply made a lateral move. For while traffic is still king, the royal kingdom has seen a downturn in tax shares and is not so much Camelot any more as it is Nottingham.

‘Lateral’ thus means we’ve seen greater move towards SEO and end-user value which while not balancing out the lost revenue does make up for it in the long term. And that is where your portfolio should be pointed. Just imagine the green arrow from the Fidelity commercials showing the way forward.

And that ‘way’ should involve a full reassessment of your holdings. It is time to decide whether to hold, develop, drop or sell – if you can. Identify the top 20% earners and then examine the rest for flaws, lack of value. Remove and then use those funds to buy better, more stable properties.

If you use our valuation and pricing system, it should be easy to mark and destroy all the unprofitable inventory you may have stockpiled during the golden years of PPC revenue but which, sadly, have lost their luster, their meaning and true worth.

And so perhaps that is the greatest shift we’ve seen, a stronger emphasis on what truly has value beyond DomainSponsor landing pages combined with greater scrutiny of potential in the larger scheme. Domainers act more like end-users today than they ever have.

Why? In part because holding massive numbers of domains for the one or two hits they produce each month doesn’t work any more and this is one way to adjust.

Look at Frank Schilling for example, his current success is based on his adaption to this reality.

Schilling turned his focus not long ago to end-user sales and has benefited therein in simply understanding the value shake-up that was occurring. We built OneofaKind.com for the very same reason, others have done the same, more will turn.

The result, fortunately for all, is a greater comprehension, value and acceptance of our industry as the mainstream comes full circle, from the 90?s, to realize we are still here and, in fact, more vital than ever to survival.

So ultimately, building a better portfolio is like holding stocks – adapt, reasses and diversify. Diversify your holdings into multiple areas, extensions, languages, whatever – but keep the edict of ‘premium quality’ in mind, the p/e ratios of our assets.

That is the lesson here, the seismic force, you must grasp. And it’s not a new or fresh lesson, more stale and crusty like a crouton. A debate long held in our hallowed halls.

Quality or Quantity?

The answer itself shifts and sways as if run by a casino but at the moment the former is beating the latter and that is change you need to embrace, not curse, if you want to build a better folio.

Yes, the game has changed. But more importantly, have you?



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