Simplicity Rules.

From Conceptualist.com

Simplicity Rules!
Published on March 18, 2008 in Domain Names.

Too many in the domain industry are buying domains solely based on traffic, not understanding that traffic is one aspect of the domain, and really isn’t the main one. The best domainers in the world did not focus on traffic while creating their portfolio. It may look like they have but they really have not. They have mainly focused on buying irreplaceable properties, generics mainly with meaning and potential.
For us, we’ve done mostly the same as well. When we buy domains we tend to look at the keywords within the domain, the extension, try to figure out the potential, and at the end, just ask ourselves if it makes sense.

This morning we’re signing a deal for mid five figures domain and I can tell you, it is not a traffic purchase. Our thoughts on this purchase at decision time were on the following lines:

1. Is it a strong keyword?
2. What is the potential of the industry?
3. Who are the players in this category?
4. Do we see a market opening? Can we develop a business here?
5. What is our risk if we have to liquidate quickly? (difference between price paid to what we sell if we are forced to quickly)
6. Are we going to lose traffic to other variations of the domain (example: plural)
7. What is the advertising pressure for the keyword, related keywords? (number of bidders on Google, Yahoo, and prices)
8. What is the estimated traffic numbers for the domain?

Note that traffic is last here. In our consideration it was last as well and since traffic on this domain is estimated to be weak at best, I can surely tell you it is not a deciding factor at all.

The bottom line as I’ve said many times before, the main question is “Does it make sense?“. Yesterday Jeff and I were thinking more about it and we also noticed we have never really regretted a purchase, no matter how silly it looked at the time of purchase.

What are we regretting then? Some domains we have considered, and skipped.

Have a great day,

Sahar