07 May 2012 ~ 6 Comments

The Beauty of the Dollar Domain

Domainers that skip the auction threads of the popular domain forums do so at their own risk. The beauty of the one dollar domain is that once the normal tricks of developing a website and enhancing content for SEO optimization are ingrained, value builds with the additional of each domain.

Because for the experienced domainer webmaster, one additional site is simply a matter of acquiring another single domain and putting it up at their hosting account. Dollar domains can maintain growth in value that results in a portfolio sale or a one time profit opportunity when the topical keyword or term heads into the news or fetches interest from portfolio or domainer buyers.

The one time cost of the domain at one dollar should neither be the value the domainer uses to assess how much effort to put into the development of the website or the aggregate of any future price they may fetch for that name in auction.In fact, domainers should consider a handpicked dollar domain as a bargain with additional promotion costs stitched into the profit model. The dollar domain is probably worth at least a minimum subfee over reg fee, for the simple reason that it has been used before and has some traction somewhere, even if it was only parked by the previous owner.

With competitive pricing of a flexible hosting plan, domainers actually leverage more value out of the hosting plan with every domain hosted. Mocking up websites and applying domain names to paid parking, even utilizing the domain names acquired for link presences to support another site name can pay off in the long run. If a webmaster uses a minisite template to provide a web site content layer for his set of dollar domains, then uses their traffic building to supply value to those domain names, then ultimately the domainer has constructed a subset of his own traffic domains.

These traffic domains can become long term instruments of domain promotion because instead of having to rent or buy traffic domains, simply switching the forwarding of the hosting servers can build exponential traffic stats for target domain name sites overnight. For resale of a domain name or a targeted promotion, these types of domains are invaluable to have inside the hosting or registrar account. Thus the dollar domains themselves become instilled with value over time, and it can safely be said that they will resell for more than a dollar.

Dollar domains can also be used as sponsor or product promotion destinations. instead of furnishing every Google Adsense box with Google ads, try editing the text and links to go to products and links that build revenue for you. If the destination web pages have links and affiliates as well, other types of product promotions and sponsor offers can be placed there that are not relevant to original domain name, keywords, and theme. Building traffic domains as well as developing main website domains allows the domainer to reach a wider sphere of contacts. These contacts become vendors and buyers over time.

At some point a portfolio management strategy for all the domain names the domainer will buy will be necessary to organize the names into a strategic order.

The renewal date of each name should be noted as soon as the name comes under review for bidding. Of course, if the seller of the dollar domain is merely shedding portfolio “fat” and trying to rid himself of domains before their expiration, that should take the domain out of the “dollar’ estimation range in terms of cost. But one dollar is never too much to risk when there is the time frame of year before renewal to produce traffic, and gain domain value and leverage it for sale.

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6 Responses to “The Beauty of the Dollar Domain”

  1. Thanks for a superb read, I dont really comment on blogs very much but though I might as well as your site is very good. Can I ask what theme is this you are using , is it paid one or a free one as I have been looking everywhere for a decent theme but most of them have horrid footer links.

  2. Tony Cressell 12 April 2010 at 6:59 pm Permalink

    You seem very knowledgable about this issue and it shows. Trust all your future posts turn out as well. Cheers!

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