There was a large amount of comments posted in response to my last post. As a blogger, you never know what topic will start a community conversation that will provide a wealth of knowledge. I thought about addressing each comment individually, however, I thought it would be best to go more in depth and address them thru this post. The power of a click/visit on an industry geo domain is one of the most under estimated in the domaining world.
There are a variety of industry geo domains that fall into the same revenue stream potential as realestate geo domains. Some include; loans, lawyers, car sales, and high end services. However, there are only a few that can truly offer the potential of a large $$$ transaction by a consumer visiting your website. The realestate industry is behind the power curve when compared to other industries and it remains the biggest financial transaction consumers make in their lives.
Once this industry figures out that the best way to reach a targeted audience and complete a transaction is thru a geo domain and not PPC, prices will skyrocket 10 fold as competition builds.
The amount of traffic that an industry geo domain delivers is irrelevant, so long as it delivers at least 1 unique visitor a month. Uneducated domainers/endusers focus to much on traffic statistics and PPC to assess value to these types of geo domains. This is the biggest mistake people make in my opinion. There is no doubt that the more traffic a domain has, the more value it will demand.
I would like to ask that you step outside the box for a minute to see the perspective I am presenting today. In realestate geo domains, as well as others, it is all about the quality of the visit and not the quantity that will lead to success for the enduser.
I would like to share a story with you from my personal experience to give you an idea of what I am presenting here. My wife was a realestate agent in Austin, Texas. Having experience in the domain industry, I immediately started buying up any realestate names I could get my hands on for surrounding areas of Austin where she would do business. The very first name I tried to buy was AustinHomes.com. However, Alton Flanders (DotComCatalog.com) was not selling this outstanding domain. At the time, DenverHomes.com had sold for $35,500 and Mr Flanders told me that the new owner got a steal on that name. Of course, I was trying to get the same steal from Mr Flanders, but he is a savvy domainer and didn’t even consider it. Next name was AustinRealestate.com, no luck. So I continued shopping and started buying affordable realestate geo domains on the aftermarket and at registration cost.
This was one of the smartest things I have ever done. These names did not receive much traffic at the time (Now they are getting more), however, they converted 10 times better than my multiple strategic PPC campaigns. The PPC campaigns delivered traffic, but it was nowhere near as potent as direct naviagtion. I spent a fortune on PPC thinking it was the best way to get results for my wifes business. Afterall, everyone in the domain industry preaches that PPC works outstanding because it is targeted. This is a false statement, at least for the small business owner in the realestate industry.
So why are realestate keywords bidded up like crazy in the realestate industry on yahoo! and google.com?
1. Because realestate professionals are misinformed and think it is all about traffic. PPC does deliver traffic, so they think they are getting their moneys worth when they see their traffic stats increase and they get 1 transaction for every 500-1000 visitors. (The big companies can afford to this, but for the small timer, it will lead to failure) But in all honesty, the conversion for a realestate transaction sucks big time and most of the leads that come in are low quality and require way to much work to convert. You pretty much get flooded with questions and workload that do not lead to a transaction, but it does cure the consumers curiosity.
2. 90-95% of Realestate professionals have horrible domain names representing them and their business (ex. SteveSellsHomes). They look up to PPC to deliver traffic that they do not get from their domain. Additionally, the same percentage have poor website design and poor SEO. Misinformed once again.
What I learned thru this expensive experience with realestate is that the majority of consumers searching on Google.com and Yahoo! who click on a PPC Ad are just looking for information and are thinking about making a realestate transaction. This cost you money everytime they window shop. Some will argue that one sale will pay for all the PPC. I tell those people that if I have to spend $500-$1000 to get a $2-$4k commission, it will lead to failure for the small business owner. Why? Most realtors start the business already in the hole, most do not have large amounts of capital to spend, and most are paying their broker to work in the office, to inlcude printer fees, copier fees, etc. It becomes very expensive fast.
What made my wife successful were the geo domains I acquired for her that delivered quality visitors. They delivered consumers who were ready to make a decision and led to listings, rentals, sales and quality leads that converted with little work. Her broker asked her what her secret was since she was doing outstanding for a beginner. My wife said it was people skills :) She did not reveal the secret of course. Most people who start out in the realestate industry do not sell more 3-4 homes their first year if they are lucky. My wife was selling 2 homes a month and leasing 2-3 a month all because of realestate geo domains her first year. Of course, these customers referred others and it manifested from there.
One domain that proves what I am stating here is TaylorTexasRealestate.com. This domain was only getting 2 unique hits a month, but it delivered a $180k home listing and sale. Additionally, it lead to a couple of rentals brining in a total of $5k in commisions. This was a domain purchased for registration cost. So you see, it is not about the quanity of traffic for industry geo domains, but the quality of traffic that the domain delivers that will make the enduser successful. This is what makes these geo domains valuable and they continue to be undervalued at this time.
I hope I was able to deliver a little knowledge thru this post.
