January 7, 2008

"Junk" Domains

I just want to remind everyone that at Domain Treasure Map our focus is NOT premium domains like those reviewed in a recent article at the Domain Tools blog. Although this is an informative and well written article, it really applies to the ultra premium domains that you and I will never own in the near future.

Sometimes I think that domainers are doing a disservice to the entire domain industry when they write only about the premium market. I think the way the domain industry will get more respect and ensure maximum value will be to get more and more average people involved - not just multi-millionaires and billion dollar investment companies.

So that is why we are focusing on non-premium domain names at the Domain Treasure Map. As you read other articles on the web, many "gurus" will say that it's better to buy a few great domains instead of hundreds of lousy names. I disagree. Their point is that a few great domains can make more money with simple PPC monetizing strategies than hundreds or thousands of lousy names that get very little traffic. This is true, although I haven't yet had the pleasure of owning one of these premium PPC domains (sigh). BUT, it is not logical to conclude from this thought that non-premium domains are worthless. In fact, with the right strategy non-premium names can be "built out" and become extremely profitable. This generally takes more work, but as the internet continues to become more competitive this is inevitable.

A good analogy is the person that snapped up the best property in a new town years ago usually got the most valuable property for the cheapest price. However, later investors who purchasd lower quality land and paid more money, made far more profit than the original land speculators - especially when they used smart strategies and built the most appropriate developments on each parcel of land.

My main point is that there is money to be made with each strategy. We are still in the infancy of the internet and domain real estate, but you have to step back and take a bigger look at the landscape. Even the extremely successful early "domain kings" (Rick Schwartz, Frank Schilling) are immersed in strategies appropriate for the premium domains they own. They probably do not care (or are not interested in the increased amount of work) to pay attention to the new layer of "junk" domain opportunity that is upon us all.

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