Affiliate Marketing Domains, Finding Undervalued Domain Names
Buying a domain name to generate affiliate income or to sell a product or service takes an experienced eye to find value in a domain, get the best buying price and ROI.
Let’s put things into perspective. In October, several high dollar domain sales took place ranging from 30 grand to half a million. October was a great month for domain sales and Sedo was responsible for nearly 1.5 million dollars worth of sales. Should domain sales like SUV dot com for 210K send a rush of dismay through domain buyers? Well, only if you are in the business of selling SUV’s, but otherwise no. There are domains just as great as SUV dot com in your market and priced at much less.
Domains are valued primarily by the desire of the buyer and then secondly by the knowledge of the owner. In between these two is where you find the final price. Thing is, there’s more buyers with desire than there are owners with know-how. This gives a domain educated buyer a very good advantage in negotiations as well as in picking those hidden nuggets of gold collecting dust in the mines of the internet.
Domain name buying can be a bit of a treasure hunt and there’s no better feeling than finding an incredibly valuable domain for far less than what it’s worth. Certainly, the holder of the domain sent it to auction knowing that it is worth something, but often domains go unsold and eventually returned to the registry simply for a lack of advertising. That’s where shrewd affiliate marketers can catch a real deal on domains that have superior value for their product or affiliate sales. The key is to know what to look for.
There are a few places where these great deals can be found.
Private Domain Brokers
Flippa recently upped their prices for their domain auction services. Comments by management on their website describe the increase as a sign of the times with the changes in the economy. If comments are any monitor of how their customers took the news, then there are probably a few less sellers on Flippa now. This price change could possibly reduce the amount of casual sellers and increase the amount of professional sellers. This is great for those looking for domains priced right at market value; however for domain buyers looking for a bargain, it may now be more difficult to do on Flippa.
Does the Economy Modify the Value Domains?
Back in 2009 Techcruch reported the sales of fly dot com for 1.8M and YP dot com for 3.85M. During that time the economy was also suppressed and even today, domains are still selling for millions. Are domains an investment? They can be, but there’s hardly a magical system to it, as with any other venture it takes work, finesse and expertise. The expertise can be easily learned when you are a buyer, because all of the resources that you need online to determine the value of a website are all on the internet. Buyers can take into account the popularity of the niche, how memorable the name of the domains is, keyword ranking of the domain if it has a site attached and the amount of actual or potential traffic that the domain carries with it. Keeping these things in mind when hunting for domains will produce some very excellent buys, especially if the seller believes that a suppressed economy means that their domains have lost value and is having a fire sale.
It’s a big world and even though the US market is seeing a compression of budgets, less retail spending and any other bad news that you can blindly pick from today’s headlines; not every country is experiencing the same thing. The domain that you find for $100 from an American seller could easily be worth $10000 to a Chinese buyer or an entrepreneur from Denmark.
The Difference Between a Domain and a Domain with a Website
Why are you looking for a domain? Are you even sure you are looking for a domain? There are more than a few people out there that don’t differentiate the difference between a domain and a website. When that person is a buyer, then that can be bad news for a seller and can end up crushing a sale that seemed to be going perfectly well. If you want a domain with a website, then it is imperative that you know that there is in fact a website that goes with the sale and just as important, that the owner has rights to sell the website. The website must be claimed as unique, or have rights that are transferrable to other parties or you could end up with a great domain name and having to pay a web developer to get a site for it.
Domains with websites can have the added value of already established ad revenue, traffic figures and ranking in the search engines. If you want to get the most out of a domain that you are buying and are making that purchase for other reasons than just the name, then get a domain with an established site. These domains can sometimes cost a little more, but it is possibly to find some fantastic deals on GoDaddy and Sedo of sites that come with a website, traffic and also as important, domain name age.
Here are a few under-priced high value Buy it Now domains on GoDaddy just waiting to get picked up and flipped or developed for affiliate marketing ventures:
FreeCloudDrive (Cloud Drives and Cloud Computing Generating Tons of new Affiliate Deals)
FriendNetwork (Good Money in Dating Niche)
MoreCoupons.co (More Likely to Get Affiliate Partnerships from Premium Advertisers)
Buy it now sales on GoDaddy can produce some great finds, because domain sellers sometimes get overwhelmed with overstock, forget to update prices for increases in traffic, page rank or current trends and then the buyer ends up getting an amazing deal.
GoDaddy can be considered a proving ground for fledgling sellers, so buyers can clean up by finding an inexperienced seller. Sedo on the other hand is mostly expert sellers and somewhere that shrewd GoDaddy auction buyers go to so that they can flip high value domains that they got for a steal.
Negotiation will end up playing a big part in making some of the best deals in your life. Private domain brokers, those that either have their own website with a domain list or even those that just have “This Site is for Sale” banners, can and expect negotiation. Even with buy it now prices, it is a perfectly acceptable practice to contact the seller and make an offer. Don’t let the negotiation falter because of an initial decline. Make another offer at least and test their reserve.
Some very good deals on domains have been found at these private brokers. While some of these might be a pricier, they do hold resale value upwards of 3 times the asking price.
CityApartments (Property Rentals)
InsuranceCar (Insurance is Always a Booming Market)
TabletPC (Tablet Sales are on the Rise)
If you take a look at the insurancecar dot co domain for sale at this link, you will see that at the time the domain was put up for sale it registered with a page rank of 3. Depending on what you think of page rank, notice now that the domain carries a page rank of 4. That does increase the value, but the sale has not been modified to reflect that. Catching breaks like this can produce some great ROI.