Friday, July 2, 2010

$5 million spent on a domain? Here’s why.

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Recently Slots.com sold for 5.5 million dollars, when the general public looks at a domain sale of six to seven figures it erupts feelings of envy, mysticism, curiosity and plain head scratching disbelief. Much to the delight of companies such as Godaddy.com people go out in droves registering hundreds to thousands of domains treating the url’s like virtual lottery tickets. Let’s be realistic, companies do not sink thousands of dollars into an investment unless there is a calculated ROI, here we explore the reasons such as SEO value, branding power and conversion.

SEO – Needless to say one looks at a short, intuitive .com and sees obvious immediate value, but the real underlying benefit is in the Search Engine Optimization edge an owner gains. When you target a keyword(s) to rank for in Google what you are doing is attempting to gauge your prospects as they are having an internal conversation. Long story short (and what many people in the domain industry miss) is domains get you to the front page of Google for that term in a shorter amount of time. Many Internet marketers who read this are going to say,

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