By Jay Finnan, Sedo.com Director of Customer Relations
Haven’t you heard? “Domain selling is the new parking.” Over the last few years domain sales have taken a back seat to the predictable revenue of pay-per-click (PPC) advertising programs. But in the shadow of the booming PPC market some domain speculators are making a killing in arbitrage, finding domains at bargain prices and reselling them to make a sizable profit. A recent study* of domains sold twice in the last year showed an average return on investment of more than 300%.
Even more amazing than the ROI is the time it took to realize it. The same study showed that the average time between purchase and resale was only 230 days!
But how are they doing it? In this month’s feature we’ll break down the complex calculus and fuzzy logic domain pros use to choose domains with a high resale value. With this knowledge you’ll be able to estimate if a domain has a realistic chance of being bought and resold at a profit.
Successful resellers may look at an endless number of value points but they tend to focus on these: Mindshare; Traffic Metrics; Suitability; and Structure. Keep reading to see how the pros weigh each of these metrics.