Another successful domain sale through @atomhq! 🚀
The buyer initially rented the domain at 2% of the BIN price per month.
After 4 months of renting, they decided to pull the trigger and purchase the domain outright.
A great example of how domain rentals can turn into full acquisitions.
Congrats to the buyer, and thanks to Atom for another smooth transaction! 🤝
I own a domain that could represent $1 MILLION PER YEAR in lost sales for the company advertising the name.
The reason I know so much about domain leakage?
I’m the fucker getting the leaks!!!
The latest example is Nuzzle .com.
Here’s the traffic. Here’s the math.
I bought it at auction a few years ago for $11,648. Now it’s getting about 100,000 annual visits and makes about $2000/year on PPC. That's about a 17% annual return on an appreciating asset.
Why?
There’s a pillow company called Nuzzle advertising on TV. Their website is Nuzzle something .com or something Nuzzle .com
I can't even remember it myself. 🤣
People remember NUZZLE. They type Nuzzle .com into their browser. They land on MY domain.
Their advertising. Their money. My traffic. My benefit.
Not only that, I believe I see programming mistakes in their own site because some days I see it zoom up to 1600 visitors. That's either from very heavy advertising or an engineer working for them having the traffic going to the wrong place, namely my place!
These people aren’t finding me through a search engine. They’re typing the name directly into their browser.
That’s how the REAL WORLD works. And that makes their intent very potent.
They aren’t all guaranteed customers. But when someone remembers your advertised name and types it into their browser, that’s traffic worth understanding. It's the most potent traffic in the world.
Below is an offer I received in January. I don’t know whether it came from the pillow company. But let's assume it was. The economics of this traffic deserve a closer look.
They offer $16,500 and I respond with a vague nothing counter.
So based on 100,000 visits per year.
At that pace, that’s ONE MILLION visits over 10 years. Which could grow with their success. Or diminish with their lack of success.
What would those visits be worth if they reached the intended business?
At a 10% conversion rate, that’s 10,000 orders.
At a $100 average order, that’s:
$1,000,000 PER YEAR IN POTENTIAL SALES.
Even at a 1% conversion rate, that’s 1,000 orders and $100,000 in potential annual sales.
That does not count people that buy different types of pillows and end up with a $500 order.
Those conversion rates and order values are assumptions. But I can tell you this from my own experience.
Closing rates on just general traffic is 1 in 10,000 or less. With typ-in traffic, it could easily be 20 in 1000. That's the difference in the potency.
The traffic arriving at my domain is what I can measure. How much they ultimately lose depends on how many visitors would have bought and how many eventually find their way back.
But dismissing the leakage doesn’t make it disappear. Not understanding it is derelict!
And finally, ignoring it, is next to criminal if you're a business owner. Your job is to make damn sales, not to lose them.
Your job is to make sure there are no leaks. I don't care what damn business you're in. It's your number one job.
And the cost can extend beyond that first order. A customer you never acquire can’t become your repeat customer. Your advertising has to work harder to produce the growth you should have received.
Companies will scrutinize their advertising costs while overlooking where the audience actually lands.
Do the math.
Being cheap is very expensive!
And what's the invisible cost of the growth of your company being slowed and stunted?
This is a blind spot for businesses, and they never have learned it for the most part.
This isn’t my best example. I have another domain receiving more than 10,000 visits a day from people trying to reach another business.
So when people want to lecture me about domain leakage, they better sure as hell know what the fuck they’re talking about.
Bullshit isn’t going to land well with someone who can see the traffic arriving for 3 decades.
I already have the data and 30 years of it.
Others talk out of their asses.
I talk with numbers.
That’s the difference.
Starting today at Spaceship we are making a new commitment to our customers. Domains at cost going forward including all renewals and complete Freedom to choose where and with who you host them always! 🚀💙
Sold UnitedSi .com @afternic for $5k.
Had it at $10k, they opened at $3k and we settled at $5k. AN broker did a good job imo, and I'd rather move this now and upgrade the portfolio, then wait to see if si, let alone keywordsi .com takes off, sell into the wave.
HT ~2 months.