Buying a domain name is more influential than you might imagine. It’s also one of the smartest investments most entrepreneurs will often overlook.
With that being said, here’s why you should be thinking about the ROI of a good domain name and how to approach your next domain name purchase like an investor.
The surprising ROI of a good domain name
A good domain name will provide a surprisingly high return on investment in a number of ways. These include:
Boosting brand credibility
Domain names that sound good will help to build the brand’s credibility, helping to establish it on the market. With a poorly chosen name, it may tend to fade into existence, making it difficult to keep the brand relevant.
Increases organic traffic
Increasing organic traffic is important to helping build a business, which is why having a domain name that is recognizeable, is crucial.
Acts as a valuable long-term digital asset
A good domain name will act as a valuable, long-term digital asset. It helps contribute to direct financial gains, as well as helping to achieve a higher rate of conversion as a result.
In general, domain names help to increase revenue, brand authority, and secure your online identity.
How to approach your next domain name purchase like an investor
To approach your next domain name purchase, you want to do so as an investor. Here are some helpful tips on how to do so successfully.
Research and identify high-value domains
Understanding what makes a domain valuable is important. Think about names that are short and memorable. Make sure they’re easy to spell and have a strong keyword relevance or brandability.
Analyze market trends
You want to stay informed about industry trends. Look for emerging naming styles and domain sales data to make informed decisions on your purchases.
Diversify your portfolio
If you’re looking to buy multiple domains and build a portfolio, look to spread the risk by investing into different types of domains.
Neogiate and close domain deals
Assess the domain’s value that you’re looking to buy, using appraisal tools as appropriate. From here, you can then make a reasonable offer, supporting it with data that you’ve gathered. Often when buying pricey domain names, you can get them for a better rate if you’re prrepared to negoitate.
Building long-term digital equity through branding
Domain names are a great way to invest your money into a business and it’s brand. Building long-term digital equity through branding helps to create and establish a strong and consistent brand identity that’s trustworthy. It’s also how you create that trust and loyalty across all of the digital channels you preside over.
Look at the domain name or names you’re after and once you’ve bought them, make every effort to maintain a consistent visual identity. Keep up with strategic mixes when it comes to digital channes like SEO and social media in order to keep your domain relevant.
When you buy a domain name, you’re investing into a potential future and business, so make it count.
