For those of you who don’t subscribe to Domainer’s Magazine, I wanted to share a great article I read about Geo domaining. Most of you know that I recently found an interest in geo domaining myself, so of course this article peaked my curiosity when I read the title, “Developing a Geo Domain”. There is a lot of great information in the article. It discusses a range of topics having to do with developing a Geo domain, including suggestions on how to market your Geo domain and what are advantages to developing a Geo domain. It references all that and more.
The original article is very long. I received permission to use the article on my blog and so I decided to break it up into a 5 part series over the course of this week. Today’s first part in the series is basically an introduction into Geo domaining to help give a better understanding of what it is and how a domainer can make a lot of money from it. I hope you enjoy reading it as much as I did.
Developing a Geo Domain
Geo domains differ from other premium domains in one very important aspect: development. Unlike generic premium domains like flowers.com, baby.com or books.com, which can be easily monetized using the Pay-per-Click model, Geo domains typically have little to no type-in traffic. As such, domain development is standard operating procedure for Geo domains if they are to earn their keep.
Regardless of this drawback, Geo domains–notably country, city, or state Geo domains–are some of the most valuable domain properties on the internet. One of the most notable sales included a package of England.com, Britain.com and London.com, which sold for $2 Million in 1999. That may have been a decade ago, but that spectacular figure is followed by the $700K paid for Melbourne.com in 2007, $550K for Macau.com in 2006 and $500K for NewZealand.com in 2003. Even LasVegas.com, which was only leased to the Greenspun family for 100 years, sold at a whooping price of $12M in 2005.
Geo domains have a high market and resale value, mainly due to the fact that premium pure Geo domains (“pure” label explained below,) seldom change hands and are very limited in number. There’s also the so-called trend of “going local”, and these regional target markets further enhance the value of Geo domains. In a nutshell, people are now using the internet more to search for local services, locally available products and local information.
As internet searches become more useful in the local scope, we can expect the prices of lesser-known Geo domains to become higher still. They will become even higher as more and more Geo domainers develop their properties; the rise of online local advertising almost assures it.
Definition and Uses of a Geo Domain
Geo domains are a pretty well-known term in the industry, but let’s quickly revisit the basics. Geo domains, as the name implies, are domain properties that correspond to the name of real world places such as countries, states, counties, towns, cities, etc. These domains are usually developed to become digital equivalents of the country, city or state that they represent.
Thus, a Geo domain that culls its name from a state that relies heavily on tourism will also probably be geared towards providing tourists information about this state’s local scenic spots, hotels, bars, restaurants, tourist services, etc. A Geo domain that has the same name as a city known to be a financial hub, on the other hand, will probably come with a site geared towards the promotion of the city’s banking facilities, local telecommunication services, seminar and conference rooms, etc.
The term “pure” Geo domain was mentioned above. What this means is that in its entirety, the domain property consists of the place’s name and a domain extension, nothing more. Pure Geo domains, especially those which have been developed, receive around 50-70% of their traffic from type-in visitors. It is reported that Geo domains as a whole rake in more than $500M yearly in hotel bookings alone.
Outside of this “pure” market, Geo domains can also be extended to include domains that incorporate a place’s name in addition to an industry, a service, a product, etc. Examples are NewYorkLawyers.com, MichiganRealEstate.com, TexasOil.com, or CaliforniaWines.com. For these names, development is even more beneficial. Given the opportunity to build a look and feel, these Geo domains can lock onto their potential advertiser base by creating an attractive brand.
Advantages and Benefits of a Geo Domain Site
When it comes to Geo domains, one might wonder if the potential of a developed Geo domain compares to a developed generic. The problem is that Geo domains are as widely varied in value as any generic, making this an impossible call without using concrete examples. However, here are some universal advantages that most (if not all) Geos share.
Shorter Learning Curve and Better Synergy in Industry
One of the main benefits of developing Geo domains over generic domains is the help you can get from other people in the industry. Geo domainers are more apt to share valuable knowledge and help you in developing your site than other domainers in other industries. This is probably due to the fact that competition rarely overlaps. This invaluable support helps in preventing expensive mistakes, making Geo domain development a lot less risky.
Also, with an increasing number of usefully developed Geo domains comes more legitimate traffic and an increased buzz. These figures are a boon for advertisers focusing on a particular geographic market.
Branding and Ready Market
Having a Geo domain involving a city, country or state is a big step. The key is to meet up with the consumer loyalty and support in the area to give the site a foundation with that area’s existing customer base. This goes double for non-pure Geo domains, as your site will rank high with internet searches done with keywords in a place-then-product format (ElDoradoStables.com or AtlantisBoatLifts.com).
Secondly, keep in mind that the government itself may be promoting the place as a tourist destination, financial hub, etc. Connecting with the municipal or regional chambers of commerce or tourist associations will afford you even more direct connections to your advertisers. The more well known the place is, the more citizens and visitors will search for it through the search engines.
One of the initial hurdles you will come across when developing Geo domains is the local community’s perception of your project. Obviously it helps quite a bit if you live in the region you’re trying to market to, but it isn’t absolutely necessary as long as you’ve educated yourself extensively or have contacts there. A good Geo domain is not a fire-and-forget venture. You will have to invest time and energy educating the people about what your Geo domain can offer the community.
Potential Monetization Options
Unlike other domain types, Geo domains have an almost boundless capacity for expansion and development. Where many generic domains are locked into a product or service, pure Geo domains can be developed to encompass almost any category: hotels, local resorts, tourist spots, classified ads, local restaurants, professional services’ listings, yellow pages, etc.
Properly developed and search engine optimized, Geo domains can become magnets for highly targeted searches. By building content and communities for the verticals you have in your Geo domains, you can expand the monetization potential of your Geo domain property. PalmSprings.com is a case in point. In 1999 this Geo domain netted more than $500K from local advertising, especially through local hotel bookings. Another example is Nashville.com, whose development enabled the owners to recoup their development investment within a span of only 3 months.
Monetization-wise, developed Geo domains open up a lot more options than the traditional generic domains. Aside from the usual CPC platform, you can also profit from selling ad space or leads to local businesses. Another option is to earn from local job listings or classifieds. The monetization alternatives are almost as boundless as your development choices.
Geo domain development is labor- and resource-intensive, however. It can take you years and hundreds of pages before reaching a critical mass. While developing the site, you’ll also be developing networks in the area to cultivate clients and advertisers. Geo domain development can be extremely profitable, but it’s not for the meek or the unambitious.
Going Local Trend
A singular trend is fast joining the mainstream of online searches. This is the movement of user searches from the global to the local arena. Today’s internet users expect to find more local content. More national companies are adjusting their advertising budgets to prioritize local-impact ads. Local companies are becoming more aware of the feasibility of local internet marketing. As a prime example of this, local media or newspaper companies are moving a part of their entire operations online. If this isn’t proof enough, consider that Google itself has started giving local results more weight when it comes to particular searches.
This trend holds the key to the viability of developing Geo domains. Some of the money normally pumped entirely into traditional media vehicles–billboards, yellow pages, radio ads, and newspaper ads–is now going online. If you have a solid local site that can deliver effective advertising for less, then you have a good chance of getting a good chunk of change from locally focused internet advertising.
Make sure to check back tomorrow for part 2 of this 5 part series.
Having just bought a couple of very high quality .org pure geo domains for cities I am very interested in reading the rest of this. Thanks Chef.
Every domainer should have a Geo in their portfolio. Not only should they own it they should also develop it. Everyone think worldwide, when there are a lot of low hanging fruits on the trees in their backyard.
All forward thinking news outlets are getting back to local because local is the only way they can stay afloat. The returns are greater than trying to attract national ads that offer lower CPC, CPA and CPM. Original local content is money.
People think all the good Geos are gone. I encourage them to drill down and find smaller division in town and really get local. A city is always divided into north, south, east and west or nicknames for a division pick-up.
I think people often forget about the “county” names. Many people relate more to there county of residence than a town.
Great article. Thanks for republishing it Chef! Who is the author of the article?
I honestly do not know. I beleive it was a writer on Domainers Magazine staff. The article doesn’t credit anyone specific.
A very good piece. And there are still very solid opportunities on geodomains out there. You don’t have to buy a major city.com to build a very nice business off a geodomain.
You do have to want to develop,as opposed to generic domains, but the rewards are greater as a long-term play.
Thanks for the article Patrick, my readers in .tv have great interest in Geo so I mentioned your article and included a trackback.
It seems to me that some type of partnership arrangement is extremely important for development. Not onl is it rare to find a good geo domain that is available for purchase but even more rare to find one for the area that you live or are familiar with.
I was able to purchase a few pure, small to mid size town geos. However, I have never lived in these areas and I am unfamiliar with them. I am trying to justify the cost of developing and maintaining websites for these towns that I have no contacts in and may or may not be big enough to support my efforts. Hopefully, this article will shed some light.
Great article. Good comments too.
Thanks for those article, it is very useful guide.