Brandable
vs. Traffic Domains
Alex
Tajirian
September 2005
A brandable domain name is composed of catchy
words that have a potential of becoming a recognizable brand name.
On the other hand, a traffic domain generates or has the potential
to generate traffic, which in turn, generates revenue when visitors
to the domain name click on advertising webpage links. Typical traffic
comes from links on other websites, search engines, and type-ins
of the domain name in the browser.
When considered individually, a brandable domain
name tends to have a high risk-to-reward ratio. The high risk is
due to large investment outlays required by a company acquiring
such a domain name to select and brand the domain name. However,
owning a large portfolio of such domains increases the likelihood
of a very lucrative sale. On the other hand, a traffic domain acquisition
strategy can be based on analyzing each domain separately.
The value of brandable names is driven by creativity
and outside the box thinking. On the other hand, the value of traffic
domain names is driven primarily by competitive forces within a
known market space. Often, competitive factors with this space are
benchmarked and are taken for granted. When fundamental changes
occur in what buyers value, these companies do not act on, or even
notice, the shift.
Thus, brandable domain owners need to be patient.
Topic tags: branding
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