Why You Should Buy a Domain Based on Quality Instead of Traffic

If you’re buying the primary domain for your business, the lure of traffic can be tempting. If you got a domain with existing traffic, you might get early customers without needing to market.

It may seem like a no-brainer, but is it? How can buying a domain with traffic be a bad idea? After all, you want traffic and you’ll be looking to build it up on any domain you get.

The truth is there’s a better way to build a long-term successful business: buying your domain based on quality instead.

Here’s why:

1. The traffic may not bring you much value

Not all traffic is equal. The traffic going to the domain may be looking for an old site or may otherwise not be potential customers. You won’t know until your site is up and not producing what you thought it would.

I actually learned this through experience many years ago. I had bought a forex-related domain that had 200 visitors a day. It turned out that the traffic was merely due to the domain being a letter off from a particular high traffic site which was not forex related. 200 visitors of forex traffic would have likely produced $100 or more a day – this traffic didn’t even produce $1 a day.

2. The traffic may not last

With many domains that have traffic, it’s hard to know where it’s coming from until you own it. It may be coming from links that could easily vanish or sudden search rankings that won’t hold up over time. You might find yourself with little or none of that traffic left after several months, even though you likely spent the cost of 2+ years of the traffic to get the domain.

3. Domains with traffic are in high demand, driving up prices

There are at least a dozen or two buyers of domains with traffic for each seller of one. Sellers use that to their advantage and raise their prices. Meanwhile many buyers ignore domains without traffic even if they’re of great quality and could easily build up traffic with development.

4. Lower name quality may hurt growth

If you’re focusing on traffic, you’re getting a lower quality name than what you could with the same money. Even if some of that traffic converts, you may have difficulty building it up higher due to the lower name quality turning people away. You may not have a catchy or professional enough name to compete in your market.

5. Higher quality names enhance marketing efforts

If you get a good enough name, it markets itself. All you’d have to do is get it out there. Good names draw intrigue and interest and are easier to remember. Your initial uphill battle to establish your brand would be much easier with a better name.

6. Higher quality names will stand out even more over time

There are over 215 million domains registered, a figure that simply keeps growing. The good names of today become the better names of tomorrow compared to the average registered domain, helping them catch even more attention.

7. If your market explodes, your higher quality name could become a lucrative investment

Someone buying a better tablet domain a few years ago would be holding onto a huge asset today. Even though you’re buying a domain to start a business instead of merely invest, it doesn’t hurt to buy a good investment. Consider your exit strategy later on and how your domain could aide in it.

A recent example of this is Cloud.com, which recently sold to Citrix.com for over $200 million. Citrix assigned an $18 million value to the domain alone, which is much more than what the Cloud.com business had paid for it.

It’s easy to fall into the trap of focusing on traffic over quality. Many people do and are constantly looking for a sure gem. Meanwhile, there are many better quality domains being ignored that could get you much more in the long run.

At Domainate, we can help you get the right domain to start your business on. We’ve helped new startups brand and billion dollar corporations rebrand with great success. Contact us if you need a domain for your business.


2 Comments on “Why You Should Buy a Domain Based on Quality Instead of Traffic”

  1. […] gone over why you should focus on quality instead of traffic, but sometimes a domain you’re looking at buying for quality happens to have traffic. Traffic […]

  2. Sharon Hayes says:

    Reblogged this on Sharon Hayes Dot Com.

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