I received an email from Fred Mercaldo asking a question regarding his portfolio of long tail geographic service domain names. His portfolio of developed domain names had once been making a fair amount of monthly income, but it seems that since the Google algorithm updates, the traffic and revenue have gone way down.
In emailing about this with him, he thought it might make a good discussion if I posted his email question here to get additional insight. The discussion should be about operating directory websites that make money on long tail domain names.
Here’s what Fred had to say:
I own 217 CityNailSalons.com portfolio….such as ChicagoNailSalons.com, PhoenixNailSalons.com, etc. Bing still ranks them at #1; Google we have dropped of the map with. (There are Adsense errors right now if you look at the sites….we are fixing today). Last year, we were making $2,000 per month; now it is less than $100. Personally, I believe each site is worth $300, making the portfolio worth over $60,000…..but try as I can, I cannot get $42,000. I absolutely won’t sell it for less. I’ve read numerous articles that Google was penalizing long tail exact word domains that are part of a network; but recently I’ve also read that it isn’t totally true. My first choice would be to sell the entire portfolio; but second choice would be to monetize it. Who do you know that is successful in this type of long tail directory portfolio with SEO and monetization?
Do you have a similar experience with developed domain names? What would you recommend to Fred to increase his revenue and/or help his company get maximum value for the sale of these domain names?