Buying Domain Names

I don’t get it. I was reading another article on TechCrunch yesterday about a startup company whose brand name is different than the domain name that is being used by the company. I understand that many “cool” domain names aren’t available in the .com, but in my opinion, the company should use another domain name that matches their brand, even if that means coming up with a unique name.

Take the payment company known as Square for example. Square.com has been registered for many years, so they had to use SquareUp.com.   Why not just brand themselves as Square Up instead of causing consumer confusion. Should the company grow extensively, they can afford to spend the money to buy Square.com and then rebrand as Square. This way, there’s no confusion and they’ll control both domain names. Sure, customers who go to Square.com will realize they’re in the wrong place, but why would any company want to take a chance that they would lose a customer.

Yesterday I read about a startup called Lookout, and I visited Lookout.com to check them out. As you can probably tell by the title of the article, they aren’t using Lookout.com, which was registered many years ago. Instead, they are using MyLookout.com, which isn’t a bad domain name. I would think they could match it up and use My Lookout as their brand.

Assuming 15-30% of a start-up’s traffic is type-in traffic, it doesn’t make sense to add confusion to the market while increasing the value of the other .com that is parked and will earn more ppc revenue. As a result of this, the domain owner would be less likely to negotiate to sell the domain name, fearing that the company would try to entrap them by negotiating. Further, there is little reason to sell a domain name whose traffic and revenue consistently grows.

Many people will argue that the domain name isn’t as important as the product or service being offered, and I agree wholeheartedly. However, I think it’s silly to be known as one name but have a different domain name. Square and Lookout are just two of many start-up examples.

One of the neat things about owning domain names with websites that get a good amount of traffic is the ability to analyze traffic data, especially the traffic that comes from search engines. Google Analytics is a great tool to see what information people are searching for in Google and Yahoo, and where they visit on your site.

This data can also be a great way to find domain names that you may want to register to take advantage of the search engine traffic. Instead of looking at the GAKT data, you can see the “real data” from your own experience, and since the traffic landed on your site, there’s a good chance you already know the field/vertical.

Yesterday afternoon, I was looking through my search data, and around 68% of the daily traffic was from Google. I dug deeper, and I noticed that a lot of traffic was coming from variations searches for the name of a concert tour that was coming through Lowell. I quickly searched to see if anyone owned the domain name, and it was a huge domain company that picked it up a few months ago, likely after noticing the same trends.

Although the term may not exactly be generic, it’s likely it will earn far more than the cost of the name, and of course if this is done over a huge amount of domain names, the overall risk is mitigated and a business decision can be made.

However, you can also do this for non-trademarked search terms. For example, if I see that I am getting a lot of traffic for “Lowell fireworks,” it might be a good idea to buy the .com and either forward it to the fourth of July page or build a one page site with info about fireworks every year and back link to the main site. It would be cheap to host, easy to build, and as the exact match domain name, it would probably rank pretty high. This could be beneficial to your domain name.

Whether you opt to park, redirect, or use for backlinks, the domain names you find via analytics data could be very valuable to your company.