Understanding keyword rich domains, their niche and valuating them properly..
Lets take for example DesignerLeatherHandbags.com which is a truly keyword rich domain and as good as it gets in every sense if you know what to look for that is. Now most designer / leather handbags are very much a “luxury” item that isn’t cheap. Most of these retail for at least a few hundred bucks while others cost thousands. Hell, some go for $10,000+ when you get into all that exotic and really high end stuff.
On any given day, there is about $800,000 to $1,000,000 on average worth of handbags / purse sales over at eBay.com. Around 9,000 listings close daily and the average price is just under $100 a pop. Now keep in mind that eBay is very much a “wholesale” and bargain finders type of place. Still, it gives us a good insight into just how many of these sell… An indication that the market is absolutely massive and very very active.
So just at eBay there is at least $5 to $6m worth of handbag sales each and every week of the year. That is 60,000 items selling every week… Week after week after week. The numbers really are as solid as it gets. So that is hundreds of millions of dollars in sales per year. Just one item pretty much; handbags. It’s probably safe to say that at least one million shoppers went after approximately 3 million of the sold auctions / listings.
Below is a graph of some interesting weekly data directly from the eBay.com Clothing, Shoes & Accessories > Women’s Handbags & Bags > Handbags & Purses listings / auctionss from the past 12 month’s. Averages are 1 week’s worth of data / totals.
But lets not forget that those sold items aren’t just any type of handbags; they aren’t referred as just handbags or bags but rather the designer and leather type of handbags. That is what everybody’s after. I am not really sure how big the “handbag” market is in the US or worldwide but it’s probably at least a few billion dollars worth. It’s also a luxury item where margins are always huge, so it’s a great business to be in. Everybody makes a lot of money and ultimately the client / buyer is still very happy because they get something special and unique.
Most of you would probably look at this domain, DesignerLeatherHandbags.com, a pretty long and not so clear domain that consists of three keywords, and it wouldn’t even leave an impression on you… If it was to come up on the daily expired Domain Stryker lists, most of you would probably give it a pass. The value and keywords aren’t all that great here, right? So it’s not even worth $60 or $100…. But you couldn’t be more wrong. Now let me explain why.
This is a keyword rich dot com domain that is really a triple threat. It is a plural, which means it ends with “s” so it has exact match benefits when ranking for the the singular targeted keyword “handbag” plus the plural which is “handbags” so that is a great bonus. You got the best of both worlds. Plural domains are always much more valuable than singular… Should be pretty self explanatory
The domain also contains two of the most popular complimentary keywords that go with “handbags” and that is “designer” and “leather” so this will really help us rank for all of the most desired keywords such as ___ leather handbag/s and ___ designer handbag/s. Search engines love keyword rich domains, and if the domain has the most relevant keywords that are directly matching or related to the search the better.
This domain is an SEO / competitive webmasters wet dream because it has all of the right keywords, it is aged (registered since 2004) so it has massive potential. I acquired this domain about a year and a half ago during an auction at SnapNames for exactly $89. I was prepared to spend at least $1,000. I got a great deal and was extremely pleased
About 6 month’s ago or so we put up a “quick start-up” minisite on this domain so it can start getting crawled and indexed with the search engines + establishing it’s profile. Just recently we had it re-developed as an affiliate store so we can start rolling in some profits. It’s currently ranking #1 at Yahoo.com for the root keyword, #2 at Bing.com and brings in a consistent amount of $xxx sales daily… Traffic is building up for the longtail thanks to Google as well. We’re on page 2 right now at Google.com but expect to crack the top few spots sooner than later with a bit of linklove.
Estibot.com says that this domain is only worth $1000… Ask another professional domainer and he will say $100… Ask another webmaster or domainer and he will say $500… Another will say $2000… etc. It’s really impossible to get an agreement on this stuff. However, to properly understand keyword rich domains, their niche and their true valuation / appraisal you gotta get down and dirty with the research.
You gotta do a lot of market analysis. Gotta crunch up the numbers not just for the main root keyword but related keywords as well because they are just as important and tied up to your domain if it’s in a niche-within-a-niche. You gotta figure out exactly what types of products you can up-sell well… You gotta figure out just how much traffic there is to be had. Lots of stuff to figure out
The current setup of the website up on DesignerLeatherHandbags.com could be improved 100x and we will probably do just that in the coming month’s since the hidden potential of the domain has been slightly revealed… We’re thinking either about doing something with a reliable dropshipping partnership or direct sales of a few very exclusive but in-demand brands.
Either way, I’ve already made my initial investment for the domain acquisition + development many times over. From here on it’s just optimizing and tweaking… Getting things right slowly but surely. Building something truly special and unique. It should be a lot of fun.
It’s nice finding these types of keyword rich domains… They are often overlooked and extremely hard to find because they are buried with all the other crap, but those who put in the hard work day in and day out will always get a nice payday sooner than later. That’s how it works folks… Nothing new. So roll up those sleeves and get to it… The domains are just waiting to be discovered
FloName
April 27, 2010
An absolutely AWESOME post! You’ve done a great job with this domain name, from acquisition to development. You found the diamond in the rough! Good luck with it
Marcus
April 27, 2010
I saw the value in the domain before reading your post. I thank my girlfriend for that.
Mike
April 28, 2010
I won QuiltedHandbags.com about 6 month’s ago once it expired over at GoDaddy auctions but unfortunately the owner renewed it few days later.. Bid something like $1100 on it. Was a heated battle…
A few month’s later I e-mailed the owner asking for their best price and they quoted me a little more than I was willing to pay. Had to give it a pass.
Handbags is big business, without a doubt, and there are many other similar items and matching domains… Gotta look for em. They are out there
Intangible Properties
April 28, 2010
Your analysis is spot on. I love making money on the longtail. You only paid $90. Great price. Now that domainers are turning into developers your value should go way up.
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December 2, 2010
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