Fresh off the heels of my websitehosting.com sale, I picked up another keyword domain – onlinestorage.com. The online backup / storage industry is red hot right now and I’ve been looking for a domain in this space for a couple of months. All the details of my research and thought processes are below.
What’s Out There?
When it comes to online backup or online storage there aren’t a lot of options out there. When evaluating domains I like to find something that gets at least 5,000 exact local searches per month to even consider it. This basically left the following domains:
backup.com – 110,000 searches – This domain is owned by Symantec and is obviously not for sale.
onlinebackup.com– 74,000 searches – This domain forwards to Iron Mountain and is obviously not for sale.
backupsoftware – 40,500 searches – EMC Owns this domain and is obviously not for sale.
backuponline.com – 9,900 searches – The guy who owns this domain doesn’t want to sell it (he is currently developing the site). I made him a very serious six figure offer, but he wouldn’t budge. Fair enough.
databackup.com – 8,100 searches – This guy wanted $1,000,000 for this domain – literally. Someday I’ll write a blog post about this alone, but now is not the appropriate time. Lets just say these guys are really really clueless (in just so many ways) and leave it at that.
NOTE: If you’re looking to get into the online affiliate marketing / SEO game, but don’t have a big budget, there are some other quality long tail keyword domains available in this space. These are all names I considered, but they fall below the 5,000 searches I like to see. This doesn’t mean that you can’t make good money with these domains. I just like to go after the big kills. Anyway, here are some names that are out there: offsitebackup.com, remotebackup.com, onlinebackupservices.com, and computerbackup.com just to name a few.
So with all the domains above off the table, this brings us to onlinestorage.com. It was literally the only domain in the space that gets more than 5,000 exact searches and was realistically available. It isn’t the homerun that onlinebackup.com would have been, but “online storage” does get searched a respectable 40,500 times per month. On top of that, the CPCs for “Online Storage” are $21.79 – totally sick! The affiliate programs are mostly inline with this too. There are several competitive affiliate programs in this space, many of which pay recurring revenue. To me recurring revenue is the holy mecca of the affiliate world since you can build a nice revenue stream and not have to worry about starting each month with a big fat goose egg.
I think this is another great domain name that will get a lot of attention. This is a pretty competitive affiliate space and it’s also competitive on the vendor side too. Someone is surely going to want to purchase this site in the months to come. If not, my projections for the site aren’t too bad either. With 40,500 searches and the CPAs we are looking at in this industry, I should have no problem clearing 5 figures a months with this site.
When it comes to getting a domain appraised it’s really hard to come up with a realistic value since everything is so subjective. So, I use a combination of 3 factors to come up with a value.
- I look at estibot.com. Now, before anyone laughs at me, I just use this as a point of reference. I never take a free appraisal service like this seriously. However, they use a formula of traffic x CPC that can be useful at times. Estibot has this domain valued at $55,000.
- I order an appraisal from a trusted manual domain appraisal service. I finally found someone I like, but again I don’t take this as gospel either. I just think it’s an important reality check number before spending mid five figures. This service appraised onlinestorage.com at $73,000
- I have several metrics that I use to evaluate the domain. This way I can be assured that even if I’m overpaying for the domain I can still make money with it. Once I reach number 1 for this domain, I figure my payback period for the domain to be less than 2 months. Since this space is less competitive than others I’ve looked at, I feel like I can have my money back in under one year.
What Did I Pay
I was able to pick this domain up for $40,000, which is $15,000 less than Estibot.com and $33,000 less than the appraisal service. To say the least, I think I got a really good deal on this domain and I’m happy with my purchase!
I’ve already purchased several other keyword domains, but I’m not ready to disclose those here yet. There are still several other domains in the verticals I’m looking at, so I will post about those once I’ve completed my research. I also need to continue my series on How To Build An Affiliate Website – this domain might be a good candidate for that.
In the mean time, my first objective is to get good quality content up on the site. I’ll be posting one article per day on Online Storage. If you’ve been reading this blog at all you know how much weight I put into content – this site is no different.