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Wasted Traffic
Are Domain Investors Stepping Over Dollars to Pick Up Pennies?
A recent domain sale caught my attention (credit to Ishmilly for bringing it to my attention).
First - congrats to Harvey!
Domain sales are great. As someone with small number of sales (albeit only in my first year of domain investing) I appreciate how rare they can be:
Sold after 20 years.. Glad to see it move out of inventory..
— HarveyKaplan (@HarveyKaplan)
12:22 AM • Nov 16, 2024
It’s a great return - call it $400 in renewal fees (conservative? They used to be expensive) and it’s still a 10x, and a 50% annualized return.
But this sale highlights an important thought I’ve had rolling around in my head, and it was a timely occurrence.
For two decades, this domain sat largely dormant. That's 20 years of renewal fees, 20 years of taking up head space, and most importantly - 20 years of wasted traffic.
Breaking Down the Numbers
Let's look at what that traffic could have been worth (data from keysearch.co)
- Monthly US searches for "pharmacy network": 110 (current, likely lower than historical)
- Cost per click (CPC): $2.70
- Total potential visits over 20 years: 26,400 (conservative)
- Potential click value: $71,280
Even with conservative estimates:
- Assuming 80% of potential traffic: 21,120 visits
- 30% conversion rate on clicks
- Total potential revenue: $17,107
That's right - the traffic alone could have paid for the domain purchase more than four times over!
This is a pattern I see more and more in domain investing
Buy a promising domain, park it on a for sale lander with zero monetization, wait for years for a sale (or drop the domain)
Meanwhile, valuable traffic goes to waste, month after month, year after year, or gets scooped up by other domains.
When we talk about domain investment costs, we often focus on renewal fees and purchase price. But the real cost might be the revenue we're not capturing. Consider:
- Annual renewal fees: ~$10-15
- Annual wasted traffic value (estimated in this case): ~$855
- That's a 57x difference!
This raises an important question: Are we approaching domain investing backwards? Instead of treating domains as purely appreciating assets, should we be viewing them as revenue-generating properties from day one?
The traditional parking model clearly isn't working or more people with domains like this would be doing it!
A Better Way Forward
At StakeWeb, we're addressing this exact problem. We help you turn your dormant domains into revenue-generating assets through:
- SEO optimization to capture organic traffic
- Sophisticated monetization strategies
- Authority building that increases domain value
- Passive income generation while you wait for the perfect buyer
The Bottom Line
The PharmacyNetwork case study teaches us an important lesson: The biggest cost in domain investing isn't what you're paying - it's what you're leaving on the table.
Don't let your domains sit idle. Every month of parked traffic is potential revenue slipping away. It's time to make your domains work for you, not just wait for a buyer.
Ready to stop wasting your domain traffic? Visit StakeWeb.com to learn how we can help you unlock the hidden value in your domain portfolio.