Hot on the heels of my recent post about the $125,000 sale of investmentproperty.com.au I thought I’d put together some more sales results of Australian domain names that relate to the finance industry.
It may surprise some of you to learn that most of these names have NOT been purchased by insurance companies or large advice firms.
Instead, many of them have been purchased by internet marketers and ‘domainers’ who develop these sites with the aim of generating leads for other financial professionals.
This has proven very lucrative for some internet marketers, many of whom simply work from home with a laptop, an internet connection, and the balls to spend big on domain names knowing that the returns can be even bigger.
$19,000 – HealthInsurer.com.au
$16,223 – PetInsurance.com.au
$15,001 – CreditCard.net.au
$15,000 – Claims.com.au
$12,500 – CreditReport.com.au
$12,001 – LifeInsuranceComparison.com.au
$7,900 – Insurance.net.au
$5,152 – FuneralInsurance.net.au
$3,106 – IncomeProtectionAustralia.net.au
$3,001 – LifeInsuranceComparisons.com.au
$2,050 – LifeInsurancePlans.com.au
Some of those figures are quite impressive, but keep in mind that most of the domains listed above are not premium domains.
Why not? First of all many of them are the ‘.net.au’ version instead of the more commonly used ‘.com.au’ version. Industry research suggests that a .net.au version may be worth as little as 10% of the value of the more fancied .com.au version.
The reason for this is simple. If you went out and marketed funeralinsurance.net.au all over the local radio and billboards, what do you think most people would type into their computer? That’s right, they’d type in funeralinsurance.com.au!
Another reason for many of the domains listed above not being premium name is due to the addition of third words, such as LifeInsuranceComparison.com.au and IncomeProtectionAustralia.net.au.
Even the highest valued domain on the list isn’t quite premium, since it uses the less commonly used term HealthInsurer.com.au. If it was HealthInsurance.com.au you could probably increase the value by a factor of ten.
So why are these domains so valuable?
In the case of PetInsurance.com.au and CreditReport.com.au these are what are known as ‘category killer’ domains. A bit like RealEstate.com.au is the category killer in the real estate industry.
For the rest of the domains, perhaps with the exception of claims.com.au, the reason for their value is due to Google’s love of domain names that match the users exact search term.
For example, if a user searches Google for “life insurance comparison”, the website at LifeInsuranceComparison.com.au is going to have a huge advantage in the rankings over other websites that don’t have those words in the domain name.
Furthmore, a user is more likely to click on one of the search results that contain their search term in the domain name, as they can be quite certain that that website will contain the information they are looking for.
So what can advisers do about this?
For starters, I recommend you start grabbing some domain names for yourself!
Sure some of the names aren’t cheap, but if you picked up LifeInsuranceComparisons.com.au for $3,001, how many cases would you have to write to cover your investment? Makes sense doesn’t it…?
The sales results I’ve used in this post have come from Netfleet and Drop, two Australian companies that specialise in auctioning domain names. If you have a spare moment, it may be worth your time checking out both sites and seeing what’s available.