As many people are aware, google advertisements (the little sponsored ads you see on the right side side when you do a search in the google search engines) are usually very effective in targeting high quality visitors to your website. Let’s say you are starting a new online business, selling custom t-shirts. You set up your website, your shopping cart is ready, and now all you need is customers. You decide to invest in a google ad campaign to target potential t-shirt buyers to your website. Once you set up your google campaign along with the relevant keywords, your set to go. The way that google ads work is simple: the more you decide to pay per click, the higher you will be along with your competition. Paying 50 cents per ad may get you on the top of the first page of search engine results, where paying 25 cents per click may get you on the bottom of the second page. For many people, this may work out well for them and may walk away with a healthy profit. For others, the cost of their ads may outweigh their profits and put them in the hole. It’s all trial ad error, trying different ad campaigns and various bid amounts to see what works and what doesn’t.
Let’s look at the larger picture. Say you are generating a decent profit, but in order to do so, you are spending $2000 on google per per click ads. That’s $24,000 per year. If you are walking away with a healthy profit, it may well be worth it for you. But is there a better way? What if you were to buy a domain name related to your business that gets a great amount of natural traffic (people are typing in this particular domain searching for your product). What if you had the opportunity to buy a domain like CustomTshirts.com or TshirtPrinting.com for $20,000. Pretty steep for a domain, right? Wrong. Absolutely wrong. If such a name is getting a decent amount of web traffic (buyers looking for what your are selling or promoting, then it may be a great deal. You could either develop the name itself for your business (very specific) or you can forward the domain so that people that automatically type in this name end up on our website. Let’s do some basic math. You get a great deal on a high quality, targeted traffic domain for $20,000 USD. You use the name for 2 years, make approximately the same amount of profit you were generating with the google pay per click ads. But now you decided you want out of the business. If you strictly advertised on google, you would have spent $48,000 in click ads. If you would have purchased the domain, you would spent $20,000. That’s a $28,000 saving. But wait, there’s more. If you are getting out of the business, you may also want to sell the domain, since you will no longer have any need for it. Keep in mind, you got a decent deal when you bought it, and now it is 2 years later (the price has dramatically gone up, it is now worth $40,000. You manage to sell the domain for $40,000. WOW! You built a business, generated free advertising, and generated a profit from your advertising expenses. Very smart move. As you can see, this is the ultimate scenario. Keep in mind, google ads are great and effective for many people. But in certain instances, you may be better off investing in a great domain which will ultimately benefit you in more ways than one!
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