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  1. #1
    Join Date
    Aug 2002
    Location
    South East London
    Posts
    454

    Google and Overture

    Have any of you tryed advertising on either of these sites. A search for "domain registration" show domain registrars biding $5 a click!

    Even Go Daddy is paying $4.81 a click! Is it just me or is this mad?

    Proberly around 5% of users that visit the sites buy, so are they advertising at a loss?

  2. #2
    Join Date
    Jun 2002
    Posts
    1,060
    Yes, you are completely right. This is a crazy world!

  3. #3
    Join Date
    Sep 2002
    Location
    Phoenix area
    Posts
    1,121
    We tried google's adwords but didn't have much success. anything that was within our budget for that got cancelled every time due to their click percentage rules. Even with a decent conversion rate at your site, you'd have to have a pretty big markup to justify a couple of bucks per click. When we tried a good, targeted campaign that would get more people, they charged more and it defeated the purpose.

    It may work for some people, but we didn't have much success with it.
    Learn survival/prepper information from a combat veteran at Graywolf Survival

  4. #4
    What makes these work is if you calculate the cost of customer acquisition - and you know what your average customer brings in over time. If you are trying to justify the cost of addwords on a per sale basis, you cannot. You better be planning on significant profits per customer over time.

    -t
    myOstrich Internet - OpenSRS Domain Names & Digital Certificates
    http://www.myostrich.net

  5. #5
    Join Date
    Aug 2002
    Location
    South East London
    Posts
    454
    The thing I dont understand is why companies like Go Daddy and Registerfly.com are paying such a large amount... I just dont understand what their marketing stratergy is behind this.

    Both of these companies are low-cost registrars which make a very low amount per domain sale, they must be counting on customers registering several domains to make up for their huge loss on getting to their web site.

  6. #6
    Join Date
    Nov 2001
    Location
    USA
    Posts
    315
    Both of these companies are low-cost registrars which make a very low amount per domain sale, they must be counting on customers registering several domains to make up for their huge loss on getting to their web site.
    No, I think their strategy now is to maintain the leadership and increase their brand awareness. Within 2 years they have become the top registrar in new registrations by offering the lowest possible price (great account management features too). If they think they can make profit by mainting the number of registrations then they are not worried about $4 per click, though it may not be reasonable. Most other direct marketing methods cost a lot more.

    They make very little profit, if any but at the same time they are leading in new registrations by offering the lowest possible prices. Regardless, of whether or not they make any profit, you and I and every other customer wants to pay the lowest possible price. So, as long as they keep up the number of registrations and maintain their brand, they are doing ok in one regrad. Are they making profit? Will they continue to make profit by doing this? I don't know - that's another story. Depends on their expenses and management but whatever the case may be, they have to sell loads of domains. Wal-Mart makes profit by selling merchandise for the lowest possible price but at the same time they have the most sophisticated inventory and price management systems. They make profit on volume.

  7. #7
    Join Date
    Sep 2002
    Location
    Phoenix area
    Posts
    1,121
    si, branding good. If you had a 1 percent conversion at google, you might be giving away all your profits for that amount, but you'd have 99 percent that would also see your product, and it would become ingrained in their mind. When they think of 'this' they think of you.
    Learn survival/prepper information from a combat veteran at Graywolf Survival

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