Many of our City domain names that are for sale are smaller markets. I am often asked if it makes sense financially to purchase a small market City domain, and how it can be monetized successfully. I am here to illustrate that these names are incredible opportunities, and we will show how a potential investment in a City site compares to any other financial opportunity you may be considering; the stock market, day trading, franchising, home flipping….you name it, this case study will beat them all!
For our case study, I am going to use a small city here in Arizona, Fountain Hills. With just over 22,000 in population, FountainHills.com is an excellent example of a financially thriving business model that can be duplicated over and over again in your hometown. Please digest the return on the actual Case Study, and decide for yourself.
At a domain conference in San Francisco in 2007, there was an auction that had over 275 domain names for sale; FountainHills.com was one of them. Fountain Hills is a city right next to Scottsdale, and I was able to purchase FountainHills.com for $14,000. Now, I had the benefit of using the same platform that powered my Scottsdale.com website; and I know many of you considering a City purchase do not have that capability. So, in order to properly and fairly proceed with this Case Study, let’s assume you paid $14,000 for the City domain name, and also spent another $10,000 to a local programmer to develop a suitable platform. At launch, you have $24,000 invested.
Fountain Hills is a beautiful community with numerous high end public golf courses; a number of hotels and a casino on the adjacent Indian Reservation. Real Estate ranges from condos and apartments to a large inventory of multi-million dollar homes.
We were able to secure, with minimal effort, 1 hotel client, and 3 golf course clients, that generated $48,000 per year in revenue. Honestly, if it were not for other priorities, this could have been a much greater success story, as the Casino and a couple large real estate residential companies would have made excellent clients; and most likely doubled or income and more into six figures.
Even with $48,000 in revenue, the worth of FountainHills.com now became $200,000 to $250,000, as a new potential buyer would now have a “business”, and not just a domain name. A “business” that is returning an immediate 20-25% return on investment; with a much greater potential to double and even triple revenue and worth.
The skill set needed to manage a small City domain brand? Basic computer skills; the ability to post content and ads through an easy to use CMS (Content Management System) designed for non-programmers to use; the ability to promote the City via social media, at a minimum Facebook and Twitter; some writing abilities in order to generate local content; and the ability to engage local business for advertising clients.
While there is much more information and analytics available to explore the opportunities, this basic Case Study happens time and time again every day in the domain industry. But the bottom line is this: within a very short period of time, and working on a part time basis….you have taken a $24,000 investment and turned it into a $200,000 PLUS asset!
This can be done with each and every City brand, regardless of price. The larger the City, the greater the potential, but even the small cities qualify for this type of success as illustrated by this Case Study.
For questions, please do not hesitate to email Fred@GeocentricMedia.com.