One of the most common mistakes I see among domain investors who are just starting out, as well as small and medium size businesses trying to use the Google Adwords Keyword Tool (GAKT) to better understand keyword values is that they mistake BROAD SEARCH for EXACT MATCH SEARCH volume. There is a huge difference! Let me explain…
As many people know, I have been a firm believer in a data driven approach to domain name valuation. One of the most important factors in assigning a value to a domain name is the search volume (according to the GAKT). Think of this as your total potential market. If you broker domain names (as we do), then you might be interested in the reaching all those people who search Google each month for keywords related to being a domain name broker, such as: domain name broker, domain broker, broker for domain names, how to sell domain names, etc…
In order to figure out which of those strings is most valuable to you, you need to know just how many people are searching for each of those exact strings of words; and to do that, you need the GAKT. But once you are in there, then what?
Every day someone emails me with some odd string of keywords that they have created a domain name from such as: WhereIsPanamaLocated.com. They mistake the broad search for the exact search and they think that their latest hand registration domain name is a gold mine!
The biggest mistake people make is they forget to go over to the left hand column in the GAKT and uncheck BROAD (which is selected by default) and instead select “EXACT”. The “exact match search volume” of a given keyword is the only, or at least by far most important, of the search metrics associated with determining the value of your domain name.
Remember, however, that search volume is not the end all for domain value, it’s only a single factor among many and just because your domain has high search volume doesn’t mean that your domain is worth a lot of money!
A great recent example is that of: ImSexyAndIKnowItLyrics.com
A client brought this domain to me and told me that it has 1.2 million exact match searches per month. I first told him that he must have made a mistake; but sure enough, upon verifying for myself, he was correct (I guess I need to catch up on what’s the hottest reggaeton music today). However, despite the impressive search volume, what stops this domain from being worth tens or even hundreds of thousands of dollars (considering the potential traffic of being ranked # 1 for this term would be probably 300,000 – 400,000 visitors per month not counting repeat traffic) is that it has little or no commercial value and it’s a “trend” domain. When that song is no longer popular, the search will drop like a rock and so will the value of the domain and traffic to your site.
Again, market knowledge and value assessment is one of the greatest values that a professional domain name broker can provide to a domain owner or to a client who wishes to acquire a domain name in the aftermarket. If you have any questions about how to value your domain name or the domain name you wish to acquire, please don’t hesitate to contact us.