Recently I followed a thread on Elliots Blog about which domains to invest in or rather not to invest into, finally the participants, including the Costelo brothers agreed that only domains with direct navigation are worth buying and keeping, otherwise you immediately have negative cashflow. So far so good, but I disagree, first because the past is the past and the future is the future and its all about predictions and its especially hard to predict into the future. Say you are buying a domain, whatever it might at 7 years revenue, the assumption we make today is that traffic is growing and that prices and effectivnes of advertising is rising: Now I am not sure about this, I have been in the advertising industry for almost 15 years and I have seen advertising prices only going in one direction: downwards. My assumption is that with more websites and more smartphones and so on, prices will drop, no matter how great your domain and your keyword might be. In the long run advertising for a keyword will become cheaper because more publishers will focus on it. In this case the evaluation of this domain goes from 7 year revenues to 12 and 20… and it is loosing value. So besides following the crowd and yes buying traffic domains, I buy lots of great sounding generic names in many ccTLD´s that eventually don’t have any traffic and if I look at my recent deals these have been the best deals I made. If the buyer is in a specific branch and he wants a great name he will go for a generic name, even the name is not a keyword, its great to remember and sounds important, and depending on the niche, there will only be 3 or 4 names he can choose from.

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