Gerard Doyle, CEO at DiscountVouchers, explains why it is important to get the perfect domain name for your business
(PRBuzz.com) February 27, 2012 -- Every business in the UK wanting to do business online needs to register a domain name at some point and almost all of them will frustratingly discover that the domain they would have liked has already been claimed.
It is hugely irritating for the aspiring entrepreneur, but made even worse when the person who owns that domain is not even using it. Domain names are a valuable business commodity. A domain can be likened to real estate; it is limited in supply and as the population of online business increases, so does the value of the domain.
While the variation of domain names is almost infinite, it is only the "premium'" domains that go up in value. For example, Books.co.uk will continue to increase in value while ez-books-1234.co.uk will rise much more slowly (if at all).
The disappointing reality normally strikes when our new business owner excitedly offers to buy a domain only to be presented with a five or six figure price tag. This leaves our entrepreneur with two options:
Buy the premium domain; or
Register a new domain that has no meaning but one they hope to build a brand around.
Thousands of hugely successful businesses have been created around non-topic specific domains names. Just think of Google, Yahoo, Amazon, Groupon - to name a few.
The clever entrepreneur will now be considering who is investing in premium domain names and questioning how they identify future trends.
Take the DiscountVouchers.co.uk domain name as an example. This domain is considered premium because it only consists of two words that both exactly describe the product found on the website. Founders of the company knew that DiscountVouchers.co.uk would make the website's goals instantly understandable to anybody who saw it.
Capitalising on a strong SEO background, meant we knew that the business would gain a competitive advantage in Google due to the "exact match" between the domain name keywords and the popular Google search phrase "Discount Vouchers".
In just over two years of trading, DiscountVouchers.co.uk has broken through the six million subscriber barrier with more than 150,000 unique daily visitors. The number of subscribers has doubled in just nine months and is growing at the rate of around 10,000 registered new customers per day.
There really are only two ways to go if you want to build a large online business. You can get the perfect match domain name like DiscountVouchers.co.uk or you can invest millions building up a brand like Groupon.
And true to that point DiscountVouchers.co.uk is the #1 website for that phrase in Google.
Andreas Voniatis owner of the SEO Agency AlchemyV, has been fortunate enough to sell domains during the domain name "land rush" for a massive return on investment.
"I'd purchased a bingo related domain name that I really liked the sound. I built a small website and was then approached by a large gaming company looking for a new UK brand. I decided to ask for my dream price and I was shocked when they settled for a five figure sum. A fantastic return on the £7 domain purchased only two years earlier," says Andreas.
Greg Platz is the CEO of Fabulous.com, a public company in Australia, and one of the largest professional domain name companies in the world. "Domain names are big business and major brands know the value of the right domain name," he says. Fabulous.com now hosts and monitors more than 5 million domains, as well as a huge resale website fabulousdomains.com.
However, having the right domain name is not the only key to a highly profitable business. The success of DiscountVouchers has evolved through turning a premium domain into a leading business.
Gerard Doyle is CEO at DiscountVouchers.co.uk, the UK's fastest growing voucher code website.
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