A few days ago I closed on the biggest domain name purchase I’ve ever made. At the time of the transaction I ran the gauntlet of emotions: excitement, fear, pride, nervousness, vulnerability, happiness, and the list goes on… That’s because the purchase price, at $190,000, is enough to buy a nice house with. According to Domain Name Journal, this is the largest domain name purchase of the year. It doesn’t show up on their chart yet since it was a private domain name purchase, but I suspect it will after making this blog post. So, anyway you look at this, it was a major purchase!
Why Purchase This Domain?
websitehosting.com is a keyword domain for the search terms “Website Hosting” and “Web Site Hosting”. Additionally, it can capture several long tail search terms such as “Business Website Hosting” or “Dedicated Website Hosting”.
Of the two main keywords I’m trying to target with this site, “Website Hosting” gets searched 246,000 times per month and “Web Site Hosting” gets searched about 301,000 times per month. This means I have an audience of 547,000 searchers per month. At position 1 in google that will capture about 235,000 visitors per month to my site. At position 10 it would bring in about 16,410.
Web Hosting Pays High Commissions
Since I purchased the site last week I signed up for over 50 web hosting affiliate programs, all of which pay at least a $100 CPA. This means that each time someone signs up for a web hosting account via my site, I will make at least $100. These are some of the highest commissions in the entire affiliate industry. As my site starts to gain popularity I can also look forward to higher commissions as partners compete for my traffic.
High PPC Bids
According to Google’s keyword tool, the average bid for “website hosting”, or other variations, is $11. This means people are paying $11 for every click Google delivers. PPC (Pay Per Click) ad rates for web hosting are among the highest on the Internet. This coincides with the high CPAs web hosting companies are paying affiliates.
Unlike fad search terms, web hosting is going to be around for a long time to come. The Internet continues to grow and so does the number of people searching for web hosting. There will always be high competition to get customers and therefore I expect the CPAs to remain high for a long time to come.
Bringing It All Together
When taking into account the high CPAs in this market along with the high search volume, there is a big business opportunity here. If you use my Traffic And Revenue Estimator Tool you can get a good idea of the economics of this niche. By plugging in 547,000 searches, along with $125 CPA, and a conversion rate of .5%, you can get a sense of the true earnings potential here. I would obviously love to get to the number one position, but anything on the first page makes this a wise investment.
Why Post About It On This Blog?
In general, I’m a pretty private person and don’t like sharing a lot about my life, not to mention trade secrets. However, I’ve been taking a different approach with that lately via this blog and other media. I feel lucky to be one of the fortunate ones who managed to become successful at what they do. While there are some obvious risks to posting my insights, strategies, and results – I believe in giving back to the industry that helped me become who I am today. I hope to “pay it forward” by helping others become successful via this blog. I know the affiliate business is insanely competitive, but the reality is there is plenty to go around.
I estimate that it will be a 12-18 month journey to take websitehosting.com from a barebones domain name to a site that ranks in the top 10 for the search term “website hosting”. I plan on documenting my strategy and progress via this blog (every single step of the way). Hopefully, it will help my readers start affiliate sites of their own and realize the wonders of online affiliate marketing.
When I purchased websitehosting.com, it was just the domain name with no content. I’ve already been posting news articles and working on a great design. I’ll make a separate blog post later this week documenting exactly what I plan on doing with the site in the first 60 days.