Domain Name Vertical Market Investments
Domain name verticals refer to a collection of related domain names that represent business sectors. A particular type of portfolio-building can be based on acquiring geodomains that cover unrelated niche industries: automotive, real estate, insurance, travel, legal … or related parts within a niche industry such as: real estate, homes, condos, apartments, rentals, properties, etc.
These verticals can be city-specific (DallasHotels), state-specific (TexasInsurance), or even country-specific (CanadaJobs). There is added value in possessing all of the major vertical domains within a particular domain extension.
Another type of monopoly (though often difficult to assemble) is to have a business-centric domain in all the top extensions. Major corporations do this routinely to protect their brand and to build on the appeal of each unique domain extension. As in: verizon.com, verizon.biz, verizon.us, verizon.net, verizon.co.uk. Acquiring top generic domains in multiple extensions is extremely difficult particularly for high value keywords (like “hotels”) since such keywords are so rare.
A strategy I adopted some time ago was to focus on a particular geodomain and to then acquire the vertical market domains (and related subsets) around that geodomain location. For example …
California.biz
CaliforniaAutos.biz- CaliforniaHotels.biz
- CaliforniaHomes.biz
- CaliforniaRealEstate.biz
- CaliforniaCondos.biz
- CaliforniaApartments.biz
- CaliforniaLoans.biz
- CaliforniaJobs.biz
- CaliforniaRestaurants.biz
Assembling all of the major verticals around a single locality is typically accomplished through drop-catch and direct purchases on the open market. On rare occasions, you may find a geo-specific vertical available via direct registration (if the city or locality is comparatively small). Major metro locations are rarely available for obvious reasons.
The advantage of securing vertical industries around a locality is that one has the opportunity to create a “brand network” with interconnected businesses and services aimed at the surrounding geographic community. The synergistic value of such geo verticals is far more than the sum of its parts.
From a development perspective, acquiring multiple verticals allows for gradual content building in small steps. One vertical can be short-term monetized while another undergoes development and launch.
From an investment perspective, high-quality domain verticals will retain value long-term which allows the investor to examine his or her options over a longer time horizon. Like most assets, the higher the quality of the initial investment, the greater the likelihood that the asset will appreciate in value and bring substantial return on investment.
