Comments on: Domain Portfolio Strategy Matrix http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/ Dominik's blog about domain names, web search, online marketing and economics. Mon, 30 Nov 2009 04:24:28 +0100 http://wordpress.org/?v=2.8.2 hourly 1 By: Comments on the .CM Landrush | Dominik Mueller http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4799 Comments on the .CM Landrush | Dominik Mueller Thu, 09 Jul 2009 14:02:36 +0000 http://www.dmueller.com/?p=612#comment-4799 [...] promote accurate pricing of domains, find solutions to put more useful content on parked domains, develop professional tools for domain valuation, portfolio analysis and risk reduction, promote the benefits of domain names to corporate buyers, and so forth. In short, domain investors [...] [...] promote accurate pricing of domains, find solutions to put more useful content on parked domains, develop professional tools for domain valuation, portfolio analysis and risk reduction, promote the benefits of domain names to corporate buyers, and so forth. In short, domain investors [...]

]]> By: Dominik Mueller http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4616 Dominik Mueller Sun, 07 Jun 2009 10:43:02 +0000 http://www.dmueller.com/?p=612#comment-4616 Chris, Thanks for your comment. You're right about traffic not being the sole factor of value for a domain name, but if you read my post again you will see that I did factor in the domain's "keyword value". That means even if a domain receives zero traffic but has a high keyword value it would still be in the upper right, which suggests to keep or sell the domain. Also, as I said in my post, this is no perfect tool. I have improved the Domain Portfolio Strategy Matrix since I made this post in December 2008, because I've analyzed a few portfolios on behalf of clients. The original matrix drafted above is more like food for thought. I think the development of professional models and tools could significantly improve the performance of domain portfolios and it would make the communication with non-domainers easier by introducing models investors from outside the domain industry will recognize (BCG matrix, etc.). So far, most domain investors have not used professional tools for the management of their portfolios. With my post I simply wanted to suggest one possible tool investors can revert to, but there are really many other tools out there that can be customized to be suitable for the management of domain names. Chris,

Thanks for your comment. You’re right about traffic not being the sole factor of value for a domain name, but if you read my post again you will see that I did factor in the domain’s “keyword value”. That means even if a domain receives zero traffic but has a high keyword value it would still be in the upper right, which suggests to keep or sell the domain.

Also, as I said in my post, this is no perfect tool. I have improved the Domain Portfolio Strategy Matrix since I made this post in December 2008, because I’ve analyzed a few portfolios on behalf of clients. The original matrix drafted above is more like food for thought.

I think the development of professional models and tools could significantly improve the performance of domain portfolios and it would make the communication with non-domainers easier by introducing models investors from outside the domain industry will recognize (BCG matrix, etc.). So far, most domain investors have not used professional tools for the management of their portfolios. With my post I simply wanted to suggest one possible tool investors can revert to, but there are really many other tools out there that can be customized to be suitable for the management of domain names.

]]> By: Chris Desouza http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4549 Chris Desouza Mon, 01 Jun 2009 01:48:04 +0000 http://www.dmueller.com/?p=612#comment-4549 Hey Dominik, You should be careful on the quality of advice you post on your site, especially that newbies may take them seriously. I am NOT bashing your data or analysis. It is useful, but incomplete. It must come with additional advice. The traffic score tangibles you discussed about, does not apply to domains across the board. 99% of my sales have nothing to do with traffic or quality score. If one owns a highly specific keyword whereby most algorithms cannot measure, your analysis is half measured when compared to a buyer who is willing to invest in a certain domain name. Hey Dominik,
You should be careful on the quality of advice you post on your site, especially that newbies may take them seriously. I am NOT bashing your data or analysis. It is useful, but incomplete. It must come with additional advice.

The traffic score tangibles you discussed about, does not apply to domains across the board. 99% of my sales have nothing to do with traffic or quality score. If one owns a highly specific keyword whereby most algorithms cannot measure, your analysis is half measured when compared to a buyer who is willing to invest in a certain domain name.

]]> By: Shabu Anower http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4500 Shabu Anower Mon, 25 May 2009 15:27:43 +0000 http://www.dmueller.com/?p=612#comment-4500 A deep analysis on portfolio management, it gives me some points to move on. Thanks. A deep analysis on portfolio management, it gives me some points to move on.

Thanks.

]]> By: Omar Aloyoun http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4160 Omar Aloyoun Thu, 08 Jan 2009 22:12:32 +0000 http://www.dmueller.com/?p=612#comment-4160 The BCG matrix is simple but very helpful for companies to evaluate their strategic business units (products) in terms of their market growth rate and relative market share. You have used the Traffic Score and keyword value, a well done implementation really. Despite many complex matrices that came after the BCG, but the BCG continued to dominate. This article should be set permanently as a reference & anchor for every domainer. You have also opened a path and basis of future development of a more accurate formulas that domainers can depend. I guess more brainstorming is required. The BCG matrix is simple but very helpful for companies to evaluate their strategic business units (products) in terms of their market growth rate and relative market share.
You have used the Traffic Score and keyword value, a well done implementation really.
Despite many complex matrices that came after the BCG, but the BCG continued to dominate.
This article should be set permanently as a reference & anchor for every domainer. You have also opened a path and basis of future development of a more accurate formulas that domainers can depend. I guess more brainstorming is required.

]]> By: B.K.saravanan http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4158 B.K.saravanan Wed, 07 Jan 2009 10:24:27 +0000 http://www.dmueller.com/?p=612#comment-4158 Nice post, Useful for portfolio owners to optimize their portfolio. quite a good tactical thinking and strategy idea to keep their portfolio live. It is true that having a small portfolio with quality domains is best compared to a big portfolio of non premium domains Especially generics. It requires a few years of experience to apply in domaining. Regards Nice post, Useful for portfolio owners to optimize their portfolio. quite a good tactical thinking and strategy idea to keep their portfolio live. It is true that having a small portfolio with quality domains is best compared to a big portfolio of non premium domains Especially generics. It requires a few years of experience to apply in domaining.

Regards

]]> By: Dominik Mueller http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4134 Dominik Mueller Tue, 16 Dec 2008 20:25:50 +0000 http://www.dmueller.com/?p=612#comment-4134 Morgan, Thanks for your comment and your question. Yes, the TS is a relative number for you to compare the domains within your portfolio. But you're right, it may be more intuitive to also multiply the visitor numbers by 12. In that case, however, one should then also put more weight on the generated revenue; the reason being that the cash flows should carry more weight than the actual traffic, in my opinion. Morgan,

Thanks for your comment and your question.

Yes, the TS is a relative number for you to compare the domains within your portfolio. But you’re right, it may be more intuitive to also multiply the visitor numbers by 12.

In that case, however, one should then also put more weight on the generated revenue; the reason being that the cash flows should carry more weight than the actual traffic, in my opinion.

]]> By: morgan http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4133 morgan Tue, 16 Dec 2008 19:32:05 +0000 http://www.dmueller.com/?p=612#comment-4133 this is helpful - i'm going to try and run my domains through this.. i'm finding one thing confusing though about your traffic score calculation.. it looks like you're normalizing the revenue for an entire year (multiplying monthly revenue by 12) and then weighting it. But you're still using the monthly traffic number. Shouldn't you have to multiply the traffic by 12 as well? Or is it that the TS is just a relative number anyway that can be used to compare one domain to another? hope my question makes some kind of sense :) this is helpful – i’m going to try and run my domains through this..

i’m finding one thing confusing though about your traffic score calculation.. it looks like you’re normalizing the revenue for an entire year (multiplying monthly revenue by 12) and then weighting it. But you’re still using the monthly traffic number. Shouldn’t you have to multiply the traffic by 12 as well? Or is it that the TS is just a relative number anyway that can be used to compare one domain to another?

hope my question makes some kind of sense :)

]]> By: Big Day In Domaining: Google Alerts Help Keep You Updated by Email http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4131 Big Day In Domaining: Google Alerts Help Keep You Updated by Email Tue, 16 Dec 2008 04:39:24 +0000 http://www.dmueller.com/?p=612#comment-4131 [...] Domain Portfolio Strategy Matrix | Dominik Mueller The DPS Matrix is a tool to evaluate your individual domain names and to derive from it strategies for your domain portfolio. Dominik Mueller’s Blog - http://www.dmueller.com/ [...] [...] Domain Portfolio Strategy Matrix | Dominik Mueller The DPS Matrix is a tool to evaluate your individual domain names and to derive from it strategies for your domain portfolio. Dominik Mueller’s Blog – http://www.dmueller.com/ [...]

]]> By: Dominik Mueller http://www.dmueller.com/2008/12/15/domain-names-domains/domain-portfolio-strategy-matrix/comment-page-1/#comment-4129 Dominik Mueller Mon, 15 Dec 2008 18:07:56 +0000 http://www.dmueller.com/?p=612#comment-4129 Thanks a lot for your comment, Rob! Thanks a lot for your comment, Rob!

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