The Market Value Of Websites And Ecommerce Continues To Defy The GFC

Share Article

The major website and ecommerce agents are reporting very strong numbers in their marketplace as the world desperately seeks some good economic news, David Twigg of OMC says a large part of establishing their value is identifying the strength of their competitive advantage.

Online Marketing Grows
Website Conversion strategies can make or break an ecommerce site, understanding the behaviour of their avatar(ideal customer) can allow a much more aggressive traffic campaign.

The market for selling ready made websites and domain names continues to buck all economic trends. The GFC and worldwide recession does not seem to have hindered this market, Sedo's top 4 domain sales in Q1 of 2012 include kboing.com at $150,000, sol.com at 98,000EUR, channel.com for $125,000 and end.com at $100,000. In DN Journal's report of top 2011 domain name sales, Social.com at $2.6million was the highest price achieved followed by DomainName.com at $1million, Dudu.com at $1million, Atkien.de(stocks in German) at $725,000 and VU.com at $700,000. Flippa hit the headlines in August 2011 when it sold a portal website for $750,000 and regularly sells operating websites for 6 figures.

"Ecommerce and Lead Generation can offer equal value in terms of domains and websites" says David Twigg of OMC, because a high quality lead generator just like a top salesman is worth it's weight in gold. Unless a very unique product is being sold,an ecommerce website will likely be establishing value through creating a brand which may or may not include the product name or a generic keyword in it's domain name."

Generally a substantial factor in the value of any business including websites is the competitive advantage gained by the entity.Regarding ecommerce website sales Twigg says, "It is unlikely the competitive advantage will be in it's retailing though there is certainly an edge to be had there, it may well be in stealing a march through it's marketing. Such a competitive advantage can be gained by IP gleaned from a Google advertising campaign(where traffic and top quality analytical judgements have mined a very strong ppc strategy) or an extremely effective SEO campaign or most likely of all from a great conversion strategy."

Website Conversion strategies can make or break an ecommerce site, understanding the behaviour of their avatar(ideal customer) can allow a much more aggressive traffic campaign. This tends to take time and a lot of fine tuning but in the end all marketing is about is trying to tune into your avatar's problems and desires and then offering them solutions. "Mainstream offline marketing has been doing this very expensively through focus groups or taking a flyer for years whereas a strong A/B split testing strategy can turn a website into a lethal marketing weapon on a crash course to generate leads and sales", says Twigg.

It is unlikely that the next wave of billionaires will be running ecommerce businesses because of the transparency of the internet and the low barriers to entry but the next 10 years will see the ecommerce and lead generation winners generate vast profits.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Visit website