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Interesting Digg Monetization Strategy

While “domaining” (usually buying up domains, putting up CPC ads then selling them from what I understand) isn’t a business model I would want to get into, Ahmed at TechSoapBox thinks this is one way Digg traffic can be immediately monetized

  • Domain registered on Feburary 14, 2007 to Kavi Siegel (cvxdes)
  • Website and content put up that very same day.
  • Domain gets dugg that same day also.
  • Three days later, domain/site gets sold for $500

The really interesting thing about this is because of domain tasting (ie you can get a full refund minus 25 cents on any domain within 5 days) our friend Kavi would have been out only 25 cents (plus some of his time).

For me the value is artificially inflated. Yes, there will be inbound links generated, but the hit report will look a lot healthier than it in fact is and only a very honest broker will own up to the fact. Another reason to buy based on actual income or very carefully determined income potential.

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Comments

  1. I am guessing the reason for this is that many people still do not understand the way the online world works and think blogs are an exception to most rules that apply in the offline world. If the above trend of selling domains quickly after being dugg continues, people will start abusing such rating systems like Dugg or Netscape in order to sell recently registered sites again and again.

    Like you said, just because something is popular today at this very moment does not mean it will be popular over longer periods of time in the future. The value of a blog depends on how much value it brings to readers and the blog owners over longer and stable periods of time.

  2. I am guessing the reason for this is that many people still do not understand the way the online world works and think blogs are an exception to most rules that apply in the offline world. If the above trend of selling domains quickly after being dugg continues, people will start abusing such rating systems like Dugg or Netscape in order to sell recently registered sites again and again.

    Like you said, just because something is popular today at this very moment does not mean it will be popular over longer periods of time in the future. The value of a blog depends on how much value it brings to readers and the blog owners over longer and stable periods of time.

  3. Yup, hopefully buyers will quickly catch on to that … hopefully …

  4. Yup, hopefully buyers will quickly catch on to that … hopefully …