Keyword as domain- worth buying it?

[WillWatrous]

Hi,

I just noticed that a top keyword for our industry is available as a domain, but for around $2,500.00 USD.

For example, www.chicagoplumber.com. If we already have a pretty well established online identity as, let's say,  www.chicagopipes.com, would it be worth buying the new domain and making it our primary?

Thanks for your feedback!

-Will

[MRCSearch]

Moving to a new domain means new link building. You can 301 all you want but it's just not the same. Close, but it's never feels as pure as your first.

I'd business-case it. Will the keyword-as-domain give you some ranking power? Probably. Will the boost be worth the $2500? Well...maybe. Also take into consideration what happens if someone else snatches that domain up. Then $2500 might not look so bad when faced with a competitor with a new full tank of SEO gas.

[SteveGerencser]

Russ Jones published a great formula for calculating the value of exact match domains a few weeks ago

http://www.virante.com/blog/2012/01/25/calculating-the-potential-value-of-an-exact-match-domain/

The formula went like this -

x = number of searches per month

y = expected conversion rate

z = profit per conversion

c = cost per month to run the site - include marketing/hosting etc

m = number of months you are willing to wait to turn a profit

.35 = estimated number of clicks for ranking #1 (35%)

The formula turns out like this -

((xyz*.35) - c )m

I put it in excel and then play with the numbers to get a range for a valid price. I like his formula better than the one we used for a long time.

[jpgprinting]

Nice stuff Steve! Just tried and works good! Thank you for sharing.

[AlanMosley]

Nick have given a good answer.
Remember exact match domains only help you for that keyword and are beatable.
in my experience, exact match advantage is big, in a non competitive neighbourhood but when you have a high competitive neighbourhood, that advantage is not so great.
If you had 10 dollars and I had 5, you would be much better of then me, but if I had 1 million and you had 1 million and 5, then that extra 5 is not such a big deal