Domain Leasing, Joint Venture or Co-Development
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PostPosted: Wed Mar 13, 2013 10:48 am 

Joined: Tue Mar 05, 2013 10:58 am
Posts: 33
Well, I couldn't really come up with a title to cover this speculative post, so apologies if you do not like it, but I hope you will consider the post having been worth reading by the time you get to the end. :arrow:

Web enterprises are just basically like enterprises in the bricks and mortar world. So that got me thinking how at the moment does the web not mirror the bricks and mortar world? Where better to discuss an idea than on here, an innovative forum about website businesses.

One very significant way that as yet that the business of websites is the lack of 'sponsorship' of them by major businesses and corporations. Obviously advertising on TV and radio occurs for programs and even stations, and many who advertise on those media already advertise heavily on the web. But how often have you come across a website that has been 'sponsored' by a major entity? My guess is rarely if ever.

Now given that 'sponsorship' is inherently different to the good old basic advertising, where an advertising slot is bought and paid for and may go up against a competitor business or product in a very short space of time on the same website (whether ads are placed by a third party such as Google or placed with the website owner directly). Sponsorship is different, it allows the sponsor certain 'advantages', so whereas with conventional advertising a confusing message can be given to the website visitor, 'sponsorship' would negate this. One major drawback in regualr advertising is that the appearance of conflicting adverts will dissipate the ROI from each ad for each advertiser. Of course the website owner will not mind as long as they are getting paid, after all that is exactly why most websites are built, to earn revenue. It takes a lot of time and money to build, operate, and maintain a good website, so the rewards from advertising are well deserved.

But just imagine if, and that is a big 'IF', instead of the website running just adverts it also became sponsored. Of course the Sponsor would rightly expect exclusivity of their product or service, i.e. no competitors allowed to advertise on the website, so there would be an immediate advantage for the 'Sponsor'. But what about the website owner? Well obviously the sponsorship would be negotiated for a set time, the sponsorship of a developed site would be more than the same business or company would expect to pay for just advertising, and having an almost guaranteed income would allow the website owner to better plan future development. I think this would to many website owners be preferable to relying on click-throughs and 'adjusted' payments from third party intermediaries.

Now let us take this a step further, what happens if a domain name owner and/or a website developer could entice a company not only to sponsor the developed site but also to sponsor it at an early stage of development, almost as if the prospective sponsor was acting as a venture capitalist? Now a long term benefit could acrue to the sponsor (i.e. much reduced costs in their advertising/sponsorship) and for the domain name owner and/or website developer the costs of the development could be met at least in part by accepting such an early stage sponsor.

There are obviously draw backs and risks for both sides of course. For the sponsor of course the major drawback would be if the developed website turned out to be unpopular and therefore they would receive a low ROI from sponsorship. For the domainowner/website developer of course they would have to consult with the Sponsor over development and take into account, at least to some degree, the wishes of the sponsor. Also of course for the domain owner/website developer it would mean a reduced income revenue from the developed site, at least for a specific pre-determined period, and they may find themselves having to turn down high paying advertising from a competitor of the sponsor.

As with all things there are swings and roundabouts, but this is something I see will happen in the very near future, after all how long have certain television and radio programs been 'sponsored'? If it worked for television and radio then there is no doubt it will work for websites, after all sponsorship is just another form of advertising and marketing.

Would love to get feedback on this and for people to develop the idea, both pros and cons.

PostPosted: Wed Mar 13, 2013 11:18 am 
Site Admin

Joined: Wed Feb 27, 2013 12:47 pm
Posts: 28
Location: Langley
Interesting idea Bill. It may be an area we can explore when talking to end users.

And just think

You'd never have to worry about the website hitting the evening news for DUI charges or getting caught having an affair. :o

It's a marketers dream....

PostPosted: Sun Mar 24, 2013 8:38 am 

Joined: Tue Mar 05, 2013 10:58 am
Posts: 33
It was just seeing where this could all lead to. It is not just domain leasing or JV a website after all those are the relatively easy things to do. What is harder is actually identifying a new source of revenue and bringing that into the equation, or more to the point getting the money from it.

I think it may well be that some marketeers and businesses would love the opportunity. Imagaine if a soft drinks company or a car manufacturer had sponsored one of todays top 1000 sites in their infancy, the shareholders of both would be jumping up and down and throwing parties every night - the website owners/developers would have had the financial imputus at the beginning when needed, and just think about the sponsoring company, they would have market saturation on the web at much less cost and more importantly keep their competitors off the site.

I think it is an area whereby tv and radio have scored for decades, now it is up to the website owners and developers to tap this huge form of monetization.

PostPosted: Tue Mar 26, 2013 10:48 pm 

Joined: Mon Mar 25, 2013 3:29 pm
Posts: 4
I think it can be easy if you have a brandable domain. I posted here that I own a domain www.bambooblinds.co
Now this site has been developed and is ranking for many of its target keywords but the idea that you posed about getting companies to pay for development of the site may be easier than you think if angled correct.

So using bambooblinds.co I used the keyword bamboo blinds and search linkedin for several related groups , then joined and them message the business owners in the groups ...Not Spam, but message those ppl explaining that you are developing the site and send an ad sheet to try and sell advertising before the site is set up.

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