Investing in Cannabis Web Domains
Domain investing in general has a lot of gray logic around it that can be hard to decipher but the appeal of capitalizing on virtual real estate has evolved from a select few to a full blown industry.
I’ve bought premium domains at auction and from brokers and the loose appraisal process I don’t even listen to anymore.
Here is an IMPORTANT TIP: Every domain is worth the highest amount you can sell it for!
There are brokers reading this shaking their heads about asset investments they had to liquidate for a fraction of what they paid for it, however those same investors maybe about to comment about a huge score because it does happen and often for those who pay attention.
Investing in cannabis domains for me was a long term play for the most part as I jumped on several geographically target domains early in the legalization process. The reason I continue to invest besides the quick ROI is because this industry is heading towards a Tipping Point (read the book).
The cannabis industry now covers the majority of the states in either recreational or medicinal and this is no longer a trend. The tipping point is near and you better believe this is headed towards federal regulation in the next 4 years. Laws pass, acceptance rises, new advocates emerge, new companies follow and this creates a frenzy of folks grabbing for market share.
As of now the Big Box advertisers are not playing nice with cannabis companies so SEO and exact match domains can quickly gain a lead in the right hands.
This is an example of an exact match geo targeted domain. It’s a dot COM but longer than most brokers would want to mess with. I make the majority of sales in places others don’t want to be. Further investigation…this keyword phrase has BUYERS INTENT. If you can rank it (and you can) the leads are immediately worth more to someone who actually cares about the traffic it generates. Fresno is also a BIG rec market.
EARLY ENTRY is important. I bought thousands of domains in the industry that I truly enjoy because I know more about selling leads than domains and this industry is and will continue to be competitive.
The first site I sold to a dispensary (actually 3) gave me a hard NO the first time I emailed them about it. 2 months go buy and they call to buy all 3 domains (which were very similar), asked me to rank and manage them and I still send them the majority of their web traffic with an average purchase of about $80 and with customer loyalty a key to their brand it became a no brainer.
That site is listed @ $19/month for 72 months or 1k flat and comes with a lot of other help. If you ranked and rented that to a dispensary for even $100/month you could send them 3 leads a month and them be ROI positive. Not to mention you are WAY ROI positive.
Oh and if you want a bigger pay day just sell it to the dispensary renting it…they will buy it.
I’ve also ran several sites for SEO companies that wanted to impress their clients that they charged a premium to and still everyone was making money.
DON’T go buy a bunch of random domains especially if you are new to this.
My first recommendation is to follow a similar model to the one we just talked about and I can help but big brand domains and affiliate domains are really heating up as well.
You can check out some of my top earning affiliate programs on the resources page but the next article will go into depth on why this is a NOW market!