Internet Business Guide

After years of increasing PPC (Pay Per Click) prices we learned in the fourth quarter of 2008 that “what goes up may come down”. The Keyword Bid Index© prepared by Internet Business Guide reported its first quarterly decline. Although a modest 2.03% decline from the third quarter of 2008 ($2.54 to $2.49) the total volume of searches for the 7500 keywords tracked increased by 12.5%; from 1.7B to 1.9B searches.

This trend may not bode well for domain name speculators; and we may see an end to the 20% increase in valuations achieved during the first half of 2008. (read Domain Names As An Asset Class) The domain name aftermarket is based on cash flow. Although Passive Income domains, ones which generate pure PPC income, sell for higher multiples (a range from 4 to 10 multiple) if income is down then the purchase price will come down. Add to this that portfolio domain name investors rely on the passive income to support their annual domain name registration fees. Meaning that 2009 will very likely be a Buyer’s Market! If you have some cash set aside for Internet Business Opportunities my advice is to set aside 10% to 20% of your reserve to take advantage of “fire sales” from domain name portfolios. They will be selling to raise capital to pay their annual registration fees.

To receive updates to the Keyword Bid Index© remember to subscribe to the Internet Business Guide. If you pay for keywords, or receive PPC income you will want to know the hot, and not so hot, categories.