Communicate.com’s latest earnings report shows that the company is banking on the long term value of developing its domains.
Communication.com (OTCBB: CMNN.ob) announced its latest quarterly earnings. The company went into the red for Q1, compared with a profit of $133k in the same quarter a year earlier. But investors need not panic. Communication.com President David Jeffs said:
We made some planned changes in Q1 that have adversely affected our near-term results, such as taking Brazil.com and Body.com, which were two of our most profitable pay-per-click sites, off the ad network to develop them into eCommerce sales sites. This is part of our overall business strategy and should help us achieve long-term growth with profitability. Rather than forwarding our valuable, targeted natural traffic to other companies for a one-time referral fee, we strongly believe that it is much more beneficial to maintain ownership of as many visitors to our network as possible, and nurture them into repeat clients at our growing selection of eCommerce sites.
Jeffs is saying that he feels it’s worth it to sacrifice some of today’s PPC income to make the company’s domains more valuable as developed properties. Consider that Communicate.com’s customer lists are 3x the size of just a year ago. Internet marketers frequently say “it’s all about the list.” The same applies here. Communication.com can use its customer base at sites like Perfume.com to drive repeat business and business at its other e-tail sites. The company own’s Brazil.com, which no doubt earned significant PPC revenue, but can you imagine what this domain will be as a full-fledge travel site?
Individual domainers need to look in the mirror and decide it it’s worth sacrificing a dollar today for a shot at a hundred dollars a few years from now.