CircuitCity.com is back after Systemax purchased the brand and domain at bankruptcy auction for $14 million. Systemax also owns TigerDirect.com and acquired CompUSA last year. CircuitCity.com was quickly relaunched last week to capitalize on the remaining brand strength and traffic to the website.
Not to mention the link equity, eh?
Not a bad strategy there Systemax. That traffic is cheaper than AdWords, will pay for itself in less than a year, and since they are a corporation the Google rankings + traffic will stick. This is probably even a better buy than CompUSA was.
If you are ever worried about creating a second site focused on a high margin portion of your business, just remember that this company owns at least 3 electronics retail brands targeting the exact same keywords. And Google loves it.
This sort of domain name + brands + links transaction highlights multiple fallacies in Google's broken view of the web...
- Google tries to scare you about buying a link or two in the dark corners of the web (and even takes away your ability to funnel the link equity you earned), and here are these brands being bought and sold (with link collections) like true commodities.
- If they don't like unnecessary duplication then should 1 company run 3 parallel competing websites with the exact same business model in the exact same niche targeting the exact same keywords? It is viewed as legitimate because they are a corporation, but since when have corporations been on a higher moral ground than individuals?
- Brands don't make the web less of a cesspool. They often create the cesspool. They simply find something that works, wrap it in brand, and look for ways to scale it. They love.com to scale and automate. Any intelligent SEO that has many Fortune 500 clients will tell you that some of their clients are far spammier than they could be on their own websites, largely because of brand.
- As corporations grow more web savvy, they will create more of the same "nasty" no-value-add duplication that Google complains about when passing judgement against the affiliate industry.
Which reminds me...I really should create a fake perceived large corporation (founded by lawyers, perhaps) to buy assets, which would mitigate Google engineer interference and profiling as we try to grow our humble web business.
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