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DomainName.com Analysis

Aug 31

Posted by admin in Commentary | No Comments

Been reading all the comments going on about this auction - with debate on both sides. 

What many seem to miss is that these are 8,000 registrations, yes, but at $29.95 – 3,700 of which have already renewed in 2010. There are also hosting accounts and aftermarket deals. It is a low-maintenance profit MACHINE that could be easily improved and updated. The ‘upside’ is real and clear, the market proven and available.

And besides, if THIS ‘domain name’, with all the annuities and the revenue, the traffic and the accreditation is not worth at least a million, what name is? Lol! Let me guess…yours?

Truth is this auction will reflect our industry to the outside world. I hope for all our sakes, we have a good showing we can benefit from.

For Your Consideration: Some of Our Picks for DM2

Mar 29

Posted by admin in Commentary, Information | No Comments

Of course there is a bias involved but I believe those who know us would tell you we shoot straight – we are domainers after all, buying and selling everyday like the rest of the community we love so dearly.

And so when we put together an auction catalog, we are acting as domainers, as ourselves, looking for names that have short AND long term value because we understand from experience that there is no better place to put your money than in something that will produce a double return once the end-user surfaces and pays.

So for the DM2 Auction, we have some personal favorites and thought we’d take the opportunity to highlight some of them, explain why we like them:

Watchmaker.com
We all watches are big business, sometimes running into the tens of thousands. This name could also be a cool brandable like a show or game or software. Love the price, so unique and catchy.

LeatherPurse.com
Super high-end, in-demand product with lots of ad competition. E-commerce/CPA ready.

CameraPrinters.com
We were shocked when this didn’t go in the live. Camera printers are leading the home printing revolution and run anywhere from $100 to $300. Cheap price on this, scoop it up – $7.50 clicks with lots of advertisers.

Holdings.com
Never before seen by the market, there are literally thousands of companies out there that use this term in their name and could end up as an end-user buyer. Works with domains or investments.

VOIPphones.com
Seven dollar clicks and growing trends make it well worth a double look. Term ‘voip’ continues to grow in awareness and usage, this is an ‘emerging’ domain that could eat up CPA too.

Segment.com
Terrific one-worder with huge brand potential for markets or stats or analysis or even health care.

Possum.com
It’s just frickin’ cool – a nasty little price on this name for a ferocious creature that could literally serve as a brandable for just about anything you can envision.

RealEstateAuction.com
Domainers should note that no name in the inventory (besides CamRoulette.com) has received more attention than this domain the market hasn’t had a chance to grab before. Could pay for itself with a single auction plus the timing is right to buy, won’t be this inexpensive again. Has a standing offer on it too.

AskingPrice.com
Another name getting lots of looks partly because of the excellent price. Asking price is the glossary term for stocks, bonds, equities as well as other commodities.

CareServices.com
Top phrase for a HUGE and growing industry sector that includes kids, pets and the elderly. Our research opened our eyes to the sheer size and scale of the ‘care services’ industry. Take another look!

Enlargements.com
Someone would have to be nuts not to grab this name: enlargements of all kinds are, and have always been, easy to sell. And now you can get over $200 for a single enlargement sale. Combine this name with some content and SEO and it’s gold. Refers to both breast and pen-ile.

Magnolias.com
Brandable AND product domain. We found tons of businesses called ‘Magnolias’ all over the map: Magnolias Spa, Magnolias Bistro, Magnolias Florals, and on and on. And of course there is the popular flower. Great opp to grab a generic gem at a killer price.

BabyBoomer.com
Singular term for one of our largest generations, yes, but did you know they date online? Baby boomer services from dating to groceries to medication and insurance are available as revenue generating sources.

Music.net
Folks, this is a great price on what is essentially one of perhaps the top ten .net’s in the www world. Don’t miss this chance to grab an 800 lb. gorilla in the search realm and beyond.

eTV.com
MEC.com is nice but for essentially the same price, I’d rather have this amazing three letter domain. Could be huge with the coming 3d TV craze – they won’t be cheap!

BitterMelonExtract.com
Domainers should be tripping over themselves to get this domain after researchers recently found that it attacks breast cancer cells. This is the exact product name with tons of ads and a price that won’t last as word spreads.

SocialMediaDesign.com
Boffo price point on this design gem for the growing social media realm and all the services that come with it – like design and development and templates and scripts, etc, etc.

The DM2 Auction is going on now and ends on Thursday, April 1st as the names close in order. Visit www.domainmadness2.comfor full details. Don’t wait, bid now!

Big thank you from Vegas!

Mar 23

Posted by admin in Commentary, DomainConsultant News | No Comments

A big and heartfelt thank you to all who helped and tuned in to DM2. We had a great time counting them down, hope you did too. We’re proud to announce we’ve surpassed last year’s total by a healthy sum and the extended has not begun.

We’re tallying it all up and will publish more info later, as well as info concerning the extended auction inventory.

Thanks again and cheers!

I Sold a Domain…at a Rest Stop

Mar 9

Posted by admin in Commentary, DomainConsultant News | 2 Comments

If you skip through the articles archived here on the site, you’ll find we have tried to be open and straightforward about auctions and the auction process. We’ve attempted, on several occasions, to add some insight to bidding and buyers, results, selections and submissions.

In terms of submission, the subject here, there is an odd variable that comes into play when having discussions with potential sellers: expectations rise, sometimes to unattainable levels.

The oddity here is, if they HAVE a price, why not allow us to attempt to sell it?

Because the truth is, again if you have a price, do you really care how we get it? Even if I sold it out of a cardboard box on a street corner?

Collectively we have roughly $40m under our belts in sales and acquisitions – and growing. We have working and personal relationships with all the best buyers, bloggers, writers, promoters, etc. We can sell a domain if the market accepts the price.

In fact most domains are sold the “old fashioned” way, via email and conversation. Sedo and others send me emails all the time that sell domains – no promotion, no bidding, no nothing. Did the owners care Sedo sold their name in one push? I doubt it.

But mention adding it to an auction, one of the best ways to create awareness and competition, and the expectations suddenly rise and everyone becomes emperor of their ‘domain.’

Of Course, this is to generalize because there are many other factors involved but the truth remains that most of our sales are attained in simple ways – by connecting buyer to seller. This we can do, beyond simple brokerage, by creating a ‘competitive’ environment through widespread awareness. It is one of the reasons we retain the highest STR to date.

So if you have a domain and a price, don’t shoot the ‘broker’ because the truth is I once sold a domain name at a rest stop for five figures.

If it was yours, and you got your price, would you care?

IDNs and the Slippery Slope

Mar 6

Posted by admin in Commentary, Industry News | 22 Comments

I encourage anyone hoarding names in a market void of demand and plump with supply to read my piece on the Founding Fathers. It is meant as a historical analogy to our times, to the Internet itself and particularily to extensions and ideas which may hold promise but for which time may be an enemy. This is not about right or wrong, it’s about timing, resources and strategy.

As it relates to IDNs , the main issue I see is: where to start?

If I were to focus on my native language, Spanish, would I gather names for Mexican Spanish or Caribbean Spanish or Spanish Spanish? If Mexico, then which dialect? There are dozens of dialects in each language and culture, land and tribe. Think of the barriers in e-commerce alone from IDN to IDN when we cannot even get e-commerce between countries right.

And so as a matter of resources and timing, investors would be wise to work in areas with more standardized usage and fewer vacant lots.

Besides, it dismisses a subtle truth that while French is the language of international business, English is the language of the PC and the Internet. For one very simple reason: all the code is in English. Consequence being legions of people being educated and employed by learning the language of the web – whether in customer service, development, code, dating,  etc. It’s the benefit of being first.

And America’s founding fathers were first and they were right when they hoarded as much land as they could. Problem was, in their lifetimes, there was never a lack of land to go around. And still isn’t, so you have to buy carefully, in the right area (not Detroit).

Domains are no different. Because if we discuss them like a commodity or property, then we base our investment choices on the same principles of supply and demand.

For .com, there is basis for assessment, a market based on past performance and slim availability of quality ‘land.’ For IDNs, there is no basis, more of a simple understanding of a wildly varying need combined with an endless supply extending to the horizon and beyond.

In other words, caveat emptor, speculator beware.

Why .com must be king

Mar 4

Posted by admin in Commentary, Information | 5 Comments

It is seldom understood but in the discussion of country codes, .com should be defined as the official code of the United States. Sorry, .us.

Thusly, if the US is to continue to be a beacon of global business, the modern financial mecca, it should work to make sure that .com remains king. And partly because, simply, someone has to be king in a globalized globe to expedite free trade.

With over fifteen years of almost constant exposure, .com is not just an extension but a global brand by itself perhaps better known than even our own country phone code, +1.  If someone need be king, .com is the best candidate…by far.

There is little question country codes will continue to thrive and have a role…a regional one. They will become the best option within borders but if one is to expand outward, it must turn to the .com to gain global recognition and presence. Serving ads for a .fr in Spain doesn’t make sense whereas using a .com does.

At the moment, a  great .com is not just market share, it is instant entry, credibility, traffic, SEO and cache.  It is tapping into every single commercial, billboard, ad, etc, that has or has ever had a .com address in it. Think of the trillions that have likely been spent to market “.com” – likely more than any other commodity, product or service outside the Bible.

If ICANN had wits, it would focus on strengthening country codes and recognition, including .com as the continued realm of global economics and promotion. It should reject inclusion of anything beyond as they have already proven to be mere vehicles of the speculative field. Sorry, .pro.

There has to be a king, a leader, a marketplace for the earth’s consumers to unite and exchange. In other words, for a globalized future, we must provide a definitive address for the planet to organize and socialize and transact.

And thanks to millions of hours of ads and usage, .com is already wearing the crown.

Dating.org is not a Category Killer

Mar 2

Posted by admin in Commentary, Industry News | 5 Comments

I very much enjoyed the article at Fusible that discusses the $22k sale of dating.org. The story offers excellent insight into  the dating industry and the money within. It’s the old saying, “sex sells, especially when real!”

Still, pardon me for pointing out but dating.org is not a category killer. In fact, by mere definition, a .org cannot be a category killer.

“Category Killer” can be described as the single best domain name in any given industry. For cars, it is ‘cars.com’. For dating, it is ‘dating.com’, not dating.org.

Part of the reason is that if you attempt to promote and market the .org, you unintentionally market and brand and provide traffic for the .com version. Who is killing who here?

A category killer will grab market share, literally, from day one while .org must be developed and indexed and spread to attain the same measure of ’share.’

There is no doubt dating.org is a nice name with a big foot in the right door but kill the category it does not.

Development Hell…How to Avoid

Feb 6

Posted by admin in Commentary, Information | 1 Comment

One of the most common questions I got in LA was about ‘developing’ domains – something for which I have extensive experience.

I’ve been designing sites since 1997 and spent a good chunk of time as the head designer for a very large public Internet firm, creating designs in the process for 3M, Motorola, Nabisco and more. I designed and programmed all the original MLB stores and was the main force behind NatGeo’s first shop as well. First time people voted for MLB All-Stars online was because of the work I did. I too am responsible for the TRAFFIC logo so well used in this biz, you’re welcome King!

So ‘bona-fides’ hopefully aside, I can give domainers some advice on development:

1. Develop or Develop
There are two types of ‘development’ we need to discuss here. The first is the ‘mini-site’ type development and the second is TRUE development, the source of innovation or compliment of a niche market.

The first type of development will only take you so far, the second is costly and difficult and long term – something domainers generally avoid.

Point is that all the investors that came in with dreams of large networks of sites were eaten up by their own lack of innovation. Mere ‘presence’ is no longer sufficient, you have to provide something of value.

2. The right domain CAN make all the difference
The moment HappyBirthday.com opened, it grabbed market share. If you are serious about the idea and the strategy behind it, then the value of the name grows exponentially in your mind’s eye.

But here lies the rub for domainers – they have a great idea for every domain they buy!

Again, you need to decide if you want to “develop or develop.” And then think again - I really want domainers to come to grips with the difficulty and expense as they seem to underestimate the impact of both on any given project.

I would recommend developing and working the idea a bit first, before spending great sums on a domain simply because of all the sugarplums dancing in your head.

3. Instant Gratification
From day one, the best thing to sell online has been anything that leads to instant results like adult or software or ebooks. Stay away from products and ideas that require additional outside labor, stick to “e-goods”.

4. Start Simple
I have a friend who spent nearly $250,000 just in the development of the site. It lasted less than a year. Start slow and small and expand from there.

5. Automate!
Every site I ever built was designed with automation in mind. Offer products and services and sites that run themselves, stay away from ideas that require heavy staffing.

6. K.I.S.S.

7. Focus on Quality
For one of my properties, I have simply focused from the first day on creating the best possible site I could, with the hope that simply doing so would make it stand out. And this may be the most important lesson of all.

It worked, it is a top 5,000 site in the US that got there organically and virally, is profitable, is loved by the search engines and has grown in brand and value. And all because the sole focus, and no other, was to build the best possible offering…period.

Based on the famous tenets of: if you built it really, really well…they will come.

Take that to the bank, or better yet, put it in an online savings account.

Domain Names as Investment Hedge – 7/08

Jan 23

Posted by admin in Commentary, Industry News | No Comments

MINNEAPOLIS, MN – In the spring of 2001, the Internet address Inbox.com was listed on eBay at $4,000 with no reserve. Now, in a clear sign of the times, the auction ended without any bids or bidders. After the auction, an astute DomainConsultant.com analyst emailed the seller and offered him $2,000 for the name. The buyer accepted the offer.

Sixteen months later, that domain name was sold to an end-user for 150x its initial cost or high six figures – far more than you can fit in a twin-size mattress.

Point is that 2008 is looking, in many ways, like 2001-2002 except this time the crisis is larger, global and based in excessive debt outside the technology spectrum.

In response, DomainConsultant.com, a prominent collective of successful “domainers”, has altered its client recommendations to promote domain names as an alternate hedge against a life-jacket economy, an option for a desperate populace.

People are moving money into no-interest T-Bills or simply holding tight to their cash and hoping their bank stays afloat and, if not, the FDIC doesn’t crumble under the weight of its insurance pledge. Indeed, some are staring at their mattresses as the last bastion of ‘safety’.

So what is an individual investor to do? If money is not safe in banks – where to put it? One possible answer, like in the early decade, is domain names. For several, concrete reasons:

- Domains are a global commodity. The Internet is not a singular institution, country or entity that can fail. It has a growing yet solidified place in a globalized, developing future.

- Domain names are not debt-based, benefitting from economic downturns and instability.

- Domains are inexpensive, intangible assets requiring little to no maintenance or overhead. Annual renewals have dropped to under $10.

- Unlike Lehman Brothers or Mac and Mae, the Internet is not going anywhere but up – especially with the next item as consideration.

- Energy issues/prices and depleted discretionary income will drive usage of the Internet as entertainment, news source, global connective, energy-savings source.

- The normal ‘hedge’ in these times is ‘gold’ but at nearly $900 per ounce, it is a prohibitive investment vehicle. And note, during the Great Depression, the government seized precious metals from its citizenry.

That is not to say that drops in domain value will not continue for a time – it is a natural devaluation based on economic conditions outside the industry. Nor is it without risk – cyber terrorism, fraud, spam and more conspire to define the ‘web’ in WWW.

No, it is to say that once and if this all shakes out, people will notice how the Internet weathered the storm and the idea of domains as ‘investment hedge,’ a place to put your money for tough times, may grow.

Now the key, of course, is to buy on the “low” side like inbox.com. In down cycle times like 2002, the opportunities and deals appear all around. After all, those who survived the ‘dot-com crash’, at present, make up a big chunk of the upper echelon of the domain industry and largely because they took advantage of the last, most recent ‘crash’.

DomainConsultant.com recently updated its market recommendation to clientele from ‘hold’ to ‘buy’. The change was made for many of the above reasons and based in no small part in current crisis events. Unless it all collapses, domains and the Internet are viewed as one of the most reliable and secure ‘safe harbors’ – if the name is quality, acquired at a proper price.

Is the timing right? Like actual real estate, inventory lists have shown a distinct rise in quality combined with a drop in pricing. If one could conjure a symphony of elements to produce deals in the marketplace, this would be the result, exemplified by offerings great and small. In short, time to buy.

Besides, the only other real and viable alternative may be to stick it under your Serta, until the waters calm and the storm, hopefully, passes without sweeping it away.

Behind The Scenes in Hollywood – 3/09

Jan 22

Posted by admin in Commentary | No Comments

The first big show of the year has come and gone and all that is left are memories of furry tails, cocktails, speakers, nude domainers, auctions and of course, conversations, conversations and more conversations. So what was on the lips and tongues of industry execs, domainers and providers this January?

In short, a lot but perhaps not as much as the average worker or employer or country – domainers on the whole seemed less than panicky, more sanguine about declines. Again, seen it, been there, bought the domain and finished it with a Twinkie. Domainers seem a lot better off than most, less concerned than most – their behavior and lifestyle has not been dramatically altered by all personal, eye-witness and photographic accounts.

Domainers are perhaps beginning to realize what many, including myself, have been saying for some time – the Internet is as close to a global safe-harbor as we can identify at the moment, something I heard on more than a few occasions in Los Angeles.

So here are some additional items and notes I picked up during the week. I very much attempt to verify via multiple sources before offering it up anywhere or putting anyone on the line.

1. Google?
No one is quite sure what they are thinking or up to. There were rumblings of issues between sponsors and the giant – perhaps they are positioning to eat up the aggregators and take the business directly. In these hard times, every penny counts for two.

Domainers gave Hal Bailey of Google a hard time but the G representative was evasive, answering many questions without offering up any relevant information. It was obvious domainers are not interested in these games anymore. Seems they want to keep us guessing as to the real state and duration of our relationship.

2. Low, Low Defaults
Perhaps the most interesting news item is that financing firms has seen little to no defaults on their domain loans – unlike other industries we know. The only viable issue is that institutions, a necessary adjunct to growth, have not taken notice. They are likely too busy dealing with their existing bad debt. Bottom line may be that domains are good, stable debt for pooling and investment.

3. It’s All About RPC
Domainers on the whole have seen declines in parking revenues, yes, basically across the board. Sponsors I spoke to pointed directly at the trend lines for RPC or Revenue Per Click. – ‘downward’ doesn’t really sum it up. And when does a ‘trend’ become the ‘norm’? How long? When does it plateau? We wait with bated breath.

4. So Who’s Buying Anyway?
Another surprising aspect is that there are actually many buyers out there, cash in hand, looking for current opportunities. So what’s the problem? Largely, it is a lack of quality inventory in auction environments. We were told of several large sales that have occurred below the surface, as they usually do. And ultimately it is what bedevils our industry – so much of what happens, of what is bought and sold happens just under the waterline.

5. Credit Continues to Flow
In addition to and complimentary of number #2 above is the fact that these same firms, and others privately, continue to extend credit for the acquisition/refinancing of domains. This is highly important because the main issue in the overall system and economy is the lack of ‘flow’ – of course, a byproduct of overbearing, depreciating debt.

But without the defaults and the resulting inventory to manage and sell, these firms see no reason not to continue to offer credit to the industry.

Of course, we learned many other things too: what naked, swimming domainers look like (not pretty), that LA becomes Utah after 2am (not cool) and that the Gratto has a funky smell (surreal). But I think the underlying message that emerged was one of ‘improvement.’

Without the layoffs (outside support positions and such) and the defaults and with the continuing flow of credit, the domain industry is looking and acting NOTHING like the rest of the economy, nothing like any other ‘growth’ industry at the moment.

So take a moment today and consider the above items, I offer no judgment but to say that comparatively, we seem to be in better shape than the world economy that supports us. Odd, isn’t it?

But it became fairly clear early on in the crisis that domains (or in essence the Internet) defied bounds established by past industries and commodities, books and theories. Just a different animal altogether, reliant on global communities and not local infrastructure, bounds, audience, etc..

Whereas real estate is surely ‘local’, the Internet is equally ‘global’ and thus when one goes bad, you turn to the other. Always best to bet on the future, not the past.

I mean if things are so bad then what was I doing with the furry tails and the naked domainers and the smelly Gratto at the Mansion?

I’ll tell you what I was doing: living la vida domainer! Andale, andale!