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July 02, 2007

The “C” word exposed. Cyberbully vs. Cybersquatter

Donald Trump accused of Land Squatting?

This may be a little long winded but it needs to be said. So  grab a cup of coffee and give me 10 minutes.

Did you know that Donald Trump owns land that he has yet to build on? Yet to develop? Did you know that thousands and maybe tens of thousands right here in the USA have land they have yet to develop? Some have been in the family and handed down from generation to generation. Some that own that land in densely populated areas put up parking lots!! Oh they screamed and yelled about having a parking lot. What an eyesore. Do something useful with the land. As if it was anyone's business to begin with. Ok, so parking lots are a terrible thing. Just remember to say that when you are in New York City and a parking spot for just SIX hours is $40 or more and don't forget to tip! Let’s BAN all parking lots!! That’s the answer!!!! Oh wait a sec, where will I park my car when I want to go shopping? Right!! I will take the bus.

The vacant lot by the stadium that you just happen to own and on game days you can pack 20 cars in there at $25 a pop. Did anyone call him names? Other than what a lucky guy to own that land? 

We buy land for retirement. Sometimes a generation or more before we will ever use it. Sometimes before the one it is intended for is even born. Here in the USA, over 200 years have passed and there is still vacant land. Folks that have not built. CYBERSQUATTERS!! I  mean LAND SQUATTERS!! I mean isn't this interesting? How do we square it? Land ownership is encouraged and looked at favorably. They don't ask you when you will build. That is entirely up to you. The free market system working as designed. You pay your taxes and if someone does not like it, too bad. I own or have the rights to or lease or contract for dot coms. Call it whatever you like. It gives me certain LEGAL rights. It is up to ME when I will build my domain names. It is up to ME what I will build on those domains. It is up to ME if I will build on those domains. And if you think I should do something different, you have 3 choices. Tell me your vision and I will tell you mine and partner up to make it happen or buy it from me and do what YOU want. However, let me warn you, I have only sold 6 domains and I have a specific development plan for each. OR.....Be quiet, because what you say has no value or meaning you just have too much time on your hands and you don’t know how to mind your business .

STOP THE TRAIN!! Own property in cyberspace? Land you paid for. Land you pay taxes and fees on. Land that is in cyberspace and then domain owners are attacked as CYBERSQUATTERS? That's just nonsense and folks need to stop swallowing nonsense. They need to stop being parrots that just talk out of ignorance by repeating what others say and actually THINK for themselves. I heard a dozen folks rag on the Iphone (tm) this weekend. When I asked them if they actually tried one they said “NO!” They just repeated what some other know nothing on TV said that hadn’t seen or used one either and has a motive. I got news for ya, it does not matter what Paris Hilton thinks! It does not matter what some newscaster thinks. It does not matter what some guy invested in Verizon or Sprints says. It is about what YOU decide.

It is not about some guy or company that is so upset that they wasted their time and missed such an opportunity that they try and discredit domain owners at every turn. Many of the folks doing this, work for fortune 1000 companies. Don't listen to their nonsense. They just want what you have and since they lost on the BUSINESS playing field they have to resort to other tactics to get what you own. So they resort to name calling. They circulate petitions against parking domain names. They lobby trying to change the laws to take what you own. And make no mistake, they are motivated by jealousy and greed. Motivated with a deep desire to discredit anyone and everyone but always focusing on the biggest opportunity they have had and it passed them right by. They can't get over it. So they will make petitions, try and pass laws, file frivolous lawsuits and WIPO actions and call everyone a CYBERSQUATTER. 

Well they are wrong. We are just everyday folks from every walk of life that have recognized a great opportunity. We paid the fees, abide by the rules, don't break any laws have families of our own and realized that if you were to develop in the future the FIRST thing you need is prime LAND to develop on. It is up to each when and where and how they will develop. The CYBERBULLY is thousands time worse than a cybersquatter. They FAILED at recognizing a TIME SENSITIVE opportunity and decided to spend millions to build failed companies and waste investors hard earned money. These LOSERS and BULLIES are responsible for the collapse of web 1.0. Maybe it is time to shine a light on them. They failed, we thrived. They are talking web 3.0 while we are still successful with 1.0. These failures still run big companies and some of them will lose your money once again like they did during the turn of the century.Listen to THEM whine?? Spare me! Maybe they should articulate how they missed the single biggest opportunity in their lifetime, their father's lifetime and their father's before them? How do they answer that? They put on their shoes and THEN they put on their socks and now they want to own what assets we took the RISK to have? NO WAY!

The CyberBully is the same as the railroad barons that came through towns and threw people off their land without just compensation. They are the elite establishment that wants to control everything. These BULLIES want the dotcom domains we own and the reality is, if they want it, there is a free market and they can either purchase one already owned or use their OWN IMAGINATION to think of another name. Scream as they do, there are an infinite amount of dotcom domains. There is NOT an infinite amount of beachfront property and if that is the property you want, pull out your wallet and pony up! You had the same opportunity each of us had and you decided to get bogged down on one failing project without thinking about the future and what was time sensitive and you screwed up!! That’s the truth Mr. Cyberbully! Deal with it! You had companies worth billions collapse overnight and since you failed there now you want to infringe on the rights of others and try to STEAL what they rightfully own.

There is one thing we can agree on Mr. CyberBully. Domain owners that have infringing trademarks in them are WRONG!! There are some that DO take advantage of trademark holders and what they do is wrong. But to lump all folks that own domains and call them cybersquatters is also WRONG! For every trademark abuser I can show you a corporation that STOLE a legitimate domain through a flawed system that allows domains to be transferred from one party to another with no standard. No rhyme. No reason. Those domain owners simply could not afford the fight and lost their LAND!

I never heard of someone that had 5 acres of land directly on the ocean and a 3 bedroom 1 bath house being evicted. There are zoning laws and guidelines and as long as those things are met, it is nobody's business what you do with what you own or lease. Go tell Warren Buffet he has too  much money and should trade in his old car and move to a mansion. He may just tell you to mind your own business. And speaking of business, I would be will to wager that even "The Donald" owns a parking lot or two.

So CYBER BULLIES, you have now been put on notice. We are going to fight back and not allow the CYBERBULLY to define or intimidate US! There are cybersquatters, but there is also a legitimate and thriving domain name industry that is worldwide and invests many hundreds of millions into these unique assets. It is time to stop painting us with one wide brush. That’s just being a bigot! So attack those that do wrong and we will be shoulder to shoulder. But  treat the rest of us like you would like to be treated. But if name calling is what you want than today the CYBERBULLY has been named and soon we will make a list of some warm fuzzy companies that are trying to take domains they have no right to take. See how the public responds to companies persecuting some of their own customers. Helpless folks with limited resources to fight the giant CYBERBULLY! History has always celebrated great deals. When Peter Minuet and the Dutch bought Manhattan for $24 worth of trinkets. When the Louisiana Purchase was made by Livingston from Napoleon. It is still looked back at as a great if not greatest purchase of all time. Why would domain names be looked at any differently?

I hear all the time….”Rick, why don’t you develop your domain names into websites?” Ok fair question and I have a good answer as it relates to MY LIFE and what “I” want and what “I” see. Let’s rewind to 1996. I have about 120 domain names. I had a choice, build now or wait for others to make colossal mistakes and learn from them before I pissed away my limited resources. But an even bigger reason for me is that I ABSOLUTELY KNEW that a website that may cost $750,000 to construct in 1996 would be a $75 template in 2006. A template $749,925 less expensive and a template FAR superior to that of that era. So I saw no SENSE OF URGENCY to develop. What I did see was a “Unique opportunity in time” that would NEVER pass again. So one much smarter group than me chose a much more sophisticated way to climb the same mountain. I on the other hand with no staff, no talents other than cut and paste, had to figure a way to compete with folks that had unlimited funds and staffs of 200. I am no cybersquatter and most folks in the industry are not cybersquatters either! I am a smart businessman just like many of my counterparts that figured out that the way others were doing it put things in the wrong order. I decided that securing the LAND for the development in the future TRUMPED developing one website. Looking back, that was one hell of a great decision on my part and a HUGE mistake for many of them. Not all, but certainly most. If they had a chance to do it again, I bet they would focus on getting domain names. Now all they can do is label everyone with GREAT undeveloped domains as “Cybersquatters!!" The truth of the matter is they FAILED MISERABLY and their sour grapes are being exposed! That is the evolution of the CYBERBULLY and why they should be exposed. SHAME on them and I hope they will be recognized for the true pariah they are. 


Have a GREAT Day!
Rick Schwartz

 

 

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Comments

Great article Rick! Read the bio of Steve Wynn some time. He started by purchasing a small lot on the corner where Ceasars Palace was adjacent. He told them he was going to build a hotel there after he bought it. Well, long story short they bought his little domain so they would have a bigger footprint. And, the rest is history. Wynn went on the other side of town and built the Golden Nugget then the Mirage, Treasure Island, Bellagio, and Wynn Las Vegas to name a few. You got to start (intelligently) some where, right?

I have to agree with you Rick! Let me kindly elaborate further, just to help out a bit.

What most people don't seem to understand is the Domain business is a very complex game with several layers of complexity. I have observed that a lot of people in and out of this business only see what looks obvious to them, the cliched mentality in general is build! build! build! but that can loose you a lot of money very quickly if you get it wrong.

Let's take a couple of juxstapositions to help some of the naive thinkers here. I urge anyone reading this piece to go take a look at commercial real estate in their neighbourhoods or downtown areas and they will probably find at least 30 percent of commercial real estate has been empty for the last 5, 10 or 15 years! I remember this being the case in downtown Oakland, California as an example in the mid 90's and today a lot of those empty properties have only appreciated further from just being there!! Infact here in the UK, our government gets very frustrated because we have tons of empty real estate accommodation above shops, never mind several empty shops on our high streets. Why are there so many empty commercial real estate premises? its simple math really! they hardly ever loose because of what I call symantic annual yield appreciation, compounded over several years.

Most people fail to realise it actually makes more sense atimes to leave these premises empty than refurbish or lease unless it makes business sense, hence these property owners look for massive returns over several years from capital appreciation!! oh by the way, indeed they would have factored in boom and bust cycles, however if you have a long time horizon, you come out tops!!

My uncle for instance bought a piece of real estate back in 1962 I'm told for £2000 and without doing very much over 40 years, the property, just one of many is now worth at least £400,000 today and all he probably had to do was pay a tiny mortgage, similar to what we pay in reg fees for domains today. Another example for readers here is Stocks and Shares, well I used to be an investment banker and most financial advisors will tell you to 1. Have a diversified portfolio 2. Have at least a 10 year horizon and 3. Invest with what you can afford to loose!

The Domain investing principle works pretty much the same way, the fact is in my opinion, even if you do absolutely nothing with your domains and simply hold on to them for the next 5, 10 to 20 years, it's fairly obvious what is more likely than not to happen...up! up! up! and that factoring in any bust cycles that we are very likely to experience along the way.

The lesson here is pure and simple, take a look at ever asset class known to humankind, Art, Stocks, Wines and Property, they all appreciate over time. I'm pretty sure Van Gogh if he were alive today would not believe the astronomical prices fetched on every single painting sold in the last 100 years after his death right?

Mankind has a natural quest for wealth acquisition and people need to wake up and realise domains are simply the next asset class for the next 100 years whether you acquire your domains to develop or acquire them to hold for long term appreciation...it makes absolutely no difference as long as you make a handsome ROI over the short to long term. The reason you are more likely to realize a very healthy return is, because everything we do over the next several decades will be driven by an online environment once we reach what I term "SINGULARITY" on the internet. Not to be confused with singularity interms of artificial intelligence, which by the way will add another catalyst whenever that happens.

I'll leave you folks with one last clue! go take a look at Google's Street View on google maps, pull up your street in pictures, zoom in on all your local convenience stores, cafes, restaurants etc.. and I promise everyone here, that sooner or later not only will you view your neigbourhood or any neighbourhood in the world with pictures, you will actually click through seamlessly and start doing business with whatever comes up on google's Street View..virtually!

Can you see where the value of your Domains are going just because you got in very early? and by the way it is still quite early for all kinds of reasons. I can see the tremendous value...it's a no brainer! I own StreetWideWeb.com...and with any luck, I'll probably have to do nothing...go figure!

Cheers!
RHT

Thanks for that message Rick. I own about163 domains. About 65% of them will be developed into e-commerce sites. The others will just stay cashparked or sold for a profit. These corporations are frustrated because they are hiring all these Ivy-league, college educated people who didn't have a chapter on domain investing in their textbooks! Now the high school drop out can lease their cyberland to these jerks.

No I'm not bashing education, I have a college degree. I'm just bashing the arrogance of corporations thinking that a 4-6 year business degree actually means something when it comes to domains. It doesn't mean a hill of beans!

Thank you so much Rick for saying what need to be said.

When we register a domain name, we essentialy have established certain rights to the name and whether or not it is "developed" should be inconsequential.

A parking page IS development.

It is a mini search engine geared to provide results
far more relevant than most natural search engine listings.

Running a business with "parked pages" in no different than owning an advertising business.

Is this not a legitimate business? If not, why?

Now if someone holds a registered trademark prior to the registration of a domain of that mark, and that domain owner is promoting the goods and services described in the mark, there is certainly a problem.

However, the vast majority of us do not hold or promote these types of names.

Like you said, if companies want to own a certain name, they need to realize that we live in a free market and must play by the rules and not bully their way to steal a name.

Do the right thing, make an offer to partner or purchase it outright.

Please don't lump all of us hard working domain owners into one category, it's just not fair.


Hey Rick,

do you mind me asking what the name of the company you use when I have to put in the code before posting the blog? I believe you said it was for deterring autobots? That is a good idea and would go well with my two blogging sites being developed.

Thanks,

Chris

That's a perfect comment you make Harvey. I've always maintained that parked domains are like niche search engines focusing on their genre or target market.

Infact if I were google, I would understand that this area is likely to evolve explosively and very very soon! I would want to offer more customisation of my broader google search engine to parked domains and the ability to flight dynamic banner campaigns seamlessly and video streams. Google own Double Click right, so this would be easy.

In a few months or years, parked pages will get more and more sophisticated and attract direct advertising...it's common sence! the only reason it is slow is because the advertising agencies are years behind with all their ivy league guys that don't get it either until someone comes along and completely radicalizes the entire market by creating a ubiquitous advertising solution that creates a new paradigm!

For Google, this will probably become a nightmare! ask yourself, where would you rather search for a specific keyword say "law" on google that just churns up millions of irrelevant law sites, or "law.com" as a parked page through natural search and fully customised with law sites and law related sub-categories, relevant law banners and law advertising video streams.

The answer for everyone is obvious once 8 out of 10 web users know how to perform better searches by simply using their browsers.

I'll leave a tip on what could happen quite easily: let's suppose all enterprising domainers ganged up to contribute $1000.00 each to start an ad agency and to drive a consistent advertising campaign through TV, Print and Radio Media, that say's.. "The best way to search for anything, is by typing a keyword or phrase through your browser...not a search engine...get a better result through your browser because that is what it is there for!" and lets suppose this subliminal message becomes universally viral and common sense over a one year advertising campaign period.

Well, I challenge anyone to tell me why there will not be a massive paradigm shift in the way people search! this is behaviour psychology, and all that will then have to happen is, the domain ad agency brings lucrative banner and video ad campaings to parked pages, google and yahoo still get to make money, but domainers can afford to be choosy on attracting higher bid for placement text ads, and web users who now understand how to perform better searches naturally from his browser no longer gets one million irrelevant results! plus advertisers get a higher ROI simply because of the psychological intent from the user search! all common sense really.

Everyone wins!! ..it's only a question of time..but just bear in mind the search engines have no benefit whatsoever in doing this sort of thing for obvious reasons, except Google who may eventually realise this potential trend and capitalise on it very early. Let's wait and see what happens!

Cheers
RHT

You can look at the US Government for the greatest case of undeveloped land ownership.

The US Government owns:

672 Million Acres of Land in the USA, which is 30% of all the real estate in our country.

The Fed Govt owns 92% of Nevada, 67% of Utah, 67% of Alaska, 66% of Idaho, 51% of Wyoming, 50% of Oregon, 47% of California, 50% of Arizona, 35% of Colorado, 34% of New Mexico, 31% of Montana, and 31% of Washington, too give a perspective. Nearly all of it is raw and undeveloped and not even "monetized" well LOL.

On the developed side of their holdings, they own 433,000 buildings with over 3 Billion sq. ft. of space.

As for private individuals, the largest individual owner of undeveloped real estate in the US is Ted Turner with over 2 Million acres in his holdings now.

Fantastic article Rick!
It's about time someone with a little more "voice" than the average person lays it out cold the way it really is. It's very aggravating to listen to the crap coming from the whiney babies. These types of people are found in every industry. They are clueless piggybacking backseaters who do not know how to mind their own business. There are way too many nosy "Bullies" out there who should be minding their "own backyard" and stay the hell out of mine! You don't blog often Rick, but I find that when you do it's usually pretty profound. Very well said!

Rick,
The scary thing is that even our land can be taken from us. If the government ever starts earning significant taxes from domains, then watch out. Imminent Domain will spell the loss of your parked domain. Supreme Court Justice Souter may get a dose of his own medicine. See the attached:
www.freestarmedia.com/hotellostliberty2.html

An incisive post, Rick. But I would like to introduce another term with your permission: “Domainer Cyberbully”. That is a domainer who try to take away valuable domains from a “fellow” domainer when he thinks he might be vulnerable. Don’t you think such a domainer can easily pose as corporate cyberbully with his now massive resources? Honestly, I am more concerned about the threats from within the industry than outside the industry. So much so, I have almost quit the domaining game altogether except holding on to what I already have and keeping up with the news. There is simply too much scamming in the industry now. I recall with pleasure my early days in mid 2004 when I entered the industry with hopes and dreams. Back then I did believe with all sincerity that if one spotted an opportunity ahead of others and forecasted accurately one could strike gold, but now I feel differently. Now I feel even if a guy has managed to create something valuable then other domainers will get jealous of him and try to grab what he has through devious means. And they will resort to all sorts of tricks and games, including posing as a cubebully to usurp what he has. This industry is now only for the most powerful and fit. I wish I had your personality, natural leadership, and the incredible ability to create a industry out of thin air. Are you aware of any insurance companies who offer cover for legal costs in case I have to deal with one of those domainers pretending to be someone else? Any advice will be much appreciated. And of course not all domainers are bad…goes without saying.

Good post Rick.

Hi Rick!

Great learnings for me once again! Kudos to you but you REALLY have to change the fonts in your blog. Its too small! :)

Peace, Al.

lol. Nice one Rick! I was still playing with my Magic Cards in 96. Yes, there is definitely a time and place for everything. There's no reason why someone should get bent out of shape because you have something THEY want.

Just remember, THEY also have the right to be upset as well as take action.

We live in a free country.

Excellent post Rick!

This is all too reminiscent of the music industrey's fear of downloadable music and how they went so far as to try and instill fear into everyone (including children!) that were using new technology to download music online.

This country was built upon entrepreneurship and innovation and it is the only thing that will keep this country at the top!

I hope the U.S. Government realizes this and doesn't allow "dinosaur" monopoly bullies hold back or deter entrepreneurs and innovators.

It is only natural for processes to evolve with the times, and we have to realize that there will always be deep pocket late comers whinning and lobbying to try to unfairly get their way.

Enjoyable read Rick...

I get cyberbully letters all the time... and the thought that runs through my head is: "Yeah right..." and then "Bite Me..." not very ladylike ... but... LOL

I'm glad you started a BLOG Rick...

~DomainBELL (Patricia)

Well said - and so very true. I still have an email from a cyberbully from back in 99 AND I still have the domain he was trying to intimidate me out of.
Thanks for advice in the distant past (98 - 99) on buying domains - I read your posts avidly and thankfully took some of your advice.

nice blog!
I hope we can get the ownership certificate for every domain and we can pay 100+ years reg fees and we can transfer our cyber real estate into our family trust!

cheers!

John

Great post man, I've had this discussion with quite a few people myself. It's amazing how some have a hard time translating "like concepts" across various industries.

Hi Rick, I could not agree more with you. I am definatley envious of your success but hey you deserve it. You took the chance on domains before online advertising was huge and you staked claim to many a wonderful domain before many others new what hit them.

The whole electronic real estate analogy is bang on. I could not agree more or express it more eloqently.

Thanks for sharing your insights into this industry that is mainly shrouded in secrecey. Your words have influenced my decisions regarding domains.

Thanks,
Christian

Hi Rick,
I own over 70 domains with a branding to the finest i.e. AlaskasFinest.com, GermanysFinest.com, KonasFinest.com and so on.
A few years ago a guy tried to tell me he had the trademark to "Idaho's Finest" and demanded me to turn over my domain IdahosFinest.com the next day for which he would pay me $50 for my troubles, Ha!
I checked the TM site to find his claim of being "Idaho's Finest" had expired! The company he worked for is HUGE and on the stock mkt ..possibly the worlds largest potato producer! Dumb ass spud duds if you ask me. Oh ya ..as regards real land I'm selling 20 acres seen at: BobsRanch.com providing the environmentalist allow me to. Let's hope no yellow toed frogs are found!

Bully for you for laying it on the line.

Us early domainers that committed time effort and energy to our craft deserve to be able to utliize and or monetize the properties we hold in whichever manner and at the time we choose to.

The best way to combat the whiners is for all domainers to grab as much media share as they get and use the limilight to educate the public about the value of owning and developing useful websites.

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