The Rick Schwartz Domain and Traffic Blog RicksBlog.com...Home of the "Domain King"

TRAFFIC New York in PRIME TIME!

Good Afternoon again folks!!

 

The vision came out to be a reality. Something good was cooking and the result was better than even I expected. Thanks everyone for making T.R.A.F.F.I.C. New York 2008 perhaps the most memorable TRAFFIC ever. Ask anyone that attended TRAFFIC. It was quite the tale of two cities. Two economies. Two eras. Across the river they were in panic mode. They were in turmoil. All scratching their heads and wringing their hands. On the other side were 350 renegade domainers. Investors in this new century real estate partying like New Year's eve and feasting on delicacies many have never seen before. The spread we had was unparalleled at any wedding or Bar Mitzvah. Nobody has ever seen anything quite like it. There were reasons we did this.

When folks arrived many were very unsure of their futures. They were concerned. They were questioning this and that. We decided that we needed to FIX that FUNK. So we pulled out every stop. We had more lobster than one could eat. I promised shrimp the size of your fist and we had them even bigger. King crab legs nearly the length of your arm. Sushi stations, Just ask around what the opening night cocktail party looked like. Then we continued that level right thru the entire show. This changed the entire mind set of the industry. We stood there and realized how lucky we all were to be in this business. We counted our blessings and then things got in the proper perspective. The word was shhhhh, hush, don't tell anyone how well we are doing. But we are. That does not mean that our earnings may not have declined, but compared to the rest of the universe, we have no business having our minds not focused on domains and not the doom and gloom.

 

The auctions were solid and here is the secret formula. If auction houses want to sell a lot of domains, just have good domains at good prices and they will sell. That is exactly what occurred at TRAFFIC. The good domains with reasonable reserves sold. The others did not not. In a true recession, not even the good sell. But there was no question as bidding was lively on any domain of substance with a reserve targeted at domainers.

 

In total, over $4 million of domains changed hands. Not bad for an economy in meltdown mode. Domains once again will show their resilience in the face of collapse. Their safety when folks are looking for places to invest. Category killer domain names are as solid an investment as I can think of.

So congratulations to Moniker, who retained their crown. In the face of challenge Monte just refined what they did and the outcome was good for everyone. Congratulations to Rick Latona and his crew for entering the business with a BANG and putting it together in WEEKS! And Aftermarket.com which was just the first event of Thought Convergence's "Afternoon and evening" which consisted of the auction, cocktail party, dinner and wild after party. You all did a great job and we will build it from here. You did the industry proud! The competition created great energy and it was obvious throughout the show. Winners winners, all winners!

 

Have a GREAT day!
Rick Schwartz

Another whale of a deal. This time Widgets.com

Good Afternoon folks!

I'll have a huge announcement about Widgets.com in the next few
days/week. Kevin at BigTicketDomains.com has bagged another GIGANTIC
Corporate "End User" deal and the next piece for my long term strategy is about to be revealed.

This deal came about rather quickly and has the potential to evolve into something very powerful. It will become another milestone on what you can do with a powerful category killer domain name. Another "Ceiling" is about to be obliterated.

Have a GREAT day!
Rick Schwartz

Something Really Good is Cooking

Morning folks!!

 

As a businessman you have a vision of how something will unfold and then put things in place to make that idea, a reality. An artist paints a picture with a brush, I am no artist. But I do create a picture of a recipe to create a certain energy that translates into something very special.

 

It's like being a cook in a kitchen. You can taste it, you can see it, you can smell it, but can you have it come out of the oven just at the right time and just at the right moment and just using the exactly right ingredients and everything else for it to come out right. So many variables. So many considerations. So many moving parts. So many pitfalls. So many cooks in the kitchen. lol

 

When Howard and I decided to do multiple auctions it was likely one of the hardest decisions we have made. But then again, it was the right decision. It was the right time. It was the right place. So there were too many things aligned to just ignore the aroma and let's face it, domainers wanted more out of the auctions. They wanted many things and the only way to achieve that was to have the best compete and let the MARKET decide the outcome.

 

As we get closer, more things have fallen in place. There is competition. There is a fierce battle for great domains at great prices. We saw yesterday that all three auction houses were out there strongly promoting their lists and what they hope to accomplish. I have never seen such good domains with no reserves. These are folks that are now trusting the market to bring them the right deal.

 

It's about creating a phenomenon at a time where a little magic would serve the industry well. Look around,economic times are TOUGH and going to get much worse. But we must be the luckiest people on earth to do what we do. To have the opportunity we have. To still control our destiny without fear.

 

In the next days many folks will be analyzing the lists and reserves from Moniker.com, RickLatona.com (Auction already in progress) and Aftermarket.com. There will be much talk. That creates excitement and folks, excitement is the key ingredient if this grand experiment is to work. On the eve of these ground breaking auctions I don't know the dollar amount it will do but I do know that a great percentage of those domains will sell because they are good and priced right. What I do know is what I tried to create is right on track and the competition is forcing them to all row in one direction whether they want to or not. That is what is creating this momentum. The excitement level is going to be off the charts. Every eye in the industry will be watching each and every auction and the outcomes and the way they are done. Ground breaking things are about to happen. History in the making. It is what i enjoy the most. Watching this unfold with all of you. All I know is we used the best ingredients, we created a level of anticipation that we have not seen before and so many other things will play out as we get closer to these events. Three cheers for the auction houses!! They are creating the engine in this experiment. The drive. The energy.

 

If it does not meet expectations I will take the responsibility. But from where I sit, it is unfolding like a perfect rose and the intense aroma is something I can't describe until after this all plays out. Literally sitting within view of Wall Street we will witness the tale of two universes. Two worlds so different and so much the same. One on the way up, the other in turmoil. An incredible moment in time. And with that moment will also unveil great opportunity. NEVER has there been this type opportunity whether in domains or real estate or business. This is a time where all things are in flux and it is your #1 job to come away with a great prize in whatever form it is. You will point to this time as a defining moment when you look back in 5 years. Your job is to make your mark and grab an opportunity either online or offline. But something you can point back to and say you got such and such during the darkest economic times of our generation. This is without doubt the greatest deal making environment I have ever seen. 2008 is tough. 2009 is going to be tougher. But tougher only if you look at things the way 6 billion others do. Get in the same checkout line they do, and it will be tough. The last time I looked, most of those 6 billion missed the incredible opportunity domains have had to transform so many lives. So best not to get stuck on that line. Best to remember what got you to this point in life and be steady on the throttle. Anyone can make it during good times, but when you navigate conditions like this, that is when your true value comes to light. So take advantage of that gift you have and let nothing interfere with it.

 

If you are coming to TRAFFIC, travel safe and look forward to greeting you. If you will be following the action from home, it will be a week full of news and rumors and sales and deals and all types of things. Talk about timing, WOW! Every eye on the planet will be focused on New York and Wall Street and the events to come. I can't write a script like this. Just amazing.

 

Have a GREAT day!
Rick Schwartz

ICA Resignation Announcement

Good morning folks,

I write this blog post only because I have asked for your support on something for over such a long period of time. I have begged you for that support in some cases. Just read some of the posts about the ICA I did over the years. I owe it to the readers and the "Industry" to make this statement. Something that is not easy to do but something I am more than compelled to do.

 

I want to announce that as a founding member of the ICA I have resigned and will no longer be involved with this organization.

While the ICA has done some good things, it has missed too many opportunities to be more relevant. Too many opportunities to look out for domainers and the best interests of the industry IMHO. Too many opportunities to take a strong position on what is important to domainers. Not to mention the lack of communication to the industry. I can no longer in good conscience advise domainers to support the ICA.

It is sad to say but the ICA only supports domainer concerns when it dove tails with ppc and registrar agendas. In other words, domainers are the last to be considered and I think it sucks. I am no shrinking violet and I have argued with all the passion I had within me and it was to no avail on issue after issue after issue. That more than demonstrates and reinforces my decision. Maybe going forward the fallout from this will force them to change. But from the inside, I doubt it or I would have fought on. Folks know I don't give up easily. But when I see something going in the wrong direction I can't be part of it. I don't see the ICA governed for the better good. That is not their compass and I can't fault them for that but I certainly expected better.

Not happy to make this post but I have little choice. It's a sad day. I have long asked you to support this organization because what was the alternative? There always is an alternative but even if there is not, this alternative is no longer palatable to me and these blog posts will be online for many, many, years. I had to set the record straight and let folks know that my position has evolved and the reasons for it. I thnk the folks serving on the ICA are good folks, but the direction that has been set is way off the mark.This is all my personal opinion and when you hold true to what you believe, then you have to do what you have to do. I hope going forward the ICA will be more sensitive to domainers. Time and only time will tell. The bottom line is I had very little influence inside and sitting at the table. I am hoping I can do more to shape things from the outside. So it is up to the ICA if they want to represent domainers or just want their funds for support.

Rick Schwartz


And since half the money we have donated to the ICA comes from Howard, I think it only fitting that he shares his views on where we are and how we go there:

"It is difficult for the ICA to represent Domainers, when domainers have not financially supported the ICA.  That is why the Board of Directors is comprised almost entirely of PPC and monetizing companies and registrars.  THEY are the ones who have put up the funds for ICA so it is primarily their voice that is heard.  Rick and I have, from experience , found that it is impossible to get domainers to get up off their wallets to support an organization that is essentially meant to look out for their best interests in Washington, D.C. and ICANN.  Additionally, we have found that the Board is very slow to act when action is required to respond to an immediate situation.  Staff says that they cannot act without Board direction and the Board cannot act without staff direction.  This tends to make the entire organization ineffective.

 

Finally, the ICA has made no concerted effort to bring in to its fold domainers of all financial strata.  They have not communicated effectively with domainers to keep them up-to-date on ICA activities and have exhibited no ability to raise funds in a meaningful manner except from the PPC companies, monetizers and registrars.  I believe that this is why Rick feels frustrated by the direction that ICA has chosen."

Howard Neu

Astonishing...nothing less than Astonishing!

Morning Folks!!

This week that began with Labor Day here in the United States let me take a moment to say something.

What we as an Industry have done is NOTHING LESS THAN ASTONISHING!! After 13 years of being underestimated, belittled, under appreciated, under understood and folks refusing to give our industry its' just due I want to say one thing. SCREW THEM!

They got it WRONG. They were blind to the single biggest opportunity in the history of mankind. The most productive set of circumstances available to each and every person like nothing in history and they missed it and for that they call us names?? SCREW THEM!

We still lack the respect that our TRAFFIC contains let alone the value of the land itself. I have watched EVERYONE in the universe under value our assets. SCREW THEM!

This industry is not $1 billion. It is not $10 billion. It is not $100 billion. It is PRICELESS. It is appreciating too fast too measure. It has values hidden like vaults in a cave, still yet to be discovered. I have listened to whoever and they all got it wrong. SCREW THEM.

I remember DREAMING how one day I would walk thru Times Square and see nothing but dot com billboards. A DREAM. A silly and wild dream. A dream until September 2000. I went to Times Square and tears ran down my cheeks because all I saw was dot com billboards. EVERY one was a dot com. EVERY one. Few saw what it is we do. SCREW THEM!

I have another dream. Maybe already a reality. The day that domains have more value than all the real estate in Manhattan. Folly they yell. Foolish they scream. Ridiculous they clamor. Condescendingly they argue with you. Accusatory in their tone. Mean in their spirit. But through all that, they are wrong. SCREW THEM

The Value of domains has little if anything to do with earnings. Now it may be common practice to to sell a domain for 5x or 10x but I have never bought into that nonsense and I have stated it numerous times on the record. That was a Venture Capitalist formula that had nothing to do with the real value of a domain name that many domainers swallowed hook, line and sinker. The very least a domain should be sold for IF you are going to base it on "Today's revenue" is the lifetime earnings of that domain name. That means if you are 35 and you figure you will live to 85, then 50x is your number before you even begin to negotiate. When a buyer can't get to that point....SCREW THEM!

Point is, stop listening to "THEM" whoever "Them" is at the moment. They got it wrong. WE got it right. Don't listen to THEM! SCREW THEM!

And the reason that Labor Day plays into this is because we labor to produce more jobs and pay more taxes and to do what we were brought up to do. We could have dug ditches. Instead we used our minds as our parents and teachers wanted us to do. If folks can't appreciate that.....SCREW THEM!

Have a GREAT day!!

5 days AFTER TRAFFIC New York

Morning folks!!

Hope you had a great summer and I will assume you are ready to get back to business.

The final schedule for TRAFFIC New York 2008 is now posted. Besides the first ever multiple live and online domain auctions we will focus the show on "Beyond PPC."  As PPC revenues decline domainers are looking for new monetizing solutions. As an industry we face some very serious challenges and they are coming from multiple directions. I have given a detailed interview to Ron Jackson that discusses the show and the challenges the industry faces. As usual, I am not afraid to state out loud what I believe. It will piss some folks off. But am I supposed to BS the world to make some folks happy? Time will tell if I get it right. As I have said in the article, I would rather be laughed at for getting it wrong then be right and face the challenges that are on our doorstep.

 

The good news is that while there are serious problems in 2008 with payouts and the economy, there is also more opportunity than I have EVER seen in all my life......RIGHT NOW! Those that don't believe that are 1000% wrong. There is no question there is opportunity and only those running scared won't see it because they are too busy "Running scared." Some have really good reasons to be scared. They have flawed business plans. They have portfolios that are in many cases....worthless. This is the point where I don't make many friends. But folks, some domains I see out there on the market are not only worthless, they are a liability. Do you know the difference?

 

Those that got it right get rewarded in times like this, folks that got it wrong.....pay the price or disappear completely from the scene! For those that think 2008 was rough and tough, all I can say is that 2009 will make you wish that 2008 comes back. There are many media that are surviving solely because of the US elections. Once those advertising dollars go away, be prepared. The change we are about to witness is something not seen since blacksmith shops were replaced with Gas Stations and mechanics about a century ago. Matter of fact, 100 years almost to the DAY! The first production Model T Ford was assembled in Detroit on October 1, 1908. It changed the world. 100 years later, it still changes the world. Coincidence?? Hardly!! Just history repeating itself in a similar but different way. When you tap into history and you tap into the future........GREAT things are the bi-product.

Have a GREAT day!