Branding vs Branding vs Domainer

Morning Folks!!

What if I told you that this single post can make you a millionaire many times over? Well it will if you read carefully and fully get your head around this simple message. That's exactly what can happen. I have made a lot of posts in my time, but none are more important than the one you are about to read. So close the door and give me a focused 10 minutes and I think I can share something that will make your journey just a little sweeter and more rewarding.  To me it is the difference between a domain being worth $750 and $750,000 or $7.5M. The domain can be the same but the customers needs is different. Tapping into THAT need is the key. So if you focus on selling domains that is exactly what you will do. You will do what everyone else does. Buy for $100 and sell for $200. Sell for $300, Sell for $500. But how do you buy for $100 and sell for $1M? 

 

I heard the following phrase when I was 19 years old and it probably took me about 15 years to finally figure out what the hell it really meant. "When you see John Jones thru John Jones eyes, you will sell John Jones what John Jones buys." That is the first principle. This is the most important one as well. But this is only an add on to the purpose of this post. Just a bonus to make it more understandable.

 

So how do you put this in effect? You have to look at an end user thru an end users eyes. At TRAFFIC in late September, Brad Geisen did exactly that. As an end user he shared his John Jones story of obtaining foreclosure.com and Property.com. He originally was the guy on the other side of the email telling folks they were crazy to ask $5000 for something they registered for $7. We all know the type. Well here is how this guy evolved from a mindset like that to paying tens of millions for a domain name.

 

When you see the end user thru the end users eyes, you will sell the end user the domain he buys. So the story starts. It's so damn simple! It's so natural. It's untapped because until now it was difficult to articulate in a simple form WHY they would want the category killer domain. It took an end user to explain it and that is what he did.

 

Funny thing.....been into domains very early. Approaching 13 years. It took an end user to simplify what a great domain really means. If you missed TRAFFIC you missed some real words of wisdom from Brad Geisen of Foreclosure.com and the buyer of my Property.com domain name. He told us HIS story from the other side. How it cost him millions to brand a domain name with no end in sight to that branding. Here is his key thought about domains. The 1 over 2 simple theory.

 

NATURAL BRANDING

 

or

 

BUILD and CREATE BRANDING

 

This alone is worth the price of admission. Brad told us his story of spending millions and millions to advertise and brand with his original 3 word creative domain name. When he switched and used a fraction of those ad dollars to buy a category killer domain name, he transformed his business. The dollars he was using to brand was now freed up to do other acquisitions and grow his business in a more dramatic way. NATURAL BRANDING may be the simplest way to describe what a great domain brings to the table.

 

So it took an end user to make this old dog figure a way to articulate what a domain name does in a very quick manner and have folks understand. Have END USERS understand.

 

So a category killer domains gives you instant gravitas. Gives you instant recognition. And gives you something that saves many millions. in "Natural Branding." The elements and benefits associated with a natural branding domain name overwhelm anything that advertising can do. But it is when you do both that the result is something that can not be obtained with most creative domain names.

 

I have never sold a stick of candy in my life. I know nothing about the business. What I do know is elbowing my way to the table with Candy.com is going to be easier than with chewonmycandy.net. Advertising Candy.com is easier than the alternative. Match it with good content and you have a winner before you start. How much does it cost that first day for chewonmycandy.net to get his 1500 targeted folks looking for candy? So one way you pay up front for an asset that returns dividends in the form of natural visitors and appreciates in value at the same time. Folks, this is really the ultimate no brainer for business and what it proves is obvious.

 

 

My friend Warren Royal knew nothing about bobbleheads, but it seems that it is easier to learn their business owning bobbleheads.com than folks in the bobble head business who don't understand it and now will pay a penalty for them not getting it with a new competitor to contend with and what could be a giant new competitor. Oh you don't think so?

 

Well then take my buddy Jeff Reynolds. A few weeks after 9/11 he bought a domain name, AmericanFlags.com. That was a life changing purchase both for him and everyone else in the flag business. Jeff took the ball and from what I understand, he is the largest or one of the largest flag distributors in the country and beyond. So here is another real world example of an industry not figuring out and a domain investor coming along and being an uninvited player in their industry. Taking market share only because they have THE domain in that category. The invisible cost of not understanding your own business. Your own space as it relates to domain names.

 

These stories can be repeated all day long. Sahar with FuneralHomes.com. He never intended to be in the funeral business but had an idea and a natural branding domain name and has made his mark.

 

How many more stories are like that? The most famous one of course is by Barry Diller who bought Hotels.com and forever changed the landscape of that industry.

 

A great domain name allows you to suck and still stay in business. I equate it to the pizza stand on the boardwalk by the ocean. Each day a new group of people come and each day you serve your crummy pizza. The pizza sucks, but you are always busy. Busy because nobody knows it sucks cuz they are tourists and are not coming back and the only reason they came to you in the first place was that you had LOCATION! Location, location, location. So that sucky pizza guy will always make money because of his location. On the other hand if he had a good product he would not only tap into the tourist, but his pizza place would become a destination and he could grow and expand and open new locations. So while the sucky pizza guy will always make great money, he will never be able to do what the guy with the great pizza does. So when you marry a great domain with a great marketing plan and a great base idea, you have something that will grow and expand and that is what it is all about. Catching that lightening in a bottle. Impossible to do unless you know what to search for and capture.

 

Brad started with the next phrase. One I myself know well. One I decided in my 20's I would not have to use in life. He started his speech with the words and I will close my post with them, "If I knew then what I know now?" Then ask some questions. If Marriott or Hyatt or any other hotel chain knew then what they know now would they buy hotels.com? Would they all bid on it? What is the loss or gain that domain represents? There are still more questions than answers, but I hope this claws away at things just a little bit more. Gets us one step closer. Gets one more business to understand what the hell we are talking about and why it matters more to them than it does to us.

Have a GREAT day!

Rick Schwartz

PS: For those that really want an in depth understanding of the entire domain name channel and a great understanding of what it means to YOUR business, you can view a report authored by the folks at Fabulous.com, a public company in Australia. It is the most  objective report ever produced for the industry.

 

Comments

[Mark Fulton]

Great read Rick! I have always told myself, friends and family that once I start making the big bucks I am going to buy an awesome generic domain name.

Until then it seems I am stuck using the "Build & Create Branding" method. On a positive note I seem to do this very well and at no substantial cost.

Here's to a few years down the road, I've got time and I'm not going anywhere!

Thanks for the morning inspiration!

[Kevin]

The greatest salesmen in the world all do one thing that sets them apart from the rest.

LISTEN

Just shutup and listen. Your customer or prospect will tell you how to sell them what they want to buy.

There is a 4 step process to closing deals. It's called AIDA.

Attention

Interest

Desire

Action

1. First, you have to be creative and find a way to get your prospect's attention.

2. Second, you have to hook their interest.

3. Third, you have to convey the benefits of whatever you are selling and create the desire within them to want whatever you are selling.

4. And finally, the fourth and most important process of selling and the one step that 99% of salesmen never master.

ASK FOR THE DEAL!

DON'T SAY ONE WORD AFTER THAT UNTIL YOU HEAR A YES, A NO OR AN OBJECTION!

That's it. It might sound simple, but if you master these principles, you can sell anything and become a superb deal closer.

[Rick Schwartz]

Kevin,

If folks never learn 2 other things about the art of selling it is these two items below. NONE are more important.

LISTEN Just shutup and listen.

And finally, the fourth and most important process of selling and the one step that 99% of salesmen never master. ASK FOR THE DEAL! DON'T SAY ONE WORD AFTER THAT UNTIL YOU HEAR A YES, A NO OR AN OBJECTION!

[steven kaziyev]

Great Post Rick,

very inspirational..

Steve

[eric shannon]

delighted you are writing again, you never lose your touch!!

I could not agree more with your post. you do have a typo though - it was Bob Deiner that bought Hotels.com... I had the privilege of listening to him tell his story w/ Sahar a few years ago

-Eric

[wendy]

Right on! While Wall st. tanks I continue to make money from my domain name: FinancialLenders.com
It is parked because I have no interest in the pizza biz but I saw the possibilities and grabbed my natural category killer! So even though my pizza sucks I still make money! Yes I should learn how to make better 'pizza' then I would really have a great business... but of course I don't have just one domain so the pizza biz will have to wait while I work on the travel business with natural category traffic! Excellent post, great analogy, thanks Rick!

[Jeremy]

Fantastic post as always Rick. "John's eyes" Reminds me of something I was told when I first started as a (very broke) stockbroker: "Don't think with YOUR wallet."

The guys that couldn't bring themselves to ask for the big money...never got any. You'll probably get turned down, but you'll never get it if you don't ASK.

[Frankie]

This is a very well thought out article and a very interesting read. However Rick, very few domainers have category killers like you do. what do you advice, should the rest just pack up and go home? Not trying to be funny but it seams like most of us are selling crummy pizza in a crummy location.

[Frank Rudner]

No one and I MEAN no one can put it straighter than you can Rick, Bravo!
"Basics & Common Sense" always worked and always will.

Thanks for the Inspiration.

Cheers

Frank

[JS]

Rick & Kevin,

Can either of you elaborate on "Ask for the deal!". Is this in regards to asking for a premium price or feeling out your potential buyer? Any additional input would be greatly appreciated.

[Rob Sequin]

Awesome advice... again!

I admire your positive outlook and advice.

Kevin,

great sales points. Thanks for that too.

[Joan Butler]

Great Post. Ask for the deal is the most important part of any sale. Your customer needs to know you want to do business with them, they are important to you and you have a right to ask for their business or the "deal".
Have a great day.

[oyster]

so to summarize possible states of domain entrepreneurship

1. selling crummy pizza in a crummy location.
Prerequisite: Desire & Work Ethic
Goal: making good pizza
Next: (2)

2. Selling good pizza at crummy location. (Build & Create Branding)
Example: bankaholic.com
Prerequisite: (1)
Next: Sell, or move to (4)

3. Selling crummy pizza at good location.
Example: Candy.com
Prerequisite: Ca$h
Next: Sell or (4)

4. Sell good pizza at good location.
Example: Hotels.com (?)
Prerequisite: (2),(3)
Next: Buy Candy.com

[Jeff Schneider]

Great post! Our sneaking suspicion is that after all the category killer targeted market names are in place, there will be a narural need for competitors to differentiate them selves from the generic category killers. It is a natural progression in this rollout cycle of online branding. The marketing agencies need to brand so as to differentiate themselves from the pack. We at USeBiz.com back in the mid 90s placed a bet that there would evolve a category called Target Market Branding.

Yes this is competition for Generics, but it also will be an extension strategy in our opinion. Online Branding is not dead, it is morphing. We are delighted to be in the position we are for this transition we feel is coming.

[Mark A]

Rick,

Great post...

[Mark Powell]

Rick,
Thanks for the great post. This why I bought CountryClubs.com - watch out world, here I come!

Mark

[Rus]

This place always inspires me. I know I will have a better outlook on getting that TDL.com in the near future.

[Daniel Sanchez]

Rick,

This is exactly what I have had in mind since I found the domain name industry. I honestly believe there are good opportunities out there that will catapult a "crummy" business into cash flow heaven.

Let's go out there and find them! Great post Rick!

Dan

[Steve]

Rick - your advice is always comes at the perfect time when I am deciding my next moves. This definitely got my attention and will approach buys a bit differently in the future. Thank you again & congrats on your bobblehead doll.

[Tony]

Rick....

Imagine if you had GREAT Pizza...and GREAT Location!!!...

How much are you worth then???

And why.....with your GREAT LOCATIONS (Candy.com...etc...).....don't you hire someone to make you GREAT PIZZA????

aren't you now worth ALOT MORE when you go to sell????

[Doc]

I agree with your comments, unfortunately some of us cannot afford the big names but are working on good projects, I just bought my first city name that is popular here.

[Jeroen]

Rick,

Thanks for the inspirational post and sharing your insights.

[Successclick]

Well Rick, it's nice to see you posting positive pieces again. However, this post is a summation of what you've been saying (and a lot of us agreeing and adding to it) for the last four years.

Unfortunately for most domainers, we don't have the "internet real estate" (apologies to Zappy) that you have to appreciate your argument.

Yes, many of us domainers have two-word category killers, and we all agree that the end user is the golden parachute for a domain investor, but let's talk about doing something to educate the business sector better than what we're NOT doing now.

Educate the public. First line of attack --- Parking services should put a little "Domain Value Facts" button on the bottom of all their parking pages, and no domainer should object to it. The button should lead to a nonprofit website with every single noted and proven benefit of owning a domain name. An archive of supportive articles by mainstream media should be readily available on this site to back up what you're saying. Sell domain values to the world this way.

We're all on board with your post here. We were with the ICA, at least those who could afford it. But Rick, you've made yourself exclusive to only the biggest of the big in this industry. You've prided yourself on this. "Keeping out the noise". You need to reach out more to the newcomers, who can be your 'soldiers in the field" that promote your message, thereby advancing the "domain army" invasion on the new item investment ownership that Wall Street can no longer claim - domain names.

You are a maverick and innovator, now you have to be a populist. Just my two cents worth.

Good post. Always mad AND glad you to see you are still involved. ;-)

*****You can edit this post if you like, to advance your article's purpose and to remove my personal editorial. permission granted. Stephen Douglas

[Daniel Rueda]

great read. hitting nails on the head. there is not alot of people that have the manhood to talk about the state of the domain industry. soo many sheep out there that condemn what we do. these meltdown tech bubble websites are gonna disappear and what still remain after the dust settles. those damn common sense natural language domain names. He who has the "greatest strategic multichannel natural language domain portfolio may just win this internet "location,location,location" game.

KillerLocator.com

[Jeff Schneider]

There can be no argument that Generic names are natural branding. Throughout the history of commerce, which is cyclical and constantly morphing there have been many different marketing concepts. The very early phases of marketing involved generic barrels of goods and services.

The next phase, Product Differentiation, created a narural need for competitors to differentiate them selves from the generic category killers. It is a natural progression in this rollout cycle of online branding. The marketing agencies need to brand so as to differentiate themselves from the pack. We at USeBiz.com back in the mid 90s placed a bet that there would evolve a category called Target Market Branding.

It takes advantage of targeting products and services and at the same time supplies the branding qualities that advertising firms crave.

There are millions of branding combinations still available to register. Think its too late ? We think not.