You can’t make worthwhile money leasing shitty domains! OK. Now we’ll let my JointVentures.com partner Danny Welsh elaborate on that, since it’s clear to me that so many didn’t learn the lessons of 2007 and are doomed to repeat those failures. Want to climb the domain money mountain in a brand new way that’s going to allow a few sharp salespeople to reach the summit FAST? Pay attention!
All the inventory in the World vs. the Best Inventory in the world: Follow the Leaser
By Danny Welsh
A number of people in the domain community have seen what Rick Schwartz and I have done with JointVentures.com and have brought up this company or that company that has “tried” domain leasing in the past and failed.
There may be many variables for that, and specific companies could have a most important factor each for why they failed more specific to the company than to the IDEA. I don't know, when those companies crashed and burned I was not a domain investor, but focused only on physical property.
The biggest reason if you ask me would be TIMING. It was premature. That has already been discussed on this blog by me and Rick both within the last 8 weeks of posts.
The failures of 5 years ago have ZERO BEARING on our success with JointVentures.com today…and likewise zero bearing on the success of ANY domain leasing firm that has QUALITY PROPERTIES FOR LEASE today…Yep, that #2 reason those “domain leasing” companies failed then (and many others attempting this today will too) would be QUALITY.
Those past companies you see when you do search engine research on “Domain leasing” are pretty much all out of business as of this publication in February 2013…though that’s changing. Maybe someone should take a screenshot of the first page search engine results TODAY…compare it to the first page results 2 months ago (they are already changing BIG TIME)…and compare it to the first page results in 2 years?
I guarantee you all 3 would present a different picture, and I’ll bet anything that in 2 years you’ll see NEWS ORGANIZATION links on HEADLINES and not links to blogs and companies that have closed their doors for that search. Go ahead…put it in your calendar and come back and try to say “You’re wrong!”
Yep, those failed companies from 5 years ago mixed in “shit with the gold” (as Rick would say) and were selling domains of zero BUYING WORTHINESS as somehow being LEASING WORTHY.
Don’t work like that. Someone MUST want to buy it for it to be leasable.
Preferably, MANY SOMEONES must want to buy it!
We'll be taking golden gooses to the market this year, and saying the eggs alone are for sale.
Total difference from what those failed companies did!
Here's a blast from the past from a company that does not
appear to be in business though if they are, that’s news to me, since all
indications appear nobody’s home:
First thing I notice when reviewing the “time capsule” of the 2007 LeaseThis.com website is this:
26415 domain names for
lease in the "Real Estate" category alone.
- 2007 LeaseThis.com “Domain Leasing” listing #1: 10002realestate.com $2.00 / month
After you subtract the stamp, check cost, handling, and all else after mailing me my monthly check as the domain name owner, exactly how much "commission" would be left over to make this deal worth doing for LeaseThis.com? Waste of time and money for all parties involved. Sorry, but anyone who didn’t see that THEN must surely see it NOW. Automate the whole process…maybe, but why bother? There are bigger deals to do that require less hassle and we’re not talking about 2x but 500x.
- 2007 LeaseThis.com “Domain Leasing” listing #2: 2realtor.com $40.00/ month
Not sure what anyone would see in this. Personally, I think 4Realtor.com has branding value. But I wouldn't select it for our program. This, unfortunately does not. Not for $40 to BUY. And why lease for $500 per year if you’re a domain name owner with something worth leasing? If it is worth leasing it is worth leasing for “highest and best use”! Any company that can only pay $500 per year for an instant brand is a HOBBY…not a business.
- 2007 LeaseThis.com “Domain Leasing” listing #3: 4SCOTTSDALE.COM Contact us for pricing
"Yeah, I'll get right on that" says the marketing executive or CEO....of which company exactly?
Probably none. Sorry,
- 2007 LeaseThis.com “Domain Leasing” listing #4: KansasRoommate.com Contact us for pricing
Better than any others I've seen so far as I scroll what Rick Schwartz would probably call “the shit list” but which I’ll more tactfully call…shit, I can’t really think of anything nice to say. Sorry mom! So this one is better…but the business that wanted this domain name would do better in my opinion to use the plural (with or without the singular too).
OK, this random skipping around isn't finding anything.
Why don't I sort by price to find the most "expensive" ones?
Let's do that...here's the first one I see at our standard pricing level of $1000/mo domain leasing with JointVentures.com properties:
- 2007 LeaseThis.com “Domain Leasing” listing #5: Swimmingpoolslasvegas.com $1,000.00 / month
“OMG!” says your bratty little sister who just learned about domain names a week ago and can tell that that domain name— except in a “Bigger Fool” scenario where any company buying it would be being taken ADVANTAGE of— ain’t worth $1000 to buy much less lease for $1000/mo.
ASIDE: Personally as a “domain investor” I don’t have the world’s greatest portfolio for having domains that are only 2 years old. But I let all my NOUN-ADJECTIVE oriented domain names like this one drop this past year. I read RicksBlog and realized SlamGrand.com is nothing and GrandSlam.com is worth millions. I made the mistake too. Sorry, but I learned from Rick Schwartz that a domain like CityNICHE.com is valuable but NicheCity.com is just about worthless. ADJECTIVE-NOUN has meaning in English…NOUN-ADJECTIVE in almost every case does not. Case closed? Probably not…so many make this mistake!
Don’t feel bad if you’re a domain investor without much success and bought something worthless like PastesTooths.com when guys like Rick Schwartz own the better version ToothPastes.com. I fell for the “keyword” bullshit too. Valuating the top-end of great domain names is about WORDS WITH MEANING, not “Google keywords”.
Which would make the still 5 years later “for sale” Swimmingpoolslasvegas.com CRAP even while it’s surely obvious to anyone reading this that an attempt to lease for $1000/mo in 2007 when a 2006 hand-registration was the property in questions was probably not possible even in 2016. And certainly not a domain made up of words in the wrong ORDER.
Of course, the 100x better LasVegasSwimmingpools.com some smarter guy registered is for sale and it WILL sell at some point, no doubt in my mind what you’ll find when typing in that address one day (currently owned by a domain investor with a for sale page): a company in Las Vegas, NV that sells swimming pools.
JointVentures.com is not yet opening our division for “GEO domains” just yet, I
will flatly tell you that Rick and I both believe many domains like that ARE leasable at cheaper amounts than our
standard leasing fees in the next few years…
(* hint* GEOs are an exception to our own in-house criteria of what is “leasable”
and we’ve seen it PROVEN…so will you as the next few years roll by.)
- 2007 LeaseThis.com “Domain Leasing” listing #6: realestateinnyc.com $1,000.00 / month
They're kidding....right? I mean GEOs have value, sure...but this is no NYCRealEstate.com or NewYorkRealEstate.com, both of which are 100x better.
- 2007 LeaseThis.com “Domain Leasing” listing #7: planningain.co.uk $1,000.00 / month
WTF is this? Did a robot pick these domains or you could just submit whatever and put whatever the hell price you wanted on it?
Explain how any
business would pay one DOLLAR for this to OWN, much less lease?
- 2007 LeaseThis.com “Domain Leasing” listing #8: plumbingfordummies.com $1,000.00 / month
TM violation waiting to happen!
For a plumber or an author to build his business or brand on
a foundation of quicksand as lease that domain name. If who I think owns it
does own it, gosh almighty I'm sorry to be rude to a leader of the domain
industry. But that domain is a liability.
- 2007 LeaseThis.com “Domain Leasing” listing #9: eviltenant.com $1,000.00 / month
I've met a few stupid tenants. Even ones whose plasma television they hang on the wall in their mobile home cost them more cash than the car I was driving the first time I made 6 figures in a year. Haven’t had an evil tenant yet though. Suppose he collects your SOUL for rent? Seriously…though: exactly how is this domain supposed to help a company that uses it SELL anything to anybody? And if the domain name has no COMMERCIAL SALES value, why in the hell would anyone lease it?
LeaseThis.com “Domain Leasing” listing #10: 78701realestate.info $1,000.00
Sorry, no cigar. Are they serious? I can’t look anymore. It’s too damn painful. I’m sure they had a dream that was domain leasing, and we should applaud them for having it early…but the nightmare this turned into was PREDICTABLE for anyone that looked at this stuff the way Rick Schwartz does.
intelligent domain investor can be serious
comparing that failed 2007 “domain leasing”
company to 2013-onward JointVentures.com.
How do you compare those crappy “Real Estate category” domain names with the real estate related domains we are taking to market this year under a lease/JV model, thanks to our clients that are trusting the company Rick Schwartz and I are building to MARKET their properties and not just list them on a website?
Specifically these 10 come to mind, off the top of my head:
- 2013 JointVentures.com “Domain Leasing” listing #1: IncomeProperty.com
- 2013 JointVentures.com “Domain Leasing” listing #2: CheapLand.com
- 2013 JointVentures.com “Domain Leasing” listing #3: RealEstateForSale.com
- 2013 JointVentures.com “Domain Leasing” listing #4: CelebrityProperties.com $750
- 2013 JointVentures.com “Domain Leasing” listing #5: USAProperties.com $1,200/mo
- 2013 JointVentures.com “Domain Leasing” listing #6: UKProperty.com $2,000/mo
- 2013 JointVentures.com “Domain Leasing” listing #7: RefinanceLoan.com $2,200/mo
- 2013 JointVentures.com “Domain Leasing” listing #8: Roofs.com $4,000/mo
- 2013 JointVentures.com “Domain Leasing” listing #9: RealEstateLaw.com $1,500/mo
- 2013 JointVentures.com “Domain Leasing” listing #10: Honduras.com $15,000/mo
You can't make any
comparison of apples to apples there, can you?
Any smart, forward-thinking real estate company-- and I've started several, including ones doing 6 figures in a month at one time...not big, but not tiny either—any company that had the resources to maximize the inherent advantages in operating just ONE of those 10 JointVentures.com real estate related domain names as an integral part of their business, would take any one of those category domain names over ten thousand LeaseThis.com so-called real estate domain names that have no meaning and many other flaws besides.
Quality, not quantity is our model. We’d like to become Christie's, not open the doors to the Dollar Store. Strive to be Studio 54, not Moe's Tavern.
Our positioning with JointVentures.com is really no different than our domain LEASING clients that open their digital doors from day ONE operating a superior domain name of ours and have INSTANT credibility, and perceived market leader positioning without saying a word.
What’s that worth to a real estate law firm to be the one
and only firm in the world to communicate with their clients and prospects from
And it’s not just the 25,000+ listings in the 2007 LeaseThis.com “real estate domains” inventory…I could go through the same exercise for every one of that failed “domain leasing” company's categories. Try it yourself. Look in their "vehicles and transportation" category, scan the thousands of listings in that category alone til your eyes start bleeding. See if you can find anything that millionaire domain investors would agree is more valuable than HelicopterCharters.com, MotorScooters.com, FiberglassBoats.com ETC.
I dare you.
Even if you find that needle in a haystack (which I highly doubt), as Rick Schwartz himself has said...you do NOT mix shit with gold.
If I've offended anyone, that was not my intention. If you own or owned one of the domain names listed in 2007 with LeaseThis.com and used as an example of what NOT to do in 2013 by yours truly…look, that's your prerogative to keep paying registration fees until kingdom come.
Those that let most of those type domain names drop, good for you. Other than one or two I doubt you'd get an unsolicited offer to BUY any of those in 2 decades of waiting.
Domain names that work for the leasing model get unsolicited "buy" offers ALL THE TIME.
It's an intoxicating feeling to get paid monthly instead of a one-time sale. So I understand why folks will jump on the “domain leasing” bandwagon. But a word of caution: somebody's got to want to buy an asset from you, for you to lease it. Preferably MANY somebodies!
The biggest difference between that 2007 LeaseThis.com company (and others that have failed and will fail), as Rick Schwartz pointed out…was timing. The market wasn't ready for domain leasing in any big way years ago even though individual domain investors were quietly doing domain lease deals even 10 years before that. Market acceptance or understanding as a whole was NIL on both sides.
Second biggest reason for failures of “domain leasing” companies is sacrificing quality over choosing quantity. Listing everything on a website available for lease with $2.00/mo prices ain’t gonna cut the mustard if the company has any costs at all, or plans for external promotion. They’ll probably run in red ink even if they have zero employees and a fully automated “platform” that allows for instant hosting, instant payment transfers, and instant gratification…all because mixing shit with gold because no human being with SPECIALIZED KNOWLEDGE approved the listings is enough in and of itself to make the battle an uphill journey I sincerely don’t even know why anyone would bother with, when the easier path to the summit is being trail-blazed right before your very eyes,.
You'll never see shit mixed with gold with JointVentures.com while the company is owned and operated by Rick Schwartz and Danny Welsh.
Third biggest difference between then and now, them and us?
We're whale hunting.
No $2.00/month guppy deals.
And any $xxx-x,xxx per month deals for our domain names will be a 5-6 figure per year commitment for a unique eRealEstate property that the lessee COULD exercise an option to buy at 6-7 figures if and when they're ready.
You know…out of increased PROFITS from earning income leveraging an asset, not throwing away money on an expensive (or cheap) mistake.
Follow the leaser?
Yesterday, today, tomorrow.
What do YOU predict will happen next?
P.S. Oh yeah, to elaborate on Rick’s statement “Want to climb the domain money mountain in a brand new way that’s going to allow a few sharp salespeople to reach the summit FAST?”…consider that your open invitation of you like our model to review our sales sub-broker opportunity and get involved now. Send in your video application via posted link in the comments to the “Armchair Quarterbacks Need Not Apply: JointVentures.com Sales Team Now Recruiting Future MVPs” announcement post here: LINK