Truth to Power

We speak truth to power, and if they don't like it....TOO BAD! My job is to have domains recognized in the marketplace for the great investment that they are. More importantly it is to have businesses of every industry  look at and understand the source and quality of the traffic produced by GREAT domain names. Massive amounts of targeted visitors looking for something very specific.

This “type in” traffic can be converted into buyers when matched with the right product and website (or as I look at it…….“Mousetrap”) at a higher rate than average traffic. Often at astoundingly higher rates. Now if you don’t know about this then it is your JOB to learn about it. If you don’t believe it then it is your JOB to find out why you are flat out wrong. If you don’t care and you run a website that is dependant on closing more sales, then either wake up or have your competition figure it out and give you years of angst for goofing up!

My job is to help folks understand the importance domain names have in the future of commerce throughout the world and throughout the lifetimes of everyone reading this. To get the highest possible revenue our domains can make and keep prices rising by educating website owners the science and the art of closing more sales and gaining new and future customers.

From where I sit, THIS is the perfect intersection of “Science and art.” The science of targeted traffic. The science of closing more sales. The science of understanding the visitor and so on. The art is of course your  website. Is it flat, dull, boring? The art of your website is an important piece of this equation. The art of how you lead your customer thru the maze and to the cash register at the end of that maze. The intersection of “Science and art” when that sale is made.

If you are paying attention the one question you might ask is how many visitors are we talking about? THAT would be a great question! The answer is stunning. I have an entire post devoted to it. But to just give you a LOUD HINT……..Let’s just say it may DWARF “American Idol” and it runs 365 days a year. Now folks that is POWERFUL. VERY powerful.

The single biggest cost website owners incur is the invisible cost of sales being lost. I often say, and I truly believe, that more sales are being lost on the net than actually being made on the net. If you read this post and you are a company leader and just shrug your shoulders…. there is little else I can say. Your mind is made up. You live in a world where doing the best you can has no meaning. Being #1 has no meaning. You are mediocre at best. And if that ruffles your feathers and pisses you off, guess what?? That is called, “TRUTH TO POWER.”

Have a GREAT day!

Rick Schwartz

What if

I think that "What if" is an important question to ask if you are looking at the COMPLETE picture. What if my competition can market online better than my company? What if their costs for a new customer are lower than mine? What if they spend 100% of their budget online and I only spend 20%? What if I am losing market share?

"What if".......What if Ford owned Cars.com? Perhaps their financial condition would be better?

The POINT of all this.......What if you are hiring folks that are missing the BIG things? What if your CEO got $150 million in annual salary plus bonus and your company lost money? I just love the NEW MATH!! Reward FAILURE!!?? You want me to buy into THAT?? I wonder how all the dead guys I talked about earler would feel about that?

That's when "What if" turns into "No Way!"

What if?

Go down the following list. Many of these companies have already been posted by you folks as you are one step ahead of me. Ask some "What if questions. What if they did not secure the domain name? What if their competitor got it? What if you just are WRONG about the importance of GREAT domain names? What if it was a unique opportunity in time and you would never get a second chance to make the right decision?

What if???

See I think it is one thing to have just missed something. But in the light of all the evidence what if your company is being run by folks that are still missing it?

WHAT IF?

Have a GREAT Day!

Rick Schwartz

Chips.com Intel inc
Vitamins.com Puritan's Pride
Vitamin.com Nature Made
Plants.com Stokes Tropical
Pens.com National Pen Company
Trashcans.com Dawn Concrete and Stone products
Saddles.com County Saddlery.com
Laundry.com Tide.com
Vacations.com TRAVELOCITY.com
Burgers.com Carl's Jr
Freezers.com Polarpod
LCDS.com Lumex.com
Ink.com FlintGroup
Label.com Bradley name plates
Bottles.com Custom Bottles
Talk.com Cavalier Telephone
Buttons.com JHB International
Carpets.com Al Abdullatif Industrial investment company
Names.com Family-Crest.com
Brush.com Braun Brush Company
Salads.com Foxy Fresh Vegatables
Costumes.com Rubie's Costume company
BreadMachine.com Krusteaz Continental Mills
TreadMills.com Woodway Inc
WheelChairs.com 21st century Scientific
WheelChair.com 1-800-Wheelchair.com
Worldmaps.com The Map and globe store
Gourmet.com Epicurious.com
Visit.com Citybreak inc
Floors.com Mannington.com
Tennisshoes.com K Swiss
Plate.com Kenilworth Steel
Flag.com Aradyne flags
Dentures.com Fixodent
DentalCare.com Procter and Gamble
PoliceBadges.com Berben Insignia company
Sweepers.com contract sweepers and equipment
Foodprocessors.com Kitchenaid

Word.com Merriam Webster dictionary
Eat.com Ragu
Scooters.com Honda
Dogfood.com Petsmart
Motorcycles.com Honda
Dish.com Dawn soap
Collectibles.com ShopatHometv.com
Gear.com Overstock

Heat.com NBA
Open.com American Express
Jobs.com Monster
Coat.com Burlington Northern Coat factory
Go.com Disney
Dig.com Disney
Beds.com Select comfort
Toothpaste.com Proctor and Gamble
Games.com aol.com

Wow.com aol.com
Game.com hasbro.com
Tacos.com TacoBell
Do.com MSN

shoes.com = brown shoe company

IceCream.com Edy's IceCream
Sauce.com Ragu spaghetti sauce
Soap.com Hill Manufacturing
Glasses.com 1-800-Contacts.com
Aspirin.com Bayer
Coffee.com Peet's coffee
Bikes.com Rocky Mountain Bikes

cnet.com owns some great ones such as:

BESTBARGAINS.COM
BROWSER.COM
BUILDER.COM
CATCHUP.COM
COMPUTERS.COM
FUTURE.COM
labs.com
news.com
shopper.com
upload.com
uploads.com
Radio.com
TV.com
Chat.com
Kids.com
KIDS.com
downloads.com
freeware.com
shareware.com
help.com
radio.com
search.com
events.com

Disney owns many. Here are a few.:
Movie.com
Movies.com
Video.com

IAC has many known and many not so known. Here is just a few.

Gifts.com (formerly with ReadersDigest)
Entertainment.com
RealEstate.com
Ask.com
Hotels.com
Chemistry.com
Match.com
etc. etc. etc

How Madison Avenue let down Corporate America and how both failed

Do you remember a few days ago I said I would 'Ruffle some feathers.' Well that is a promise I can keep with this post. Get ready for some flapping and chirping on a grand order.
Hotels_2 Hotels.com is one of my favorite stories because it illustrates the stupidity and failure the majority of Corporate America and Madison Ave have achieved. It is a clear indictment of not only them missing the single biggest opportunity in any of their careers, but 12 years into it and they have yet to figure it out. As I said in point #7 of my April 5th post, the guys that started these companies are rolling in their graves. The people entrusted to run these companies have for the most part failed them.

Now this is not universal. In some cases they did figure it out and I will list a few below. They make my case stronger not weaker. The question is why did some figure it out last century and why are the majority still not figuring it out so far in this century?

Let's start with this undeniable premise. Before you ever plug in a GREAT domain name it is capable of getting type in traffic, it starts gushing from the moment the domain name goes live. Again, may be widely known to domain owners, but possibly not to the folks that would be best served either owning your domain or at least buying the traffic on an exclusive basis. The 'End user.'

How much traffic a domain gets is on a domain by domain basis. A domain like sex.com will likely get somwhere close to 200,000 new visitors every day of the year. A domain like widgets.com gets 500 visitors each day but that is up from 60 last year. Candy.com gets 1000-1500 each day with spikes during holidays. There are many domains that get 1000-25,000 daily visitors and some much more. The reason this natural resource is so important other than the obvious value of a targeted visitor, is the growth factor. If you have zero traffic and you double it you still have zero. Anything other than zero and you will have the wind at your back. Just remember one important point. Word of mouth advertising is still the greatest advertisng medium ever known and online it is even more evident and more valuable.

Hyatt_2 Here is the story. Earlier this year my partner Howard Neu and I met with the GM at the Hyatt Grand Central Station in New York City to book the T.R.A.F.F.I.C. domain show and live domain auction there for this June. He wanted to understand domain names. So he began to ask some questions.

I used hotels.com as my example. I asked isn't it interesting that with all the hotel chains and all the execs and folks paid to beat the competition that EVERY single person in the hotel business failed and they failed BIG TIME? He was puzzled and looked at me like the old RCA dog on the old lp's. But that was actually a good start cuz it meant he was paying attention.

Imagine if Hyatt had gotten hotels.com. Instead of you being 1 of hundreds of hotels listed including all your competitors and paying for each lead or each booking Hyatt would have received ALL the leads. Would that not increase sales? Would that not increase market share?

Step in Madison Avenue. These folks are sooooo hooked on 'Branding' that they forgot the REASON they brand is to INCREASE SALES. So their REAL job is to increase sales. THAT is ultimate branding. Having your product everywhere. Funny how in time they have LOST SIGHT of that basic core contract. So Madison Avenue failed the hotel industry as well. IMAGINE, of all these high paid execs at all these companies and not a single one could figure it out. Figure that if they own a domain like Hotels.com they would be a leader in their sector. But they are all so hung up on BRANDING that they would rather IGNORE a reservoir of new business. New business snatched directly from the competition.

Even before it was attached to a business plan or went online hotels.com was going to be a million user a day site because it had a substantial traffic base. My guess would be that a domain like that would have gotten somewhere between 25,000 and 50,000 new visitors every day since the moment the domain went live. I guess the corp guys and Madison Avenue saw no value in having their call centers receive 9 to 18 MILLION added calls a YEAR. 9 to 18 MILLION calls that Hyatt would not lose to Marriott or Westin or Hilton or Holiday Inn or Ritz-Carlton or the other way around. They EACH had a chance to lock out the other hotel chains and they ALL missed it. They spend millions on a superbowl ad with results that can't compare and cannot even truly be measured. They let InterActive Corp (operator of Hotels.com) and Barry Diller beat them by disrupting the entire travel industry and for that they will pay dearly for decades to come.

And of course if Hyatt or Hilton or any of the others marketed hotels.com there is no way to even imagine how many tens of millions of leads would have been discovered. Leads that they get FIRST CRACK at getting. First crack at a new customer. First crack at a new reservation. This has no value??

Until folks face the greatest failure of their careers and learn from it they first must see and understand that failure. I don't want to beat these guys up. Really I don't. I am sad to report that 12 years into this and they STILL have no clue just how bad they failed. With 20/20 hindsight you would be hard pressed to find a hotel executive to say they screwed up by not getting hotels .com. What the hell is wrong with you folks??

Johnson and Johnson figured it out. They own baby.com and a LOT more. See how they OWN this sector. How they CONTROL this sector. How that have positioned themselves to lead the next 100 years just like they have lead the past 100 years. THEY GET IT!! Then think what would be the consequences if their competitor got it!

Bank of America owns Loans.com. THEY GET IT!

Barnes and Noble own Books.com. THEY GET IT!

Kraft owns CreamCheese.com. THEY GET IT!

JC Penny owns Gift.com. THEY GET IT!

Calvin Klein owns Underwear.com. THEY GET IT!

So these corporations and their Madison Avenue ad execs deserve recognition. I have a list of about 100 companies that GET IT. I give these folks a tip of the hat. They are probably yelling 'Shut up' at the screen so not everyone figures it out. LOL

Now let's look at a disaster.....and a failure by the same counterparts

Campbells Campbells owns MySoup.com. The competition (Knorr) owns Soup.com. Somebody SCREWED up there! They DON'T get it and by the time they figured it out....TOO LATE! How much do you think it will cost Campbell over the next 50 years not having that domain? I would invest in Knorr. They have SHARP people there and they may unseat the leader just like 1-800-flowers gobbled up FTD. That is one of my favorite stories of not keeping up. Here is a business (FTD) that OWNED the sector for 100 years and here comes 1-800-flowers and the tiny fish gobbled up the GIANT fish. The ONLY way Campbells will get soup.com is buying the other company. But they better do it NOW before it goes the other way! Knorr is owned by Unilever.

Imagine if 1-800-flowers did not own flowers.com?? Would not that have been a MAJOR screw up? Well if you can see it there....it is time to apply it to your own sector and see if you pass or fail. The key to all this was that it WAS a 'Unique opportunity in time' because a domain like hotels.com could have been bought a few years back for LESS than the price of a SuperBowl commercial. Today I bet some chains pay the price that could have run many commercials. And what do you think the price of hotels.com is today?? Do we count in hundreds of millions or billions? I think the latter if you could even get to that point.

So the hotel industry and dozens of other industries and their Madison Avenue agencies DON'T GET IT! They are soooo stuck on branding that they just can't GRASP that in the virtual world you can have more than one door. You can have more than one front door. You can market in generic ways. You can do lots oif things you can't do in the real world.

Regardless of all this. Their #1 jobs is to INCREASE SALES. Branding without increasing sales is not branding at all. Branding without using every tool is not building brands it is destroying brands. Branding is a buzz word that means little. SALES is what pays the bills and the salaries. Here they missed the #1 opportunity to increase sales, take market share, grow their business at the expense of the competition and they just sat there and talked about branding and to this very MOMENT still don't get it.

That my friends is a sad indictment of where we are. They are so busy slapping themselves on the back that they BLEW IT! They failed. They continue to fail. To me, this is the single biggest and clearest illustration of their total incompetence.

At least come to the point where you slap your forehead and say....'Oh my goodness, how the hell did we miss that?' Until you get to THAT POINT, there is really little else to say. Defend yourselves all you want. Somebody go do a spreadsheet and show them what it would have looked like today if they did not miss the biggest opportunity they will EVER have to increase sales.

Barry Diller and IAC (InterActive Corp)  figured it out when they bought hotels.com and you geniuses will be paying THEM for the next 100 years because you guys FAILED! And you will continue to fail until you can see how badly you messed up. Go take a look at THEIR spreadsheet.

Luckily there are other related domain names. Vacations.com. Ooops, owned by Travelocity. Too late! Do they charge commission too? Motels.com, motel.com, hotel.com, travel.com......Are you guys on Madison Ave. and Corp America getting the picture yet??? Instead of having an income producing ASSET on your ledger you have an EXPENSE!!! DUH! A significant expense. You can either 'Get it' or call me names. Go ahead, give it your best shot. Nothing you can call me can cover up failure of this magnitude. NOTHING!

I rest my case!

Now I know you hear the frustration in my words. 5 years ago you would have had to peel me from the ceiling. But it is not as bad as it seems. I do see a light at the end of the tunnel. I do see a dialogue developing. I just really wanted to be on record and 100% clear of how I see it. I hope this filters up, down and sideways throughout the Corporate world and Madison Avenue. Start with Donny Deutsch and let it circulate down to Main Street.

To dismiss any of these first few posts would just be perpetuating a 12 year failure to understand how a GREAT domain name can grow your business, lead to greater market share, and if you fall asleep at the wheel be prepared for someone to come and disrupt your entire industry no matter what industry you are in.

Have a GREAT Day!

Rick Schwartz
Hotels.com, Campbells and Hyatt are registered Trademarks

It’s the TRAFFIC….Stupid!

It's the TRAFFIC...Stupid!

View this photo It's nothing more than the famous shell game and your job is to be trained on what to look for.

There are 3 shells. Shell 'A' contains TARGETED TRAFFIC. Shell 'B' contains UNTARGETED TRAFFIC and Shell 'C' is hocus pocus NO TRAFFIC at all or the quality is so bad it has the same result.

Let's say you buy 1000 visitors and you are willing to pay 10 cents each for a $100 investment. With group 'A' you can close 10 sales and you make $100 per sale. A closing ratio of 1 in 100. You made $1000. With Group 'B' you made 1 sale. A closing ratio of 1 in 1000 so you broke even but you made a customer who hopefully return and that of course has value. Group 'C' of course produced nothing and if you buy it 10 more times you will have nothing 10 more times. Closing ratio is......

So with 'A' your $100 turned into a $1000. RIGHT DIRECTION!

With 'B' you broke even. No direction at all but there could be a CHANCE at some future business.

With 'C' you got the shaft and few even ever know it. So there is ample amounts of 'Shaft' available. Want more? If not....you MUST learn about traffic.

Now this is one side of the equation. The next step is to focus on the website and see if you can increase your closing percentages. If you could tweak it and double the revenue you would create 2 things. Demand for more traffic of equal quality and you would be willing to pay more for it which is why I as a domainer am so interested in this happening. Now be careful. If you buy the traffic under shell 'C' you will be tweaking with no possible way of ever improving it and THAT us why TRAFFIC is the name of the game. Once you truly understand traffic, you can sell virtually anything on the net. So with the widgets.com example yesterday and the traffic illustration today, you shoud be able to clearly see both sides of the equation. If you can see it you can tweak it.

So back to my example....if you double your closing rate and end up with 20 sales and make $2000 for your $100 bill you are likely willing to up that offer and you may up it to the point where you buy as much of that traffic as you can find.

While all that is going on you are still getting the benefit of the customer returning to buy more but you have increased your odds by 20 fold. You are growing your business. You are likely growing your business at the expense of the other guy. And guess what? That is okay!! The bi-product of all this is I have also just given an example of a value of a domain that varies by a HUGE amount when you can match the traffic with the right website. So that is the reason when folks sell a domain based on 'X'....my big question is WHY?
Have a GREAT day!
Rick Schwartz

Widgets.com


Widgets.com is more than a domain name. For today it is an example.

Yesterday I mentioned one of my domains and put a link to it on the lower left side of this page. Widgets.com was a domain I registered back in the 90's and I got it to illustrate the most generic domain describing the most generic of products. A 'Widget.'  What's a widget? It's any silly little item with market credibility that makes a whole lotta money. That may not be Webster's version, but it is how I think of it and I would think others as well. Webster's version goes like this: 'an often small mechanical or electronic device with a practical use but often thought of as a novelty.'

And if we were going to write the definition of widgets today it may be computer related. How versatlie! Which is the exact reason I bought the domain. A generic business waiting to be launched at any moment for any item for any market. And as a poster pointed out yesterday, the results on the landing page don't match what it is folks are looking for. Now I have targeted traffic coming from widgets.com going to an untargeted page. So it is no doubt costing me money. But that is okay. It is like this for a reason. It illustrates why domain owners selling for 'X' are selling themselves short. As time goes on the traffic will become better matched and my example on the next post will illustrate even more. I won't keep this page as it is very long. So future readers are likely to see a different page and some of this may not make sense. But for those of you reading within a short time of writing this sees a great illustration of a domain not being used to it's fullest by any stretch. It isn't even on the first step. But the 250 daily visitors will soon be monetized more effectively. It would be easy to exponentially increase the income, It is fascinating to watch a domain earning pennies blosson and start earning hundreds of dollars raising it's value every step of the way. I'll have more on traffic on my next post and you will see it all tie in. 
Have a GREAT Day!
Rick Schwartz



RicksBlog.com Grand Opening!!


Happy Grand opening!

 

What? No balloons?? Where's the marching band? When the first mall opened near my home in
the late 50's or early 60's my mother brought home 2 gold fish for showing up during the
grand opening. It's been a long time since that has happened and I am sad to
report I have no gold fish for you today. However I do think I have some gold to
share with you. Gold that will be with you for the rest of your life and gold
that I hope you will share. I don't sell this gold by the ounce. I give it away
by the truck load. We'll just have to agree to meet up on another day for the
fish.

 

Some may call my gold "Fools
gold." They are entitled to do that. But I will tell you that they were
wrong about yesterday, wrong about today and the evidence shows they
will be wrong about tomorrow as well.
My mission is to begin the conversation with those outside the
domain industry as to why domain names are an important part of any marketing
strategy. Perhaps THE single most important part. It is the foundation of what we do. I
will ask folks to leave their prejudices and misconceptions about domain owners
at the door because we have NUMBERS to talk about. Stunning numbers compiled
over more than a decade and while others were swept out of the game during the
collapse, we as domain owners, survived and even thrived. So domain insiders
please stand by. I will need your assistance presenting those numbers. Then we
will compare those numbers against traditional parallels.

 

The first few posts were an attempt to lay a foundation. A
starting point. I hope folks that come here for years to come read these initial
posts first as it will help to explain where I am coming from. I hope folks will
point others here that need to quickly get up to speed about what a GREAT domain
name represents. I will try and define what a GREAT domain is and how to spot
them.

 

I hope you will allow me to continue to lay this foundation
over the next few weeks before I attempt to address current conditions and where
I see us all in the next 10 years. This blog is not for everyone. Believe me I will say something that you won't agree with and
is gonna piss you off. So what do you want me to do? Not tell you what I truly
believe? Sugar coat it? BULLSHIT you?

NO WAY! You get it direct and unfiltered
and if it provokes a passionate debate, then the GOAL should be find the best
answer and look at as many possibilities as possible without getting stuck in
the gunk. I believe good people with good hearts will find common ground even when they disagree.

Life is all about making good decisions. Lee Iacocca said something to the effect that if you can gather 75% of
the facts, you are in a position to make a good decision. I have used that as a
rule of thumb for many years. I think EVERYTHING in life is based on EVERY
decision we make. The smallest decision can be the biggest and vice versa.

 

What I hope to accomplish is let you see what makes me tick so
you can see what I see. Let's be blunt. 6 billion folks on the earth and only a
few hundred really saw this incredible opportunity that is now a worldwide
industry and growing under the radar faster than anyone has any idea
of.

 

It's about saying out loud what you dare to believe and dare
to dream and dare to achieve. So much of all of our successes comes from how
deeply we believe in something. Passion without being obnoxious. All I can do is share
what I see, why I see it and what I saw in the past that has unfolded like a
well thought out portrait and why that is directly realted to the future.

 

I came to the net and domains with a 20 year plan. That always
raises some eyebrows. But it was with this 20 year plan in mind that I have
always moved forward. That plan is now more than 50% complete. All I can say is
I underestimated just how big and important the domain channel would become and
how fast that would happen. It's also frustrating as hell that it moves so slow
on a daily basis. My mission has been to accelerate the inevitable because our
time here is short and undefined.

 

So I hope you will bear with me as I try and paint a picture
that folks from every corner of industry can come to and grasp and understand and respond
and embrace. I hope folks that need a fast track education on domain names will
be pointed here. It's free for anyone that wants to listen and see what I see.


I
promise to shorten these posts once I create the foundation I think
it will serve us well for years to come. But one last thing. If you look
to your left you will see some of my domain names and websites. I think it will be fun to change
the last domain from time to time. Today's domain is "Widgets.com."
Today it is a parked page. The power of a domain is that tomorrow it can be
anything I want it to be and the flow of fresh new eyeballs that come
there every day will just see something else. There is obvious room for VAST improvement on widgets.com. But that is a domain to be developed on another day. Today's domain is RicksBlog.com and I want to thank you for coming!

Have a GREAT day!
Rick Schwartz

Why the Internet collapsed

Good Morning folks!!


Are you with me so far? Does this all make sense? Are you ready to see why the Internet collapsed?

Image008Before we go forward we must STOP and look back. In 1999 things were popping and it seemed you could do no wrong. Surprise!

I predicted an Internet collapse back then and of course they laughed and thought I was exaggerating. It was inevitable as I weighed the mounting evidence. Just a matter of time, but few could see it coming. I saw a storm brewing and my job was to survive and thrive while others were washed away.

While I have heard dozens of reasons there was one or two CORE reasons from where I sit. One was because advertising on the net was based on "IMPRESSION BASED ADVERTISING." This type advertising was the root of all evil on the net imo. It was charging you for a customer whether he got to your website or not. It was more like "Billboard advertising" or static magazine ads and folks basically paid for NOTHING. But it was based on traditional advertising formulas and that did not exactly match up with Internet characteristics. So folks would overpay and get a bag of smoke. Any rational person would do it once, get burned and never do it again.

Ahhh....bring in the "KNOW NOTHINGS" for reason #2. The KNOW NOTHINGS did the rational businessman one better. They had "Burn" money and they did a GREAT job burning it. They burnt it so well that advertisers actually believed in the Impression based advertising model and so everyone was so happy. Until of course the KNOW NOTHINGS ran out of money because thru all the plans and all the MBA's they never built a machine to turn a profit. They had no formula. Just some dream based on NOTHING but a fancy and phony business plan and a bunch of other people's money that they could care less about. Nobody ever told them in school that to run a successful business you need to turn a profit. That you can't give everything away for free.

So it was only a matter of time before the collapse. And I said back in 1999 that "AFTER the crash, from the burning embers, will rise the REAL INTERNET." And today you are witnessing the the real Internet. The new Internet based on "CLICK THRU ADVERTISING." With this type advertising you actually get a physical visitor to your site and you have a shot at closing him if your mousetrap (Website) works. If it works you buy more and if your mousetrap works, you will outbid your competition because you will close more sales.



Maybe you are seeing things connecting. The next thing you might ask is why is a domain owner so concerned with closing more sales? GREAT QUESTION!! You are paying attention if this is on your mind. The simple answer is I am just copying folks like AT&T. When they came out with their 800 numbers some 30 plus years ago, they trained folks for free. They had all types of schooling and wanted to help you answer the phone and do it in a professional manner so that you would close more sales. WHY?? Because then you would spend more time on the phone and your 800 bill would go up and so your sales would go up and so they would sell you a bigger yellow page ad and they would all MAKE MORE MONEY! So by explaining how to increase sales by buying TARGETED and potent traffic and having an effective mousetrap that can close more sales translates into added value to the traffic that they produce and at the same time increases the value of domain names. EVERYONE comes away a winner!

That is why the future is bright and payouts will continue to rise for years to come. When traffic was selling for a fraction of a cent my only question was "What is the value of a click if I sell a $20 million plane?" How much is that visitor worth? I believed then and I believe NOW that a clicks value is directly proportionate to the product or service you are selling. That is directly related to the value of a domain name. That is why I STRONGLY believe that anyone selling their domain for a multiple of "X" TODAY is short changing themselves more than they realize. Sometimes the best way to make the most money is to DO NOTHING!

Have a GREAT Day!
Rick Schwartz

The line in the sand

Let me start with a foundation of things I believe. These few points are not debatable from where I sit. So unless you get to this point, you will likely not understand nor accept anything else I have to say.


1. Getting a GREAT domain name is/was a "Unique opportunity in time."


2. No other commodity in the history of mankind has ever gone up in value faster than a GREAT domain name. No stock, no diamond, no gold, no land.


3. Just like land may have "Mineral rights" such as oil, a GREAT domain may also have mineral rights in the form of "Type in Traffic" from folks typing in your domain name directly into the navigation bar. If someone types in CubicZirconia.com and spells it right do you think they are not qualified? Not targeted? Is that visitor not valuable? Maybe even more valuable than most traffic because of the closing ratios they achieve? I'll talk more about closing ratios in a moment.


4. Fuel runs an automobile, TRAFFIC is what fuels the net. You can have a million dollar auto but without fuel it won't be going anywhere on it's own power. Same with a website. You can spend millions in development but until you add targeted visitors and can CLOSE A SALE you really have nothing. It just sits like the car with no gas.


5. Nothing on this planet happens until a sale is made. Nobody goes to work, not a truck rolls, not a plane takes off not a factory opens not a thing happens. Nothing happens until a sale is made and then you don't actually EAT until you turn a PROFIT. So you don't have to be a genius to sell hundred dollar bills for $79.95.


6. If you sell a product or service on the net via your website and your CLOSING RATIO is not your guiding light, not on the tip of your tongue, not on your radar.....Then you are lost. It is what I believe to be the single most important piece of data no matter what you are selling and less than 1% of all folks that run a site can answer that question. They are lost and are like a captain with no map, no compass, no plan. Your ratio is how many visitors do you need on your site for you to close ONE sale and then repeating those sales? Many sites are incapable of closing any sales. It may be for many reasons or even a single simple one....like the visitor can't find the checkout button.


If you have 10,000 visitors and you only sold one order I would ask why you did not close TWO out of 10,000 or FOUR or FIFTY? Or more? I would ask what you did with those other 9999 customers? I would ask "Is the traffic no good or is it the website that is no good?" You MUST isolate and figure out both sides. You absolutely MUST! But almost nobody does. They are working in the blind and building without a plan.


TEST, TEST, TEST. Tweak, Tweak, Tweak, experiment, experiment, experiment. And when the result is worse, go back to what worked better and find out WHY it worked better and build on that.


I can go on all day long talking about #6. But that is for another day and you may be asking what the hell does a domain owner know about this? All I can tell you as I know how to close sales on the net and back in 1996 and 1997 and 1998 I made a name for myself by increasing the bottom line of websites by 15% in just FIVE MINUTES! There are certain NAVIGATIONAL MISTAKES that almost everyone makes. Fix those, change the font, change the color, change the location and sales can go up dramatically.


7. All the dead guys that built the corporations so many work for today are rolling in their graves because  those in position of power and leadership largely missed the greatest opportunity of their lifetime, their fathers lifetime and their fathers before them!
8. Not all traffic is created equal


9. SHIT traffic and TARGETED traffic likely costs the SAME


10. If you don't know the SOURCE of you're traffic you better find out and re-read #6 until you are blue in the face. Imagine what it would do to your business if your site (Your MOUSETRAP) could only close ONE sale in 10,000 visitors while your competitor is closing 50 sales with the same amount of visitors. He is EATING your lunch and you better start paying attention before you head to Monster.com and look for a new job.

So here we are......
This may sound pretty basic to domain owners and developers, however it is GREEK to those outside the industry. They will doubt these beliefs. What they don't know is we are armed with stats to back up what we say. So my target audience is those outside the industry that still have a misconception of what GREAT domain names represent.

Note: This article was supposed to just run yesterday, but the interest level is high and the subject matter so important that I will leave it up a little longer

Have a GREAT Day!
Rick Schwartz

Chew on this while we get organized

Good Afternoon Folks,

A few weeks back my friend Frank Schilling asked me to write a guest column on his very popular 7mile.com blog. Frank started in domains around 2000. Others had already decided that all good domains were taken. They were wrong and they defeated themselves before they even began. Along came Frank and not listening to the naysayers, built a portfolio that earns more than any other single domain owner in the world today. So like I will tell you a little bit later...."If you believe you CAN....you are RIGHT! If you believe you CAN'T....you are also RIGHT! Which way your "Right" is will depend on the decisions you make and how you think. So I am going to republish the post I made for Franky cuz I think folks here will enjoy it and maybe it gives you a little peak into my inner workings and what makes me tick.

I usually write very straight forward and basic. It is rare I write things that are cryptic though it is always important to read between the lines. Here is a mixture of both. Some rambling thoughts designed to make you STOP and think. I’ll ruffle a few feathers to get you there. The first thing you need to do in life to change course, to change your destiny, is to STOP IN YOUR TRACKS, take a deep breath and re-evaluate where you are and where you are going. If you don’t start at a STOP, you lose before you begin. (Got that?)

Everyone runs around and says they want to make a million dollars. But that is truly silly. It is the same thing as climbing to the top of a building or a mountain without a staircase, ladder, elevator, gear or some device to get you there incrementally. The map to making a million dollars is not making a million dollars. It is making a dollar a million times. It is making a PENNY 100 million times. So if you are STOPPED as I suggested, this is your first change. When you make a core change like that it affects other decisions down the line so now you have to reanalyze many things. Invent once and then repeat, repeat, repeat. The more you repeat and the faster you repeat it will determine everything else. $1 million, $10, million, $100 million, it’s all based on the same recipe.

There is “No courage in Corporate America."  That's what I learned at T.R.A.F.F.I.C. EAST 2006 and how true those words are. No spine, no vision, no dreams, no ideas, no nothing but spineless jellyfish only interested in a paycheck on the 1st and 15th. No courage is something that may be able to be exploited. I see so few great IDEAS out there. I think they are coming. I think a foundation is being laid. I think sparks can and will be created. But corporate America won't care until you can lose $100 million and they can pay $500 million to rescue your company. They have such an interesting way of overpaying and make everyone think they are so smart. So my next piece of advice is don’t look to corporate America to sweep you off your feet and bring you to the promised land. They would rather knock you off your feet and bury you once they figure out how badly they goofed and how they missed the single biggest opportunity in any of their lifetimes, their father’s lifetimes and their grandfather’s lifetime. While Wall Street and Main Street traded manipulated and sometimes worthless stocks and Madison Avenue ignored us, they missed the commodity that has gone up faster in value than any other commodity ever known to man. No gold, no diamond, no land no nothing has ever gone up faster and further than a great domain name. Besides that, they lost the most magnificent self maintaining lead generation system ever devised. Imagine getting a million qualified leads for $6 a year. Imagine that? They can’t!! But IMAGINE how it will change the landscape when they actually do figure it out? When they STOP in their tracks and see what many of us see.

My current mission is to make a $1 a day domain be a $20 a day domain and then a $200 a day domain and then a $2000/day domain. Can you imagine what it would be like to multiply your entire income by 20 or more?

Yeah I know it can't happen, it won't happen blah, blah, blah. And to that I would say it CAN happen and it WILL happen and it HAS already happened. It will take on many forms and it will be duplicated 1 domain by 1 domain but the folks that can make that happen are soon going to meet each other and a new day is going to dawn. I have watched payouts go from 1/10 of one penny to many dollars. So the leap I described above is not as far as the ones we have already accomplished.

But, if you can't dream it and you can't believe it, then you can't do it. I accept that and completely understand it. But it does not affect me whatsoever. Not only do I believe it, I know I am actually underestimating what is soon to happen. Hey listen, I don't expect anyone to agree or even see what I see, but all I can do is share what it is I see and just how strong I see it. This will raise all of our overall net worth's. Your holdings are going to do very well IF you have good commercial domains or social domains with lots of eyeballs. Like anything else….If you believe you CAN’T….you are 100% right. And if you believe you CAN……you are also 100% right. YOUR CHOICE!!

If today is your first day of being a domain investor, good luck. Your job is to copy old paths and forge a new path. A new direction. You are never too late so don’t defeat yourself. The  publisher of this very blog “Came to the game too late” and was able to outperform all others that got here before him including me and every other domain investor in the game. He had no excuse and neither should you. With a solid plan and a few bucks in your pocket you can still get into the domain game and have it transform your life. I will tell you what I have told everyone before. “Your first domain is your most important domain.” If you choose that one right it makes your future easier than if you don’t. Take the time to learn what makes a good domain and a worthless domain. They likely cost the same. There are a lot of decent domains to be purchased on the secondary market for $500 to $2500. Learn how to pick out the gems and you will never look back. Good luck!

Before I put you all asleep, I’ll leave you with this. My famous “Truck story” and why helping each other has great benefits. With the spirit of giving in your heart you will receive more than you can ask for. That’s the “Magic” in approaching life from this side of the equation.

The 18 Wheeler Story……and The Crest of The Hill.

Years ago [in the domain business] many of us walked around searching for meaning. We knew we had gold and diamonds but were not sure how to turn them to cash. So the net was a true NET. We were forced to help and cooperate with each other for our very survival.

I have always seen the way things could and should unfold in a more uniform manner. Of course that is not possible but the way I have always seen it is in this picture I draw.

IMAGINE there are 10 trucks. All 18 wheelers and all lined up parallel. NONE of them have the power to get over the crest of this steep hill. Each truck has a driver and a helper. You see 10 trucks with drivers and you see 10 trucks with a guy behind it doing everything he can to push the truck over the crest. ALL are failing. Not a one has budged. They are stuck. Paralyzed in time.

The thing they don’t understand is that they have the power and resources right there to change their destiny and overcome the huge obstacle they are facing. Instead they are grumbling and frustrated and are losing money by not getting the goods to where they need to go.  If they were to think a little more unselfishly they could easily garner the power they need to get moving again.

What if…..What if you took 9 of the 10 drivers and put them behind just ONE truck and what if you got all the other 10 helpers to also push that one truck? Well you would get the result they all wanted by cooperating and then they could go right down the line and REPEAT the process and formula and push all the other 9 trucks until they are all rolling again.

The day I created this story I also had a vision for a way to apply it. Maybe there is still a way. We talk about “Development” and I think that is what most of us ultimately are. Some develop at different speed, at different levels and for different reasons.

IMAGINE…..10 domainers with like minds get together. Their mission is each month, develop one domain name owned by one of the other members of the group and built by all other members as they donate a little time and talent and knowledge to the effort. At the end of the year each would have a site developed by some of the very sharpest people we know with talents beyond most and 10 chances to hit pay dirt. Imagine dozens of groups doing the same thing. Starting with a great domain, identifying a void, figuring a way to profit from that void and creating something that we would be proud of and move in a direction we all would like to go. We all have great land and nails and wood and brick and cement in our arsenal. Together we can build houses. Alone we may build frustration and feel like those truckers until they figure it out.

This leads to other things and I could see dozens of groups like this pulling this off. One domain at a time and success after success after success.

Just a vision I have had for a very long time and never have the mind or time or PATIENCE to put it on paper and explain it in a way that could be understood and embraced. I know I have tried several times. But I have not successfully articulated what is in my mind and heart.

Lastly, don’t listen to the naysayers. They are the ones sitting on the sidelines cheering for your failure. They build themselves up by ripping others down. Don’t fall into that trap. Don’t become a person on that side of the equation. They are mad at the world and the frustration built up in them is used to try and defeat you. Don’t let them. Your triumphs are illustrations of their failures. They have the power to change that at every moment of their life, but the first thing that has to happen is the first thing I mentioned. They have to STOP and reanalyze, rethink, and set the course. Something we all have in common and something we should all do periodically to make sure we are still on course.

I will leave you with my most important thought. When you leave New York and set sail for London and you end up on the shores of Africa…..your problem did not occur when you landed in Africa, it happened before you even set sail for New York. Point is……99.9% of ALL failures are due to a bad or quick decision in the beginning or the planning stage. So the likelihood of any success can easily be determined before you even begin. Usually a SIMPLE change can also change your entire future fortunes. If you walk east looking for the sunset you will likely become disappointed, angry and frustrated. Their frustration boils over and they last out at the world. Especially anyone telling them they are wrong. Just a 180 degree shift on one thing can change your destiny. But before you do that you MUST STOP. Stop in your tracks. If you don’t start at a STOP, you lose before you begin.

So welcome to my little world and to a MIND that just keeps them guessing!

Have a GREAT day!
Rick Schwartz

Domain King announces Blog

Good evening folks!!

In 1999 I started a blog. It wasn't called a blog then. It was/is called a "Chatboard" and I started posting about domain names in 1999 on my own chatboard.  As early as 1996 on other chatboards. Then one day blogs came along and what I had been doing for 9 or 10 years became all the rage. So I think I will enjoy this updated format and my wish is for me to say something that changes your life. Changes your life in a profound way.

 

In a few days I will start a blog. It won't be updated everyday. Only when I have something I think is useful to say. So stay tuned and in the next few days I'll see what I can build and how I can present it to you in an exciting manner! Plus I'll ruffle a few feathers and mix it up a little bit. We'll expose the cons and let you know the real skinny on payouts. Pissing folks off is my specialty. It's easy to do when you stick to the numbers and the numbers don't jive with what they say or what they promise.

I am a "Numbers guy." One quote I am famous for is "Numbers I trust, people I don't." A 9 is a 9 forever. There is nothing we can do to change a 9. It is not my 9 or your 9, it is just 9. So we pay attention to the numbers and eliminate the bullshit.

So stay tuned . This blog will launch on Monday April 9th and maybe even sooner! I will share what little I know. It may be what you already know, but you also may find one little tidbit that can change your life. I am out to have life changing things happen here for those that take the time to THINK, READ and STOP.

Rick Schwartz