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

Sneak Peak TRAFFIC WEST 2008

Morning Folks!!

In a few minutes I am off to Las Vegas and TRAFFIC. But before I go I would like to share the message that will be inside the printed show program. Whether you attend or not, it's something to readas we are going to have a very interesting 2008.

Hi Folks and Welcome to Las Vegas and TRAFFIC WEST 2008.

This is the 13th year of my 20 year plan. It may be a 20 year plan, but the finish line does not happen the minute you hit 20 years. It is a process that happens over time and many things have to fall in place for this to happen. As I see it, 2008 is THE most pivotal year in this industry. The entire future of our space will be determined in the next several months. If the domain industry rises to the occasion, then the 20 year plan is right on track and it will be a great ride. If not, the consequences won't be seen today but the ride to the 20 year mark will be rough and unpleasant and you had better have loads of lawyers on staff.

This is the year that will determine if your destiny is going to be in your hands or forfeit to those predators that want what you have because the value of domains has skyrocketed into the thousands of dollars, and in many instances in the hundreds of thousands and even millions. Just because the market has yet to recognize it does not mean that we can surrender what we believe due to the ignorance of others. That ignorance will transform itself into a monster unless folks grasp what is a natural phenomena. That is why you have to look back at history to see what will unfold in the future. That was why we had Steve Forbes as a speaker.  As an historian, he understands the threats to take over our assets as has happened in the past. That is why we will hear from Jim McCann who is a walking history and may have fought some of the battles we are yet to see.

Some tell me I should not say things like this. I am the most optimistic person you will meet. That optimism does not mean I am blind to reality. Blind to threats. Blind to bad weather just because the sun is shining today and all is well. I know this industry is very charitable. If you want to continue to be able to give and provide, then fortify your own livelihoods by supporting the organization that may be the only thing between us and the predators that will surely come to get our assets; not in the marketplace, but  rather resort to the courtroom where they can outspend and out wait you while making your lives miserable.

On the other front is transparency. Payouts with no rhyme or reason. The numbers don't lie and we are seeing things that are troubling. Like I have said several times in the last few months...."We count our change when we give a $20 at McDonalds and don't do the same things when BIG money is at stake. Personally, I think that is insane and lazy and I could go on and on.

Recently someone posed this question:

"When will all these companies stop treating us like mindless "traffic" and more like "partners" or at least offer those of us interested this respect?"

My answer:

"That's an easy one....When DOMAINERS show up and demand it. For years we have done nothing to protect our assets. THIS is the chance to press for concrete changes. With a unified mind and purpose, there is strength to demand transparency and accountability.  Without it, there is no reason why any change to increase our income should take place. Only domain owners themselves can demand their fair share."

So, while things are still good, we are entering some uncertain economic times. We have real challenges and in the coming months we will see if domainers are up to the challenge.

Thanks for coming to TRAFFIC. Howard and I along with our wives and Ray will do everything we can to provide the tools and relationships you need to achieve whatever dream you carry with you. When you bring GREAT people together, GREAT things can happen.

Rick Schwartz
CEO and Co-founder
WORLD ASSOCIATION OF DOMAIN NAME DEVELOPERS, INC

Chew on this on the way to Las Vegas

Morning folks!!

Let me give you something to chew on as we head to Las Vegas for the 10^th T.R.A.F.F.I.C. show. These are serious articles with serious numbers from a serious domainer that should only be read by other serious domainers that want to understand why transparency is the key issue for 2008. If you are not a numbers guy, or real numbers scare you, then really don’t waste your time. But if you are serious about where YOUR EARNINGS are going and how much you are really getting of the pie, then don’t read the following links, STUDY them! Why be interested? Not only will your earnings multiply, but the value of your domain assets will increase even more. These numbers are crunched by Michael Gilmour of Whizzbangsblog.com. He has really done a well researched and in depth expose!

Transparency = Education =  More sales = Higher payouts =Higher Margins = Higher valued assets

Parking Company Standards - Part 1
Standards - Part 2 - The journey to transparency
Standards - Part 3 - Traffic definitions and reporting
Standards - Part 4 - Current Traffic Reporting Problems
Standards - Part 5 - What's a click?
Standards - Part 6 - Do parking companies swallow clicks?
Standards - Part 7 - Definition of a click

See you in Las Vegas. Travel Safe!
Rick Schwartz
 

Time Capsule December 27, 2000

Morning folks!!

This is going to be another “Time Capsule” post. This post I made on December 27, 2000 on my 5^th year on the net. You will see I say we are entering “Phase 2.” That is particularly appropriate today as I believe we are now beginning “Phase 3” of all this. So this post is a little over 7 years old. The more things change, the more things stay the same. If recollection serves me right, this post was made just a few months before the collapse. Hope you find a tidbit of value.

 

“My 5 year anniversary is TODAY.

And for the record......the net is 5 years ahead of where I expected it would be at this point in time.

Lipservice.com started this and has even survived WIPO.

The #1 question was always why aren't you building sites? Actually it wasn't really a question, it was more of an accusation. An assault on my judgment. A put down. Now 5 years later I can explain this, and with MATH, can prove it to be a safer and smarter road to travel than any other I could have chosen. My proof are all the dotcom failures laying on the side of the road.

The first year was the darkest. I felt so all alone but knew I was not. The Internet was little more than a wasteland of "Under construction" signs or the first generation carcasses of a website that would remain. There were other domain speculators that I would run into time and again. We were mining the same mountains and the same veins at times. There were not many full timers then. Perhaps about 12 guys that I would run into. In those days the ONLY thing that gave me motivation to plow forward was losing a domain by just a day or two. I knew at that point I was hot on the trail. At $100 a pop it got expensive pretty quick. But I believed in what I was doing so strongly that I could not stop myself. It was like a disease. I was hooked. All day....all night. Mostly THINKING of domains that could be important pieces of property in a few years. And where were the bills?? Netsol had not billed me for over 100 domains for MONTHS. I would pay for what I could afford and risk losing ones that I had to wait to pay. But I did eventually pay for them all. If netsol had not done that I doubt I would be where I am. They gave me financing and that made the difference. Hence my respect for incompetence.

It was November of 1996 that I hooked up my first 300 domains. All adult and all pointing to the same place. (A trick in those days that few knew could be done). I made okay money until ONE day in March of 1997. The day I learned to ftp and to manipulate a simple web page. THAT changed my life and my destiny!! My first day of traffic experimentation had begun and while others made ,005 a click or a penny a click. I made a dime a click and more. I thought my calculator was broken. But then the checks started coming I realized my calculator was not broken. I had indeed harnessed some very potent traffic. That led me to the ynot board in April of 1997. A place that changed my life like this place has hopefully changed some lives. It looked and sounded a lot like it does here but with a few REAL geniuses and many VERY sharp individuals. Folks I could never match. Folks that are sharper when they sleep than I am when I am awake. WOW!! I was in awe. But I decided to work my way in and while coming out of left field I had something to bring to the table, the most potent traffic anyone had ever seen. It was the first time anyone called me a "Webmaster" and I felt like I lowered all webmasters by being one myself with NO SKILLS that a webmaster would have. My motto: "If you can cut and paste it, I can do it!"

The #2 question was always why don't you have employees working on this all the time building new sites? First of all it would have been a DISTRACTION for me. I was in a unique crossroads of life and I focused on domains like a laser going thru a peephole. It was more important to run in directions never gone before than to stop and invest the time where everyone else was. Besides, I understood that things would get CHEAPER in time. It was in my best interest to move slowly with development and run like a panther to obtain those domains to develop.

For example when I came along $39.95/mo for an adult site was next to impossible to get. I refused to be put on an adult server cuz of their history of getting clogged with traffic and thus putting you out of business. So you were lucky to get $50 a month sites. Many paid $299 A MONTH per domain. I understood that these prices would only come down in time. Today you can get it for free, or just a few $$$ a month. Imagine having a thousand domains and paying $50,000 a month for hosting. I would have been out of business before I started. So while I opened my first domain and had my first site built on this day, it was another 11 months before I hooked up the next adult domain.

I remember when nobody believed that I got my traffic by typeins. They did not believe that folks would type an address on the browser bar. They were great techies, but they did not understand that when they would start to advertise a .com on the tv that people would get there via the browser bar entry. You may laugh at that now, but that was the sort of silly stuff I had to overcome with LOADS of other crap. They called me names and by the time they figured out I was right on the mark, I had bought every domain I could think of and knew it could not be duplicated.

Bottom Line.....my way, it is not the only way. It is not the best way. But it was my way. It worked for me. While THOUSANDS of others tanked, with THOUSANDS of employees and BILLIONS of dollars invested by faithful stockholders it was all wasted for they had no plan.

Bottom line.....i went thru the jungle, the desert, the doubters, the laughers, etc etc and I am still on my campaign!! I have SURVIVED!!!!! May others have survived too. But WE are the true warriors!!

So I toot my own horn today. I am proud of what I have accomplished and realize it is only NOW that it TRULY begins. I knew the day I started that it would be many years before the soup would be ready to serve.

Today is the begining of phase 2. I go into it with several hundred active sites and about 125,000 daily unique visitors scattered among them. Now it is time to focus on growing that traffic and linking the sites together. Most orbit independently but that will eventually change.

5 years ago it could have cost me tens of thousands for an obsolete site. Today for a few hundred bucks you can get state of the art site and with the collapse, there is some real talent running around. While I still don't have a clue how to do most things on the net I have been able to accomplish the one thing few have done and that gives me a great advantage. I know how to turn a profit. A footnote for most, but profit is my guiding light and everything else is bullshit.

Build it small and make it work, growth will occur. Build it big with no direction and you get the problems most .coms are now facing.

The turtle wins EVERY time!!!

Remember one thing.......You can have ANYTHING in this world if you REALLLLLLY want it. Those that doubt this, they are 100% right!!

Have a GREAT 2001!!

Domain King
Wed Dec 27 07:32:52 2000  - message #284

Ink, Ink and more Ink

Morning Folks!

From the New York Times,to the Sydney Morning Herald, to the Christian Science Monitor to CNN Money, to Fortune, Investors, LA Times, International Herald Tribune and dozens of other publications throughout the world the domain business is set to hit center stage in 2008. The new video on TargetedTraffic.com gives domainers something to point to that is concrete and shows the extraordinary progress we have made.

There has already been a barrage of headlines about domains from iReport.com sale to CNN to another blockbuster by Moniker with a $4 million sale of the bored.com website and a collection of other domain names. Pharmacy is on the market for $50 million. A bit on the ambitious side but a clue to what is to come.

A perfect storm is forming and it is 13 years in the making and counting. The slowdown of 2008 will be a dream come true for the domain industry. When they re-evaluate where they have been, where they are and where they are going, we will be directly in the path. The bad times are about to bring this industry some really good times. When we talk about the "Good old days," We will be talking 2007, 2008, 2009 and 2010. So don't forget to enjoy what you will look back on very fondly. Make it even better by knowing what is to come. Just in a few weeks some big names have focused on the domain industry. Even the unlikely Christian Science Monitor. While we have been getting more and more ink since 2005 with the Business2.0 article that firmly placed the domain industry on the map, never have I seen it like this. Can we be at the foot of Critical Mass? A $4 million domain sale is just being reported as I write this. In addition, the TRAFFIC auction next week is likely to provide an 8 digit result. 13 years into a 20 year plan. The pie will soon be baked and ready to eat. We are so close, I can smell the fruit.

Have a GREAT Day!
Rick Schwartz.

A new .mobi record? A new auction record?

Good evening folks!!

Below is what may be the best .mobi domains released to date as well as a fantastic list of premium .com domain names. These domains will be auctioned off at T.R.A.F.F.I.C. in less than 2 weeks. I would expect at least 2-4 of the .mobi domains will easily break the flowers.mobi record. I would think that Porn.mobi and Tickets.mobi will shatter the record. I don't think we are at the point to witness a 7 figure .mobi sale however if we were going to see that, this would be where we would see it. I consider these to be two of the very best .mobi names that you can buy . Risky? You bet. But the market for .mobi continues to be strong and I expect a very lively auction.

Here is the full list

Banks.mobi
Broadway.mobi
Doctor.mobi
Hollywood.mobi
Lottery.mobi
Naked.mobi
Porn.mobi
Property.mobi
Score.mobi
Tickets.mobi
Vegas.mobi

In addition to the .mobi domains above, this is going to be the single best auction in the domain business because the quality of the domains on the auction block are top notch. Here are just a few that have been released. The rest will be out soon.

Civilwar.com
Daily.com
Meds.com
Refills.com
Baseball.net
Coed.com
Weekday.com
LifeSaver.com
AutoClassifieds.com
Medication.net
DiamondNecklace.com
DiscountTravel.com
BabyFood.com
Beverage.com
EscortServices.com
Temp.com
Trusted.com
Wife.com
Husband.com
SanJuan.com
Necklace.com
DreamVacation.com
FamilyServices.com
Fiesta.com
GrandPrize.com
Handicap.com
Homeowner.com
Mortgagerates.org
Organ.com
Transactions.com
Cognacs.com
Bourbons.com
SkiResorts.com
Affiliate.com
Trusts.com/LivingTrusts.com
Dance.com
CPC.com
LowRateMortgage.com
WomensHeatlh.com
Sleuth.com
Stereotypes.com
CreditReferences.com
SearchEngines.com
Sabbath.com
CustomerService.com
Computer.us
Bachelor.com/.net/.org
Communication.com
WeddingVows.com
Convention.net
Introduction.com
Voters.com
Dentists.net
PenisSize.com/PenisSizes.com
Web.asia
HomeVideos.com
LeatherFurniture.com
Podiatrists.com
FootDoctors.com
MiniatureGolf.com
JobOpenings.com

Have a GREAT Day!
Rick Schwartz

 

Valuation is in the eye of the beholder.

Morning folks!!

I have been very tough on appraisal services because I don't see any that are truly qualified. I have blogged about appraisals several times. And let me say, that appraising a domain and figuring value is a very difficult thing. It is difficult because each domain is completely unique. Some domains may be one dimensional while others may have many facets and are adaptable to many companies, industries or promotions. It is difficult when you don't know who the actual appraiser is. Do they appraise high? Do they appraise low? Are they completely educated about domains? So a lot of "Transparency" needs to happen here as well.

I tried an experiment and had 21 professional domain owners that I know personally give their best shot on putting a value on 5 of my domains. From a group of elite individuals like this it is possible to see a picture develop and market price. I removed the names to protect their privacy. I provided no stats whatsoever. But the numbers are the numbers and this was done in a thoughtful manner. When I look at something like this I generally throw out the high numbers and I throw out the low numbers. I try to focus on the common numbers. In over 12 years on the net this was the first time I had ever asked others for a valuation for valuations sake. See if a picture develops for you.

Appraisal #1
Widgets.com - $350,000 - $500,000
Girls.net - $75,000 - $90,000
Candy.com - $3,000,000 - $4,000,000
Cheapest.com - $100,000 - $150,000
DailyVideo.com - $10,000 - $15,000

Appraisal #2
Widgets.com - $500K. I love this name for dev/branding/web 2.0
Girls.net - $250K. Would want to see what the .com is doing.
Candy.com - $1.5mm. Awesome premium generic. Enough said.
Cheapest.com - $50K. Not a big fan despite one word. Lots of substitutes.
DailyVideo.com - $25K. Same as above.

Appraisal #3
Widgets.com > no idea.
Girls.net > 2% of Girls.com ($4Million) $80,000
Candy.com > $2 Million.
Cheapest.com > $75K.
DailyVideo.com > $10K

Appraisal #4
Widgets.com - $400k
Girls.net - $75k
Candy.com - $3M
Cheapest.com - $60k
DailyVideo.com - $30k

Appraisal #5
Widgets.com - $1M
Girls.net - $50k
Candy.com - $2M
Cheapest.com - $100k
DailyVideo.com - $10k

Appraisal #6
Widgets.com $5,000,000.
Girls.net $ 125,000.
Candy.com $7,500,000.
Cheapest.com $ 200,000.
DailyVideo.com $ 100,000

Appraisal #7
Widgets.com - $150,000
Girls.net - $30,000
Candy.com - $3,000,000
Cheapest.com - $400,000
DailyVideo.com - $10,000

Appraisal #8
Widgets.com - $250,000
Girls.net - $35,000
Candy.com - $1,400,000
Cheapest.com - $3,000
DailyVideo.com - $2,500

Appraisal #9
Widgets.com - $10,000,000
Girls.net - $500,000
Candy.com - $5,000,000
Cheapest.com - $100,000
DailyVideo.com - $100,000

Appraisal #10
Widgets.com $1m
Girls.net $100K
Candy.com $2M
Cheapest.com $150K
DailyVideo.com $20K

Appraisal #11
End User Numbers
Widgets.com $2M
Girls.net $250K
Candy.com $4.5M
Cheapest.com $1M
DailyVideo.com $40K

Appraisal #12
Widgets.com $750,000
Girls.net $185,000
Candy.com $2,500,000
Cheapest.com $275,000
DailyVideo.com $25,000

Appraisal #13
domain - market value-end user value
Widgets.com - $225,000-$250,000
Girls.net - $40,000-$65,000
Candy.com - $800,000-$1,800,000
Cheapest.com - $75,000-$350,000
DailyVideo.com - $12,500-$35,000

Appraisal #14
domain - market value-end user
Widgets.com - $400,000-600,000
Girls.net - $10,000-15,000
Candy.com - $3,000,000-5,000,000
Cheapest.com - $35,000-50,000
DailyVideo.com - $10,000-15,000

Appraisal #15
Widgets.com - $500K
Girls.net - $100K
Candy.com - $5M
Cheapest.com - $350K
DailyVideo.com - $50K
Assumes motivated end user in right place at the right time with the right resources.

Appraisal #16
Widgets.com
Wholesale Level 1 - $100K - $250K
Wholesale Level 2 - $250K - $500K
Retail Level 1 - $500K - $1M
Retail Level 2 - $1M - $2M 

Girls.net
Wholesale Level 1 - $50K - $75K
Wholesale Level 2 - $75K - $150K
Retail Level 1 - $150K - $250K
Retail Level 2 - $250K - $500K

Candy.com
Wholesale Level 1 - $250K - $500K
Wholesale Level 2 - $500K - $1M
Retail Level 1 - $1M - $2M
Retail Level 2 - $2M - $5M

Cheapest.com
Wholesale Level 1 - $35K - $50K
Wholesale Level 2 - $50K - $100K
Retail Level 1 - $100K - $200K
Retail Level 2 - $200K - $500K
Ultimate Dream - Perfect name for a price comparison site. Strategy would be the entrepreneur needing a dream style domain for capital tool purposes.

DailyVideo.com
Wholesale Level 1 - $2,500 - $5K
Wholesale Level 2 - $5K - $25K
Retail Level 1 - $25K - $50K
Retail Level 2 - $50K - $75K

Appraisal #17
Widgets.com -- $700,000
Girls.net -- $80,000
Candy.com -- $1,500,000
Cheapest.com -- $50,000
DailyVideo.com -- $15,000

Appraisal #18
Widgets.com 130,000
Girls.net 45,000
Candy.com 1,300,000
Cheapest.com 40,000
DailyVideo.com 10,000
Mostly on the "Wholesale/Investor" side IMO -

Appraisal #19
Widgets.com - $350K
Girls.net - $50K
Candy.com - $2M
Cheapest.com - $1M
DailyVideo.com - $25K

Appraisal #20
domain - market value-end user
Widgets.com -$550,000- $1,300,000
Girls.net - $70,000- $135,000
Candy.com - $600,000-$1,750,000
Cheapest.com - $95,000-$125,000
DailyVideo.com - $25,000-$45,000

Appraisal #21
Widgets.com -- $1M
Girls.net -- $200k
Candy.com -- $1.2M
Cheapest.com -- $2.8M
DailyVideo.com -- $500k

Moniker professional and paid Appraisal
Widgets.com -- $227,300
Girls.net -- $81,900
Candy.com -- $2,237,400
Cheapest.com -- $146,800
DailyVideo.com -- $23,700

What does it all mean? I don't know. That’s for you to comment on. While the Moniker appraisals were in line with many of the others, I would not sell at the appraised levels if I got those offers today.   

Have a GREAT day!
Rick Schwartz

UPDATE. The following numbers have been provided by Bob Connor. Special thanks for taking the time to crunch some interesting numbers:

Here are the averages, medians (mid points), and standard deviations (measure of how much variability) for appraisals for each of the domains.


Widgets.com:
Average =      $1,247,348
Median =         $500,000
Std. Dev =     $2,210,824

Girls.net:
Average =        $119,452
Median =          $81,900
Std. Dev =       $105,250

Candy.com:
Average =      $2,580,974
Median =       $2,000,000
Std. Dev =     $1,635,693

Cheapest.com:
Average =        $323,948
Median =         $130,000
Std. Dev =       $589,405

DailyVideo.com:
Average =         $48,670
Median =          $23,700
Std. Dev =        $99,436

We are all self appointed

This post meanders all over the place so indulge me.

I got on the web and the first day back in 1995 I learned I was a "Webmaster." WOW! Now what the hell was a webmaster? Damn, not in the dictionary. It sounded important. Sounded very authoritative. Like the captain of a ship but much more important. So golly gee, first day and there is so much opportunity on the net that I am like an "Admiral" since day one. Whoo Hoo!! Who knew?

 

Now I could write and go down two very different paths right now. I can continue on this trend and that would bring you to "Webmastering.com" that I wrote in 1999 and still stands undisturbed or I can continue on with the title of this piece about us all being self appointed.

 

Ok, we all became self appointed. I became the self appointed "Domain King". Ron Jackson became the self appointed "Historian." Monte Cahn became the self appointed "Web radio host" of Domain Masters. The list goes on and on and on. Point is, we saw a void and need and just filled it. We defined the job, defined the agenda, defined the reason to do it and defined the goal. We came at different points in time and just did whatever. I decided my duties were to spread the word of the power and profitability of domain names and why they would become so valuable and so important to the future of commerce and personal relationships even tho it would hurt my own efforts in buying domains in the future. I decided that raising awareness and values was a more important job. I went to early business forums and shared my vision on domain names. I approached the real estate industry first. Within a relatively short time they would throw my ass out the door, delete my posts and banish me from ever coming back. They even kicked my friend Serge out and deleted his posts. He challenged their minds and they were not up to the challenge.

 

But eventually one group stopped laughing long enough to listen. And when I bought Porno.com for $42k (Something unheard of then) they actually stopped and listened. Mainly they listened because they thought I had lost my mind. The BRUTAL TRUTH was that I PROVED to this elite group of early pioneers that MY TRAFFIC coming from MY DOMAINS via type in traffic was outperforming their traffic by over 100X. You heard me right. Matter of fact, early in the game I actually thought my calculator was broken. While others were earning 1/10 of one penny per visitor, I was earning over 10 cents per click per visitor and more. More than 100x the norm. It was easily verified thru independent sponsors who saw what I saw and could no longer just ignore this startling difference. Something Main Street and Corporate America has yet to figure out and we are over a decade into this grand experiment. A decade later and MOST folks have yet to learn what the adult industry learned in 1997. I can only shake my head when I think about the BILLIONS in business these folks pissed away by not learning the difference between targeted traffic and crappy worthless traffic. Not knowing the difference between a website that could close a sale and one that could not. They pay the same for traffic and development and don't even know the difference!!! Keep putting water in your gas tanks and paying for it and expect your business to take off. LAUGHABLE!!

 

I love economic slowdowns. I love recessions. This event FORCES people to actually work for a living. Look for new answers to old problems. Look for new ways. ASK QUESTIONS! Stop and listen to the answer. They experiment. They work like their jobs are at stake because they are. As domainers with targeted traffic we are right on their path once they figure out where their path is. So pull up a comfortable chair and enjoy the wait. They are on their way.

 

Smart business increases their ad budgets during tough times to keep their numbers as close to level as possible. Dumb businesses pull back and that is the kiss of death. I can prove it. Let's look at Audi. They came out with some super sports car last year and advertised the hell out of it. I saw it in every magazine and every ad they ran. Ok cool. So I call the dealer. I could feel the salesman's chest boast out even on the phone as he told me there is a 3 year wait to get one. He thought he was so cool. Little did he know what a moron he was. He was so happy that he could not make a sale even tho he had a live one on the line. So Audi set him up to look foolish and I took the opportunity to laugh at him for sounding so proud about not having what I wanted to buy and therefore made no money and thus wasted everybody's time. Why advertise when you can't deliver or are at 100% capacity? It's the wrong time. You advertise NOW when things are tough so you can stay afloat. btw, the funny part of the story was a few weeks later they called me back and told me they could get me one. By that time I had bought 2 other cars and my appetite for the Audi was gone. Great job Audi! Almost as good as another time when I asked a salesman there what 0-60 was and was told  "Nobody really cares about 0-60 anymore." I laughed in his face, told him his cars must be slow not to answer that after he knew every other stat and spec and walked out.

 

Told you I would meander on this post. Ok back to the subject.

 

On the other hand, let's stay on this. The question is whether Main Street and Corporate America will pull back on their advertising or are they bold enough to increase it? Stay tuned because you will see before your very eyes which folks GET IT and which folks don't. Their online sales are all increasing. Their brick and mortar sales are flat lining and will soon be in decline. The expenses of running B&M business is going to be devastating. Cost online is much lower with worldwide penetration. When will they finally shift the BULK of their resources online? If not now, it will never be as you will watch some big boys just topple over.

Have a GREAT day!
Rick Schwartz.

It's the "C" not the "I"

Morning folks!!

Since I sold ireport.com to CNN I hear this chatter about "I" domains. The "I" part of the equation in the domain name is a very small part of the equation. The power the "I" had in this particular domain is extremely powerful. But as the title suggests, it is not about the "I" domain. It is about the "C" in "Circumstance." Circumstance is what drove this deal and drives almost all deals.

Now let me peal this back a bit. CNN got the deal of the century. $750k was a bargain. The value was close to $7.5M and I am going to explain why I plan to get $7.5M as a result of this deal. First of all this may become the highest profile domain to be sold and used in a very long time. CNN may advertise ireport.com hundreds of times a day throughout the world. And each time any of us hear that, it will remind the industry and then eventually the world about this deal. The BARGAIN this deal will become in the eyes of the market. That alone will raise values across the board as folks begin to realize what power a domain, a great domain, can have to set you apart from the competition.

The race is on. Will Fox News fight back and get uReport.com? The one thing that is a SURE BET, is WHEN that domain eventually sells to Fox, and it WILL sell to them at some point, it will sell at a rate much higher than $750k. That deal will likely never be known when it does happen, but there is no question that the table is set for a multimillion dollar sale. Do you hear that Seattle? Bases are loaded. So that is really the next piece of the puzzle to follow. This has the power to blow the lid off the domain industry. Two titans at WAR and it is their domain names that will be their leading Generals. For the love of  Pete, they pay $750k for a picture of Britney's panties! This domain may actually define both networks for the next generation. Comparable? You decide. This may illustrate to the markets and business world that a domain name value is a drop in the bucket when compared to other income producing assets. The very future of ALL business is wrapped up in their domain names. It has been that way for a dozen years and it will be a recession or a crash in 2008 that forces all business to re-evaluate how they do business and why I would make such statements. How many other industries and titans will fight similar battles? The value of this sale will be pointed to as another mile marker not only in the domain industry but in business because of what is still yet to unfold. The best is yet to come.

Have a GREAT Day!
Rick Schwartz

iReport.com and Domain Valuations

Good Morning Folks!!

I would love to give the details of the sale but by contract I am not allowed. However if you read my past posts, the secrets of how I approach this are all there. NOW maybe the industry will REJECT the "X" factor. This was CRAP introduced by the VC guys that has NOTHING TO DO WITH DOMAINS!!!!

If domainers want to be FOOLS and keep selling for "X", I will keep saying that domainers are leaving a FORTUNE on the table and don’t understand the anatomy of a great domain name. Maybe this will blow the lid off all the appraisals services. They are ALL WORTHLESS. Absolutely worthless. Not a single one has a clue. Not a one and SCAM is usually the first thing that comes to mind when I read a worthless appraisal that somebody actually paid for.

The ireport.com sale shows that conventional valuations are fundamentally flawed as they do not take into account the biggest part of what makes a domain name valuable. When I say something like this, appraisers tilt their head like the RCA dog. They react like I am talking a different language. So this is why I give no credence to ANY domain appraisal service. They are ALL worthless and many are slanted depending on their circumstance while others are pure rubbish. If someone waives an appraisal in my face they get a laugh right back in their face. It is like wearing a billboard that says, “I am a clueless rookie.”

To come to a true value it would have to be by committee and that committee would have to be made up of successful domainers as well as others. Without discussing all the possible attributes of a domain name it is impossible to come up with a value. Those buying and selling based on "X" are playing somebody else's game. Don't be foolish enough to swallow their silly valuations. I have said this over and over for year after year and maybe since some of these players have disappeared as fast as they appeared, maybe now folks will take notice. Like I said, I have blog posts about it right here for anyone willing to dig!

Now I admit that ireport.com was a perfect storm. All the elements were in place for a pretty big payday. However what the following years will show is this “Perfect storm” will be repeated by me and others many times.

While I can't go into the details of the negotiations, what I can say is it took several months and the main sticking point at contract time was whether this sale would be made public. Something for me that was non-negotiable. I would have walked from the sale if I could not report and publicize it. If DNJournal could not include it in their updates. The deals never reported would make everyone here, think differently about their assets. Still, folks are more focused on traffic and stats and "X" than they are on what makes a domain great and have value and have great value to others before that event even materializes..

$750k is a stepping stone. What it does is take what we do from theory to reality. When we look back at this sale in 10 years, people will say it was cheap and should have been sold for 10x that number. It's a stepping stone because sometime soon it will be unusual for any good domain to sell for under 7 figures. Then 8 figures. We are entering the period of time where we will see some significant domain sales. During this slow down or recession, it will be the DOMAIN INDUSTRY that is the shining light on the hill. A place where great fortunes can and will be made. Times like this fuel emerging growth and we are more than emerging. We are busting out when everyone else is bailing out. We are positioned very well and this rocky financial environment we are in will benefit the domain industry more than any of us could do alone or collectively.

Have a GREAT day!
Rick Schwartz

 

Domain name revealed

This is a great example of an end user realizing how important having a key generic domain is in future growth and development of a brand. Especially an end user that has been a true pioneer in the space.

http://www.dnjournal.com/archive/lowdown/2008/dailyposts/01-17-08.htm