But I sure don't stop there. Far more are business people first and domainers
second. I would fall into the latter group. Domains are a vehicle. A vehicle to
help you make money and grow. But does it really matter what form that vehicle
comes in if it helps you make more money and grow? I believe not. I will be a
domainer until I find something better. I will be a businessman until they plop
me in the grave.
population. The weak are getting weaker and the strong are getting stronger.
However I do see some strong getting weak. Some companies we know I believe are
in trouble or soon to be. The equation has changed and you can't play this game
with an outdated equation. So in the next few months we will see how many
companies adapt and how many either fold or get swallowed up by someone
making a huge mistake. Domains are becoming the center of the new economy in a
way some of us have dreamed about. We are finally entering the final stage and
what is about to unfold will be shocking. I have long talked about domains as an
overnight success that took 20 years. This downturn is a buoy for domains. They
WILL emerge as the multifaceted investments they really are. The domain is the
land rights. The traffic is the location rights. The revenue is the mineral
rights. The revenue is the dividends the banks no longer give. The revenue is
safety. The revenue is portable. The land rights are portable. Shall I go on? We
have built in advertising rights. We have built in audiences. The reason so few
understand domains is it is just too much for most to see because the simplicity
makes them crazy. So NEVER has it been more important not to second guess great
scenarios play out each time looking for weak points in my strategy and other
safe havens. I have yet to find a single anything that can compare to the domain
name. If I did, I would follow it. What we knew then is true now and will be
true for generations. Was the earth flat until Columbus discovered it was round?
So take solace in knowing what others don't know and finally will. You can't
rush the future, you can only harness it. You can only time it. You can only use
it to your advantage if you have the patience required.
sitting pretty. This is not the time to pull back. This is the time to be
aggressive and land the biggest deal of your life. I watch as so many with such
little business background make huge mistakes. They are captains of a ship that
they have never sailed thru a storm. They are not sure of themselves and so they
are scared and pulling back at precisely the wrong time.
companies to survive
starting to take shape. Gonna be the toughest time in generations. But as I keep
repeating, opportunity for our sector will never be better. Survival is a
wonderful thing. Trying to survive allows folks to explore. Explorers will land
on domains at some point and figure out. 2+2=4. They are all searching for what
we already know. So, get to the beach, grab an umbrella and a Pina Colada, relax
and wait for the masses.
I’ll share a portion of a post I made yesterday that echoes this topic…
“Before I started my domain career, I spent many years as a management consultant to F500s (primarily in the automotive industry). The company I worked for specialized in market research (intercepts, computer-assisted telephone interviews, new owner studies, focus groups, product clinics, etc.). Basically, we were the folks responsible for many of the products/services that made it to market.
Once the marketing/brand mgrs. of the firms we used to work with realize that all of this data (and so much more) can be gathered for them @ InsertGreatDomain.com, then leveraged through infinite sales/promo/marketing campaigns @ NextGreatDomain.com we’ll truly see this industry take off.
This is still a relatively small cottage industry, but we hold the future of global commerce in our portfolios…”
Those that are fully vested in this industry, respect their portfolios as valuable (finite) assets, and conduct themselves as professionals are poised for great things.
I love it! And domains may be the best hedge against the mismanagement of paper/digital currencies such as the dollar. The U.S. gov has our currency hostage…they spend into oblivion and when the U.S. is insolvent, they print and raise taxes. This dilutes everyone’s standard of living and share of wealth.
And as Ron Paul and Peter Schiff discussed, leaving the gold standard in 1971 has allowed this. You can’t save cash or you will get printed and spent into oblivion by the gov..Domains values will rise proportionally and can be more easily denominated in any world currency..
Lastly, I hear you on going over every possible economic scenario. And even in a Mad Max scenario..A farmer may send you food or some gold if they can find your product or service on the right domain name..lol but seriously
domain business is the science. One must study this business carefully. One must understand marketing. One must be a specialist and expert!
Great post Rick – I really like the point you make. Very important that Domainers don’t forget that they are running a business at the end of the day.
As usual when I read your posts – I am officially inspired!
I’m a big fan of your blog Rick, your advice is always good, and this is the first time i comment, because on the other times i never had anything to add, and today i also have nothing to add relating to domains, but there’s something i have to correct, Columbus didn’t discover that Earth wasn’t flat, Magalhães a Portuguese navigator is the one who proved that Earth was round when he sailed around the world. I’m portuguese myself so i’m proud of that achievement :)
Thanks for sharing your knowledge with us
EM @ KING.NET
Always my pleasure to read your blog Rick. Very motivational and straight to the point”reality check”, we are in business and we can survive.
Cheers to you.
I wish you were more specific instead of just generalizing and I re-read this post twice just to make sure I have it right.
The observations and predictions in this post are just too vague.
Who is going down under? Why exactly?? Who isn’t? Why not??
Feel free to share…
Fabulous.com is one of the companies that is in big trouble, with a portfolio of close to 600,000 domain names of which a large portion (hundreds of thousands) are pretty much worthless and will be dropping either this year or next year. None of them will be re-registered once they drop. None of them even have the potential to get sold for $1 if they went for a firesale on Sedo, Afternic or any of the domain forums.
So there, one company down… few more to go.
Your turn :p
Rick, great post!
One important note is to be diversified. Have more than one revenue stream. When you truly have more than one source of income, you can wait 1, 2 or 3 years without being forced to drop valuable domains.
I would like to see more end users buying domains, rather than domainers driving up the auctions – then we will see the fruits of out labor.
Time will tell.
Wait! Mike Cohen seemingly has inside financial info AND a complete list of the 600K domains owned by DBS/Fabulous.com! Even more amazing, Mike has evaluated those 600,000 domains owned by DBS and has concluded that”hundreds of thousands” of those domains are”worthless” and wouldn’t even sell for”$1″ on Sedo or Afternic in a”firesale”.
I truly am impressed with this guy. Mike Cohen has arrived and he’s analyzed this industry so thoroughly that he’s probably got the genealogical records of the fleas on Rick Latona’s pets.
So listen up folks – Mike Cohen, operator of”wannadevelop.com”, is stating it right here on Rick’s Blog, that Fabulous.com is going under! This is important news that Mike should announce on his blog, which is located at…????
Mike, you’ve spent a few weeks attacking a lot of people in the domain industry, and you’ve arrived on the radar screen. But, to be fair, let’s make an agreement with the rest of the domain industry professionals who roll their eyes when you post your inflammorty statement:
If Fabulous doesn’t go under in 2009, will you announce on Rick’s Blog that you actually don’t know what you’re talking about? I mean, that would be fair, wouldn’t it? If you casually toss around comments about a well-respected company”failing”, commenting on their domain portfolio lifespan as if you have reviewed their list, BUT THEY DON’T FAIL THIS YEAR, then you have to eat crow – publicly.
That, my friend, I don’t think you have the fortitude to do — eat crow and say you made a mistake, and that you aren’t the perfect know-all domain”expert” you want us to believe that you are.
Just guessing really, but I think you’ll see DBS coming through 2009 just fine.
Thanks once again for the clarity and motivation.
You are like Andrew Carnegie who made his fortune by making steel for the rails for the railroads.
Can I say that domains are the steel rails of the Internet?
Ah, may be going to far there but I appreciate reading posts from this”Captain of Industry”.