Is Google’s Revenue Problem Directly Related to Domain Channel Losses?

Morning Folks!!

Has Google let the Golden Goose out of the cage? I am sure as hell going to make a case that is exactly what has happened. Let's be blunt, because domainers have been financially raped by Google over the past 5 years, domainers have abandoned parking in droves. The best domains have left. The most trafficked domains have left. And that has left Google holding the bag. Now domainers are not without blame, they allowed themselves to take less and less because we were spoiled by the easy money.

It was a great model for us back then. But when the dollars started drying up on payouts even tho Google kept charging the end user more and more, it was only a matter of time before resourceful domainers looked for other options. And so we did and so the BEST traffic has left Google for greener pastures. For bigger opportunities. For bigger payouts.

In 2007 nearly 100% of my revenue was through Google/Yahoo and parking. By the end of last year I was down to 50% and by the end of this year it will be 33% and declining. When you own the land, you get to build what you want and how you want. Each time a domain leaves the confines of parking, quality of Google traffic suffers and that traffic can NEVER be replaced. NEVER!

Let me be clear. Type in traffic is THE most potent traffic on the Internet and I will be DAMNED if I will change my view on that because the evidence is there. Now of course there are only a few hundred domainers that have this golden traffic and we are up against legions of MILLIONS of SEO and others that will feverishly argue against that. What else would you expect from them? They must protect their turf or we will all find out it is a bunch of smoke and mirrors.

See where I come from, one SALE has more value that 1 MILLION visitors and many will argue for the 1 million. Matter of fact, most will. 1 Million visitors have COSTS associated with it. One type in visitor that turns into a sale has virtually no cost in comparison. Those that ignore sales will be looking for a new profession in time. No company can exist without some form of sales.

For 17 YEARS I have argued with techies. Guess what? They lose and NOW it will soon be recognized. It takes 20 YEARS to bust a myth this big and wide that so many have bought into. But rest assured that myth will and IS being busted. The end user is not an idiot. He KNOWS it is all about sales.

Google messed up by letting PURE domain traffic out of the cage. Google messed up by overpaying for SHIT for so many years. Google put folks into business because they bought WORTHLESS traffic and mixed the shit with gold and then lost track of which was the shit and which was the gold. They paid for trademarked traffic they had no business paying for. They paid for invented traffic of mini sites that would use SEO to gain the system. They outsmarted themselves and I am here to tell you there are long term ramifications for short term gains and that is what we are seeing.

They once owned all the gold and now they don't. Type in traffic is Destination Traffic. Folks that have been failed by search looking for a direct alternative. Type in traffic has no equal. It's a fact few recognize but a FACT it is. Just like water runs down hill, PURE and specific type in traffic turns into sales more than any other traffic. It is not a debatable subject for me. You are free to disagree but I am also free to reject it as I have for so many years. Point is, I will soon be recognized as being right all these years and THAT is a problem many will have to deal with.

The traffic from the best domains in the world no longer go to Google. Instead they let the birdie out of the cage and they will never have an opportunity to get that traffic back. Of course some of those domains are now full fledged businesses that might or might not use Google. As time goes on we are seeing more and more options and Google just may be the last on the list for us. We are shit bums to Google and as such have been treated like we are toe jam.

Somebody at Google fucked up and they fucked up bad and fucked up long term. They can NEVER get this traffic back again. Arrogance has a cost. When an end user pays Google $5 and we get 1/2 a penny that is getting fucked because they can. No other reason. Now there are alternatives and in the coming year we are going to see more and more BLOOD spilled by Google.

Just as a refresher.....when the market crashed in 2007-2008 Google was at a high of $750/share. Now they finally got back to par while other stocks have doubled and tripled in value. $750/share? Not any more. Apple at the time was under $200 a share. Amazon under $100. Sirius Radio was pennies. That makes Google one of the worst performing stocks over this time and it may not be that rosey from here.

And in the next 5 years some think Google will lose the reign....Read this. I don't know if that will happen but there are indications of very strong headwinds ahead. So far Google has survived by buying the threats. That was why I was happy Groupon said 'No'. I don't care about Groupon. I care about competition. And while Groupon may not be a huge threat, Apple most certainly is.

Nobody has to believe me or agree with me. But on the same token, NOBODY can make me change how I see things unfolding. NOBODY can derail my 20 year plan. NOBODY can force me to abandon a plan I have stayed staedfast to for all these years. During that time theroy has turned into fact and I have used those facts to build on and to illustrate what I see, why I see it and how it all unfolds from here on out. I just ask a simple question. Is my vision today closer or further from reality then it was in 1995? Nobody has to get it 100% right. But certainly many along the way got it 100% wrong.

Have a GREAT Day!

Rick Schwartz