Kool-Aid Warning Defined! Buyer Beware!

Afternoon Folks!!

"Drinking the Kool-Aid" is a metaphor commonly used in the United States that refers to a person or group holding an unquestioned belief, argument, or philosophy without critical examination. It could also refer to knowingly going along with a doomed or dangerous idea because of peer pressure. The phrase typically carries a negative connotation when applied to an individual or group."


Sounds exactly like what we are witnessing!! I'll let others carry their water. This is the no Bullshit zone and if you are not seeing what is happening, you are blind. This Kool-Aid may not poison you, but but most flavors can surely leave you broke. How many of the 900 can make the top 10? Trick question. You caught me. lol

Well as you see one after another domainers or bloggers succumb to peer pressure as described above.  I won't be fitting into their orchestra anytime soon because I don't do peer pressure. I won't sing their praises to sell ads or another ticket even tho it would be to my benefit. I won't even give them the benefit of the doubt. Why should I? Why should you? I have history and empirical evidence on my side. And the only side I have is looking for the right answers. I just say what I believe and let the future bear out my words or not. I will always give you the unvarnished facts mixed with my personal beliefs and then you can do as you see fit. On the record, for the record.

So I am prepared to sit here on the sidelines for the next few years and watch it unfold. I think I will have articulated so many pitfalls that the actual cause of death may never be known. Complications in common sense?

Refreshments anyone?


Rick Schwartz

43 thoughts on “Kool-Aid Warning Defined! Buyer Beware!

  1. Kevin M.

    Refreshments, sure we’ll take some popcorn and Gatorade. We just put up our small booth, and plan to be working it for awhile. Thanks.

    Heck, if one likes to surf, you go to wherever the big wave is and surf. Doesn’t mean you moved-away-from, or abandoned your ‘favorite beach’.

  2. Jim Holleran

    That is why I am blowing of Namescon, sick up hearing about all this GTLD stuff, too much BS, noise, and too much hype. I just so burned out on all the BS, so I am staying home, taping a mental nap until all this BS/noise settles.

  3. Haven

    Just repeating what’s been said a hundred times. But, even IF there were any winners in the .whatevers… there would only be a handful of worthwhile registrations in each of the few that floated to the top. Those will be sold at premium prices from the get go and likely held onto and never developed in hopes of selling for profit. The .whatevers aren’t domainer friendly and I really can’t see them as developer/end user friendly either because whoever decides to develop on one is going to be facing huge hurdles in trying to “teach” everyone else their “new” extension. This made even worse when compounded by thousands of options.

    Granted, people do learn fast, I know… I have a 15 year old daughter and see it daily. But people also like comfort and familiarity. I asked my daughter what she thought of the new extensions, I even told her a few of the “better” ones and told her to give me her honest opinion. She said she didn’t think she would ever visit one and that she thought is was rather “lame”. This was without any of my input on them whatsoever. On that note, my daughter stays GLUED to the internet. She is extremely internet saavy and stays on top of the newest trends, as do most teenagers, But just as they all get tired of Facebook and bail out to Twitter and then think Twitter is retarded and then move on to SnapChat and so on and so forth.. they will do and think the same thing about new extensions, They may be popular briefly, each having their 15 minutes of fame if they’re lucky, but the fad will likely wear out. Even if it doesn’t, you will likely only have 10-12 meaningful/brandable options in each “winning” extension that will ever be remembered. How is that going to change the industry? How is that going to change the internet landscape? Prediction: It won’t.

    One thing even young people still do: automatically go to .com.

    I could go on and on. but I won’t. It’s all been said already. I see a lot of the kool-aid being offered around as you mention and I expect to see a lot of .jimjones’ before it’s all over with.


    Sorry for the novel….

  4. Leonard Britt

    .Net, .Info and .TV have been around for a decade or more. There are a few sales in these extensions appearing in the weekly DNJ reports – but far fewer than what appear in .COM. While four-figure sales do occur, five-figure sales in these extensions are rare and SEDO reports indicate that three-figure sales are much more common. So how many years will it take for end users to demand all these .whatever extensions? At that point, how much will they be willing to pay for keyword.whatever and can an investor justify paying $xxx upfront plus renewals for a decade to see an $xxx sale at the end. Given the risk of no sale (a 100% loss), is .whatever a worthwhile investment?

  5. Kevin M.

    Perhaps the one thing many are not taking into consideration is – maybe these new gTLDs simply are not targeted to the hording domain ‘investor’! Hence why so many domainers are so antagonistic to them, and not grasping ‘the need for them’ and the various (over)pricings of. …perhaps.

  6. Domenclature.com

    @Kevin M.

    Why not tell us who the new gTLDs are for? Tell us not just Who, but also tell us Why, Where, When, What.

    It’s amusing.

    Saying that the new gTLDs are for our kids, and future generations is not sufficient. And then, to come and crash our domainer Blogs, and our domainer Conferences? Yet, it’s not for domainers? Please…

    Look, it’s like saying that long sleeve shirts will not be attire for business forever, and coming up with half-sleeve shirts for our kids. Unless you bring ample convincing evidence, most people will not give up their long-sleeved shirts. I wouldn’t just because a Tech star is saying it. Obviously I’m referring to the Facebook guy, I forgot his name now. He’s been wearing T-shirts to the boardroom for years now, but Long-sleeves are still the common sense attire. Not even Steve Jobs was able to dethrone Long Sleeves. Not the Oracle guy. Nobody.

    It’s the same with with dot com.

    It’s the common sense TLD. You see, the dot COM is America. This is not jingoism. Most people in the world trust American laws, American fairness, American stability; American strength; American ingenuity; American trustworthiness.

    All these qualities are embodied, and symbolized by the dot com. No other extension can touch this, just like MC HAMMER says: You Can’t Touch This!

    The dot Com is managed by a Registry that is heavily Regulated. They can’t raise prizes at a whim. The extension has one more quality that is uniquely American: it’s for EVERYBODY! You can be in Timbuktu, or Jericho, or New York, it’s your thang! It belongs to you. You are protected equally, regardless of your status. It’s American, it’s you, it’s me, it’s all of us. That is why, even the American extension dot US, is no competition. There should only be one TLD in the world, and I’m glad there is only one TLD.

  7. Gene

    Getting back to the point that Rick made…

    it’s disgusting (but predictable) to see the herd mentality, combined with the opportunism that most of the other bloggers have: Who see the potential, short-term advertising gains, but fail to foresee how they’re going to soon be backpedaling from their ‘open-mindedness’ to this ‘innovation’ – and lose any sliver of credibility that they had in the process.

    The last laugh will come from those that didn’t leap off the cliff with the other sheep.

  8. s. mugavero

    So lets use an example from your dotwhatever.com blog’s latest posting on .vegas

    In short order, 10 minutes, I’ve come up with these examples

    pennyslots.vegas $69+ annually, with a possible $165 setup fee.

    PennySlotsVegas.com I can buy now for $299 and $10 annually

    golfstore.vegas $69+ annually, with a possible $165 setup fee.

    GolfStoreVegas.com I can buy now for $299 and $10 annually

    souvenir.vegas $69+ annually, with a possible $165 setup fee.

    SouvenirVegas.com I can buy now for $300 and $10 annually

    photos.vegas $69+ annually, with a possible $165 setup fee.

    PhotosVegas.com I can buy for $300 and $10 annually
    (the same pricing is on Photographsvegas.com)

    3dprinting.vegas $69+ annually, with a possible $165 setup fee.

    3dPrintingVegas.com I can buy now for $299 and $10 monthly

    The examples could go on and on forever. in all “DotWhatever” extension.

  9. Anunt

    i rather buy pennyslots.vegas than pennyslotsvegas.com
    The .com is so old school…does not even make sense.
    Dot com is like myspace…dead!!!
    Watch people surf the net…most people use google and click on whatever is at the top…does NOT matter if it is .com or .whatever
    Technology changes very fast…keep up and go with the flow or be left behind.

  10. abudomains

    It’s amazing to see the “pivot” of some domain bloggers as soon as they saw green. Truth is that what the guy above said is very true. This is not a domainers play in any case. The real market will decide. And I am still waiting for them to buy the dotCOM story so I suspect they are very poor learners and late adapters. Of course they are so busy meeting about the other meeting in corporate their eyes are always wide shut to any outside influence or new ideas.

  11. Josh

    In the Devil’s Advocate, with Al Pacino and Keanu Reeves, where Pacino tells Reeves, “Consider the source, son!” in reference to WHO said something.

    When someone pushes TLD’s hard, consider the source. What do they profit by saying it? Follow the money. Learn the motives.

  12. DonnyM

    Yeah I would just rather own PennySlots.com and do a subdomain off it.. Other shit is junk..

  13. Robbie

    Anunt has been wrong for a long time, with facebook, and many of the dumb domains he bought in the aftermarket in 2012, 2013, for which he sold for less than 50 cents on the dollar. He sold out, and at the worst time. Sorry Anunt, you had vision at one point, but you lost your way.

  14. Kevin Davis

    Most of them are so limited anyway.It’s like when I hear someone say I’m going to the strip club.My reply is you won’t get laid but you will get fucked.I am sure some will blossom.I just don;t see major impact.

  15. rick

    Why does someone have to go all the way to the comment section before figuring out what you are ranting, babbling, and whining about Rick? OH, new gTLDs, finally a subject related to your Kool-Aid warning. You are so insanely focused defending your belief that you forgot to mention what the hell you’re talking about. Time to see a shrink Rick, really, and if you already do, go more often.

    1. Rick Schwartz

      Same reason a ball-less wonder like you can’t post their true identity I guess.

      You somehow feel threatened that the entire thing may blow up and what I have written about may actually occur. Then what? Blame me for it?

      I have pointed out DOZENS if not HUNDREDS of obstacles that have gone unchallenged and unanswered. Unlike you, I like to be on record. That takes a bit of business courage. But when you have no name and you are a ghost, courage is not something you would know about is it?

      Keep drinking. :-)

  16. Rick Schwartz

    Today when I go to my registrar I am presented with the following 11 choices in this order: .com, .net, .org, .me, .info, .tv, .biz, .US, .de, .xxx, .es

    I may consider up to 4 of those if the .com were not available depending on how well it matches up with the extension. Why would there be any reason to identify anything other than the top 10 of the next 900?

    Maybe they just want domainers to be broke when .web comes out which imho is the single most viable extension coming to market when it does come to market.

    Puddles, creeks, ponds, lakes, rivers, seas, oceans. 4 of those are “land-locked”

  17. Red

    I’m growing tired of your .whatever bashing. Too much. Not one word (that I’ve seen…perhaps you said something) on the #whatever fad that replaced the Facebook vanity url fad…

    I know…your blog – then go somewhere else…

    I agree with your assessment about 75%…you may be totally wrong…or right…but I think everyone knows your position…wish you would move on a bit…

    1. Rick Schwartz

      Sorry, i don’t think discussing facts and being skeptical on something that has already had a number of investor failures is bashing.

      What would you classify “dotcom is dead” as?

  18. Red

    You missed my point – good to see someone so focused on pointing out the shortcomings of the .whatever…however, in my opinion, there are just too many blog entries on this…I am but one reader…but for me this focus is becoming borish…

    Wish you would post on my comment above regarding #whatever (hashtags) and last 3 years fad on vanity facebook urls…hashtags are more popular in advertising “right now” than .coms…seems like a relevant topic.

    How about your analysis of this big Internet trend or at least some other topics – I think your readers have enough of your views on the .whatever debate.

    1. Rick Schwartz

      Sorry, i cant post on subjects i know knowing of or about. That is something reserved for others.

      And when I did a poll last month, you can do see how the readers voted.

  19. s. mugavero


    this is a domain name blog… I love it the way it is.

    I visit other blogs for marketing and social networking specialties.

    With all due respect, go piss in another thread somewhere else.

  20. Matthew Crowder

    Any company that sets up shop with their brand on one of the new gTLD’s when they can have the .com (or choose a different brand where they can get the .com) for any reasonable price is insane.

  21. Domenclature.com

    “– I think your readers have enough of your views on the .whatever debate”. Red


    You should be paying big money to read this blog.

    Have some respect for the domain king. I believe he knows what he’s doing.

    Many people who had no boot to piss in, or a window to throw it out of, have had their lives changed for better by reading this blog.

    So take a hike with your #hashtags!

  22. Red

    Thanks Rick – I understand. I think you should understand #hashtags though because “right now” they are a bigger threat to domain names than .whatever…not taking the time to understand them means you are not keeping up with domain names enough – you think .whatever is important but in reality.coms are under threat from #hashtags – you think your enemy is .whatever but it’s possibly more #hashtags…

    That being said, I think #hashtags are a passing fad but may develop into something none of you (or me) have ever even thought about…

    I like this blog – that’s why I come in and am contributing right now – I bought my first domain in 1995 and have done quite well… so please spare me the “take a hike” talk…you are acting like drones…especially the guy who says, “have some respect for the domain king” – you sound like an empty head…I don’t care if I’m talking to a billionaire…everyone lives for about 80 years and dies…that being said, I show everyone respect that I meet…do you?

  23. s. mugavero

    @Red go tweet about it.

    Here’s a great example of things to come:

    auctions.xyz sold at Namejet for $310 in what was an Advance Auction.

    MyAuction.com was sold for $11,000 in a public Namejet auction.

    On the same day!

    Lets not hear that’s a great example why .whatevers are great because .coms are so expensive and unavailable… I have 10 minutes today to find some excellent auction – .coms for less than 3 bills.

  24. UFO


    auctions.xyz at $310 appears to actually be a good price assuming that the renewal rates are near .com levels.

    But .xyz is a really hard gTLD to see the options on. I really can’t see the commercial angles on it, and I tend to think I’m pretty good at spotting the money.

  25. Red

    No…I won’t go tweet about it. I would rather debate with people like you because #hashtag has everything to do with domains…and you (and I) believe in the future of domains.

    Please tell me why #hashtags are appearing on tv shows, tv ads…ads everywhere instead of .coms. .com still appears but much less than #hashtags…used to be facebook vanity urls…now it’s #hashtags. I think they are dumb and a waste of money…just the cattle following the next fad (similar to you haha…except you are a rick fan boy)…

    Now lets think…put your thinking cap on…I know it’s tough to fit yours over your head…but try…try to see the future…what might develop from this #hashtag fad? Something else…what? I don’t know…just throwing the topic out there…

  26. s. mugavero

    lol… Look I’m going to break it down for you:

    Without domains there is no #hashtag.

    stay on topic, at least find a post on the blog and stay relevant.

    Red: “Now lets think…put your thinking cap on…I know it’s tough to fit yours over your head…but try…try to see the future”

    I was registering what turned out to be ultra premium .com domains when you where fooling with this:


    I wont reply to your nonsense again..

  27. Red

    What nonsense? This is on topic. Bury your head in the sand. I have been in the Internet game just as long (probably longer) and been ahead of trends more than you…but what does that matter? Only today and tomorrow matter…the past predicts the future but is only part of the equation. I admit that I have a lot to learn…technology / trends / business is changing faster than any point in history…what do you admit? That you have an big ego?

  28. Domenclature.com

    January 12th, 2014
    No…I won’t go tweet about it. I would rather debate with people like you because #hashtag has everything to do with domains…and you (and I) believe in the future of domains.”


    You just answered your own question, or troll.

    You refuse to tweet about it because you know tweeting is stupid. You rather come here, a domain, to discuss the thing. What then makes you think everybody else won’t prefer your choice?

    Just because kids like twitting and face book, as a fad, doesn’t differentiate their other behaviors, such as sagging their pants and piercing their eyes, and noses; we just wait them out. That’s all.

    I can’t think of a most useless endeavor as twitting, and facebook. I’d rather be on ICQ!

  29. Red

    Thanks for the intelligent response. No, I’m not a troll (see past posts)…just learning, exploring, and debating…yep…dumb…but the one point I agree with everyone is I think something is developing…domains are good and I think they will remain strong…but I’m always on guard for the next big thing…domains will someday come to an end. I am in the Eric Borgos camp…wish he would blog more like Rick and Elliot…if I remember right…he sees the World changing – he sold off his large inventory…would have to re-read his blog…hard to predict the future…

    And to the Rick fan boy…I have learned things from this blog and many others…the main thing I learned from Rick is to buy and “hold” premium domains. I have one that I will hold for the next 20 years…my prediction of the World changing in domains in some way may come true…it may not…

  30. Domenclature.com


    Two things you and I agree on:

    1. Eric Borgos provides valuable data on his blog
    2. Domain Registrants, and Domainers are no longer seeing the full benefit of their names, premium or otherwise.

    Eric Borgos tells us: What, When, Where, with empirical evidence, but he does not tell us WHY, or WHO.

    In my opinion, someone, or a group of persons, have “multiplexed” domain names, and their corresponding traffic. That angle needs to be pursued.

    Borgos bought, and developed top notch names, but he couldn’t see any difference in traffic compared to his parked, or lesser value names. To him, it was useless buying expensive, premium domain names. According to him, it didn’t use to be like that; THAT IS A BIG DEAL.

    He had developed Bored.com in the past, and saw massive traffic, and eventually sold the thing for almost $5Million dollars (along with auxiliary names and sites).

    Therefore, if it used to be like that, and it is no longer like that, somebody did something to stop it. We need to find out who, and why.

  31. Rick Schwartz

    Just for the record and full disclosure. Here are the type domains and extensions I am now focused on and looking to buy:

    Just for the record and full disclosure. Here are the type domains and extensions I am now focused on and looking to buy:

    one and two word .coms that mean something and are not silly or overpriced

    verb.me (prefer a verb before the .me. Some nouns are ok too)

    .tv domains (only those that lend themselves to television

    .us domains. One worders or exceptional two words and cheap.

    From the new gTLD’s, I am waiting for .web. I don’t think it wise to tie my money up with others when almost everyone I talk to agrees that will by far be the big winner.

    I do see a path to success for 3-5 of the other extensions. Some atleast understand the mighty challenge they are faced with. Others will be surprised and overwhelmed by the silence and lack of interest. The majority imho

  32. Lorraine Syratt (@antiquesqa)

    My experience with developed sites show me domains no longer hold the weight they used to. Most of my readers come through organic search. Searchers scan the meta descriptions on the first page and click what suits. Google isn’t brilliant, but the algorithms are engineered differently than they used to be. Just because someone’s site is business.com and the competition site is mybusiness.com, for example, doesn’t ensure business.com will show in the top slot in the SERPs. The page with that responds best to the search query is the page that gets the top slot. (Unless of course Google owns those sites. LOL)


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