## Domains are About Math. Division Creates Smaller Audiences & Smaller Value.

Morning Folks!

I think one of the problems and one of the biggest things domainers ignore is the size of their audience. There are 7 Billion people on the planet. But who and how many folks you target is the key between success and failure and when you divide too much, you get really close to ZERO!

I talked about the .Kiwi guy. He overestimated his market. Why? Because he forgot to divide! Since more than 6.9 of the 7 billion DON'T live in his neck of the woods, he never took that into account.

So let's start dividing domain's value and I will end with an example. The 7 billion is automatically 3.5 billion because half the world has no buying power. ZILCH! It may be a lower number than that.

But let's say you focus on the USA. 350 million. 1/10 of the 3.5 billion. We get there by division. So we focus on the 350 million now. 100 million of them have no buying power. Whatever they use and consume are provided by the 250 million. So the USA is the focus even if it is for an item for the 100 million.

So, I saw this domain today on auction. LibertyLake.com. Sounds good. Looks good. Let me see if there is such a place. Yup. Liberty Lake, Washington. Population 7700. So as a Geo domain, not so good. Is it as good as SaltLake.com? Well, probably not. Salt Lake is a metro area with 1 million people. BIG difference and a big difference in value.

Now in this example, I see something also brandable. So from that lens, it has more value than from the geo lens. Liberty Lake can be used as a variety of brands. Brands are a long shot. But they can hit big. It may be a few hundred years or more waiting for the ONLY one.

The MAIN thing I look at when weighing the value of a domain is the size of the audience, the value of the product that the audience is interested in and the profitability of that good or service. That's my basic equation. There are many other factors. That is the "Top of the Pyramid". If you get the top 3 elements wrong on ANY decision in life, you will get it wrong. PERIOD!

If you sell badges and you only sell badges to a group that has 100 members, and they buy one badge when they join, you have a hobby not a business. If you sell badges that are universal and can be used by many groups and organizations and clubs and all types of audiences, you have something much different.

I meticulously go thru each and every data point. Good, bad and ugly. What I never ever do is refer to the size of the market. Real Estate is a trillion dollar industry. Who cares?? It's meaningless. It's a footnote. It does not even rise to the level of a data point. So when a domainer or any businessman LEADS with a FOOTNOTE, I automatically know they are on the wrong path. It may be something of interest, but carries no real weight unless you have this formula in place where you can syphon X% directly from the top.

The audience is the KEY data point. Size, value, qualifications, profitability, competition, sources, location, etc. Then you drill down to the next layer of questions. The ones that pertain directly to you. How much of that can YOU harness? If Real Estate is a trillion dollar industry and you harness no sales, that trillion is meaningless. It's foolish. See what I mean?? It's about what I or you can produce. When you talk about the volume of an industry, it says you are doing \$0 in my book.

The great domain name gets you into the party. But not all parties are created equal. So first you have to find the right party in the right place and have the right item to provide them. But then the rest is on us. We have to sell and we have to have the skills to sell and exploit the market or the party. If you don't understand business basics and certain things there, it does not matter the size of your audience. When we suck, we lose.

I can have 100 customers go to a car dealer. One salesman will lose every single one of them. Another might close every single one of them. They both had the same opportunity and they both had the same audience. But one pissed away the gold that came and the other guy got the gold. They both did equal work. One was rewarded the other made zilch. Isn't it time to WAKE-UP??

Maybe the guy that blew thru 100 customers just asked "Are you going to buy a car from me right now for \$30,000." Of course they all said no. But in a way, isn't that what a domainer does? He buys a domain and 30 seconds later he has it posted EVERYWHERE! Desperate and Foolish.

Compare that to the other salesman. He will introduce himself. He may offer some info to start a conversation. He might ask some questions. He may find out things that become helpful in making the sale. He provides a sense of security because he seems knowledgable and confident and seems in no rush. He's not pushy. Voila, he casually makes the sale. No fuss, no muss. The other guy is too busy complaining how bad business is. The other guy is just not good and belongs in another job or he is just a fool that will never learn. The definition of being stuck.

So, on one hand, it is the size of the audience and the other it is how you work that audience. How you understand and approach that audience.

And we can look at it a different way. Two used car lots right next to each other. one guy selling and the other guy struggling. This happens in every industry. It is universal.

The size and profitability of your audience is the key driver of domain value. If that good or service can then be easily sold on the Internet, it has more value. Value comes in so many different forms. That is why Estibot and Godaddy and any other outfit that uses an appraisal tool is folly. And if you are a domainer and you use those tool, you are a FOOL! If you rely on these tools in any way, shape or form, you are in the wrong business. Don't take my word, just look at your bank account.

Learn math and stop depending on 3rd parties with motives to educate you about domains. You have to have some GUT INSTINCT in anything you are going to be successful in or any career. GUT! That is not something you learn. It is something natural or acquired. They can't teach that in college. Nor can they hand you a diploma that says "Dr. of Common Sense". This stuff is so simple, no wonder geniuses can't figure it out!

Rick Schwartz

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