TRAFFIC WEST 2008…One for the history books!

Morning folks!!

Just off the red-eye
flight from Vegas and today we start working on the Orlando show in May. Before
I collapse I just wanted to thank all those that came and supported T.R.A.F.F.I.C. We
had one hell of a week!

In the coming days you
will read reviews from folks that were there. The seminars focused on
Transparency and with the help of some of the top monetizers in our space, we
are on the verge of publishing our standards that will help define things and
make it easier to compare different programs.

The highlight of the
show was the speech by Jim McCann of What few in the room knew
when he came to give his talk was that Jim was the singles longest domain
holder in the room. A 'Domainer' since 1992. The have
multiple websites and web businesses and they are aggressively expanding.


The surprise of the show
for many was Dr. Kevin Ham. (Ieft in picture next to Frank Schilling and myself. Picture courtesy of Kevin spoke at the very first TRAFFIC in 2004 and
has remained very quiet until a few weeks ago when he asked me for some time to
speak at TRAFFIC which I was happy to agree to. He told me 'There was
something he needed to say.' That was all I needed to know because as many
were about to find out, Kevin was much deeper than just the 2.0 story.

Kevin got up early on
Wednesday morning and without notes, gave a MOVING 50 minute talk about things
more important in life than the almighty dollar but at the same time just how
passionate he was about reaching new goals, bigger dreams and feels like he is
barely scratching the surface. I was watching, some were close to tears.
Including Kevin. Including me. Including many. The most moving part was when he
talked about 'Value' and put things in perspective when comparing
things of value next to each other talking about the value of his children
and asked what number do you put on their value. Not even billions would come
close to their value. Money may make us comfortable, but life is short and one
has to keep things in the right order. He talked about Ben Stein and how much
his speech at the first TRAFFIC in 2004 was an inspiration as Ben talked about
spending time with your mother and father while there is still time.

Dr. Ham ended his talk
to a standing ovation. A really warm standing ovation. That only
happened three times before at TRAFFIC. The first standing
'O' was in 2004 and that too was for Kevin.

So when folks talk about
the VALUE of going to TRAFFIC, listening to Kevin was priceless. I am sure
everyone there would agree that his words were worth the price of admission 10x
over. Sometimes the biggest value is found in an unexpected place and

I will let others review
the success and accomplishments of TRAFFIC X, but Howard and I walk away
knowing we gave it everything we had and hope we added value to everyone's
business and the industry in general. Like I have said since day
one.....'When you bring GREAT people together, GREAT things will

Have a GREAT Day!
Rick Schwartz

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

Rick Schwartz
CEO and Co-founder

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 10th 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 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


Posted on | Comment (1)

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 5th 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. 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
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 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!! Smile
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
,to the Sydney Morning Herald, to the Christian Science Monitor to CNN
, 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 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 sale to CNN to another
blockbuster by Moniker with a $4 million sale of the 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 record. I would think that and 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

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.
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 - $350,000 - $500,000 - $75,000 - $90,000 - $3,000,000 - $4,000,000 - $100,000 - $150,000 - $10,000 - $15,000
Appraisal #2 - $500K. I love this name for dev/branding/web 2.0 - $250K. Would want to see what the .com is doing. - $1.5mm. Awesome premium generic. Enough said. - $50K. Not a big fan despite one word. Lots of substitutes. - $25K. Same as above.
Appraisal #3 > no idea. > 2% of ($4Million) $80,000 > $2 Million. > $75K. > $10K
Appraisal #4 - $400k - $75k - $3M - $60k - $30k
Appraisal #5 - $1M - $50k - $2M - $100k - $10k
Appraisal #6 $5,000,000. $ 125,000. $7,500,000. $ 200,000. $ 100,000
Appraisal #7 - $150,000 - $30,000 - $3,000,000 - $400,000 - $10,000
Appraisal #8 - $250,000 - $35,000 - $1,400,000 - $3,000 - $2,500
Appraisal #9 - $10,000,000 - $500,000 - $5,000,000 - $100,000 - $100,000
Appraisal #10 $1m $100K $2M $150K $20K
Appraisal #11
End User Numbers $2M $250K $4.5M $1M $40K
Appraisal #12 $750,000 $185,000 $2,500,000 $275,000 $25,000
Appraisal #13
domain - market value-end user value - $225,000-$250,000 - $40,000-$65,000 - $800,000-$1,800,000 - $75,000-$350,000 - $12,500-$35,000
Appraisal #14
domain - market value-end user - $400,000-600,000 - $10,000-15,000 - $3,000,000-5,000,000 - $35,000-50,000 - $10,000-15,000
Appraisal #15 - $500K - $100K - $5M - $350K - $50K
Assumes motivated end user in right place at the right time with the right
Appraisal #16
Wholesale Level 1 - $100K - $250K
Wholesale Level 2 - $250K - $500K
Retail Level 1 - $500K - $1M
Retail Level 2 - $1M - $2M
Wholesale Level 1 - $50K - $75K
Wholesale Level 2 - $75K - $150K
Retail Level 1 - $150K - $250K
Retail Level 2 - $250K - $500K
Wholesale Level 1 - $250K - $500K
Wholesale Level 2 - $500K - $1M
Retail Level 1 - $1M - $2M
Retail Level 2 - $2M - $5M
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.
Wholesale Level 1 - $2,500 - $5K
Wholesale Level 2 - $5K - $25K
Retail Level 1 - $25K - $50K
Retail Level 2 - $50K - $75K
Appraisal #17 -- $700,000 -- $80,000 -- $1,500,000 -- $50,000 -- $15,000
Appraisal #18 130,000 45,000 1,300,000 40,000 10,000
Mostly on the 'Wholesale/Investor' side IMO -
Appraisal #19 - $350K - $50K - $2M - $1M - $25K
Appraisal #20
domain - market value-end user -$550,000- $1,300,000 - $70,000- $135,000 - $600,000-$1,750,000 - $95,000-$125,000 - $25,000-$45,000
Appraisal #21 -- $1M -- $200k -- $1.2M -- $2.8M -- $500k

Moniker professional and paid Appraisal -- $227,300 -- $81,900 -- $2,237,400 -- $146,800 -- $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
Average =      $1,247,348
Median =         $500,000
Std. Dev =     $2,210,824
Average =        $119,452
Median =          $81,900
Std. Dev =       $105,250
Average =      $2,580,974
Median =       $2,000,000
Std. Dev =     $1,635,693
Average =        $323,948
Median =         $130,000
Std. Dev =       $589,405
Average =         $48,670
Median =          $23,700
Std. Dev =        $99,436

We are all self appointed

This post meanders all over the place so indulge

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

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 ''
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 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.

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

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”


I sold 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.

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 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.

race is on. Will Fox News fight back and get 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 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 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.”

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!

I admit that 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.

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..

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!