Allen’s E-Commerce Blog

Posted on Tuesday, 9th December 2008 by Kevin

Reposted from: http://www.conceptualist.com/

This guy is on top of his stuff!

To those in the domain space, before being in the space have you realized the power of domain names? Before seeing in your own eyes the statistics on domains and the enormous power of which have type-in traffic, power that can be measured by quantity and quality, would you believe if one told you about it? Before seeing domains which make hundreds, and sometime thousands of dollars per day, all generated by type-in traffic (I understand most have not yet saw such a thing), would you believe if one told you of such domains, such a phenomena?

I believe when it comes to domain sales the domain name industry is doing well. Coverage from DNJournal, NameBio, Sedo, Moniker, and Name Media are all contributing factor when one needs to sell a domain name, however, what if one needs to educate the other about the value of domain traffic?

Domainers realize for the most part Madison Avenue knows very little about the power of domain name traffic and domain name portfolio value, or otherwise they would have been highly invested in the space, as we are. When we talk to a an industry outsider, a friend or colleague, about one of our prized domains we sometime wonder how he or she does not “get it”, does not see what we see. What is wrong with “these blind people”? It is so obvious !! …or is it? If one approaches you with one of their prized domain name and tells you how great he thinks it is, would you be as excited? In the case of Madison Avenue and advertising agencies it is not just the domain, but the lack of education that is largely missing here. After being in the domain space for a while, just as any other space, the evaluation of a product/service/property, by professionals, is done on an auto-pilot mode, it is automatic, some call it “second nature”. We’ve learned it, we’ve used it, we’ve owned it, and we know it. But can Madison Avenue say the same thing about domain names? Have they ever owned a portfolio of prime domain names, traffic rich, like many of us do? Have they ever seen a portfolio like this? I’m sure you know of a Domainer or two that believe their domain portfolio is worth that much (not you of course!) to other domainers and maybe a little less (or more) to mainstream, but is this reality, or just a dream? Today, the likelihood of anyone in mainstream to understand what you have and the value of those domains without experiencing it on their own first-hand is extremely slim, it is why in most instances most of us cannot cross over, cannot “sell” what we have for what we believe it is worth to those who simply do not know, have not seen.

One of the most significant events this year was the release of Reinvent Index, an index of top 200 domain name properties to the wild. Elliot Silver on his blog, when interviewing Reinvent’s Don Ham, says:

The Reinvent Index is made up of 200 domain names in 20 industry verticals, allowing people to see and track revenue and traffic trends in particular niches. Verticals that are covered in the Reinvent Index include automotive, business, education, fashion, health, music, shopping, technology, and many others. The Index was created to bring transparency and knowledge to the domain space, and it will allow you to follow the performance of domain names, which is going to be very interesting given the current economic situation.

Reinvent Index Hitfarm
(image source: Reinvent Index)

I believe the true value of Reinvent’s index is far greater than what Reinvent or other domainers see in it. I believe the power of Reinvent’s index is the power to cross over, educate the uneducated about the power of domain names. If we want to achieve mainstream acceptance, we have to realize “seeing is believing”. Seeing one portfolio from one credible company is a start, but I would not say it is the end. We need more companies, more portfolio owners opening up, showing others, especially those outside the industry, their underlying data.

To discover is to see, to see is to believe.

Have a great day,

Sahar

Tags: domain investing, Domain Names, domaining, sahars blog
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Posted on Monday, 8th December 2008 by Kevin

Reposted from: http://www.dnkitchen.com/interview-with-rick-schwartz-the-domain-king/

Last week Chef Patrick had the privilege of interviewing the one and only Rick Schwartz. Rick Schwartz is the founder of T.R.A.F.F.I.C., the events that turn out the who’s who in the domaining industry. Rick either owns or has owned domain names like Candy.com, Property.com, Properties.com, Porno.com, Ass.com, CD.com, Widgets.com, Men.com and many many more HIGH END names.

Just a brief background on Rick. He has gone from working in the retail furniture business to owning an extremely successful drop ship company. Rick sold the home based drop ship company in 1998 for over seven figures. Through marketing of his own home based business he realized the importance of domain names and having an online presence. Rick purchased a set of domains for his business and then a set of domains related to the adult industry. The adult related domains started producing steady income from $25 a day to a couple years later $500 a day. This at the time was just a hobby. These events and a few others lead up to the day were Rick purchased Porno.com for $42,000, which at that time was unheard of. After Porno.com came Ass.com, eRealEstate.com and Men.com. The rest is history and if your in domaining you know what has come of this.

Q. At the last T.R.A.F.F.I.C. event in Brooklyn NY 250 Rick Schwartz bobbleheads were handed out. Who came up with this idea?
A. I was contacted by Warren Royal who is a domainer that bought Bobbleheads.com and asked me if it was ok to do one of me to promote his new business. I thought it would be fun and agreed to it. They did a really good job and shows the depth domainers have when it comes to business. Warren also recently authored a book and has several other projects going.

Q. What is your educational background?
A. I am a college dropout, who barely made it thru high school. Because of my dads occupation and in a previous recession back around 1970, I had moved around too many times to count. To give you an idea of how hard it was looking back, I went to 3 different high schools in my last 3 semesters. A total of 6 school systems in 5 states from 4th grade to graduation. Only when I look back do I realize what a tough thing that is for a kid to go thru.

Q. Do you remember what your weekly salary from 1975 was while working for the wholesale furniture business? Do you look back and laugh at it now?
A. I made nothing. The dollars I made covered my traveling expenses and I had nothing left over. It afforded me a roof over my head at night, a few meals and a nice car. It paid for my suits and just enough left over to go on a date. I had no home, no roots and no steady girlfriend. I lived out of a suitcase. That was the downside. The upside was I provided an education that money could not buy. Meeting with businesses in every corner of the country taught me things they can’t teach you in college. Hearing the stories of success and failure and the pitfalls to avoid. So while I earned nothing, I learned a lot. I was lucky to learn things that directly helped me in the domain business. Things that helped me make good decisions throughout life. So I earned nothing in dollars and earned a fortune in wisdom that I apply to this very day.

Q. For us average domainers aspiring to be like the king, what does the “Domain King” drive?
A. Now I’ll get in trouble. The “Bad Boy” in the fleet is a 2008 Black Mercedes CL600, it’s a screamer. I also have a 2008 Mercedes CLK550 convertible and a 2001 Mercedes S600. But what I drive the most is my 2003 Escalade and the one that is the most fun is my 2006 Escalade EXT.

Q. What is an average day for you? Last we talked you took the summer off.
A. Truth be told, I have not had a full day off in 13 years. That said my day is my day. I wake up between 5:30 and 6:30. I answer emails, write a post, pay bills, read the news, watch the news until about 8:30. Then breakfast. Then back to the computer. Around 10 I go take a shower. Then I usually go out with my wife for a nice lunch. Then we usually do an activity or go to our other place on Fort Lauderdale Beach where I park myself in front of the computer there. Then dinner. Then usually a relaxing evening. We go away often, mostly on cruises but we also have a place in the mountains of North Carolina to try and stay cool during the summer heat.

Q. Where is your favorite place to travel?
A. My favorite place is nowhere. I traveled hard for about 15 years and I really appreciate being in my home and not a hotel. Guess that is why I have invested in real estate, I was basically homeless during that time and I really appreciate being in my own bed every night even if it is in different places.

Q. Do you spend any time in the domainer forums, if so which ones?
A. At one time I spent a lot of time in forums. I opened the first one devoted to domains back in 2000. But disrupters would always show up with nothing better to do then to talk trash so we went private back in 2001 and still is to this day. The conversation on the public boards has deteriorated over the years to a level where it is just not worth dealing with. Forums can be very good when properly moderated. I have found better, more rewarding things to do with my time.

Q. Imagine starting out as a domainer today, what type(s) of domains would you register?
A. Domains that mean something. Quality domains. Plenty to be found. Many in the $500-$5000 range that have unlimited upside potential. First thing to do is learn what makes one domain worth $7 and one worth $700,000. Both can be found laying around for $700 or $7000 or somewhere in between. But if you don’t know what constitutes a domain that can have great value in the right hands, time to learn. Sorry, but judging on the domains people come to me with, they waste a lot of dollars on domains with no value. There is plenty of stuff to read by qualified domainers that will tell folks the key elements of a great domain name.

Q. Besides new extension releases is it possible to hand register a good domain name?
A. You bet. Just depends on the subject matter. 95% of all the domains I get are hand registered.

Q. Do you use any tools to register your domain names or search for new ones?
A. The GUT and only the gut. Knowing what to look for trumps all the tools out there.

Q. What are your thoughts on short domain names, 5 characters or less?
A. Memorable beats short. I never quite got the short argument.

Q. How would you recommend an average domainer sell their domain names?
A. By not trying to sell them. By being patient. By building value. By understanding what makes a domain have a great value as opposed to a domain that is worthless or not worth much. By being very choosy in what they buy. By understanding the audience that domain is targeted to. By deciding if they want to sell to other domainers or to end users. But those are for long term players. Flippers may have a different set of rules. It is a more aggressive business. Problem is flippers are so busy flipping that they have some real gems going thru their hands that they may miss those “Keepers.”

Q. How do you put a price tag on your domain names?
A. If I tell you, I’d have to kill ya. But it is about the gut and many other factors that many domainers miss.

Q. I have to ask, with 3.5 million unique visitors every month what kind of money do you make off of parking? Do you park your domains or just create mini-sites?
A. A few million a year. I mostly park but I focus on Joint Ventures with truly qualified companies. I do some mini-sites. I do some things on a larger scale. I look for opportunity. I try and time the market. I do things that nobody knows about. But in time, they will. I plant seeds all day everyday.

Q. Is there anything else you want to share or words of advice?
A. There are as many ways to be successful domains as people in the business. No way is the right way. No way is the wrong way. The better the trail you choose, the more money you will make. Patience and timing is the key. Those in a rush that want to skip steps will always fall on their face. Just take it one step at a time. One success at a time and you will get to wherever you want to go.

In closing I want to say that it took months to get this interview. I chatted with Rick a little over three months ago, he said if I wanted an interview to get with him after September 30th. Well, I followed up with him on October 1st and he agreed. This interview was definitely worth the wait. I also encourage you to check out a few of Ricks sites, RicksBlog.com, eRealEstate.com and TargetedTraffic.com.

If there is a company or specific domainer you would like interviewed just send me a message and I will do my best.

Tags: Domain Names, domain names for sale, icann, Rick Schwartz, the Domain King, tld
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Posted on Monday, 8th December 2008 by Kevin

“There is no doubt that we are at the epicenter of history in the making. All the titans of business across the street are crumbling and here this little tiny group of domainers is becoming the next generation of “real estate” barons. Domains may turn out to be the safest asset in the world. You can control them from anywhere at any time, you don’t have to wait for the bank to open, you can move them on a whim. They produce income and, if you have good ones, the value is rising. So we have a lot to be thankful for.”

Tags: Domain Names, domain real estate, erealestate
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Posted on Monday, 8th December 2008 by Kevin

Posted By Julia of http://isitmeoriseveryoneelsestupid.com

This morning I read Joe Davidson’s excellent piece on the crisis in domaining. I knew I’d enjoyed it as I also felt the need to post a comment in his thread highlighting my long standing belief in that domainers are inherently lazy. Before I attempt to mitigated any fevered replies i might invariably get here, allow me to set out my reasoning and back up a little.

I haven’t been writing much recently due to a new job - as mentioned before - and Ive been completely entrenched in the development, marketing and the business basics of a new internet start-up. All of which I have to say has been really good fun and very rewarding, if a little stressful and time consuming. Note to self - must begin leaving the office before 7pm and not continue working once I get back home.

Anyhow, for the first time in ages, I spun about the domain forums last night and was disappointed to read the same old “groundhog day” griping i was reading 6 months ago, “XYZ’s parking revenues suck”, “we’re getting ripped off”, “we should start our own parking company”, “I need a business partner for an exciting new venture” [read: Ive a 6 word dot net and want someone to do all the development work for me if i simply provide the domain], “check-out my mini site” [read: here's a page of adsense ads and some duplicate content] etc etc, you know the drill. All of which left me a little befuddled and somewhat disappointed.

Back-up some more. This week, it was confirmed that Johns Wu had sold his one-man-wordpress-blog, yes blog, Bankaholic.com for $15m to Bankrate. Wu is just a 22yr old guy with a domain which, Im sure, if he’d posted in the appraisals section of the domain forums, would have had valuations in the sub $1k region. If he had been a domainer, perhaps bankaholic would have been parked and Wu would also be spending his time whining about it not making any parking revenue, instead of getting off his backside and doing something about it. Neither of which he’s clearly done and, if i owned a hat, id at this point be taking it off to him.

As I posted in Joe’s blog, there are simply millions of domains parked and hundreds of thousands of people who regard themselves as “domainers”. Aside from me not knowing of any mainstream platform (outside of the domain channel) that has been created by domainers, the fact that in over 6yrs since domain forums have come to the fore, I’m also yet to be pleasantly surprised to hear of any domainer turn developer go on to achieve mainstream scale with something “new”. I find this all ironic because, without real sites that other people have taken the time and the imagination to create, there would be no “domaining”.

As ive posted previously, there are some shocking changes coming to the domain channel, one of which being the drying up of ad feeds to domains that receive very little in type-in traffic. Couple this with the fact that there are no low hanging domain fruits left to garner anymore (including from any of these crappy new TLD’s) plus the fact that development is a snitch nowadays and you need know nothing about PHP and HTML in order to make, as Google requires, a “unique and compelling website” - you would think that now would be the ideal time to do one, some or all of the following:

* Brainstorm a bunch of development plans and ideas. Choose ONE and stick with it

* Pick your best name in a subject you have an interest in and develop it. Make it into a blog perhaps. Caress it, care for it, promote it, add content and do this every day.

* Don’t start with the ad revenue and work backwards. Start with the purpose of the site, find a good CMS (content management system) like wordpress or Joomla (or custom), decide on a layout (there are some great templates available), get some hosting and get started.

* Dont pick a perceived high paying channel if you have no personal interest in it. Like exercise for terminally indolent, exercise like development only attains longevity if its something you like doing in the first place.

* Add lots of content long before you add any advertising. Get regular visitors before you piss everyone off (yes, regular web users understand the difference between content and blended adsense ads nowadays) with a maze of google adsense blocks on the homepage.

* Benchmark your plan and set targets and goals like: visitor numbers after X months, revenue after X years, pages indexed after X timescale. Remembering that an idea without a plan is just a dream.

Or, simply sit about and wait for a nice 6 figure offer to come in whilst your rent is overdue.

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Posted on Monday, 8th December 2008 by Kevin

From Matt Cutt’s Other Blog http://www.isitmeoriseveryoneelsestupid.com

This week I was invited to attend a quorum where the subject of domaining and “domain traffic” was the topic for discussion. I wont bore you with the name of the company that held this get together but, sufficed to say, they are a big enough deal for me to bother getting off my arse and actually attending (ahem, i mean “contributing” and not just being there for the buffet).

Actually, my main interest was why this particular organisation would choose to hold such a meeting in the first place, why so many employees of said organisation were at this “quorum” [didnt understand its meaning until i wikipedia'd it] and what their take was on the subject. Perhaps, you might say, I was looking for a “windows” of opportunity… Errm, i mean “window”

What transpired was a very informative 6hr long meeting which not only felt like about 20 mins but also gave me some fascinating information on the state of the industry, how this silent, yet big player has been watching all along and where they perceive the source to be for all our lovely traffic. In fact, I wasnt so much contributing, more digesting (if you can excuse my hors d’ourves based double entendre). I think i spoke twice actually.

Anyhow, I took a few notes: (not my data)

165,000,000 registered TLD’s (100,000,000 GTLDs, 65,000,000 ccTLDs)
75% of all domains are renewed
110,000,000 domains are developed (67%)
37,000,000 domains are parked (22%)
18,000,000 domains have no DNS settings (11%)

$2.8bn is the annualised total domain parking revenue.
10% of all parked domains earn 90% of the total revenue
75% of parked domains receive no type in traffic
72% of the total parking revenue comes from domains which are a typo of another site
21% of domain traffic is fraudulent (down from 38% 2 yrs ago)
Domain traffic converts at 28% to that of search traffic

From this I made the following observations:

Why on earth does the industry exist…..???

Oh, i get it $2.8bn..

And, are there anymore prawn volauvents left..???

When i enquired about the entry point or potential entry point for this company I was courteously informed that “if” entry was going to happen, then its 12months away. Sooner perhaps if a certain acquisition comes its way.

Tags: Domain Names, domain parking, Is it me or is everyone else stupid?, matt cuts, search marketing
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Posted on Monday, 8th December 2008 by Kevin

Tags: peter schiff
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Posted on Monday, 8th December 2008 by Kevin

Ever wonder how much traffic wikipedia gets for a certain search term or phrase?

Came across a tool recommended by a fellow domainer and search marketing friend Scott Fish who also runs a SEO, Marketing Blog this tool will give you some insight on how much traffic is being sucked out of that 1st position in google your are most likely going after and what you could be expecting once you get there.

Check it out :  http://stats.grok.se/

Tags: search engine position, search marketing, wikipedia
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Posted on Monday, 8th December 2008 by Kevin

We help you team with others, track revenue and share it openly and fairly.

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Whether you are designing PC software or building a web application, it takes just a few clicks to set up a simple revenue sharing agreement - we call it the “Software Bill Of Rights”.

We distribute the revenue to your team according to the team’s preferences - even filing taxes at the end of the year!
If you have ever came together with a buddy , programmer friend or online acquaintence on a big idea you both came together on the 1 topic you both probably want to dance around without creating problems is finances and who gets what and etc…    Fair Software allows you to issue virtual shares if you will to various people in your venture to show the allocation of money that is duely yours..  Whether it be a 10% stake or some other.   All parties can track the companies finances and take a chill pill not having to worry about getting the shaft along the way.

Tags: business agreements, business partnerships, fair software, online business
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Posted on Sunday, 7th December 2008 by Kevin

By Heidi Cohen, The ClickZ Network, Nov 20, 2008

Every marketer is looking for cost-effective ways to drive sales amid the current budget-constrained environment. Meanwhile, purchasing for many products has become a more drawn-out process due to the availability of shopping-related information and consumers who want to gather input from peers and experts. One way to reach your target audience when they’re researching their purchases is to leverage the power of blogs. Recently, when I shopped for a mobile phone, the Verizon salesman recommended checking CrackBerry.com, which contains a collection of blogs, for more product information. Obviously this salesman felt this blog would add more credibility to his offering than anything he could say face to face.

Power of Blogs Research

Blogs influence roughly one in five readers at important purchase-decision stages, according to BuzzLogic and JupiterResearch’s “Harnessing the Power of Blogs” report. Specifically, blogs help consumers discover products and services, refine choices, get support and answers, and decide on a specific product or service. From a direct marketing perspective, these findings make sense because blogs aggregate customers who have similar demographic, psychographic, and behavioral traits.

Blogs as a digital media format have become mainstream. “Harnessing the Power of Blogs” underscores this point. Many readers consume lots of information, checking multiple blogs in one session. User comments as well as blog entries aid purchase, while blog links help consumers navigate for additional information. Involved readers also consider blog ads to be relatively credible sources. According to the research, readers trust blog content more than social media sites for shopping. This makes sense, since shoppers look for detailed information to help them make a decision rather than engage with random posters who may have opinions about products.

Focused on the pre-buying process, this research neglected to check blogs’ impact on post-purchase support. It’s common for blogs to also help customers use products they own better while reducing returns and complaints. From a company perspective, these factors can be important cost considerations.

Five Marketing Reasons to Use Blogs

As a marketer, revisit using blogs to help enhance your marketing mix. They can help in several major ways, especially in a resource-constrained environment:

* Provide information across a wide range of topics related to your offering. This can help customers at different points in the purchase cycle, including post-purchase support and advocacy.

* Leverage internal staff expertise. Depending on your company and employee expertise, you may be able to utilize nonmarketing staff to author a blog, such as product developers, merchandisers, and customer service personnel who have offering-related expertise. The advantage is that these experts can give the blog an authentic voice that doesn’t sound like marketing jargon.

* Aid search optimization with additional content and internal and external linking.

* Enhance content offering using other media formats, including photo galleries, videos, and podcasts, to help customers better visualize how they would use your products. Associate text with nontext media for search engine optimization.

* Enable consumer interaction through comments, which should be moderated. This input can help both your firm and customers. It can be broadened to include message boards and photo galleries.

Three Blog-Related Considerations

When using blogs to enhance your marketing, assess the full impact of the blogs, because they aren’t a one-shot promotion yielding immediate returns.

* Blogs require an ongoing investment. This point needs to be stressed, since blogs may be created by nonmarketing staff where there isn’t a management-reporting relationship. To help spread the workload, have several people work on entries. Use an editorial calendar to ensure timely coverage of relevant topics and to help employees schedule their time.

* Blogs can take time to have an impact on purchasing and search optimization. Unlike other online marketing formats where results are realized quickly, like e-mail or search advertising, the sales impact of blogs happens over an extended period.

* Blogs require transparency. As with any form of social media, this is critical and needs to be thought through before the blog is made public. Among the areas to consider are how negative customer comments will be handled.

Five Blog Metrics to Track

As with any marketing strategy, using a blog to enhance the purchase process must be monitored to ensure you’re achieving your goals. Remember, these metrics may take time to yield returns.

* Traffic and/or revenue. As with any Web site addition, measure the number of visitors. Once the blog has reached a critical mass of content, utilize other forms of marketing to help extend its reach. Where appropriate, track sales back to blog entries. Remember, customers may use blogs in the pre- or post-purchase phases, and more complex methods of assessing their sales impact maybe required.

* Internal expenses. As with any marketing program, track the associated costs. Since blogs may be an addition to one or more employees’ workload, determining costs may be a little tricky.

* Customer input. Monitor blog comments as well as input from other customer touch points to determine how consumers feel about your products and your blog. Circulate these comments internally to show customer engagement and give management a better understanding of customers’ perspective.

* Search rankings. Track search rankings for important keywords covered in your blog. Bear in mind that it can take time for the search rankings to build.

* Branding. Use surveys to monitor consumer perception of your brand and company across a variety of brand-related metrics before and after you’ve started blogging to calculate change in mind share.

While no longer the latest, sexiest form of online communications, blogs can be highly effective and cost-efficient in driving sales. But they aren’t a quick marketing fix. They’re a form of online media that requires a long-term investment to help and engage your customers and create more interest in your product offering. By their nature, blogs also aid search optimization and reduce the burden of post-purchase support and customer service.

Tags: blogs, sales, social media
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Posted on Sunday, 7th December 2008 by Kevin

Here is my rant on the education system, I will probably venture to shoot from the hip and be too blunt for some readers but going to call it like I see it!

I guess my first beef is with the school system, teachers union and lesson planning…

Schools these days don’t hold students accountable for learning shit and cave into parents not wanting there kids to be labeled retards from social stigma for not passing and schools keep passing the buck which in the end gets passed to the tax payers for welfare, union workers, crime and businesses paying low wages for low skilled workers who want a hand out like various groups around the united states who feel entitled to everything.

My next beef even as a student was teachers being forced to teach outdated crap to students, now its one thing to make students read some old crap like to kill a mocking bird, great expectations, hamlet and etc but unless the teacher can put it in terms that can connect with the new world of technology its a huge disservice. I would much rather have students read books that they have interest in, whether its harry potter or whatever that can build reading comprehension and blah blah rather than have a bunch of kids barely staying awake in class…

Teachers Union, while I agree teachers should be paid more, they should also be held accountable and paid for what they deliver… The idea of being tenured is more or less a bunch of crap… I had teachers who reached that milestone and could care less what the class did, same lesson plans as the past 10 years of her teaching… Teachers need to be evolving as fast as society, technology and then some otherwise our workforce is not going to be ready for the future jobs unless they take it on themselves to learn it on there own time.

Secondly Unions had there time and place and are now just political machines with agendas to just line there own pockets on the backs of there workers… Also the idea of unions having a major influence on the business decision process is not in the best interest of the survival of the fittest…
When workers get paid too well to do a tedious task over and over and if they suck you can’t fire them if you wanted because of union rules… Would you keep paying an employee who didn’t do his job to the fullest? Hell no! This goes for teachers too…

Lesson planning - We need to get all our teachers to upgrade there lesson plans from the 1970’s to 2010… same things same worksheets same bs My first year in college they were still teaching python, cobol, perl and basic as programming languages and that was in 2001…. I can’t imagine what they are teaching now… html, javascript, and windows nt?

Keep up with the times and our classrooms and workforce will thrive and dominate!

Tags: education, school vouchers, teachers union
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