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July 19, 2007

Comments

Olney

Hey Frank,
This is a reality but will the senior domainers really even listen to new blood?
Another question is do they have a need to? New domainers would look to longterm investment just like you & other did years ago. New markets may not be so tempting to those already making certain budgets.
Fixing the issues with prior premium domains & loosing typein traffic may not be issues that new school domainers can fix or realize. We can't acquire them easily.

I think new domainers will more likely be looking to better development as solutions for monetizing domains.

I personally look at it this way: I can sell my mommas house to play in the English dot com game, or I can take my monthly salary for a few months & stack a portfolio with IDNs & ccTLDs of countries that have a healthy commercial internet market.

New school would look to try to monetize & expand these less saturated markets during the next 5 years.


***FS*** Great points. When I started out, some senior domainers didn't have a lot of time for me. So I worked hard and made money .. Then they wanted to talk to me to learn what I was doing right. The IDN phenomenon is no different.. You have a group of folks who think it will be huge just as soon as there is some cashflow... and you have a group of people who don't believe in it as much "because" there is no cashflow (yet). If the money comes, those early folks will be hailed as geniuses, if it doesn't come they will be ridiculed as fools. That's the way of the world. Whether you sell Mommas house and blow it all at once or whether you loot your pay-packet for your collective mommas house over the next several years.. the outcome is the same. Just be sure that whatever you are buying has 'cashflow' and you'll be fine.

ian

I would prefer if less people knew the value of domain names, who needs extra exposure and extra people driving up prices when you are a buyer and not a seller.

***FS*** To create a healthy vibrant industry you need people to backfill your work. Unless you plan on living (and working) forever ;)

Kevin Murphy

Just off the top of my head -- and I may be totally wrong here -- but isn't domaining just an investing game for people who already have lots and lots of money?

Buying a valuable domain name and then selling/parking it doesn't require a great deal of skill or education.

You just need money and judgment. It's like buying a stock, or investing in anything.

Is it really a profession?

It's not like some working-class kid, fresh out of college, can just walk into this business and make money, unless he has a big wedge of cash already in his pocket.

Is that correct, or am I missing something here? I would appreciate your view.

***FS*** Yes it is a profession.. And yes there are jobs in this space employing many thousands.. we need more specialists tho.

Gary

totally agree.

So how's do we open their eyes?

I believe we need a lot more transparency.

I have been in this game for a few years now, and I still have no idea how much dough top-tier names *really* can make. Sure we all read the DNJ stats on aftersales, but this isn't just about selling to one another in a vacuum, this is about the power of a good name, the extra traffic it can bring and how that can either be monetized through parking etc or convert it to sell more real life products or services.

If I don't know, I can bet average Joe non-intenet savvy hasn't the foggiest.

Someone needs to pull back the curtain and reveal the wizard, and open up his balance sheet. Real life numbers, for real life people.

Shmuel

Guys, Please hold off on the eye opening for another year or so, while I get ahold of some more decent names. I started domaining in April, and have spent a few hundred grand on some nice generics. However, I keep hearing from people that they heard how much domains are going for these days and they are charging me more.

Please wait!!!

Yan

In my opinion, it won't take too long before more folks join the domain name game. With the recent article in the Biz 2.0 about Kevin Ham, i've heard lots of people talking about it. I'm sure were gonna see more articles like that in the more "mainstream" media in the future. That kind of exposure is just good for the understanding of the domain name industry.

Yan

dpari

Hi FS, I am a newbie. I have been reading your blog for a while now and I am learning everyday.

I am trying to wrap my arms around this monetizing of domains and I have yet to understand it well enough to monetize a couple of domains I own.

You said that there is so much opportunity here.. and so few understand it. Well that would be me, I do not understand it although I am trying.

Could you please help me understand how I may go about monetizing my domain?

I would like to monetize it like this one:

www.newyorkdoctors.com

My domain name is:

nycmedicalsupply.com

Thank you for any guidance and suggestions you may have for me.

Best Regards,

-dpari

D. Ocean

In response to Ian's comment, yes a working class kid out of college can get into the domain game. Perhaps not so much as an investor on their own, but as an employee of one of the many internet and media companies building businesses aroud domains. You can find them in just about any tech savvy state such as Massachusetts, California, Washington, etc.

I'm a perfect example. I graduated from college in 2005 and have been working for one the largest domain media companies ever since. I started out learning the industry, got into domain valuation and monetization, then buying and much much more.

I can't say two years ago I even considered seeking out a job with a company in the domain industry, but I'm sure glad the opportunity presented itself and I had the foresight to realize this industry and the company I work for were destined for tremendous growth.

I believe the domain industry as a whole could use more positive exposure and we will all benefit from it. The current mind share of this industry is slim to none in the eyes of the average college student. I would imagine only those that are truely tech savvy and have a passion for internet commerce would even give it a thought... With more positive exposure I think that will change and the domain industry could become one of the hottest niches in the high tech sector.

Dave.1030

Frank,

I too am a new domainer, with a different full-time job. My domains (100 of them) are parked with sedo. I developed one website for with a specific business plan, but put the business plan on hold.

Now instead of going forward with my original business plan I am converting the developed site into a "developed parked page" utilizing google adsense and arbitrage ppc to generate cashflow.

I think I have few tools to monetize my domains but would love to work part-time for a domaining company or domain pro like yourself to gain expertise.

Thanks,

Dave

IPTV

Hi,

"domaining" ~ "Domainers" ~ "Domain investing"

Are still just "sub" industries of what is the Internet and always will be.

I think we should shoot a bit higher than just being in the "domain game"

After all...why control less than 1% of the internet, when "domainers" could control say 30-60% of the internet?

I think you have to think about domains as what they are at their very basic level.

Domains are "Internet addresses" created to simplify navigating the Internet...nothing more, nothing less.

But, At the same time...they are the most valuable part of the whole Internet...without them, none of us could find a thing on the Internet.

In order to "unleash" the power of the most valuable commodity on the Internet (domain names) Someone (domainers?) has to take back the power that somehow was/has been given to the top 3 SE's (Goggle,MSN, Yahoo)

Why should any of us with great "Internet addresses" be subservient to any of these 3 SE's in determining the value of our "Internet addresses"?

Does anyone remember when "Internet search" was just basically the Yahoo directory?

You would click on a category and then a sub category and then a sub, sub, sub category etc... to try and get to what you were looking for.

The only thing "keyword search" changed is...instead of having to click on 10 sub category links to get to were you wanted to go, Now you can punch in what is the "end category" (keyword) to find what your looking for.

This is NOT a "huge" advance in the last 10 years is it? Saving a person a few "clicks" to get to were they may find what they are looking for?

Why is this important for domainers?

Because the top 30 (plus us little small players...lol) "domainers" ~ "domain investors"... control a HUGE part of the Internet itself and own the most valuable part of the Internet...the "Internet addresses"

Why are we 'allowing' Google, Yahoo, MSN to control the major traffic on the Internet...'Internet search'?

Let say 500 domainers read this post...and all 500 domainers own 10,000 domains which are "parked" and each of these domain owners is making $10 million a year.

I would be most happy to be one of these 500 domainers...lol

But,

Because of HOW we are allowing internet search to be done...these same 500 domainers are leaving "billions" on the table.

I look at things a little differently than a lot of people and "no doubt" if I was making $10 million a year...I would be very happy, just like the other 499 "happy domainers"...

But, I still think domainers control so much and have a much bigger say in how Internet search should function...its just SO very wrong to only be taking a small fraction of "chips" off the table...while leaving most of the "chips" on the table.

After all...

If hold the domains in your hand...you control the game...and if you control the game...you should win every hand...including Internet search.

Food for thought...LOL

Peace,
Dan

***FS*** Yum yum.. Thanks Danno!~ Percolating :)

Johnny B. Good

Hello Frank,

How about a late night TV infomercial like those ones that guy Don Lapre did in the 1990's for placing "tiny ads in newspapers all across the country"?

***FS*** I remember those.. they were great!

Instead of "tiny ads", it could be "tiny domains": "I can show you how to make hundreds, thousands, even millions of dollars by buying tiny, little, generic domain names by the hundreds of thousands, creating sites for each one and filling them with ads that Google and Yahoo gladly put on them ...(now, in an almost yelling voice)FOR FREE... BECAUSE... THEY WANT TO PAY YOU BIG BUCKS FOR IT!!! BANK WIRE..... CHECK.... DIRECT DEPOSIT ALL WHILE YOU SIT ON THE BEACH!! IT'S THAT EASY! GRANDMAS, KIDS, DEBILITATED, WORKING MOMS, SINGLE DADS, COLLEGE STUDENTS, COME ON DOWN...ANYONE CAN DO THIS!! BUY THE FIVE CD PACKAGE, OR DOWNLOAD IT NOW AT...BLAH, BLAH, BLAH"

I just know someone is going to do this eventually, why not a fellow domainer out there tackling this? Maybe you could film the show right there on Seven Mile Beach yourself? :) Or, maybe that is more up Rick Schwartz's alley? Millions to be made I suspect just like all those TV real estate "mogul" make.

Maybe an infomercial would not leave the best impression, I don't really know, but it sure would get the word out.

Johnny

***FS*** You are so so right Johnny.. this is absolutely going to happen.. For a few reasons.. 1) This business works/makes money 2) Others can follow in the established players footsteps. .. I think it hasn't happened yet because people are cleaning up by keeping quiet.

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