Archive for September, 2007

Cool Custom Domains (Not Really) With Microsoft’s CoolHotMail

Domainers always knew NetIdentity, CentralNic, and the old Mail.com folks (Jerry Gorman and friends) got it right in the first place. Now MS is getting in the custom email game. The difference? They are using creative domains instead of attractive domains.

Via TechTree.com:

Microsoft has unveiled over 250 custom domains as part of its plan to offer every kind of Indian a distinct personalized email id powered by Windows Live Hotmail.

The first custom domain, ‘Lokhandwalarocks.com‘ was introduced by the company in May this year.
And now, different categories on www.coolhotmail.com will list a number of custom domains describing users’ personalities, indicating where they live, personifying their tastes and likes, and so on.

For instance, users can choose email ids (for free) such as: yourname@goaisbliss.com or yourname@goarocks.com depending on what truly reflects their identity.

coolhotmail.jpg

Should be interesting to see how the Indian crowd will respond to this.

Dominik Mueller, Rick Schwartz, On How To Start In The Domain Business Today

Two interesting blog posts today about how to get started in the business. Dominik Mueller, in his advice, focuses on buying domains (new registrations, after market), while Rick Schwartz talks about timing, historical patterns, and the importance of figuring out a “black hole” as an essential aspect of starting.

I agree with both. There are many opportunities, both in new registrations, old registrations, or as a middle man (to name just a few). I remember when I first started in the domain business I was the underdog. It was “too late”, it required “allot of money” (I was told), it required “knowledge”.
At the time I used to hang out at GreatDomains legendary chat room (RIP) and tell others I would surpass them all. Of course it sounded to all as one big joke since I was late in the game. Of course it was considered to be impossible to start then and become a top dog. It is that sort of mentality you need to adopt for success, being the underdog. No one will give it to you, and most will doubt your sanity, your effort. Many will even laugh at you, especially behind your back. But against the odds, against doubt, you can make it all happen. It is those who doubt, those who have no faith in themselves, in others, who continue to stand still in life.

Keep the faith, stay true to yourself, and against the odds, prevail. Let me finish with this great (unknown) quote…

“Today is the first day of the rest of your life”.

Happy domaining!

Paul Sloan Profiles Russel Horowitz, Marchex

A close look at Marchex, including new information that was never told before regarding the Marchex/Yun Ye deal, and Frank Schilling’s involvement.

– The two Web multimillionaires had never crossed paths, but when Russell C. Horowitz and Frank Schilling finally met to talk business three years ago, the summit began in style - sipping soft drinks poolside at the Four Seasons Las Vegas and chatting about private jets.

Horowitz, a ponytailed 38-year-old at the time, had made his fortune as the founder of a bubble-era darling called Go2Net, which he sold for $1.6 billion. Schilling, whose regular attire is designer surfwear, made his mint in secrecy as a domain-name investor working out of an ocean-front condo in the Caymans. Horowitz owned a share of a Citation X, the fastest personal aircraft in the sky. Schilling, who pulls in $20 million a year from his domain business, coveted one for himself. “At the time,” he says, “I was planeless.”

But the meeting was about more than just a couple of moguls and their boy toys. Horowitz had invited Schilling to Vegas because he needed a bridge to the world of domainers, as domain investors call themselves. It was a below-the-radar profession, full of cagey characters, tainted by incidences of cybersquatting. And Horowitz wanted in.

He had recently launched a company called Marchex with some pals from Go2Net, and they had an ambitious plan: to create a new type of online media company, with a network of thousands of websites localized for virtually every city and town in the United States. To get there, they needed domains, and lots of them - tens of thousands of names that coupled the name of a city with a logical market term, from BoiseRetail.com to AtlantaManicures.com. And Schilling knew all the players.

“So who are the big guys?” Horowitz asked Schilling at one point. “Who do you think will sell?”

Throughout the day, Schilling gave Horowitz and his partners the rundown of the secretive domain business. And just six months later, Schilling’s help as a power broker led to Marchex’s making the biggest purchase ever of a domain portfolio: The company paid about $160 million for more than 100,000 names, jump-starting Horowitz’s efforts to build a sprawling new media company.

Continue reading here.

Why Bodog Changed It’s Name (And Domain) Yet Again?

Following blog posts by Frank Schilling and Calvin Ayre, it reminded me of a recent similar situation.

Remember Puff daddy -> p.diddy -> diddy -> Sean Combs? I’m not sure if Calvin and the Bodog folks learned this or similar cases before pushing this strategy but what I do remember is, after losing Bodog.com and going with NewBodog.com, their traffic didn’t slow down - it went up.

bodog-newbodog.jpg
(image source: ShoeMoney Blog)

Maybe changing again is just a wish to reproduce the results of the first incident? When will it stop? My guess is when performance doesn’t match or esceeds expectations.

Follow-Up: Facebook Wins Face-Book.com

Following on yesterday’s post, seems that Facebook was awarded the domain Face-Book.com.

On ” Identical or Confusingly Similar” the arbitrator writes:

The disputed domain name was registered on October 3, 2004, i.e. quite possibly before the Complainant acquired any trademark rights in the FACEBOOK Marks (it is unclear from the provided material when exactly the Complainant first acquired rights in the European Community Trademark for FACEBOOK, which as noted previously has a registration date of June 13, 2003). However, Paragraph 4(a)(i) of the Policy does not require that the trademark be registered prior to the domain name. See AB Svenska Spel v. Andrey Zacharov, WIPO Case No. D2003-0527; MADRID 2012, S.A. v. Scott Martin-MadridMan Websites, WIPO Case No. D2003-0598. The fact that the disputed domain name predates the Complainant’s trademark registration is only relevant to the assessment of bad faith pursuant to Paragraph 4(a)(iii) of the Policy, which is considered below.

On “Rights or Legitimate Interests”

The Respondent in this case did not file a response in this proceeding. Therefore, the Complainant’s assertions that the Respondent lacks rights or legitimate interests stand unrebutted. Based on the evidence before the Panel, the Respondent apparently did not make any bona fide offering of goods or services in connection with the domain name and is neither commonly known by the domain name nor contends to make a legitimate non-commercial or fair use of the domain name. Accordingly, the Panel finds that the Complainant has proven that the Respondent has no rights or legitimate interests under Paragraphs 4(a)(ii) and 4(c) of the Policy.

Note: Half a second to look at Archive.org will tell you there was PPC listings on the domain for a long time. Monetizing generic terms (and “face book” is a generic term) is a bona fide offering. I know arbitration bodies don’t like to hear about it, but truth be told here, monetizing domains through Pay Per Click model (PPC listings) is a legitimate business, a billion dollar industry.

And on “Registered and Used in Bad Faith”, among other ridiculous findings, the arbitrator writes:

Firstly, it is important that the name FACEBOOK (consisting of “face”? and “book”?) is made up of two common terms in an imaginative manner and can generally not be found in dictionaries. It must therefore be considered as inherently distinctive (this is confirmed by the numerous trademark registrations in English-speaking countries worldwide which do not rely on secondary meaning). The Respondent therefore did not register just any generic domain name.

Note: “Imaginative manner”? It’s a natural word combination, been used many years before the site was born.

And..

Secondly, taking into account all circumstances of this case, it is difficult to imagine that - eight months after the Complainant’s services were first offered online - the registration of an almost identical domain name that is not generic by a third party is a mere coincidence. The Complainant’s services, by their very nature, became known to the public through the Internet and thus worldwide. Domicile is irrelevant in this regard.

Note: The original registration was 2001. I guess whoever registered it there (Sephora) just knew Facebook gonna be there later?

This case was handled by Brigitte Joppich (PDF), the same panelist who apparently mishandled the case for the domain BritishMuseum.org.

Why would WIPO and other arbitration bodies be biased towards Corporate America? Few reasons:

1. They are the ones filing those cases, generating arbitration revenues.
2. Since Corporate America usually file many cases, signaling one company that arbitration “loves” them means more cases coming their way.
3. If arbitration hands down a flawed decision, as in this case (imo of course), it creates hope for those who know they have no rights, to file as well.

For Corporate America, the reward is the transfer of the domain, not the more logical solution of fixing the confusion. Since arbitration bodies treat a 100$ domain or a 10 millions domain the same, for 1,500$, it’s the cheapest bet in town.

To sum it up, even though respondent could have replied they chose not to, for whatever reason. In my opinion, as in many arbitration cases, the decision to hand over the domain to Facebook was made before the complaint was read, and the decision itself is to satisfy the public that thought was given to the case, as odd as it may sound like.

Is Facebook After Face-Book.Com?

According to Wipo there’s a pending case regarding the domain Face-Book.com. Originally (Fri, Jul 13, 2001) Face-Book.com was registered by Sephora, a French beauty supply company, long before the birth of the old Facebook (TheFacebook.com)

While the complainant isn’t listed on the site yet I think it is a sure bet it is media’s darling Facebook.

I do not know all the details of this filing but my feeling is very straight forward here: Facebook folks want the domain and they will do whatever necessary to get it for the least amount possible. Since arbitration gives them good chances (arbitration is known to favor corporate America), regardless of their case, then a 1,500$ bet is a pretty good bet. Does it matter that this is a generic keyword? Depends on which side of the fence you are.

While Facebook may have a case (depends on usage and other facts which I do not know) I believe the whole arbitration system is fundamentally flawed, as the reward for infringement is mostly the transfer of the domain to complainant (rarely it is cancellation of registration) rather than looking for a more reasonable sort of punishment, as in real estate legal issues, fixing the alleged confusion/issues without the loss of property.

Looking forward to reading the facts, decision on this one.

Demand Media Now a One Billion Dollars Company

richard rosenblatt demand media
Great piece by Forbes covering Richard Rosenblatt and its ambitious CEO superstar, Richard Rosenblatt.

Via Forbes:

“Rosenblatt has acquired 50 narrowly targeted sites such as GolfLink.com, Airliners.net and Trails.com as well as general-interest how-to sites Ehow.com and ExpertVillage.com. The network draws 40 million unique visitors per month, according to Google (nasdaq: GOOG - news - people ) Analytics. (ComScore (nasdaq: SCOR - news - people ) Media Metrix, which is known for its conservative definition of traffic, puts his monthly visitors at 13.2 million.)

Demand also owns Enom, the world’s second-largest domain registrar after GoDaddy.com, with an inventory of 9.5 million Web addresses. Demand’s domain portfolio brings in another 25 million visitors a month, says Rosenblatt. Enom provided Demand with thousands of “parked domains,” generic destinations such as translation.com, gardening.com and maps.com. Most of them have nothing but ads and come up only when people enter the site names in a browser’s address bar. Rosenblatt plans to ship them relevant articles and videos from his hobby sites to give visitors a reason to stick around and view more ads.

The money that Demand has raised from such firms as Oak Investment Partners and Goldman Sachs (nyse: GS - news - people ) puts it in the Internet big leagues. Rosenblatt’s last financing round–$100 million in mid-September–valued the company at $1 billion, twice its value in the round prior. He expects to gross more than $100 million this year, half of it from ads and half from subscriptions and domain rentals. Earnings before interest, taxes and depreciation could reach $30 million.”

This of course is part of their PR machine before going public. I would say they will go public either end of this year or early 2008.

The other interesting part from the article (there are quite a few) for me was reading Richard’s words in regard to his identity, the underdog:
People think I’m all show, no go,” he says.

“Throughout my career no one ever believed that what I was working on was going to be big. I have to re-prove myself every time

Now that is the definite approach you want from your CEO. Believe he is the underdog, nothing is given nor taken for granted, and it is a matter of doing, not waiting. Great stuff.

NPR On Domain Names

npr logo

NPR has a short radio segment on the popularity/rarity of domain names.

More than 100 million “domain names” have already been identified and purchased. So new business owners who want a specific URL must cough up big bucks for the name they want - or try a more creative naming approach.

This is of course comparable to Real Estate. Do you know of any good real estate property that is free? I don’t know of any. Why is it than a surprise that virtual real estate is any difference? I think it has to do with time. The internet is still in its infancy.

I’m currently teaching a friend of mine the domain business. I took few hours earlier this week to look for free domains, just to see if I can still find some good unregistered domains. It isn’t easy but.. within three hours I found over 50 worthy domains, two word combinations, to register.

For those with a tight budget there are still many good domains out there to be registered for registration fee. I don’t think the issue is as much whether there are or aren’t domains to register, but the knowledge and know-how how to recognize good domains when you see them. Thinking further, I think there’s definitely an up-sell opportunity here for registrars and WHOIS providers to market “naming training” seminars or recorded learning material. Could be interesting.

Domain Theft Is Driven By Buyers, Lack Of Authentication

The WSJ covers the growing problem of domain theft, also known as “domain name hijacking”:

Experts say the theft of Internet domain names occurs every day. The thieves — taking advantage of companies that have either let down their guard or failed to take adequate precautions — are often after financial gain, since short or memorable domains can be sold for millions of dollars and generate Web traffic and online-advertising revenue. Some domain hijackers are former employees or others looking to extract payments or take revenge.

“It’s a complete rampage in our industry,” says Monte Cahn, founder and chief executive of Moniker Online Services LLC in Pompano Beach, Fla., which handles domain services such as registrations and auctions.

The problem with domain theft is demand. There are many buyers who are very aware that something just isn’t right about a purchase, however they would rather not ask any questions. This allows buyers to avoid the “internal conflict”? of knowing that they’re buying a stolen domain, yet at the same time, ensuring their defense should there ever be a challenge to the purchase. This “plausible deniability”? has been an issue for many years now, and in my opinion is the main factor driving these hijackings.

Occasionally, buyers are truly victims, as they buy these domains from auction houses or after domains have changed hands many times over. But then again, the auction houses could and should do a better job authenticating ownerships, while buyers should make sure that they know the exact trail of a domain beginning with its original registration thus making sure it is not actually stolen.

The only group losing out in this scenario is those whose domains are being stolen while they remain completely unaware of it, or those who are highly fragmented (as a group that is), so who is left to stand up for them?

In my opinion, a possible solution to this problem lies in stopping demand and increasing authentication. Buyers need to take responsibility, auction houses need to authenticate ownership more accurately, and monetization services must also do their part in verifying if there are stolen domains in their system and if they discover that there are, they need to flush the offenders.

The question is why should anyone care? Auction houses make commission on sales, stolen or not. Monetization services make money on traffic, stolen domains or not, and buyers are calculating their risk of losing the property, stolen or not. Possibly companies like Moniker, which has some sort of gain (services) might stand up for domainers, but then again, if domains are on other registrars, the problem still exists.

The Solution? I really don’t know.

Ron Jackson Tried To Hijack My Domain

Well, not really. Here’s what actually happened: We got a request to transfer a domain we own.

eNom, Inc. has received a request from Ron Jackson (Internet Edge, Inc.) on 23 Sep 2007 for us to become the new registrar of record.

Quick email to Ron revealed he has the .US version of our domain but when he initiated a registrar transfer, he mistyped his own domain and entered the “.com”? counterpart, ours.

Ron writes:

This is yet another example of the power of .com. I actually have “xyz”?.us and want to transfer it to Enom but when I entered the order; I like most people, added .com at the end!

It does make an interesting scenario if hijackers try to send transfer requests in the name of others. If it happens to you, before jumping to conclusions, a quick email should clear things up.




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