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This is how I view the domain business. We were in the right place, right time, and smartly (or luckily) bet the house and took massive action. Buying a domain and seconds later see if it converts or not - what better way to invest? In extreme cases you could (still can) delete domains after few days. My friend Frank Schilling, with a domain income of around 20 mills per year, noted at Domainfest his operation runs on five people, and that includes himself and his wife. Is that a real business though? After discussing the issue with few close friends my conclusion is the domain business is more like free money falling from the sky, an opportunity of a lifetime which may never come back again in your lifetime.
Now that ppc earnings are down, now that recession is around the corner, what to do? Another friend of mine (which I’m sure you know very well) is building a 11,500 SF home. Two years ago the builder would not talk to him, now he gets a deal of a lifetime. What does it mean? simply, Cash today is king however, very few have cash savings.
So if you are like most, you invested all your money in domains, may have a little on the side, if that. There are always going to be unique opportunities around the world however these are out of your control. Like a surfer in the ocean, you do not control the waves. To get good our surfer friend needs to catch many small waves, fall many times, learn with time. From time to time he may get lucky, catch a big wave, “own the world”. How does that relates to us? Many of us started in the domain business and in first few months or first year got lucky and caught a huge wave, a wave of a lifetime. When the wave collapsed, as the economy around the world today, we sit here and think “it wasn’t luck, it was our skill”. Two words: Get real. You got lucky and now it’s time to wake up and really learn, learn fundamentals, make mistakes, learn business.
Few years ago, somewhere in 03, Jeff and I realized all this and diverted majority of our income to building technologies, development. When we were ready to release FuneraHomes.com a year and a half ago we were thinking our model was as strong as a rock. Lucky for us, we got into it with one word in mind: Adaptation. We knew, while hoped things will work as planned (they did not), we must adapt, figure things out. So we thought our business model is gold, guess what though? It did not work. We had to alternate business models, change sales pitches, change sales teams, argue day and night to find results.
Why am I bringing all this up now? the economy is weak, it is time to wake up. As my good friend Chris Hartnett says, arrogance is the key to failure. You get lucky and start believing your own press. My suggestion: get real and get to work. What happened happened and now it’s time to take control, now it’s time for drastic changes, moves. Realize that what got you to where you are isn’t what will get you to where you’re going. One thing we can always count on: Change.
Have a great day,
Sahar
Well I wish I had resources for development, that’s for sure the most profitable thing in domaining…
P.S. Sahar correct the FuneraLhomes link!
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Thanks for the tip!
Sahar
I think everybody is so worried about getting rid of the dollar that they may not have enough dollars sitting on the sidelines looking for deals. As the media makes a recession where there is no real recession it may cause a slowdown. A slowdown that will be selective on whom it actually hurts. One sector may get hurt while another sector is still very strong. Now there are risks that the “Cold” we have could turn into pneumonia.
With all the concern about the economy I will say that demonstrates short term thinking. Slowdowns pass and they pass fairly quickly. The enemy we face is not the economy it is the predators that want our valuable assets. That is a long term threat. A much more serious threat. A completely avoidable threat if folks pay attention and support efforts to fight these folks.
One thing is for sure. Change is in the air. Change is coming. The marketplace does not embrace change. It is actually scared of change. However with change comes the greatest of opportunities. Opportunities come in a variety of disguises. Domains are just the “Vehicle” of this opportunity. The “Disguise” that opportunity wears.
If you do the opposite of what the masses do, you automatically have 98% edge on the universe before you even begin.
Good article Sahar.
Domainers need to recognize the difference between “technical” and “fundamental” investing in domains. The difference is buying the hype and motion of a group of names (LLLL.coms?)or extensions (that will come back to reality at some point), or buying current or future potential earnings. The results of the latest auctions are starting to reflect this me thinks. We’re not just talking url-bar type-in traffic here, but product, service, or industry connected keywords that the expanding end user market can use.
Thanks for writing this, Sahar. Most times, when I need a little pick-me-up or focal point, I find it in an article or tidbit. This was just what I needed today.
Thanks!
Love this post, Sahar. I fall into that trap all the time. When bad things happen, it’s bad luck. When good things happen, it’s because I’m good at what I do
exceptionally well said Sahar and brilliant move on your part with good timing. you’ve spent a couple years moving into development and i’ve spent a couple years working to integrate domains into my development business. both take time and patience.
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How is the domain strategy working for you Eric? How is life??
Cheers
Sahar
Sahar,
You are the best and my favorite Blogger because it never gets stale or goes bad here at the Conceptualist. It is always fresh, positive, new and alive. I love the way you can step outside yourself and do not take yourself too seriously. This is a virtue of a truly important and great person in my book. I also love the latest Youtube video about Bill Gates and his last day at Microsoft.
Finally after all these years of being the richest man in the world and living that reality day in and day out, he can step back and put himself in a broken down Toyota and laugh at himself and at the irony which life has dealt him. This is healthy. Very healthy for him and even for us. The way you are approaching this “luck” thing Sahar is also very healthy in my opinion.
Fear is never good. Fear of the future, fear in the present, fear of what may happen because of what we have done in the past. Fear weakens the program and makes us doubt ourselves and the world. Doubt creates negativity. Negativity destroys our wholeness and our ability to create and build and manifest. Insurance companies thrive on two things. Fear of what may happen and a person’s inability to see and know the future. If we could know for sure what was going to happen tomorrow, the insurance industry would fall apart immediately and the volume on the stock market would skyrocket.
All of life is luck. Some call it Grace. Some call it Blessings. Some call it Karma. It doesn’t matter what you call it. It matters that you see it as something outside your small self. An acknowledgement that something outside of us sent us a boon or a gift keeps us unattached, happy and flexible. We had the thought to invent something. Where did that thought come from? We had the bright idea to do something at a certain time that yielded a great fortune. Where did that vision come from? Who plays the movies on our inner creative screen? Sure we can buy into the belief that it just came from us and we created it ourselves and that we are just down right geniuses. We have the choice to buy into that thinking. We can think everyone is born onto the planet and we are just”? the”? very special ones. Somehow we are better than the rest. Somehow we are smarter than the rest. Somehow we are just down right without fault and everything we touch just turns to gold. Damn aren’t we good? Damn, isn’t the world lucky to know us and to know how great we are? I did it all by myself and I am better than you. See, look what I have, all this proves it.
Then we get hit by a car. We get sick. We get older, or more painful, someone arrives that is better, much better. They did what we did but quicker. Easier. They look better. They are in better shape. They are smarter. They are richer. They have a bigger house and better toys. They have a better car and it was given to them by a fan. They have more friends. They are healthier. They break our record. They are happier. We get hit by lightning. Our stock goes down and we are humbled. Our oil rig gets caught in a hurricane. Life has a funny way of letting us know before we leave the face of the earth that we are just human no matter how lucky we are or how important we think we are. We are not in control. We are all fallible. Life changes, it never stays the same. It gets better or it gets worse but for sure, it changes. We are the richest and the best and we get cancer, a love one dies, a good friend who is such a big part of our lives is then gone and we have no control and no power to stop it. WE GET HUMBLED.
Yes officer, I was doing 150 miles an hour and risking my life and the life of others but do you have any idea of who you are talking to and how important I am? Do you know who I am? Do you have any idea with whom you are speaking? What? You don’t own a computer. How could you be a cop in today’s world and not own a computer? You have never heard of a domain name? Have you heard of God? Well, I’m up there with him. In My world I am a God. Jail? Are you out of your mind? Do you know who I am and who I know? You don’t know who Kevin Ham, Frank Schilling and Rick Schwartz are? Careful, those handcuffs are scratching my gold watch. Do you have any idea how much I paid for that watch? If that tow truck scratches the paint on my Lambo you’ll be lucky to be giving out tickets at Disneyworld. Do you have any idea who I am? You’re a cop, haven’t you ever heard of TRAFFIC?
We really have no control of what happens in the end or in the beginning for that matter. That is the big illusion of life. There is a very old Vedic saying, “You have control of your actions but have no control over the fruits of your actions.”? You can build the house but nature can send the sun or send the hurricane. We all get to surrender at some point either by choice or by force but everyone ends up serving somebody. No one is exempt. Bill Gates will either have to listen to his wife or his doctor someday but he will have to listen to and serve someone. He will die. This is given. He won’t be able to take his money with him. This is given. This is the nature and structure of life. Don’t fight it. Go with the flow. Regardless of what you may think, your not that good and there will be someone better coming around the corner before you know it. So relax. Enjoy. Don’t take yourself so seriously, we don’t. You aren’t better than anyone. Stop believing your own press. The good news is you aren’t any worst than anyone else either. Relax, sit down here with us, and take off your shoes and your ego. We love you for who you are, not for what you have and not for what you have done. It doesn’t really matter in the big picture. They won’t remember any of us 100 years from now. Maybe even 30 years from now. What matters is what you are adding to the world now. How are you feeling right this second? Are you in love with the moment? Good, now we are getting somewhere worth being. Thanks for being fully here, now and not in your self delusion.
Many people are given wealth at some point in their lives and many experience a period of great luck and good fortune. Few keep it and make the best of it. Why is that? I think you hit it right on the head Sahar when you said, “You got lucky and now it’s time to wake up and really learn, learn fundamentals, make mistakes, learn business.” What you are really saying is take advantage of the leg up you have been given and learn to surf the new and ever changing waves as they come and realize that each new set that comes your way is a new gift and opportunity so realize that it is all precious and fully appreciate it and make the very best of it, whatever it is. Then you can never go wrong. At worst case, you got the most out of it. Nothing was wasted. Nothing was hidden under the weight of our own illusions about ourselves. The only thing that really matters is that you are fully present and awake for this precious moment; the rest will change and pass.
Sahar, you made my day with this post and this picture. It is a great day today isn’t it? Every second is great, free, and electric and every moment is as good as we will let it be. No matter what happens, we always have the fullness and bliss of the NOW to be in and herein contained is everything. Enjoy and be happy, humble and terrific. And as the saying goes, Trust in God but tie up your camel.
Thanks and all the very best,
Chris
P.S. Quote you might enjoy:
“?Life is nothing to be very serious about. Life is a ball in your hands to play with. Don’t hold on to the ball.”?
Sri Sri Ravi Shankar
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As always, you are a great writer and even more - a great thinker. Thanks for posting!
P.S.
I don’t recall telling you the cop story
Very well said - my thoughts exactly.
Luck or Skill?
Well, that depends on whether you manage to pick and ride the next wave or not!
The most important takeaway…”(take) massive action.”
Take. Massive. Action.
The harder one works…the smarter one becomes…and the luckier one gets…
Great post and wonderful comments… It really helps put things in perspective… Thank you!
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Thanks Colin.
Sahar
thanks sahar for willing to invest in the community, putting out an opinion, trying to help domainers position themselves for the future. i aprpeciate the perspective.
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Thanks Page.
Sahar
Great article Sahar… keep it up!
Brilliance emerges in the simplest of things. When I look at the domaining industry I see visionaries who recognized brilliance. Perhaps some recognized the simplicity in domaining, but when you break it down to the analytics and tools domainers use, you see the brilliance emerge in the simplest of things.
The challenge now is to unlock that brilliance and contribute. To build the future. Develop domains not for yourself, but for your grandchildren. We are in a great time of building a world, domainers stand to profit for the simple reason that they are contributing to a free marketplace. Whether you are serving users with parked ads, or bringing them information, resources, and other forms of value.
Perhaps there is much to fear, perhaps with great power comes great responsibility.
Whatever the case, Domainers are the princes of the new world,and as long as they serve a contributing community, and continue to build and provide resources for the world, their efforts will not be for naught. Each brick we lay, each ad we display, each concept we convey, Each day we slave away. We are building, we are achieving, we are accomplishing.
Domainers have the tools to reach the masses, with this control affords the magnificent opportunity to really build a better world for ourselves, a beautiful world for our children, and a legacy of giving.
Perhaps we cannot foresee the future, but as long as we focus on serving the internet community, we have something which even death and taxes cannot take away.
Just my two cents.