Archive for March, 2008

Ze Frank: What’s so funny about the Web?

A little old video but nonetheless, a classic! Via TED:

About this talk:

Performer, web-toymaker and philosopher-comic Ze Frank offers his signature blend of comedy, technology and social theory, with hilarious takes on Google, video games, and haiku, to name but a few. All the while, he makes brilliant use of the screen to twist the meaning of his spoken words.

Enjoy,

The Age: How to be the king of your domain (and others) and make a killing

Michael Golmour
(Michael Gilmour has mastered the art of domain parking - he bought his first site five years ago and now reaps the advertising profits from 10,000 domains.
Photo: Wayne Taylor)

Few good friends in an Australian publication. Via The Age:

What’s in a name? A lot of money if you choose wisely.

AUSTRALIAN internet entrepreneurs are raking in millions of dollars a year by spotting the true value of what’s in a name.

The practice of buying up unused names, known as “domain parking”, is estimated to be worth more than $1 billion worldwide - and Australia is seen as a growing market for those with an eye for a dollar.

The Australian Domain Name Administrator (AUDA), the governing body for “dot au” domains, is set to loosen regulations restricting the practice within months, sparking a likely buying boom as a result.

Domainers, as they call themselves, spot generic or popular names that have not been turned into websites and register them for as little as $US7 ($A7.50). They cram them with advertisements and watch as they earn a few cents per hit - big bucks when you have a portfolio of tens of thousands of domains.

Unlike cyber-squatting, where people infringe trademarks and fraudulently obtain internet traffic, domainers say they are supplying people with information.

Michael Gilmour
bought his first domain five years ago and, from his home in Dingley, has expanded his portfolio to 10,000 domains, all of which contain advertisements.

With two partners, he has built a business around names such as geekwatch.com and bingonight.co.uk - names that receive hundreds of hits through the sheer weight of the billion or so people who use the internet daily.

He now works full-time as a domainer and is auctioning one of his most prized sites, progolfer.com, which he hopes will fetch him $75,000.

“Enormous money can be made out of parking still in Australia with dot au space, where a lot less penetration has been made than in America,” he said. “It’s as easy as seeing how many times a particular word is indexed on Google then seeing if it is taken or not.”

A couple of years ago I invested in a Golf company (since then sold my interest) and at the time, we used to have some of the best domains in the business. If I was to start today and try to cater to golf professionals, I would ask what other domains may be better then ProGolfer.com out there? Of course there’s Golf.com, GolfShop.com, GolfEquipment.com, ProGolf.com, GolfPlayer.com, and few others. Where is ProGolfer.com? My guess, if catering to golf professionals (training, equipment, publication) would be in the top 15-30 golf domains in the world. In a multi billion dollar industry, paying less then a family sedan to get into an industry with such a natural term, in my book, is an extremely attractive offering.

As for parking, I fully agree it is about picking the right domains. Teaching few good friends over the years how to get into the domain space, at times I spent literally weeks going into the very fundamentals of domaining, teaching “what makes sense“.

Happy domaining!

Sahar

Autograph.com Goes For USD 55K. Is It A Good Buy?

According to Sedo, domain name Autograph.com sold for USD 55K:

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Frank Schilling, commenting on this domain few days ago on his blog, had this to say:

I bought LastNames.com for five figures over the last few days.. That wasn’t cheap. In fact the cheapest name anyone has offered me all year was Autograph.com and they already had an offer of $55,000. Again, that’s not cheap, it’s just the cheapest name I’ve been offered.

What is your take on it? How would you appraise it? Would you base your numbers on traffic, keyword advertising rates, industry potential, domain sales history, a combination possibly?

Looking forward to reading your thoughts on this.

Sahar

The Next Big Thing For Domainers Is..

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(image source)

Contrary to what many domainers believe, the next big opportunity isn’t in developing sites and services, not because there isn’t money there (there definitely is a lot of money there!) but because it takes a different kind of skill-set than acquiring domains and quite frankly, just as being a medical doctor or a test pilot is not for everyone, running a full scale business operation isn’t either. What does it take to develop a business? here are few posts written by RMG associates to read from the archive:

Recall Media Group CEO Darren Cleveland On Development

From Voodoo To Real Science, By Allen Gabriel (Recall Media Group)

Creating and Maintaining a Residual Revenue Stream, By Jerry Poole (Recall Media Group)

Tom Keesee “The Art Of Rapport”?

So what is the next big thing? Familiar with the sentence “If you can’t beat them, join them”? So let me adjust it a little to fit here:

- If you can’t do it, invest or partner with those who can.

I believe the next big thing is finding those who can execute, those who know how to build businesses, driven, unstoppable, “change the world” and “take over the world” attitude, and invest or partner with them. You as a domain owner may have two things going for you:

1. Domains
2. Cash flow

1. Domains: Some of you may have domains that may fit someone’s business model (In RMG’s case, top notch directory-type domain names such as FuneralHomes.com). If you do, it is worth exploring partnership opportunities with the right company. Before you do that though, focus on finding the right partner. The right partner is more important then the right business plan, as business plan is bound to change, as the true measure of a business isn’t a business plan, but adaptation to market conditions, persistence, and execution skills (to name a few).

2. Cash flow: Many of you have cash flow from your parked domain names. Reinvesting in domains isn’t always as lucrative as it used to be. If thinking in terms of ROI or in terms of diversification, there may be better (or other) places to invest your money. Your job: Investigate with who.

How to find the right partner? How to find who to invest with? That my friend is for another post.

Happy domaining, or should I say, happy investing?

Cheers

Sahar

    Verisign To Increase Prices For .Com, .Net Domain Names

    An anonymous friend sent in this note, direct from Verisign:

    Subject: Advisory: Notice of Fee Change

    March 27, 2008

    VIA Email and Express Delivery

    Re: Notice of Fee Change

    To All Registrars,

    VeriSign, Inc. and it’s wholly owned subsidiaries (”VNDS”) is hereby notifying all registrars of a fee change for .com and/or .net domain names effective October 1, 2008. In accordance with our contract, ICANN has already been notified. Details as follows:

    1. VNDS’ fee for each annual increment of a new and renewal .com domain name registration and for each transfer of a .com domain name registration from one ICANN-accredited registrar to another will be US $6.86, exclusive of any ICANN Variable Registry-Level Fee (as defined in the .com Registry Agreement) or any other ICANN fee; and

    2. VNDS’ fee for each annual increment of a new and renewal .net domain name registration and for each transfer of a .net domain name registration from one ICANN-accredited registrar to another will be US $4.23, exclusive of any ICANN Variable Registry-Level Fee (as defined in the .net Registry Agreement) or any other ICANN fee.

    Except for the above-described fee changes, all other terms of the relevant agreements (.com and .net Registry Agreements and Registry-Registrar Agreements) remain unchanged.

    Please contact Customer Affairs Office at cao@verisign-grs.com if you have specific questions regarding this notice.

    Best regards,

    PJ Bolanos

    Vice President, Customer Support

    VeriSign, Inc.

    info@verisign-grs.com

    Expect another price increase to come 2009, 2010, and 2011, and 2012. I believe it was all part of their arrangement with ICANN last year which the domain industry did not do enough to stand against, and now paying dearly.

    Sahar

      Filling the Void with DNZoom: Security, Portfolio Management, and New Beginnings

      sean staffordBy: Sean Stafford, Director of Product Development for DNZoom By Bido
      Author: DomainGraduate - Tapping the Online Mines

      In the bad “˜ol days

      Four years ago when I started domaining I had very little cash. During my initial domaining stages, registrations prices were a huge concern for me. Every time I registered a domain I would look for specials, coupons, and discounts. I knew if I could save a few dollars at a certain registrar that I could register more domains and ultimately make more money by investing those savings.

      What I didn’t realize is that this strategy would also cause me to do a lot more work with my portfolio. After about six months of registering, buying, and selling domains, I had registrar accounts everywhere.

      My portfolio started out with Tucows (because of price) and GoDaddy (because of coupons). At that point I only had a Sedo account so it was not so confusing when it came to parking. I then realized that some parking providers paid better with certain types of domains so I signed up at a number of companies. Ultimately, I ended up with a Fabulous.com, Parked.com, Sedo.com, DomainSponsor.com, and NameDrive.com account.

      My thriftiness, and wanting to maximize my meager earnings, meant that I had to do a lot of work and be diligent about managing my domains.

      To get a grip on my portfolio, I started a spreadsheet. I would update the columns with the domains and how much they were purchased for, along with the parking company where they resided. After about 3 months of constantly forgetting to update my spreadsheet, I eventually gave up.

      From then on I made it a point to check every single email I received from my domain service providers and then to filter those emails into different folders. These had to be checked and attended to every single night. The problem with this was that it wasn’t very efficient as sometimes an email never showed up, or my email box would fill up, or I flat out wouldn’t see the email. In a worst case scenario, a domain would expire.

      Later, there were a few applications that came out which did assist in portfolio management. But functionality was extremely limited, and of the few features that were supported with API connections, few of them had the DNS changes or other API calls that were desperately needed for core functionality.

      The other applications on the market assumed I had all my domains at one registrar, and even those didn’t work with parking companies. For me, that wasn’t a solution either.

      Building DNZoom

      Like most things, DNZoom was built out of necessity. After the troubles I experienced with my own domains and the domains that I had to manage at ModernBill.com (former job), we knew there had to be a better way to manage domains.

      We needed a way to store passwords in a central location while preserving security, in addition to being able to pull up statistics. We needed a search and sort feature, API based DNS changes, parking provider domain additions, and registration abilities. We knew what we needed, because it was something that we didn’t have. So, like true software entrepreneurs, we built it.

      During our development phase we decided to offer this product to the public, so from the very beginning we centered DNZoom tightly around security. We knew that DNZoom would come under scrutiny because of the available (but not required) password storing feature. From day one we put security first. After all, not only were my clients’ domains going to be in DNZoom, MY domains were going to be in DNZoom. We were not willing to risk our assets or our clients’ assets so we came up with a platform that would be as secure as humanly possible.

      For security we partitioned the backend database servers off from the web facing servers so it would be virtually impossible to get into it. The web-facing servers were completely locked down via IP blocking and firewalls. We then employed a security guru to write most of the code that would go into DNZoom so we could rest assured that queries would be sanitized properly. We also instituted features so domain owners wouldn’t be required to even enter their registrar credentials into DNZoom if they had reservations about it.

      At one point, our security features went into such great detail that we would lock ourselves out of the system. After a lengthy rewrite we were able to juggle usability with security, and that in itself was no small feat.

      What was amazing is that this had never been attempted before on a grand scale. Some parking companies and some registrars already had the ability in their API’s for all of this, yet, we were the first company to intensely specialize in this field in a truly agnostic fashion.

      Now and in the future”.

      There are a lot of great results originating from the strides we have taken and continue to take, that will not only benefit us, but other companies as well.

      Every day, more and more registrars and parking companies are building out their APIs so we can take advantage of automation. But keep in mind, not only can we take advantage of the automation, others can too.

      Once this technology is put into place it can then become standardized, and from there it can be built upon. In the future, more companies like ours will spring up that use APIs, and they will be able to do all sorts of things. Massive reporting and number crunching, up-to-the-minute reports, and domain protection/theft alerts all can be automated with technology. Who knows? APIs may even assist in achieving transparency. One thing I know for sure is that DNZoom By Bido plans on taking on a lot of these tasks and we will continue to push for new technology.

      As some of you already know, Moniker.com, Fabulous.com, RevenueDirect.com and a handful of others have just recently built their APIs. These companies all have foresight and see the need for automation. Each of these companies knows and understands that this need is going to be even greater in the future.

      Remember, our industry and our livelihoods are built on technology. We have no choice but to break down walls and build bridges to close the gap. Moving forward, DNZoom By Bido will continue to push for new standards. With this move, not only do we hope to help you with portfolio management, but help others with the new technology derived from it.

      Skenzo Announces Private Equity Investment from Ashmore Group

      Our friends at Skenzo sent us this note (pre press release):

      Skenzo, a leading provider of technology, in the traffic monetization business, today announced the completion of a significant minority investment from the Ashmore Group. The Ashmore Group is one of the world’s leading Investment Firms managing funds over US$36.5 billion.

      By revenue, Skenzo was the #1 fastest growing domain parking company worldwide for 2006 & 2007. By headcount, with >250 employees, it is currently the #1 largest domain parking company. Skenzo provides its clients with comprehensive access to the best monetization opportunities. Its diverse client base includes some of the worlds most successful and influential domain portfolio holders, domain registrars, and online publishers. This substantial investment highlights Skenzo’s market-leading position and proven ability to consistently deliver superior performance for its customers.

      “We are very bullish about the Direct Navigation Industry. We plan to deploy sizeable resources for building unparalleled technology products in the direct navigation, online traffic monetization and advertising spaces,”? said Divyank Turakhia, Co-founder and CEO of Skenzo. “We already have the largest team of people in the industry. We have very aggressive plans to recruit some of the best talent that exists. Our goal is to continue being the leading technology provider for the industry at large.”?

      John-Michael Lind of Ashmore Group said: “In a short span of time Skenzo has become one of the strongest players in the traffic monetization industry. We believe the Skenzo team has done a terrific job. We are very excited about this investment and are looking forward to working in close partnership with Skenzo to help further accelerate its growth and strengthen its leadership position.”?

      “Skenzo has developed path-breaking technology and pioneered innovative practices in the direct navigation space,”? said Bhavin Turakhia, Co-Founder, Skenzo, “Ashmore’s experience, and proven track record makes them a perfect partner for Skenzo’s aggressive growth plans”?

      Congratulations Div, Bhavin, and the rest of the Skenzo team!

      Sahar

      Systematic.com Goes For USD400K

      Via Texada’s press release (PDF):

      TEXADA Software Inc. (TSX Venture: TXS), premier provider of equipment rental and mobile asset management software, today announced that it has sold the ownership of one of its Internet addresses for $400,000.
      “One of the legacy issues that made little sense to me upon recently becoming CEO was to have our company incur the confusion and expense of operating two separately named websites,”? said Nigel Miller, President and CEO of TEXADA Software Inc. “I therefore decided to consolidate all our Internet information under our most appropriate name: www.TEXADAsoftware.com. We were fortunate to identify a non-competing company in Europe who were interested in acquiring the name of our discontinued website, www.systematic.com.”?
      “Effective immediately, everyone will be able to view all our company and product information on one site: www.TEXADAsoftware.com. Appropriate steps have been taken to notify all our contacts. For a period of a year, the www.systematic.com website will also display an ad that enables anyone looking for our company to click through to the TEXADA website”?, concluded Mr. Miller.

      The new buyer seems to be a company with vested interest in the domain (they are currently using http://systematic.dk). Current WHOIS:

      Systematic Software Engineering A/S
      Soeren Frichs Vej 39
      Aarhus, DK-8000
      DK

      Nothing out of the ordinary here, happens many times a year for many years, mostly these things go unreported.

      Sahar

        Blog Gems

        If anyone’s wonder why bloggers drop so quick the answer to it is simple: blogging is extremely time consuming, and original content that is relevant and of high quality takes more then simply thinking of it. The very best are inspirational posts, stuff you FEEL and FLOWS, stuff you are truly passionate about, stuff you just have to say, have to share.

        So, diving into the archive, these are few posts that daily get many hits, and if you have missed them, I believe you may enjoy reading.

        Enjoy,

        Sahar

        What Is Value. This post has a great follow up as well by a dear friend, Dr. Kevin Ham.

        The Story Of “XXXXXXXXX”?.COM

        Carnegie Says “No”? To New Domain Extensions

        Guest Post: Observations From A First Time T.R.A.F.F.I.C. Attendee”, By Bob DeCecco


        Bido.com Launch Party Videos


        How To Ruin Your Health


        URL Related Traffic Leakage And Mining Opportunities Explored

        You Got Lucky. Now What?

        A Walk Down Memory Lane With Dr. Chris Hartnett

        Re-enforcing Direct Navigation (The “Good boy”? Concept)

        Simplicity Rules!

          eBay To Change Listing Policy, May Affect Domain Name Listings

          Brian Burke, Director Global Feedback Policy at eBay, writes:

          Hello…This is Brian Burke, Director Global Feedback Policy. Digital goods are often reproduced at little to no cost to the seller. On eBay, this creates the potential for Feedback Manipulation (both real and perceived). To preserve the integrity of the Feedback system, effective March 31 all goods that can be digitally downloaded or transferred electronically must be listed using the Classified Ads format.

          Using the Classified Ads format, sellers receive a 30-day ad at a fixed price. This solution enables sellers to continue to market their digital goods on eBay; however, because Classified Ad listings are a lead generation tool and do not result in transactions that go through eBay, Feedback cannot be exchanged between buyer and seller.

          Sellers who wish to continue to offer digital goods can do so by selecting the Everything Else>Information Products category in the Sell Your Item form and choosing the Classified Ads format (not auction-style or fixed price). For more information about the Classified Ads format, please read Advertising with Classified Ads.

          Sincerely,

          Brian Burke
          Director, Global Feedback Policy

          As highlighted above, It seems to be applied to domain names.

          What are the classified ads fees you may ask?

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