(image source: Initial Designs)
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.
(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
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Reinvent have done well putting this together and giving us some information to take to end users, large fortune 500 and other marketing companies.
So many people still dont get the power of owning a strong domain that does what it says.
If your a lawyer you should want to own Lawyer.com not GHlawpractice.us - Yes you probally cant afford to buy lawyer.com but if you knew the industry you may purchase BostonLawyers.com or CompensationLawyers.com
People still dont get it and I really dont know if they shall ever it get it the only way we can make change is to educate College & School kids who shall work in these companies in the future and spread the word of the power of a great domain.
Regards,
Robbie
The Reinvent Index is a good step in developing standards and benchmarks for the industry. There are far too many people and companies outside the industry that don’t even know it exists.
The domain industry still seems to be too much of a “closed society”. While there are plenty of sales from domainer to domainer, end user sales are a small part of the picture. This churning of domains at wholesale prices can only go on for so long.
The next phase of the domain industry needs to be a “coming out”. This should be the next gold mine for domain brokers, auctions, shows and domain sales venues.
It is going to take some savvy people with the ability to make connections in the corporate world. Relationships with both large and small businesses will have to be cultivated. Those outside the domain industry will have to be courted and educated. They will want proof that domains are a valuable asset.
This may be the only thing that will ever the industry beyond the endless masses of parking pages that rely on a couple of “upstream providers” to pay them a tiny fraction of what is coming in.
@ Sahar, it’s good to see you blogging regularly again. I wish more people (end users) would get it. It would be awesome to see more of this kinda information in the end users face or in the Media or in more publications. You should syndicate Sahar! End users really can’t strut their stuff online when they have a domain like Lowyerz.com instead of Lawyers.com
OBVIOUSLY YOU ARE A DOMAINER AND ONE WITH BAD ARTISTIC TASTE! THAT PHOTO SUCKS BIGTIME!! BEAUTY IS IN TH EYE OF THE BEHOLDER THEY SAY … THATS ONE UGLY EYE!!
Your absolutely right Robbie. Good posting Sahar.
Working as a consultant it doesn’t surprise me how blind the average person is to the power of domain names. It has always shocked me at how backwards the average business is when it comes to approaching the web with their services or product.
Most business dealings are done in the following order.
1) They start with a product or service.
2) Register a corporate name.
3) Create a logo around this corporate name.
4) Buy a domain name. (Usually this is where the struggling starts when they realize that the corporate name and domain name can’t be the same so they pick a domain that is not compatible and creates a bundle of problems)
5) Build a website.
6) Request search engine optimization so that someone will come to the site.
6) Wonder why they can’t compete with the guy next door.
The real order should be:
1) Start with a product or service.
Compete with the guy next door because you dominate certain areas of traffic.
2) Pay a company that can properly research keywords in their particular field. What are people typing in to search engines to find my product or service? There are always surprising subgroups of potential business found during this stage.
3) Buy as many domain names as they can, applicable to the keywords in that field.
4) Pick a brand domain name.
5) Get a corporate name based on that brand name.
6) Build a logo around this name.
7) Build a search engine optimizable site based on the keyword research and domain names that you own.
9) Use the money generated from additional business obtained from domains and seo to purchase more powerful domain names to add to your domain portfolio.
So there is really a lot that the average business doesn’t know. I actually was so tired trying to explain the basics to clients that I created videos so that they would have a better understanding of the proper way to start a project.
If anyone is interested I have my second video which applies to this blog posted on this page. Just right click and save and you’ll see me explain my version of the value of a domain name/domain package.
http://www.webtrafficconsultants.com/vancouver-search-engine-optimization-videos.htm
Feedback appriciated.
http://www.webtrafficconsultants.com/vancouver-search-engine-optimization-videos.htm
Second video, left click and save to desktop.
But when someone does get it (Domain Names) and we got it (the Domain Name they want) both parties win!!!!
Most larger domain owners or companies aren’t showing data for a reason… Because the price still doesn’t justify the $xx,xxx or $xxx,xxx
For years now domains have been pitched and sold on all this “massive potential”
True it exists… For some of the premium category killer domains — But you have to go far and beyond just saying the words and provide data to backup this claims… Many domainers are just tagging along “mine too” is valuable because xyz is valuable so that makes mine somewhat valuable and worth this much and that much. It is kind of ridiculous and boring too — Mainstream media and serious investors want to see FACTS and they want to see it in ACTION as it happens…just talking about domain traffic or domain branding potential isn’t good enough anymore of course.
Domain values are going to be coming down big time in 2009 for .com — the summer was hot… The winter will be miserable.
Best investments of the future where there is still lots of money to be made are ccTLD generics where internet penetration is good and on the rise… $xx to $xxx per domain and diversify as much as possible.
Mike
http://www.wannadevelop.com/
I’m currently working on a project that will help explain the navigation usefulness of domain names to Madison Avenue and the big media players.
It should be ready by Jan 2009, so ok as a small fry domainer I’m doing my part ….
I’m currently working on a project that will show Madison Ave. and the big media boys the effectiveness of good domains in creating value. I’m just a small fry domainer, but if we all do something, it will add up.
There should be less reference to Madison Avenue who are really a collective bunch of advertising agencies. You want to understand how the real brands think - speak to them directly. Most of the brands/corporations out there have extensive domain name portfolios which have IP attorneys managing them - decision makers (wrong people) - BUT yeah, they do have large portfolios and I bet you larger than some domainers do. However, they don’t GET domain names as you already know - they need some EDUCATION (maybe lots of it for some of them) and some do GET it. Maybe if you had them attend some of the events like TRAFFIc, you’d get their perspective on domain names which should matter to you more than Madison Avenue, who work for these brands.