Domain News

In a fashion reminiscent of investment pump and dump scams, domain sellers list domain names for sale and pump cheap traffic to the names to make them look appealing and then dump the names on unsuspecting buyers.  These scammers list domains for sale on domain aftermarkets that advertise the inflated traffic information and dump the domains off on a buyer who is likely unaware that the traffic is temporary. This is not a new scam, but it appears that we have some damning evidence of scammers in action on TDNAM.com.

To be clear though, we are not pointing to TDNAM as a perpetrator with any involvement, rather they are merely the venue where  scammers are preying on unsuspecting victims. The sellers in a pump and dump are the scammers not the venues.  We are sure this happens at more than just TDNAM and don’t mean this article to suggest otherwise.  The links we were given show what is easily perceived as sellers engaged in “pumping and dumping” domain names being sold on TDNAM.  Anyone buying any domain names in the aftermarket on the basis of traffic numbers should be aware of this scam.

This activity can also occur outside of an aftermarket venue.  When selling a domain name in public, say on a forum, it’s common for sellers to receive requests from savvy domain investors to “test the traffic”.  The request is made in order to validate any claimed traffic.  It’s the domainer equivalent to due diligence.  Most sellers in this arena are also familiar with the practice.  Sellers know that they won’t be able to sell a domain that they pump with bogus traffic and not be caught.  The risk of being exposed on a public forum as a fraud are likely strong enough that this doesn’t occur very often.   Since whois records can be changed and new identities created easily, it is still possible to run this scam outside of the confines of an aftermarket platform.

An aftermarket platform, however, often provides even more unsuspecting buyers for the scammers to prey on and their terms give the sellers a shield to hide behind. TDNAM, like Sedo.com and other domain aftermarket venues, display domain traffic numbers in the auction details.  The problem with this information is that it is a fairly vague number and only the venues themselves know the details.  The source and  quality of this traffic is not reported and typically not guaranteed.  The TDNAM legal terms only mention this about traffic :

Some Expired Domain listings may include traffic data labeled as “Unique Visitors” (the “Traffic Data”). The Traffic Data is provided AS IS and for informational purposes only. The Traffic Data reflects internally calculated data and does not represent a guarantee of continued traffic in any way.

I was unable to find a terms of service disclaimer on Sedo, but I’m sure that the numbers they post are also not guaranteed.  Obviously, not guaranteeing traffic provides an “out” or protection that sellers can hide behind as they pump in as much traffic to a domain name.  When the domain is sold and the unsuspecting buyer realizes that there is no traffic coming to the domain, the venue and seller can simply reply “We don’t guarantee the traffic”.  This lack of any guarantees enables the pump and dump domain scam.

This is one of the reasons most savvy domainers who buy on aftermarket auctions follow the rule of caveat emptor (buyer beware), knowing full well that the numbers can’t  be relied upon.  What happens to the novice unsuspecting domain buyer ?  TDNAM, being  run by the largest domain registrar, likely has a customer base that is not primarily made up of savvy domainers and likely is unaware of these sorts of scams. To an unsuspecting buyer or novice, a domain with a reported high amount of traffic may seem very appealing.  There are likely far more unsuspecting buyers on these aftermarket sites which enables the scammer even more.

Need Some Evidence ?

So how do we know this is happening ?   Here’s two example domain names that are for sale on TDNAM as of this writing (Friday at 3 am cst) that seem to be “pumping and dumping” (see screen shot below).   Both names have sold in the process of writing this story. The  TDNAM numbers shows 1723 for the domain VideoGameSupermart.com and the domain Dvdroms.net reports 39097.

It’s interesting to note that the domains mentioned above are not expired domain names. The only mention of traffic in the terms of service on TDNAM that I could find (see above) talks about expired domain traffic not being guaranteed. Does that mean that they are guaranteeing the traffic numbers non-expired names listed on TDNAM?   I doubt these are guaranteed numbers and I’m guessing this omission in the TOS disclaimer will be fixed very soon. There’s a note on the auction page next to the traffic numbers that says “The traffic data is provided AS IS and for informational purposes only. The traffic data reflects internally calculated data and does not represent a guarantee of continued traffic in any way.”

Let’s look closer at Dvdroms.net though. The traffic numbers claim it is getting over 1000 uniques per day. That seems to be a stretch, but maybe it’s not. Where could this traffic be coming from ?   A former website with incoming links ?  Not likely based on a Google link check. Type-ins ?  I highly doubt it.  How about just buying up traffic before you put the domain on auction ?  Enter the company UGGIcorp.com, a company that sells traffic on the cheap.

Setting up and getting Traffic is fast and simple. We charge $2.000 per 3000 Unique Visit. We will review your website and will have it active within 1-12 hours. Make Sure Your site follows our terms. These Traffic Packages are not adsense safe unless it says so on the package.

UGGIcorp has a page on their website that displays how much traffic they’ve sent to various clients during the month (screen shot below in case it goes away).  It turns out that both Dvdroms.net and VideoGameSupermart.com appear on the list of domains that received this “pumping” of traffic in December.

SOLD !

Dvdroms.net ended up selling for $265 on TDNAM (sorry link not available).  If the seller bought 50k uniques worth of traffic, as the UggiCorp site seems to be saying, he likely paid around $30.  Add in the $10 paid for the domain, and you’ve got a nice profit of $225.  Videogamesupermarket.com was sent around $2 worth of traffic and sold for $69 .

Ok, so big deal. It’s only 2 domain names, right.  Wrong.
First, these aren’t the only names selling on TDNAM that appear on the UGGIcorp list. The same seller appears to be doing this with multiple domain names listed on TDNAM.  Secondly, these are only the ones we found that had some sort of evidence linking the bought traffic to domain names offered for sale.  Like cockroaches, once you’ve seen one scammer, rest assured there’s more hiding out somewhere.  I’m sure there are other sellers doing this same thing, but with a little more stealth. If not now, I’m sure after this post, the practice of pumping traffic to domains will be done with more discretion in the future.

To top off the story, the whois for the domain names that we mentioned seem to contain bogus information.  Another thing someone pointed out when we discussed this issue is that these domains all go to a Godaddy parking page.  Most PPC companies and search engines frown on traffic that is bought and pumped in to a landing page.  Do you think that the advertisers on that landing page want to pay for this sort of traffic ?  It’s a violation of terms to have bogus whois info and it’s a pretty safe bet that pumping in traffic to a lander is also a terms of service violation somewhere.

Buying domains on the aftermarket comes with risks.  Most savvy domainers know about this scam (possibly having been burnt by it before), but others might not.  Buyers need to be aware of these type of scams.  This example seems to be a clear case of “pump and dump” domain selling.   Hopefully, in the future something can be done on these aftermarket platforms to combat these scams.

Thanks to our friends at DomainAuctionCleaner.com for alerting us to this.

(c) 2009 DomainNameNews.com

Buy Category Killer Domain Names for the best price possible.

Original post by Adam Strong

The Rebranding Game by Ryan McCarthy at Inc magazine focuses its attention on Simulscribe, a company who rebranded and changed their name to PhoneTag several months ago.   Inc also ties in a secondary article to this story which attempts to advise entrepreneurs on how to buy domains.  While the advice on buying domains isn’t the best, the article on rebranding provides start-ups and businesses with an interesting perspective from a company who chose a ‘bad’ name and struggled with coming up with a new and better name.

We’ve all heard start-up stories about companies struggling to come up with a name, often opting for a less desirable choice. The most common gripe being “All the good domains are taken”.  Andrew at Domain Name Wire has points out some of the more ridiculous names that start-ups have chosen.  Obviously a lot of start-up companies, like Simulscribe, get stuck in this same boat when they launch. Maybe they aren’t creative or maybe they can’t get “their name”.  They end up going with whatever they consider to be the next best thing.  What’s even more likely is that most start-ups don’t even consider budgeting for a name or a domain name.  “Almost all of the start-ups I’ve worked with have started with really bad names but waited until they were more advanced to seriously think about marketing and branding,” says Danny Altman of A Hundred Monkeys, a naming firm.

So, why get the right name at the start?  It can be argued that you can create the next great site, product, application, etc. with “any old domain name”.  You’ll save a lot of money by using a made up, hard to spell, formerly useless name.  The Simulscribe story points out that a bad name can create more problems as your company grows and becomes successful.

it was hard to remember and easily mistyped. Given that the company’s strategy was to build a user base primarily through word of mouth, this was bad news. “If you’re selling a product on the Web that you want people to talk about, the name is the most important thing,” Siminoff says.

Siminoff talks about the impact of the rebranding

So far, the retooled brand seems to be a winner. In the six months since SimulScribe became PhoneTag, the number of daily sign-ups has risen 40 percent, and the number of accounts produced by customer referrals has tripled. Revenue is on pace to hit $5 million this year. “The name change has made an enormous difference,” says Siminoff.

and reflects in hindsight on the lack of a good name choice early on.

“I think we’d probably be double or triple the size we are now, had we had that name a year ago.”

Obviously, a rebranding effort takes a great deal of work and expense.  Inc doesn’t really talk much about the expenses of the ordeal but one can figure that it’s likely much more costly than getting it right the first time.  Think about mindshare and the time it takes to gain that.  A new name means people are likely to get confused.  They can also lose confidence.  Think about what customers might say after a name change.  “What happened to Simulscribe?” or “What is this PhoneTag business all about?” Branding is about associating a name with a concept. Changing the name obviously is like starting completely over.

Siminoff spent over a year working on a new name as his investors “clamored for a change”.  This amount of time is something most companies likely can’t afford to devote to a name change.  The direct expenses of a name change begin to add up as well.  Buying the domain name was only one expense that Siminoff faced in having to rebrand his company.  The article mentions that he was able to incorporate the new name in to the logo and web design.  Most companies are likely not as fortunate.  Often a renaming involves a new logo, website and collateral.  As a company grows, the expenses associated with a rebrand are likely to grow as well.  A larger company has more customers it needs to educate, more collateral it needs to amend and more mind-share it faces losing.

How to Buy A Domain Name

The Inc article does not go into detail about what exactly makes for a good or bad name.  That discussion is best saved for another time as it is highly subjective.  However, Inc does try to dish some advice for those who might be in these sames shoes, either branding or rebranding, and looking specifically to buy a domain name. They refer the reader to another article written by ‘Staff’ titled “How to Buy a URL“. The advice in this article isn’t really the best on this topic.

Inc tells readers to “Hang tight” and wait out ICANNs role out of new TLDs. This seems to be inappropriate advice give the topic. This article is about how to buy a URL, not how to sit and wait and possibly never get one. Waiting for a possible new domain extension to come out in the hopes that you are going to be the first to acquire it is not sound advice. Most domain extensions role out with a great deal of competitive speculation over the best domains.  The premium domains could also be put up for auction or priced at a premium. The odds of getting the name are also outweighed by the inexperience most readers will have in figuring out the systems involved in the sunrise and landrush periods for any given new extension. If you need a name, waiting for a new TLD is not the best advice. Work with what you have in front of you now in terms of domain name extensions.

Companies should remember to choose an appropriate domain extension, more than likely choosing the .com. If the company is based in another country, maybe a ccTLD is more appropriate. I really wouldn’t advise a company to use a new extension, but that’s just me.  You would likely get similar advice from others in the domain industry.

Inc really misguides and provides a disservice to readers in “How to Buy a URL” in their advice on pricing. Advice on how much to pay for a domain name shouldn’t be given in such an ambiguous, off-handed manner.  “Pricing is tough” they state. Agreed. There is no rhyme or reason in many cases. The advice “For a niche term, don’t pay more than $5,000.” also seems to be a random number pulled from the air, if not naive. “Names with obvious commercial appeal will cost a lot more” also leaves the reader wondering “So, what exactly is a lot more?”

Advice for any novice would be to educate yourself and look for help.  First educate yourself by learning about domain comparables and valuations to get a feel for what you may be up against in making an offer. For domain comparable pricing information , I’d refer interested parties to DnJournal’s weekly sales numbers and Namebio. Yes, you will see prices are all over the place, but lacking this information a buyer would be simply shooting in the dark.  A domain name appraisal service can also assist a buyer in getting a feel for domain name values.  In the end though, comps and appraisals only give you a rough idea.  How much you want to spend is your call.  I think Siminoff from PhoneTag puts it best in his comments at Tech Crunch

it just comes down to what the domain is worth to the business. In our case I would not be surprised if the name change is worth millions over the next few years. So while $30,000 is a lot of money for a good name I think it is cheap.

The Inc staff also leaves out the best advice for companies faced with the naming challenge:  Look for expert help. If you are a company looking to rebrand or looking to acquire a specific domain name, look for help from someone experienced in this area. A domain name broker, a naming agency or a consultant can provide a great deal of insight, time savings and possibly even negotiate a better price. Brokers know many of the top domain owners and know what you can expect when dealing with specific parties. They are experienced in negotiation and the domain buying process. Naming companies can help you navigate through the process on what name to pick and what name will work best.  A consultant often has the skills to do all of the above.

(c) 2008 DomainNameNews.com

Saws.com , Medicinas.com , Coed.com - All For Sale at Aftermarket.com Online Domain Auction November 20th . Click here to register for the auction.

Original post by Adam Strong

The Rebranding Game by Ryan McCarthy at Inc magazine focuses its attention on Simulscribe, a company who rebranded and changed their name to PhoneTag several months ago.   Inc also ties in a secondary article to this story which attempts to advise entrepreneurs on how to buy domains.  While the advice on buying domains isn’t the best, the article on rebranding provides start-ups and businesses with an interesting perspective from a company who chose a ‘bad’ name and struggled with coming up with a new and better name.

We’ve all heard start-up stories about companies struggling to come up with a name, often opting for a less desirable choice. The most common gripe being “All the good domains are taken”.  Andrew at Domain Name Wire has points out some of the more ridiculous names that start-ups have chosen.  Obviously a lot of start-up companies, like Simulscribe, get stuck in this same boat when they launch. Maybe they aren’t creative or maybe they can’t get “their name”.  They end up going with whatever they consider to be the next best thing.  What’s even more likely is that most start-ups don’t even consider budgeting for a name or a domain name.  “Almost all of the start-ups I’ve worked with have started with really bad names but waited until they were more advanced to seriously think about marketing and branding,” says Danny Altman of A Hundred Monkeys, a naming firm.

So, why get the right name at the start?  It can be argued that you can create the next great site, product, application, etc. with “any old domain name”.  You’ll save a lot of money by using a made up, hard to spell, formerly useless name.  The Simulscribe story points out that a bad name can create more problems as your company grows and becomes successful.

it was hard to remember and easily mistyped. Given that the company’s strategy was to build a user base primarily through word of mouth, this was bad news. “If you’re selling a product on the Web that you want people to talk about, the name is the most important thing,” Siminoff says.

Siminoff talks about the impact of the rebranding

So far, the retooled brand seems to be a winner. In the six months since SimulScribe became PhoneTag, the number of daily sign-ups has risen 40 percent, and the number of accounts produced by customer referrals has tripled. Revenue is on pace to hit $5 million this year. “The name change has made an enormous difference,” says Siminoff.

and reflects in hindsight on the lack of a good name choice early on.

“I think we’d probably be double or triple the size we are now, had we had that name a year ago.”

Obviously, a rebranding effort takes a great deal of work and expense.  Inc doesn’t really talk much about the expenses of the ordeal but one can figure that it’s likely much more costly than getting it right the first time.  Think about mindshare and the time it takes to gain that.  A new name means people are likely to get confused.  They can also lose confidence.  Think about what customers might say after a name change.  “What happened to Simulscribe?” or “What is this PhoneTag business all about?” Branding is about associating a name with a concept. Changing the name obviously is like starting completely over.

Siminoff spent over a year working on a new name as his investors “clamored for a change”.  This amount of time is something most companies likely can’t afford to devote to a name change.  The direct expenses of a name change begin to add up as well.  Buying the domain name was only one expense that Siminoff faced in having to rebrand his company.  The article mentions that he was able to incorporate the new name in to the logo and web design.  Most companies are likely not as fortunate.  Often a renaming involves a new logo, website and collateral.  As a company grows, the expenses associated with a rebrand are likely to grow as well.  A larger company has more customers it needs to educate, more collateral it needs to amend and more mind-share it faces losing.

How to Buy A Domain Name

The Inc article does not go into detail about what exactly makes for a good or bad name.  That discussion is best saved for another time as it is highly subjective.  However, Inc does try to dish some advice for those who might be in these sames shoes, either branding or rebranding, and looking specifically to buy a domain name. They refer the reader to another article written by ‘Staff’ titled “How to Buy a URL“. The advice in this article isn’t really the best on this topic.

Inc tells readers to “Hang tight” and wait out ICANNs role out of new TLDs. This seems to be inappropriate advice give the topic. This article is about how to buy a URL, not how to sit and wait and possibly never get one. Waiting for a possible new domain extension to come out in the hopes that you are going to be the first to acquire it is not sound advice. Most domain extensions role out with a great deal of competitive speculation over the best domains.  The premium domains could also be put up for auction or priced at a premium. The odds of getting the name are also outweighed by the inexperience most readers will have in figuring out the systems involved in the sunrise and landrush periods for any given new extension. If you need a name, waiting for a new TLD is not the best advice. Work with what you have in front of you now in terms of domain name extensions.

Companies should remember to choose an appropriate domain extension, more than likely choosing the .com. If the company is based in another country, maybe a ccTLD is more appropriate. I really wouldn’t advise a company to use a new extension, but that’s just me.  You would likely get similar advice from others in the domain industry.

Inc really misguides and provides a disservice to readers in “How to Buy a URL” in their advice on pricing. Advice on how much to pay for a domain name shouldn’t be given in such an ambiguous, off-handed manner.  “Pricing is tough” they state. Agreed. There is no rhyme or reason in many cases. The advice “For a niche term, don’t pay more than $5,000.” also seems to be a random number pulled from the air, if not naive. “Names with obvious commercial appeal will cost a lot more” also leaves the reader wondering “So, what exactly is a lot more?”

Advice for any novice would be to educate yourself and look for help.  First educate yourself by learning about domain comparables and valuations to get a feel for what you may be up against in making an offer. For domain comparable pricing information , I’d refer interested parties to DnJournal’s weekly sales numbers and Namebio. Yes, you will see prices are all over the place, but lacking this information a buyer would be simply shooting in the dark.  A domain name appraisal service can also assist a buyer in getting a feel for domain name values.  In the end though, comps and appraisals only give you a rough idea.  How much you want to spend is your call.  I think Siminoff from PhoneTag puts it best in his comments at Tech Crunch

it just comes down to what the domain is worth to the business. In our case I would not be surprised if the name change is worth millions over the next few years. So while $30,000 is a lot of money for a good name I think it is cheap.

The Inc staff also leaves out the best advice for companies faced with the naming challenge:  Look for expert help. If you are a company looking to rebrand or looking to acquire a specific domain name, look for help from someone experienced in this area. A domain name broker, a naming agency or a consultant can provide a great deal of insight, time savings and possibly even negotiate a better price. Brokers know many of the top domain owners and know what you can expect when dealing with specific parties. They are experienced in negotiation and the domain buying process. Naming companies can help you navigate through the process on what name to pick and what name will work best.  A consultant often has the skills to do all of the above.

(c) 2008 DomainNameNews.com

Saws.com , Medicinas.com , Coed.com - All For Sale at Aftermarket.com Online Domain Auction November 20th . Click here to register for the auction.

Original post by Adam Strong

The live portion of the Down Under auctions may have concluded, too abruptly in some cases, but some of the names that did not make the ‘cut’ are still on auction – ready for savvy domainers to ratchet up and purchase. Prudence favors the bold in times like these - opportunities were missed in both Australian auctions.

To that end, there are several gems still waiting for someone to snatch and capture, revalue and conquer down the road. Again, DomainConsultant chose every name for the Aftermarket.com auction with three criteria in mind: quality, price and value – with value being defined as ‘short’ and ‘long’ term. Latona was also able to offer value in multiple forms – a major tourist Mecca like San Juan for $150k?  Again, opportunity knocked and domainers, so eager before, did not answer the door.

For a domain purchase to become a bargain requires a solid combo platter of the above three ingredients, with a side of seasoned curly fries and coleslaw.

Just return to days past when many domains were bought without consideration to all three variants and their loyal subjects. This led to a ‘bubble’ in the ‘price’ sector and a drop in the correlating ‘value’ equation. In other words, lots of domain speculators overpaid in live auctions.

But yet, it was to the sheer financial benefit of the few who saw that time as ripe to sell inventory. They, we, are the ones who benefited most from the early live auctions – we sold names without heartbeats for tens of thousands of dollars. Why? Because we follow that damn old saying - “buy low, sell high.”

So simple yet so evasive - it drives the fear of opportunity, more than the fear of failure. Those who do not implement or ignore recede into the background – pushing their names out, at a loss sometimes, just to follow the speculative leanings of the marketplace. They bought too many, too fast for too much and now are selling to recoup.

So today that means they liquidate names like HandicapShop.com for $800, not $8000; NoCalorie.com goes for $450 and not $4500; GranolaBar.com sells for $3800 not $38k.

Backtrack over the last 12, 18, 24, even 36 months and decipher how much these current offerings would have gathered at those points – this formula can help guide speculative, value-based buying decisions. Cycles, baby, cycles.

Can anyone offer reasonable doubt as to the state of the market? Are we high or low? Of course, we are on the low, low side so if you consider yourself even a speculative domainer - then now is clearly the time to buy. A domain like iUS.com for $25k (particularly given the state of ‘i’ names and good LLLs)? Eighteen months ago, this premium generic would have brought $75,000-$150,000 in a live venue. Bottom line is the auctions were filled with names priced for easy end-user sales.

For our money, we chose names like SkiEurope.com (kicks ass), Coed.com (think 18-22 college dating), ChildLocation.com, BajaAdventures.com, iJar.com, Somehow.com and about two dozen more that are still available for bids closing November 26th. Rick Latona’s auction is now closed.

Some Aftermarket.com names just didn’t make it to the auction in the time allowed while others did not get bids like NewTLD.com. Didn’t we just spend a week talking about hundreds of ‘new TLDs’? How much does one application cost again?

Truthfully, reach the bottom and only blue skies, Simpson-like clouds and ‘ahhhhs’ await you. It is time-tested and true - repeated by speculators before (2000-2002) and repeated daily by some of the most successful domainers (like Latona) in the world. Afterall, domaining itself is based in the idea of buying low and selling high.

So the ultimate question is: why aren’t you buying?

(c) 2008 DomainNameNews.com

Saws.com , Medicinas.com , Coed.com - All For Sale at Aftermarket.com Online Domain Auction November 20th . Click here to register for the auction.

Original post by M.Fiol

The live portion of the Down Under auctions may have concluded, too abruptly in some cases, but some of the names that did not make the ‘cut’ are still on auction – ready for savvy domainers to ratchet up and purchase. Prudence favors the bold in times like these - opportunities were missed in both Australian auctions.

To that end, there are several gems still waiting for someone to snatch and capture, revalue and conquer down the road. Again, DomainConsultant chose every name for the Aftermarket.com auction with three criteria in mind: quality, price and value – with value being defined as ‘short’ and ‘long’ term. Latona was also able to offer value in multiple forms – a major tourist Mecca like San Juan for $150k?  Again, opportunity knocked and domainers, so eager before, did not answer the door.

For a domain purchase to become a bargain requires a solid combo platter of the above three ingredients, with a side of seasoned curly fries and coleslaw.

Just return to days past when many domains were bought without consideration to all three variants and their loyal subjects. This led to a ‘bubble’ in the ‘price’ sector and a drop in the correlating ‘value’ equation. In other words, lots of domain speculators overpaid in live auctions.

But yet, it was to the sheer financial benefit of the few who saw that time as ripe to sell inventory. They, we, are the ones who benefited most from the early live auctions – we sold names without heartbeats for tens of thousands of dollars. Why? Because we follow that damn old saying - “buy low, sell high.”

So simple yet so evasive - it drives the fear of opportunity, more than the fear of failure. Those who do not implement or ignore recede into the background – pushing their names out, at a loss sometimes, just to follow the speculative leanings of the marketplace. They bought too many, too fast for too much and now are selling to recoup.

So today that means they liquidate names like HandicapShop.com for $800, not $8000; NoCalorie.com goes for $450 and not $4500; GranolaBar.com sells for $3800 not $38k.

Backtrack over the last 12, 18, 24, even 36 months and decipher how much these current offerings would have gathered at those points – this formula can help guide speculative, value-based buying decisions. Cycles, baby, cycles.

Can anyone offer reasonable doubt as to the state of the market? Are we high or low? Of course, we are on the low, low side so if you consider yourself even a speculative domainer - then now is clearly the time to buy. A domain like iUS.com for $25k (particularly given the state of ‘i’ names and good LLLs)? Eighteen months ago, this premium generic would have brought $75,000-$150,000 in a live venue. Bottom line is the auctions were filled with names priced for easy end-user sales.

For our money, we chose names like SkiEurope.com (kicks ass), Coed.com (think 18-22 college dating), ChildLocation.com, BajaAdventures.com, iJar.com, Somehow.com and about two dozen more that are still available for bids closing November 26th. Rick Latona’s auction is now closed.

Some Aftermarket.com names just didn’t make it to the auction in the time allowed while others did not get bids like NewTLD.com. Didn’t we just spend a week talking about hundreds of ‘new TLDs’? How much does one application cost again?

Truthfully, reach the bottom and only blue skies, Simpson-like clouds and ‘ahhhhs’ await you. It is time-tested and true - repeated by speculators before (2000-2002) and repeated daily by some of the most successful domainers (like Latona) in the world. Afterall, domaining itself is based in the idea of buying low and selling high.

So the ultimate question is: why aren’t you buying?

(c) 2008 DomainNameNews.com

Saws.com , Medicinas.com , Coed.com - All For Sale at Aftermarket.com Online Domain Auction November 20th . Click here to register for the auction.

Original post by M.Fiol

Like Traditional Investors, Owners Should Focus on Diversification

You hear it almost daily through the money wire – diversify, diversify, diversify. And while most domainers usually scoff at market returns, it is important to heed this fundamental in the growth of ones own portfolio.

Diversification in domain names is important because of the swings and tides of monetization and traffic and even public perception. We strive to rise and fall with the waves, we look ahead without dwelling or, at times, focusing on the issue at hand. (more…)

(c) 2008 DomainNameNews.com

Visit our Calendar of Domain Industry Events.

Original post by M.Fiol

Shows Need to Adapt to Domainers, Not the Other Way Around

So what’s wrong with domain conferences? A lot. For one thing, they look, feel and smell the same way they did two, four, six years ago: the same template, the same ballrooms, the same panels, the same, the same, the same.

But really, what’s the issue? It’s simple: no real domainers. Shows are now comprised almost entirely of vendors selling their wares to each other, the familiar screen names and faces have faded from the scene – unable to muster the energy to eat more conference food, see another panel or even attend another ‘sausage-fest’ domain party.

Even I have grown weary of this broken record. It used to be a good tune, now its Lionel Ritchie belting out ‘Dancing on the Ceiling.’

So the relevant question becomes: how do we get the domainer back? They are the core of the industry and without them, new domainers don’t get the help/connections they need and old-schoolers don’t sell because of a lack of new buyer pools. Both sides lose out on profitable connections.

I think to answer this important question requires looking at what still works or has evolved with the times to better serve domainer’s needs.

For real value, it’s about networking. Domainers have always made their deals not via panels or seminars but up in hotel rooms, the lobby, at the pool and in dance clubs. A lot of it forged in friendships that emerged before the partnership. We have always been competitors so we started out at arm’s length from each other until our friendships and trust solidified.

Unlike almost any other industry, this industry is ‘business’ but it’s also ‘personal’, mostly because the original core was not made up of multi-national corporations but individual, single domainers.

And that means removing conferences from the traditional template of most industries and bringing it down to a personal level. That implies, for example, creating networking opportunities instead of meals and seminars – we want to relax by the pool, not sit in another ‘ballroom’. Create activities that encourage personal connections and help the tight and overworked domainer unwind and relax.

Another still viable aspect of the shows is the high-level keynote-speakers like Steve Forbes and Barbara Corcoran. Again, this is about individual experiences – we can learn most from each other’s stories. And unlike seminars or even panels, it offers substance on a custom level by people who are not trying to sell you anything.

And finally, it’s about the auctions which, with their online systems, actually deter attendance by domainers – better to bid online than raise a paddle and make yourself known. But cutting the system is not the answer. The onus is actually on the market to create new, well-funded buyers – again, lacking because the last generation has not worked to create a new generation. And to date, auctions have done an awful job of trying to attract buyers outside the usual industry veins, the ‘mainstream’ as it were.

As noted in a previous article, Domain Names as Investment Hedge, this down time is a great opportunity to entice new buyers into the market by introducing the idea of domains as investment to the average Main Street investor - live auctions provide a familiar and credible venue.

This is all particularly valid at a time when average people are looking, desperately, for alternatives to traditional systems and gold becomes an overpriced commodity. Domains are global, the Internet is relatively safe and domains have already weathered multiple down slides. It’s like betting on the future, not the past or its shaky credit-based foundations.

To achieve this would require a dedicated, industry-wide PR campaign to mold perception. This should be in conjunction with a series of city-by-city seminars – as used to great effect in real estate investment. Set up a few domain investment centers for the public, create literature and give them the assistance they need to see good returns –should not be too hard to get a 5%-10% return for investors.

Sure, domainers are used to and even expect much higher returns, but the average person would be more than satisfied with far lower numbers – given their current, sad options.

In the end, success of this entire industry resides in the ability of the industry and the shows to expand beyond its traditional borders to create fresh demand - while also adjusting to bring the domainer back to the fold.

It benefits us all, so get to work and get it done…before it’s too late - for the old and the new.

(c) 2008 DomainNameNews.com

Domain Convergence, October 6-8, 2008, Niagara Falls

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Original post by M.Fiol

Recent Financial Collapse May Benefit Domainers

In the spring of 2001, I came across an eBay auction for the domain Inbox.com, listed with no reserve at $4,000. Now, in a clear sign of the times, the auction ended without any bids or bidders, including myself. After the auction, I emailed the seller and offered him $2,000 for the name. He accepted my offer.

Sixteen months later, I sold the domain name for a high six-figure price to an end-user.

Point is that 2008 is looking, in many ways, like 2001-2002 except this time the crisis is larger, global and based in excessive debt.

People are moving money into no-interest T-Bills or simply holding tight to their cash and hoping their bank stays afloat and if not, the FDIC doesn’t crumble under the weight of its insurance pledge. Some are even looking at their mattresses as the bastions of ‘safety’.

So what is an individual to do? If our money is not safe in banks, then where do we put it? One possible answer is, again, domain names. For several reasons:

- Domains are a global commodity

- Domain names are not based in debt.

- Unlike Lehman Brothers or Mac and Mae, the Internet is not going anywhere but up – especially with the next item as consideration.

- Energy issues/prices and depleted discretionary income will drive more usage of the Internet as entertainment, news source, global connective.

- The normal ‘hedge’ in these times is ‘gold’ but at nearly $900 per ounce, it is a prohibitive investment vehicle. And note, during the Great Depression, the government seized precious metals from its citizenry.

That is not to say that drops in domain value will not continue for awhile – it is a natural devaluation based on economic conditions outside the industry. No, it is to say that once and if this all shakes out, people will notice how well the Internet and domains weathered the storm and the idea of domains as an investment hedge, a place to put your money for tough times, may grow.

Now, the key of course, is to buy on the low side like inbox.com. In down times, like 2002, the opportunities and deals were all around us. After all, who survived the ‘dot-com’ crash? In fact, those that did survive, now make up a large chunk of the upper echelon of our industry.

After reviewing all the upcoming T.R.A.F.F.I.C. auctions, DomainConsultant has decided to update its market recommendation to its clients from ‘HOLD’ to ‘BUY’. We made this change for many of the above reasons – and in no small part, based in current events. Unless it ALL collapses, we see domains as one of the most reliable, secure ‘safe harbors’ - IF the name is quality, bought at a proper price.

We’ve noticed in the submission and auction lists a distinct rise in quality and drop in pricing. If one could conjure a symphony of elements to produce deals in the marketplace, this would be the result, exemplified by offerings great and small. In short, time to buy.

Besides, you’re only other real, viable alternative may be to stick it under your Serta.

(c) 2008 DomainNameNews.com

Domain Convergence, October 6-8, 2008, Niagara Falls

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Original post by M.Fiol

Barack Obama discusses why he chose Joe Biden as his running-mate.

With yesterday’s announcement of the Barack Obama and Joe Biden ticket, Domain Name News has launched into full election year campaign coverage. We were at the announcement at the Old State Capitol in Springfield, Illinois, to see what the Senator from Illinois would tell us about his choice for a new domain name.

Obama refused to comment on why his campaign is not using .mobi. He refused to comment on whether he’ll be bidding on the ebay auction for ObamaBiden.org . . . . Well alright, he didn’t really refuse. He just couldn’t hear me shouting 25 feet away from him in a sea of his chanting supporters. Obviously, there wasn’t any chance I was going to do any talking to Obama, especially about domain names. In all seriousness though, if you are interested, I was actually at the event. Here’s my Obama-Biden campaign pictures.

Back to politics, domain names and Obama-Biden. CNN focused some attention to some of the more obvious choices for domain names for the newly announced Democratic Presidential ticket. ObamaBiden.com would be the obvious choice for the campaign, but before we discuss the Obama-Biden campaign and their domain name strategy, we thought we’d give you a little domain name history from past Presidential winners and hopefuls, a little law tidbit and then a snippet of domain history behind the Barack Obama campaign.

Thinking Ahead
One of the earliest political domain name stories I’ve heard is recalled in David Kesmodel’s Domain Game book. Kesmodel tells the story of watermelon farmer Scott Day who owned the domain name GeorgeBush.com. In 1999 Day, a Bush fan, donated the domain name to then Governor of Texas George Bush. The man responsible for the acquisition was reportedly Karl Rove. According to Kesmodel:

Rove read about domain speculators and decided to grab any names he could think of related to Bush before others could get them. Rove helped the Bush campaign snag about two hundred, including dubya.net bushsucks.com, bushblows.com. Like many early domain name investors, the man later called “Bush’s Brain” showed a flair for anticipating his competition.

Registering domain names ahead of your competition is a strategy seen in campaigns as close to home as local mayoral or city council races, and it’s not just going on in the United States. Some politicians take it a step further and register their opponents’ domain names and some go even further and use domains for “E-mudslinging” In an article from the Denver Post on the topic of registering rival candidate domain names consultant Phil Noble with PoliticsOnline was quoted as saying,

“national candidates tend to be more savvy and lock up their domain names early. But candidates “down the food chain” in state and local races can still overlook the need to lay claim to their name on the Web and the different Web addresses for it”

MarkMonitor’s Frederick Felman stated in the same article

“Savvy, forward-thinking public figures generally have gotten ahead of this and own (Web sites) associated with their public person. They either bought it early before they were famous, or later negotiated to buy it.”

Preventing “Political Cyberfraud”
According to the Post article, California enacted a law called the Political Cyberfraud Abatement Act that is designed to prevent people from registering political candidate domains. Idaho also made an attempt to pass a similar act, but it was stalled in the House.

The California act states :

(b) It is unlawful for a person, with intent to mislead, deceive,
or defraud, to commit an act of political cyberfraud.
(c) As used in this section:
(1) “Political cyberfraud” means a knowing and willful act
concerning a political Web site that is committed with the intent to deny a person access to a political Web site, deny a person the opportunity to register a domain name for a political Web site, or cause a person reasonably to believe that a political Web site has been posted by a person other than the person who posted the Web site, and would cause a reasonable person, after reading the Web site, to believe the site actually represents the views of the proponent or opponent of a ballot measure.

That’s My Name
In the 2004 election, it was clear that the Democratic campaign wasn’t so lucky. The Democratic ticket of John Kerry and John Edwards weren’t faced with a political rival beating them to the punch, and it wasn’t that they weren’t savvy or that someone was committing “cyberfraud”. It turned out that there was actually someone whose first and last name was Kerry Edwards. He was the owner of the desirable KerryEdwards.com domain name and all eyes seemed to turn to him. Edwards turned down initial offers “in the five figures” and rushed to put the domain name up for auction on Sedo. CNET reported

In the days after Kerry announced his running mate, Edwards fielded 40 to 50 offers for his domain name, starting at $1,000 and going into five figures. Traffic to his Web site also jumped to 400,000 in three weeks, compared with his usual three hits a month.

Sedo claims in the CNET article that the high bidder at $150,000 pulled out. Kerry Edwards of Indianapolis still owns the domain name and has no regrets. It is after all his name. Kerry told us “I was contacted by someone representing the Kerry campaign the day after they announced Edwards was going to join the ticket. . . they asked me if I was interested in loaning or donating the domain to the campaign. I told them no and that I had been offered $10,000 for the domain already (which I had). The conversation ended and I never heard from them again.” Kerry who was surprised about the power of a domain name that received type-in traffic has since started investing in domain names himself and frequents domain name forums as user “Duceman”

The Kerry-Edwards campaign signs noticeably missing a domain name

The Kerry-Edwards campaign moved on without the KerryEdwards.com. Rather than using that domain they continued referencing JohnKerry.com on some of it’s marketing materials, but they noticeably left a domain name off of much of their political signage distributed that year, opting for the tag “A Stronger America” instead. Meanwhile their Republican opponents included the GeorgeWBush.com domain name with nearly all of their political paraphernalia. BushCheney.com was owned by a domain investor and

Obama’s Record on Domain Names
Many do not know that the Obama campaign already has a history with domain name related issues. First, Barack Obama doesn’t own Obama.com. In an age when even a Presidential candidate becomes a brand (consider “W” from the 2000 and 2004 election), the brand of Obama permeates. Supporters at the Springfield campaign stop chanted “O” from one side to a reply of “Bama” from the other. The Obama.com domain name would have been a nice feather in the hat for the campaign. However, this desirable domain name resolves to a Japanese landing page. Whether Obama attempted to acquire the domain or not is unclear, but it is clear that users are going to this address. According to Compete.com, the Obama.com domain gets around 50,000 uniques a month currently with peaks as high as 150,000 in past months. Slate.com also points out “commenters on online forums frequently implore fellow readers to “Go to Obama.com”.

Without the Obama.com domain name, the campaign moved forward with the domain name that Obama used during his bid for Senator, BarackObama.com. However, this might have not been the case if it weren’t for a generous Canadian company. In March 2005, the BarackObama.com domain name expired. Fortunately for Obama, expiring domain name auction service Pool.com was able to acquire the deleted domain name. Pool.com went out of their way to recapture the expired domain name, contact the Senator’s staff and return the name to him. In an article in the Canadian Corporate News about the issue, Obama was quoted as saying,

“Websites are important vehicles to provide information to constituents and to boost participation in the political process,” Obama said. “In the wrong hands, a web address can be used to mislead and misrepresent a public official’s record. That is why I am extremely grateful that Pool.com allowed me the opportunity to renew my domain and ensure that the information on the page reflects my values and beliefs.”

Even though he did let his domain name expire, Obama obviously knows a bit about the importance of his domain.

History Repeats Itself
Today’s announcement of Obama and Biden as running-mates has suddenly put Lyle Dean in the same hot seat that Kerry Edwards faced in 2004, only Lyle Dean is obviously not named Obama Biden. Dean, the owner of ObamaBiden.com, will be getting similar phone calls this weekend, maybe even from Obama’s Republican rivals.

The Obama-Biden campaign signage continues to use the BarackObama.com Domain Name

It seems to be a common trend however for a campaign to continue to use the Presidential nominees current domain name in marketing materials rather than a domain name incorporating both candidates. After making their VP picks, Bush continued to push GeorgeWBush.com and Kerry continued with JohnKerry.com. For now it appears that Barack Obama will continue to use BarackObama.com.

The Obama-Biden campaign has already made a decision to move forward with the BarackObama.com domain. Campaign signs, stickers and buttons are already in circulation with BarackObama.com underneath or above the “Obama Biden”. One would think, however, that it can’t hurt to have the more obvious domain name for the 2008 Democratic candidates and use both in an effective manner.

If anything can be learned from this history of domain names and politics, Obama’s staff might consider taking a page out of Rove’s manual and act quickly on acquiring the domain name anyway. Acquiring the domain name might prove to be fairly easy for the campaign, as Dean claims in the CNN piece to be an “enthusiastic supporter” of the campaign.

Dean has a decision to make in the coming days and he might wish to study the law books and this history in making his choice. Since he appears to be a California resident, he may want to consult with an attorney on any possible issues that his owning ObamaBiden.com might have with regard to the Political Cyberfraud Abatement Act. Whatever Dean decides to do with the domain, history will repeat itself. Dean might best choose to learn from that history, ignoring thoughts of selling the domain name and instead follow in the footsteps of domain pioneer Scott Day and donate the name to the Obama-Biden campaign.

(c) 2008 DomainNameNews.com

Domain Convergence, October 6-8, 2008, Niagara Falls

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Original post by Adam Strong

The News of Our Demise Has Been Greatly Exaggerated

Rick Schwartz announced in an email a few days ago that the upcoming TRAFFIC show would be auctioning sponsorship positions. My gut reaction to reading this email was that it had a ring of desperation. I posted on a forum to see if I was alone. As you could expect from any good forum post about domains, and especially one involving Rick Schwartz, the topic got sidetracked. I let it rest a day or so. . . . It must have just been me.

A day or so later I received an email and later an IM from individuals who had not seen my posts. I guess I wasn’t alone and the overall sense I got from these others was that they feel that the thought of auctioning sponsorships showed a sign that the TRAFFIC conference is in some trouble. Add to the mix other off-the-cuff comments I’ve seen/heard about the show being in Brooklyn and not Manhattan, the recent low attendance at the Florida TRAFFIC East show, and TrafficZ (the main sponosor) and Oversee.net (former main sponsor) now operating competing events (DomainRoundtable and DomainFest respectively). It does make one wonder I suppose.
So why not ask the man himself ! I emailed Rick to get the low-down. Maybe we’re all crazy.

I wrote :

Hi Rick
A few industry vets have emailed me with unprovoked comments regarding the auctioning of sponsorships. They see it to be a sign that TRAFFIC is struggling . Could you comment on that viewpoint ?

Rick replied :

“We are just opening things up just like we did with the new multiple auctions. Competition creates a better product and what may be good for one company can not stand in the way of what is good for the entire industry. There was a lot of pressure not to do that as you might imagine. But we have to do what is best for domainers not what is best for individual companies and sponsors. The results as always will be quite evident and visible for the entire industry to see once we get to New York. No question that domainers welcome this decision and it will change the game as we know it. Plus it’s gonna be a LOT of fun!

The idea for opening up the sponsorships actually came from Dan Warner in a conversation a week or so ago. He suggested that we auction off the auction slots to the highest bidder in future shows. I just took his suggestion and applied it in a slightly different direction. Bidding for sponsorships that just started yesterday is already very active and new faces, companies and solutions are coming into the industry because of it. That is not in the best interest of the status quo. There are those that have taken our business and traffic for granted and the competition we are going to introduce in New York will challenge the business as usual mentality. Should sponsors take notice? You betcha!”

Although he did avoid the question about TRAFFIC struggling, I appreciate Rick’s candor on the topic and look forward to seeing how the bidding on sponsorships goes. I think shaking things up is always good and this business definitely could benefit from fresh ideas and sponsors can open that door. Between the multiple auctions, auctioning sponsorships and a new location, this will definitely be a show worth writing about. I hope these new ideas, new auctions and new sponsors give TRAFFIC and the industry another solid showing. At least one of us from Domain Name News (that’s me) will be at the show next month, so watch for our posts and look for me there.

(c) 2008 DomainNameNews.com

Domain Convergence, October 6-8, 2008, Niagara Falls

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Original post by Adam Strong

Ten Emerging Beliefs and the Opportunity They Present

Domain conferences share a commonality during which, over time (turbulent times no less), certain conventional wisdoms begin to emerge as the industry matures and infrastructure solidifies. In other words, the more the industry coalesces and becomes viable and full, the more common beliefs come into play and perception becomes a central figure.

Trips to shows this year and all the conversations that went on behind the scenes produced many threads or commonly held and generally agreed upon principles that can help provide guiding light in an uncertain future.

Now, eighteen months ago, this would have been a different article, with different results and beliefs – ultimately, this is a testament to the cycle that is the domain business. Yes, domains too are subject to cycles and those around long enough have weathered a few with their dot com raincoats.

To wit, the current cycle (low with seasonal and economic effects piling on) has cleared up a bit, allowing us to make the following ten potential ‘statements of state’.

1. With recent Yahoo changes, arbitrage is on its last legs and may have hurt domainers on a large scale - arbitrage is always a declining strategy (not even an asset) as word spreads.
   
   
2. Premium domains (premium and brandable generics) are here to stay.
   
   
3. Sub-prime, replaceable domains continue to lose value. Large chunks of registered names have dwindled to ‘caveat empty’ at base prices.
   
   
4. ccTLDs are the next best choice after .com.
   
   
5. A true shift from traditional TV advertising has begun, led by the Fortune 1000.
   
   
6. .TV has its place yet development is likely a necessary adjunct to the formula.