Archive for June, 2007


SedoPro Event Wrapup

Last week’s SedoPro Partner Forum in New York was a great success.

Sedo knows how to treat its customers well. Last week, the domain name aftermarket and parking company treated over 50 of its SedoPro customers to a vacation at the Mohonk Mountain House in New Paltz, New York. Attendees paid only $149 per night, a fraction of the $500 room rate, and were treated to one heck of a time. Those invited included SedoPro customers (Sedo’s professional domain name parking service), some of the company’s biggest buyers and sellers, and select other domain professionals.

The group met Sunday afternoon at the Grand Hyatt in New York City, where the TRAFFIC conference kicked off a few days later. Around 3PM we boarded three limo buses, each stocked with a cooler of beer, and headed off on the two hour journey to the Mohonk resort. With so many languages being spoken, each bus resembled a UN convention. Visitors represented Germany, the United Kingdom, and Australia, among others.

SedoPro Bus Ride
The bus ride from NYC to Mohonk

Upon arrival, we were ushered to our rooms to relax for an hour before heading to a lobster bake. Mohonk’s rooms are incredible, with beautiful views of the hills and lake.

View from Mohonk Mountain House
A room with a view

Lobster bake
Chowing down with fellow domainers.

The event gave Sedo a captive audience to which it could sell why it was best, but Sedo decided to make this event a vacation, not a sales pitch. There were few educational sessions planned until the third day. Even then, Sedo shortened most of its sessions because the weather was so nice. Most days the temperature sat in the 70s.

Monday morning we were given the option of going on a hike, visiting the spa for a massage, playing golf, or hitting around the tennis ball. About 30 people opted for the hike, including myself. We were given the option to go a leisurely walk, a brisk hike, or a rock scramble. Myself and four other domainers opted for the more rigourous option, and ascended a couple hundred feet in the air by navigating boulders, caves, and a few tight spots (one dubbed the “lemon squeeze”).

Rock Scramble entrance
Entrance to the rock scramble, called The Labyrinth

Rock scramble 2
Don’t look down! That would be an uncomfortable 200 foot drop.

Rock scramble 3
And they say domainers never get out from in front of the computer.

After the morning events, everyone gathered for a barbeque and listened to Phil Corwin of Internet Commerce Association tell us about some of the dangers ahead for the domain industry. The afternoon included an optional networking event and a game of domainer jeopardy. I opted for the speed networking and got to meet a lot of people I knew of but never met in person.

BBQ
Barbeque in the mountains

Monday evening, Sedo treated us to a formal dinner followed by a great party. The party included lots of games, including two huge big screens connected to Nintendo Wii consoles. Unfortunately, nature got the best of me and I was sick by the time the party started. I only attended for a few minutes but everyone who attended said they had a great time.

Tuesday included several brief educational sessions, including information about Sedo’s acquisition of Great Domains. The sessions ended in time to relax outside for another hour and enjoy the crisp mountain breeze.

Of all of the planning Sedo did, the best job was planning the weather.

It was great putting faces to the names of some of Sedo’s account managers and marketers. They are a professional group and add legitimacy to this industry. Bravo to Sedo for planning a great conference.



Business.com Confusion Spreads Across Web

Misleading headlines and stories about potential Business.com sale spread like wildfire.

Business.com is for sale. That much we know. But it’s not only the domain that’s for sale. It’s a business that’s been around for over 7 years. Its 2007 EBITDA was about $15M according to a Wall Street Journal online article. That article also says some people expect it to sell for $350M at auction, but that hasn’t occurred yet.

So why are we seeing headlines like this, from respected publications such as ZDNet?

What’s in a domain? $400 million if you’re Business.com

If you just read that headline you’d assume the domain name business.com sold for $400M. In fact, if you read the first half of the ZDNet story, you’d still think it was only the domain name for sale.

But it’s not. It’s the business. Not just the domain. End of story.

Yes, the domain is worth a lot and has helped Business.com become what it is. Even without an attached site I’d say it’s worth about $5M-$10M based on recent big ticket domain sales.

And no, the domain didn’t really sell for $7.5M in 1999. It sold for $7.5M in illiquid stock. The company ended up paying seller Marc Ostrofsky $2.0M to redeem the stock in 2004. There’s a big difference between $7.5M in stock and $7.5M in cash. (I mean no disrespect to Ostrofsky. It was still a landmark sale that helped propel the domain name business. Marc had the guts to buy the domain for a six figure sum, and has since accumulated one of the best generic .com portfolios round.)

The story of business.com shows how a good domain name can be the foundation for a business. But it doesn’t guarantee success. Business.com has had its share of ups and downs. It moved to a direct pay-per-click model a few years ago. Then it abandoned it in favor of third party ads. Now it’s back to a direct model. Many people probably left the business for dead, but it has perservered.

I wish Jake Winebaum and Sky Dayton best of luck with the sale. But let’s stick to the facts and control the nonsense spreading across the web.

UPDATE 6-26-07:

Here’s another misleading piece, this time from Red Herring:

And it appears a new record may be in the works. Business.com, which sold for a then-unprecedented $7.5 million in 1999, could sell again soon for as much as $400 million, according to The Wall Street Journal.



Live Domain Auction Sells over $10M in Domains

These are live results from Moniker’s domain name auction at the Grand Hyatt in New York City.

Accuracy notice: these results were captured in real time. Accuracy is not guaranteed. A price of $0 means the reserve was not met, estimated last bid not accepted in ( ).

Over $10M worth of domains sold in Moniker’s Live Auction, with much more to come in the silent auction. The big story today was also the bubble bursting for .mobi domains. Many .mobi domains didn’t sell due to very high reserve prices.

1. VintageAirplanes.com 5700
2. StageRental.com 0 (5600 no sale)
3. Toy.net 26000
4. StockTrades.com 25000
5. BondFund.com 12000
6. IrishWhiskey.com 8000
7. BakingSupplies.com 12000
8. PrivateTutors.com 16000
9. PrivatePilots.com 20000
10. Historian.com 25000
11. TechnologyFund.com 10000
12. PinkRoses.com 10000
13. VintageMotorcycles.com 14000
14. Booksellers.com 30000
15. Houses.net 75000
16. ComicBooks.com 0 (400,000 no sale)
17. Supplies.com 0 (250,000 no sale)
18. Breathalyzer.com 0 (70,000 no sale)
19. Invest.net 0 (50,000 no sale)
20. PX.net 0 (15,000 no sale)
21. Tightrope.com 18000
22. Sale.mobi 0 (55,000 no sale)
23. AutoClassifieds.com 0 (135,000 no sale)
24. Six.com 0 (1,000,000 no sale)
25. Scotland.com 0 (3,000,000 no sale)
26. Pedestrians.com 0 (7,500 no sale)
27. EgyptianPyramids.com 7500
28. RentalProperty.org 8500
29. Clap.com 21000
30. TattooParlor.com 0 ($27,500 no sale)
31. LimousineService.com 30000
32. ZN.com 95000
33. 46.com 0 ($70,000 no sale)
34. Flights.net 0 ($85,000 no sale)
35. Scores.mobi 0 ($115,000 no sale)
36. Planet.com 0 ($350,000 no sale)
37. PressReleases.com 0 ($2.5M no sale)
38. Seniors.com 1800000
39. ClubSoda.com 20000
40. Tied.com 13000
41. Polling.com 0
42. EC.com 0 ($250,000 no sale)
43. Ethanol.com 0 ($600,000 no sale)
44. Vacations.mobi 0 ($30,000 no sale)
45. CreditCheck.com 3000000
46. VictorianHouses.com 8500
47. JewishDeli.com 9000
48. Hospitals.us 0 ($8,000 no sale)
49. Catalogs.net 0 (15,000 no sale)
50. FM.org 18000
51. Fountain.com 95000
52. Union.com 0 (185,000 no sale)
53. Stuff.com 0 (1.5M no sale)
54. Slots.com 0 ($4.5M no sale)
55. CarSales.com 400000
56. PDA.net 0 (25,000 no sale)
57. CateringService.com 0 (15,000 no sale)
58. AirlineReservations.de 9750
59. HelicopterCharters.com 18000
60. NoLoadFund.com 12000
61. RecyclingCenters.com 13000
62. FT.net 22500
63. Grandmothers.com 25000
64. Snuff.com 45000
65. DiscountPerfumes.com 80000
66. Draw.com 0
67. Amethysts.com 13000
68. Highspeed.net 27000
69. 62.com 0
70. InternetRadio.com 0
71. Commodities.com 0
72. Elections.com 0 (600,000 no sale)
73. IncomeFund.com 20000
74. Surgeon.net 21000
75. 555.mobi 0 (7,500 no sale)
76. Text.mobi 0 (21,000 no sale)
77. Forbiddencity.com 0 (20,000 no sale)
78. Lips.com 135000
79. CheapGames.com 45000
80. Clock.com 175000
81. Student.com 0 (3M no sale)
82. PuertoRico.com 0 (3.5M no sale)
83. Passover.com 0 (50,000 no sale)
84. Bhutan.com 0 (50,000 no sale)
85. HY.com 0 (100,000 no sale)
86. Fitnesscenter.com 0 (100,000 no sale)
87. Comedy.net 25000
88. Villas.net 25000
89. BachelorDegrees.com 42500
90. FinancialPlans.com 17000
91. Houston.info 17000
92. DUI.net 18000
93. Cantaloupe.com 25000
94. Glamorous.com 60000
95. CustomMotorcycles.com 0 (55,000 no sale)
96. HighDefinition.com 0 (65,000 no sale)
97. Bulk.com 100000
98. Pay.mobi 0 (45,000 no sale)
99. NewYorkRealty.com 0 (120,000 no sale)
100. Locals.com 250000
101. Dollars.com 0 (600,000 no sale)
102. DSL.com 0 (1.25M no sale)
103. TalentAgent.com 0 (35,000 no sale)
104. PropertyManagement.net 0 (20,000 no sale)
106. MegaYachts.com 150000
107. Z.md 0
108. MarriageCounselor.com 36000
109. HorseRacing.com 0 (4.5M no sale)
110. Gin.com 0 (250,000 no sale)
111. 401kPlans.com 0 (250,000 no sale)
112. FreeAuction.com 50000
113. TGP.com 0 (225,000 no sale)
114. InsuranceRates.com 0 (150,000 no sale)
115. Manufacture.com 0 (75,000 no sale)
116. HeartrateMonitor.com 55000
117. Telephone.org 13000
118. GrowthFund.com 25000
119. Dermatology.com 0 ($4-$5M no sale)
120. SecurityEquipment.com 0 ($20,000 no sale)
121. ChocolateCandy.com 0 ($25,000 no sale)
122. IndividualRetirementAccounts.com 0 ($20,000 no sale)
123. Carburetors.com 0 ($25,000 no sale)
124. Pesos.com 0 ($35,000 no sale)
125. Males.com 55000
126. Pit.com 60000
127. MastersDegree.com 0 ($60,000 no sale)
128. Note.com 115000
129. Cats.com 0 ($2M no sale)
130. Naked.com 0 ($1.5M no sale)
130A. 212.net 10000
131. Lick.com 60000
132. SoccerLeague.com 28000
133. TelevisionShow.com 35000
134. Nashville.us 23000
135. 300.mobi 0 ($4,000 no sale)
136. AirlineTickets.net 17500
137. MartialArts.com 0 ($600,000 no sale)
138. 06.com 0 ($60,000 no sale)
139. Fees.com 55000
140. Saginaw.com 55000
141. Europe.mobi 0 ($14,500 no sale)
142. FireEngines.com 32500
143. PrescriptionMedication.com 0 ($35,000 no sale)
144. Text.com 300000
145. Menopause.com 0 ($1.75M no sale)
146. ComputerEquipment.com 0 ($110,000 no sale)
147. Psychologists.com 160000
148. Brackets.com 56000
149. Phones.mobi 0 ($35,000 no sale)
150. Teri.com 28000
152. Pensions.net 10000
153. GlobalFunds.com 20000
154. Jody.com 29000
155. Blogging.com 135000
156. Auction.com 0 ($4.5M no sale)
157. Bald.com 400000
158. Lean.com 55000
159. OBGYN.com 0 ($1M no sale)
160. QR.com 0 ($85,000 no sale)
161. Wrestling.org 30000
162. SoundEngineer.com 8000
163. EquityFund.com 30000
164. Laptops.mobi 4750
165. GY.org 0 ($11,000 no sale)
166. Artist.com 0 ($750k no sale)
167. GasolinePrices.us 6000
168. Pimple.com 82500
169. Camping.net 60000
170. 82.com 0 ($70,000 no sale)
171. Rollercoaster.com 0 ($100,000 no sale)
172. Tourist.com 0 ($750,000 no sale)
173. Whiskey.com 0 ($400,000 no sale)
174. CD.net 0 ($22,500 no sale)
175. Manhattan.info 21000
176. Mayor.net 0 ($5500 no sale)
177. StockMarket.tv 0 ($7500 no sale)
178. GED.net 0 ($15,000 no sale)
179. Charters.com 140000
180. Cardiology.com 550000
181. Program.net 17500
182. Fresno.us 0 ($4,000 no sale)
183. GXD.com 5000
184. Male.org 12000
185. MovieProduction.com 14500
186. VenusFlytrap.com 0 ($27,500 no sale)
187. Documentaries.com 48000
188. How.com 0 ($600k no sale)
207. Laptop.net 40000
189. Bourbon.com 0 ($300,000 no sale)
190. Spend.com 0 ($70,000 no sale)
191. MT.org 25000
192. MedicalLabs.com 10000
193. BeerKegs.com 12000
194. Mortgages.mobi 25000
195. SO.net 0 ($25,000 no sale)
196. Sub.com 71000
197. Coed.com 0 ($75,000 no sale)
198. Spices.com 220000
199. RadioPersonality.com 7000
200. EmailList.com 14500
201. Character.com 0 ($27,500 no sale)
202. Smoothie.com 0
203. DomainPark.com 0 ($60,000 no sale)
204. DiscountInsurance.com 60000
205. Racism.com 0 ($125,000 no sale)
206. Subways.com 50000
208. PP.org 0 ($30,000 no sale)
209. MP4Player.com 0 ($15,000 no sale)
210. Tart.com 30000
211. Shows.net 0 ($23,500 no sale)
212. ZZ.org 23000
213. Dont.com 30000
214. Shaft.com 17500
215. Mortgages.biz 15000
216. Dancing.net 10500
217. FHAHomeLoan.com 9000
218. FreeStuff.net 28000



Wednesday’s TRAFFIC Domain Conference in Review

Several hundred domainers, investors, service providers, and other domain name industry professionals met in New York Wednesday for the first full day of the TRAFFIC conference.

Wednesday was the first full day of the TRAFFIC conference in New York City, and reviews from attendees were mostly positive.

The day started with Monte Cahn of Moniker providing instructions for Thursday’s live domain name auction. The auction will start at 3PM EDT today. This auction has the potential to approach $10M in sales if a couple things happen. First, Moniker needs to sell a couple of the $1M+ domains. Second, it will need to sell a higher percentage of its silent domain auction lots than in previous auctions. There are a number of quality domains in the silent auction. Domain Name Wire will provide an update with key sales during the auction.

The afternoon sessions started with a panel of domain investors led by Jordan Rohan of RBC Capital Markets. Stuart Rabin of Jacobson Family Investments, an investor in iREIT, had a spirited debate with Miles Arnone of American Capital Strategies, an investor in GeoSign. To summarize: Rabin said non .com domains will have little value for the foreseeable future and he compared .com to real estate locations. A store in Manhattan on prime real estate is valuable (a dot.com). As you go further out in distance to Brooklyn it’s less valuable (another extension). As you go further still to farmland in Iowa it’s even less valuable. But Arnone pointed out that, if there were teleporting, you could go directly to that property in Iowa and its value would be comparable with the property in Manhattan. The internet allows us to teleport to any extension. Both agreed that .com is king for now, but disagreed on how long it may be before there’s some parity between extensions.

GeoSign owns good domains like Hockey.com. Arnone said a good domains is a great starting point, but if you create a better hockey web site on a lower quality hockey domain, it will still do better than Hockey.com in the long run. That seemed to be a running theme in conversations yesterday. There’s a lot of hubris amongst domainers about how it’s necessary to have a good domain to have a successful web site. That’s simply not true. (I’ll provide some examples and my thoughts on this in a later article.)

The team from Dark Blue Sea (Fabulous) proved once again that it is a thought leader in the domain space. Dan Warner presented his vision for the domain aftermarket of the future. A number of registrars are teaming up to make inter-registrar transfers easier as part of this vision. Bravo to Warner for pushing this forward, and more on this later.

After a couple more sessions, attendees were treated to dinner and then shuttled to Hawaiian Tropic Zone on Broadway for a party hosted by TrafficZ.

Other show tidbits:

It appears that show promoter Rick Schwartz and DomainSponsors’ Ron Sheridan have buried the hatchet. The two were in a spat after DomainSponsor co-sponsored a party in New York Tuesday evening. The two were seen at the TrafficZ party sharing pats on the back and smiling…

…Microsoft (NASDAQ: MSFT) has been spotted at the show, but I haven’t seen any other Fortune 500 companies. It’s unclear if Microsoft is here from a defensive standpoint (working to squash trademark infringers) or offensive (working to get parking companies to use its new advertising platform)…



TRAFFIC: Beyond Pay-Per-Click

Representatives of several domain name companies discuss how to make more money from domain names.

A panel of domain industry experts discussed domain revenue beyond pay-per-click this morning at the TRAFFIC conference in New York. Panelists included Ofer Ronen, CEO of Sendori, Jonathan Boswell, CEO of LeaseThis.com, Anthony Pepper of Startup Capital, Sahar Sarid of Recall Media Group, Rick Latona, CEO of Offshoring.com, and Joe Alagna, GM of CentralNic.

The general consensus was that Google and Yahoo have a stranglehold on the industry. They could quickly turn off domain owner’s revenue. Domain owners need to find alternatives to Google and Yahoo’s pay-per-click services. These alternatives may actually generate more revenue than pay-per-click.

Ofer Ronen of Sendori: Ronen Discussed his company’s so-called “Zero Click”. Instead of creating a landing page full of pay-per-click links, Sendori sends type-ins directly to an advertisers’ site, which he claims will increase your revenues compared to pay-per-click. Ronen gave an example showing how you basically get a 100% click through rate with his service. He used a $.15 per redirect example to show how much money you can make with Sendori. Ronen says that’s their average redirect price. However, Ronen said that if advertisers aren’t bidding high for your domain then they will send your page to a traditional parking page. A number of services similar to Sendori have been launched and failed in the past. But Sendori is taking a different approach by linking in with a number of advertiser networks and offering domain portolio owners an API to manage their domains.

Jonathan Boswell of LeaseThis: Domains are rarely in the hands of the person who would get the most value from it. LeaseThis goes directly to advertisers who can lease a domain for a specified amount of time. For example, he pointed to a new movie by Sony called Vacancy. The official web site for this domain is http://www.sonypictures.com/movies/vacancy/. But Sony has leased Vacancy.com during the launch of the movie (the Vacancy.com lease was not through LeaseThis). Boswell also disclosed breaking news: NameMedia is offering its entire portfolio through LeaseThis for short term leases.

Anthony Pepper of StartupCapital.com: (Anthony was not in the program, I’m unsure of his last name spelling). He has invested in Blogster.com, UncleSam.com, and OL.com and works with Rick Latona.

Sahar Sarid, co-founder of Recall Media Group: Development is hard. It requires a different skillset than being a simple property owner using pay-per-click. Recall Media helps companies develop their domains. Sarid also noted that having a good domain name is nice but not critical when you are launching a site. Think of all of the branded domains, such as Travelocity.com and Expedia.com.

Rick Latona of Offshoring.com and DigiPawn.com: Most of the time, developing a domain you have into a simple site is a smart way to increase your revenue. You can use affiliate programs, sell advertising directly, use Google Adsense, etc. to make money from these sites. Creating sites for your domains is critical because it delivers search traffic. If you want to see Latona’s developed domains, visit AEIOU.com.

Joe Alagna of CentralNic: CentralNic sells subdomains, such as name.us.com. CentralNic offers a service whereby anyone can become a subdomain seller using one of their domains. CentralNic has close to 200,000 registered subdomains at about $50-$100 per registration. However, Alagna says selling subdomains isn’t right for everyone. If you plan to sell a domain then you can’t sell subdomains for it. It works best with short names, geo-names, professional affiliation names, etc. You should consider selling subdomains if you regularly get offers for your domain.


« Previous PageNext Page »


TOP