Moniker launches lead gen web site to attract end user domain buyers.

Domain name registrar and brokerage company Moniker has started marketing the value of generic domain names to end users through a new web site, MonikerBrokerage.com.

The company registered the domain name in August. Today I saw an ad for it on Google Adwords:

The web site speaks to the SEO value of a good domain name, with the headline “Need a Big Boost from a Category-Leading Domain Name?” followed by:

Improve SEO with a Powerful Domain Name

Get a domain with highly relevant keywords, one that offfers (sic) instant traffic and branding advantages. The experts at Moniker Domain Brokerage can help you find and buy domain names that drive SEO.
Get a high-impact, 1-2 word domain name:

* that instantly communicates what you do.
* that drives significantly more traffic to your site.
* that you can build a compelling brand around.
* that you thought was unavailable and out of reach.

The web site includes a lead gen form for visitors to enter keywords or domain names they’re targeting.

A number of domain name companies land on valuable start up lists. But SAI didn’t do its homework.

Silicon Alley Insider has released its latest list of the world’s most valuable startups, which includes a number of domain name companies. But I question the validity of some of its assumptions because of some glaring errors, such as saying that Oversee.net hasn’t taken any outside funding.

The top domain name company on the list is GoDaddy at #9. The valuation is based on estimated 2009 revenue of $700 million with a two times revenue multiple. It’s a very basic valuation technique, but it’s hard to peg revenue and valuation number on private companies. By comparison, Inc. magazine shows GoDaddy’s 2008 revenue at about $500 million.

Coming in right behind GoDaddy is Demand Media and its highly automated content generating system at $1.3 billion. Demand Media also owns domain name registrar eNom. SAI says it has confirmed that about 10% of Demand Media’s revenue comes from domain parking.

Also at a $1.3 billion valuation is Quinstreet, the lead gen company that just bought insurance web site Insure.com for $16 million.

Oversee.net, parent company of Moniker, DomainSponsor, and SnapNames, comes in at #16 with a $1 billion valuation. SAI estimates Oversee will bring in $200 million in revenue this year. But it also says that the company hasn’t taken any outside funding. It has. So I question SAI’s analysis.

A look inside Demand Media’s automated content machine.

Ever since Demand Media launched, a lot of people have wondered how it actually makes money (other than through its eNom division). A reader just sent a fascinating article to me from Wired that explains its content machine and money making ability: using algorithms and a freelance army to churn out vast, but low quality content.

It works a lot like how domainers decide which domains to develop and how to outsource content writing for minisites. But it does it on a much, much bigger scale and automatically.

First, an algorithm determines which phrases and answers people on the internet are seeking using data from ISPs, search engines, etc. It then calculates the lifetime value of creating a content page (often including text and video) for that query. If it makes economic sense, that query is then queued up for an army of freelancers to write text, film a video, create a headline, copyedit, and fact check. Think of it as Amazon’s mTurk but just for Demand Media.

The content is then syndicated through YouTube and Demand Media’s own network of sites, such as eHow. Demand cashes in on the ads it shows alongside the content.

Quality is not a concern. One videographer has produced 40,000 short videos. As he describes in the article, it’s about volume. He gets paid about $20 a video. That doesn’t leave time for producing compelling content and its matching professionalism.

By next summer, Demand expects to produce one million items a month.

This all makes me wonder if it’s a house of cards. We’ve all seen business models based on producing low quality content, content spinning, and other schemes that ultimately don’t deliver the requisite value to viewers. They ultimately fail.

If nothing else, the article answers my question, “how come when go to eHow I leave not getting the detailed answer I was looking for?”

Consulting company settles fight with Wolfgang and Gelila Puck.

New top level domain name consultancy Minds + Machines has settled its lawsuit brought against restaurateur Wolfgang Puck and his wife Gelila.

Minds + Machines, along with its parent company Top Level Domain Holdings and Frederick Krueger, sued the Pucks last month, alleging that Gelila Puck inserted herself into all of the plaintiff’s business dealings and that Wolfgang Puck had not upheld his end of the agreement to promote .food.

The Pucks, who are engaged in a number of lawsuits, asked the court to extend the deadline for responding multiple times. Today the court issued a stipulation (pdf) that the plaintiffs have dismissed the case with prejudice, meaning they have settled all claims.

The nature of the settlement was not disclosed, but presumably the Pucks gave up many, if not all, of their claims to an interest in top level domain names introduced by Minds + Machines. Perhaps Mrs. Puck realized that she was not going to be the “next Bill Gates”, as she allegedly told her friends.

Oversee.net announces party plans for DFG 2010.

Earlier today Oversee.net announced that it will hold its finale party for DOMAINfest Global in January at the Playboy Mansion for the second year in a row. The event will benefit enny McCarthy’s Generation Rescue Foundation. This year’s mansion party has been talked about all year, so it’s sure to be a hit again. I enjoyed the party at Universal Studios, too, so hopefully they can match that experience.

As a frequent reader of affiliate blogs, I noticed that a lot of affiliate companies are holding charity parties at the Playboy Mansion throughout the year. Sure seems like the Playboy Mansion is whoring itself out a lot these days. (Sorry, couldn’t help it.)

DOMAINfest Global tickets are $1095 through December 24. It’s a great value for what has become the biggest show in the domain name industry. Last year more than 600 people attended the event. This year’s event is moving to a new venue, the five star Fairmont Miramar Hotel & Bungalows.