Archive for October, 2010


Single Biggest Threat to Domain Industry is Professionalism

If the domain name industry wants respect from the mainstream, it needs to be more professional.

The single biggest threat to the domain name industry isn’t Google’s smart pricing. It isn’t VeriSign raising .com prices 7%. It isn’t the trademark lobby. And it’s not ICANN.

It’s professionalism. Or a lack thereof.

Like many industries, the domain name industry started as a group of wildcatters from diverse backgrounds. It has grown into much more; a multi-billion dollar industry. Yet many people still look around wondering why the domainer contingent doesn’t get more respect.

Where is Madison Avenue? Where are the end users? Why don’t they respect clicks from domain names?

They might not be here because a number of people in the industry aren’t professional. They start to investigate getting involved with domain names in some fashion, but are turned off by what they see. Turned off by the used car salesman approach. Turned off by the adult side of the business, which somehow gets co-mingled with the rest of it. Turned off by discussions laced with profanity.

Whatever the specific turn-off, it boils down to professionalism.

If domainers really want respect, we as a collective need to earn it. Not by telling people they’re wrong or stupid. Not by biting the hand that feeds us. Not by standing in front of a crowd with unprepared remarks. Not by becoming unhinged.

By being professional.



Offers.com Scores $7 Million Investment

Austin company scores big investment.

It’s always nice when you see someone who “gets” domain names that also understands affiliate marketing and web site development. One of those people is Austinite Steve Schaffer, who created Offers.com.

Offers.com just closed on a $7 million growth equity investment from Susquehanna Growth Equity, LLLP. It’s a minority investment, which should give you some idea of the value Schaffer has created from Offers.com. The company plans to hire 20 more employees over the coming year.

I last saw Schaffer at the DOMAINfest event in New York City. You might call him a domainer, but he’s someone who sees the big picture better than most domainers. If you need more proof that he gets it, consider this: he also bought the singular version of Offers.com — Offer.com — for $180,000 back in 2008.



50% of Ad Traffic Shifted to Microsoft By End of Week

The great migration to Microsoft has begun.

This is a critical week in the transition of pay-per-click advertising traffic in the Yahoo-Microsoft alliance.

As of yesterday morning Yahoo had shifted more than 30% of ad serving to Microsoft AdCenter instead of its own search marketing ad console. By the end of the week the company expects to have shifted 50%-60%.

There’s no doubt that some smaller advertisers won’t make the transition over to Microsoft. But Yahoo has been doing everything it can to make sure even the smallest advertisers sign up with Microsoft Adcenter, including sending multiple emails and even robocalls.

Yahoo says that, combined with Microsoft sites, it delivers over 1/3 of all search queries in the U.S.

Yahoo-based parking companies will be affected by this change. In the long run revenue should increase as more advertisers work with Microsoft to tap into the enlarged search audience it can now deliver, driving up bid prices.



Sex.com Will Be The Most Expensive Domain Name Ever Sold

In my book, $13 million is the top sale of all time.

When the Central California Bankruptcy Court approves the sale of Sex.com for $13 million cash later this month, it will be the most expensive all-cash domain name ever sold and publicly disclosed.

Some may debate this. Some may say Insure.com at $16 million was higher. Or Insurance.com at $35.6 million. But I disagree. These purchases had to do with the existing organic traffic and search rankings of the properties. Did the domains help make the search rankings possible? Sure. But the buyers put weight on the results, not the cause.

Sex.com is very different. It’s not solely a domain name, but it’s as close as we’re going to get. The web site at Sex.com will be completely scrapped and there’s nothing impressive about its search rankings. The buyers want the domain name and the rights to it (two trademarks). Pure and simple.

Sex.com will now top the previous most expensive sale — which happens to be the last time Sex.com sold for about $12 million in cash. There was an equity component, but that is probably worthless now.



Live Current Management Thrown Out in Shareholder Revolt

CEO and Board of Directors sent packing.

The Chief Executive Officer and Board of Directors of Live Current Media has been tossed to the curb following a coup organized by the company’s former president.

CEO Geoffrey Hampson formerly resigned his employment with Live Current Media following the vote. While at the helm of Live Current Hampson entered into a disastrous agreement with Indian Premier League cricket and an equally disastrous acquisition of Auctomatic. During his tenure Hampson was also busy running other companies he founded or had a major stake in.

The now former Board of Directors received about 10 million votes each; the new board about 14 million votes.

Former president David Jeffs is back at the helm as chief executive officer, secretary and treasurer.

Live Current is best known in the domain name industry for some of its category killer domains such as Perfume.com.


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