Hear the author out; he has a valid point.
The headline is inflammatory, but they aren’t my words. They’re those of Matthew Mayer. And before you call him an idot, you should understand the context.
[Live Current] owns a bunch of domain names. That’s it. They sell product through one of them, and have been trying to develop others. Unfortunately, it’s a flawed business model. Domain names have no intrinsic value. They only have value if they are developed and monetized, which is a lot harder than it sounds.
Of you and I know that domain names have intrinsic value. But in Live Current’s case, it’s not earning much from domain parking any more. It has tried for several years to make the leap to domain development, and that’s where the trouble started. Live Current has had a devil of a time trying to develop.
It entered into an agreement to pay $60,000 per month plus a profit share to develop web sites that look like this.
It struggles to scratch a few dollars from its developed Perfume.com each month.
It developed (and now parks) Body.com.
It entered into an agreement to pay $50 million over ten years to DLF Indian Premier cricket League, and has no way to pay it.
Although domain names do have intrinsic value, that doesn’t mean someone who owns good domain names can develop them. The CEO of Live Current confesses he doesn’t no squat about cricket. My guess is few people at the company know anything about cricket. How can you bet multiple times your market cap on something you aren’t passionate about? Oh yeah, it’s because the company happened to own Cricket.com. (Which, by the way, is not part of the $50 million agreement).
There’s a lesson in this for all domainers. Developing web sites is like developing businesses. It’s hard. Most will fail. And great domains don’t guarantee success.