Domain Articles

In-depth articles on domains, the domain industry and how investors can get the most from their assets.

Recent blog posts
How Domainers Get Into Financial Messes

So many business owners have an incredible desire for profit but so few actually understand why it’s so important or how to attain it. So I’m going to first ask a really dumb question, “So why is profit so important?”

At its core, profit is a measure of a business’s sustainability. If year after year a business is not profitable then it will ultimately fail. Yes, you can keep on raising capital but at some stage investors will stop investing and demand a return on their investment. This will either be in the form of a dividend or a capital increase.

So in terms of a domain portfolio, unless you are earning a profit then your business will fail unless you (ie. the shareholder) keep on funding it through cash injections. This is very different from running short of cash to pay domain renewal fees….more on that later.

So the question needs to be asked, why do domain business often fail? I personally believe that there is a really simple answer to this question. Most domain businesses aren’t businesses at all. They have more of the characteristics of a hobby than a business where the owners are collectors rather than investors.

Tagged in: business profit
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Saturday Musings - Why Cats Are Geniuses

I’ve had my cat, Pepper, for around 13 years now and to say that she’s a part of the family is actually not quite true. For a start, the previous statement is completely incorrect. Pepper has decided to grace our family with her presence for the past 13 years and we are a part of her life would be a more correct statement. For those of you that have a cat, you will completely understand the not so subtle shift in those sentences and who actually runs the household.

Pepper has the entire world figured out. She has servants that feed her, give her a regular massage and she sleeps for about eighty percent of the day. The house is hers and she only lets the family live in it because we play a necessary part in her hedonistic lifestyle of eat, sleep and lie in the sun.

As all cats will confirm, they are absolute geniuses. For example, Pepper has saved me from spending untold thousands of dollars on completely irrelevant domain names. When I get excited about a name and I’m about to press the “buy now” button she just looks at me in a disapproving manner and that’s all it takes. I abandon my misguided shopping cart with a sense of relief that once again I’ve been saved by my beloved feline.

After a particularly intense day of work she graciously lets me pat her head and give her a bit of a scratch under the chin. The stress seems to leave me with each passing minute and Pepper just looks up me with a knowing smirk on her be-whiskered face that once again she’s manipulated me into getting what she wants.

Tagged in: cat pepper
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Why Rightside is a Good Long-Term Investment

In a previous article (click here) I wrote about some of the challenges that I believed that the publicly listed company, Rightside, was facing in the short-term. In particular, I explored the registry business as a reflection of the entire new gTLD space.

Now let’s take a look at the Rightside registry, now from a quarterly targets perspective but from a more long-term point of view. If the business unit can sustain the most recent quarter on quarter growth rate of 26% then in the long-term the registry business will just print money.

As the following chart shows, a consistent 26% growth rate will mean the registry business will eclipse the registrar business and leave it behind. At the end of 2018 (which is only just over 3 years away) the business will be doing around $50m per quarter.

Rightside Registry

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Posted by on in Personal Musings
Saturday Musings - Choose Life

Each morning Roselyn and I wake up to the beautiful sounds of a family of magpies warbling their very unique song in our garden. The mother and father hunt out worms for the juvenile that tags along behind them constantly needing to be fed. It’s a beautiful sight to see a family enjoying life and living in peace.

I then contrast this to the mayhem and destruction in Syria, Paris, Lebanon and now Mali. My heart goes out to the families and friends that lost loved ones in any of the terrorist incidents. I was so inspired by the story of a Parisian husband that had lost his wife and in his grief he made the decision to not rise up in hatred against his wife's killers. What an inspiration to be admired and also aspire to.

So why is it that so much terror against innocents is being justified as the answer to improving the lives of the perpetrators? How is it that death has triumphed over life as the solution to happiness?

There’s only one answer and the butler, Alfred, in the Batman franchise of movies summed it up by saying, “Some people just want to see the world burn.”

Tagged in: life
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Posted by on in Domain Industry
New gTLDs - It's not if, it's when

A number of domain owners have come to the misconception that I don’t believe in the new gTLDs. This couldn’t be further from the truth! What I’m wrestling with is the when not the if the new gTLDs take-off.

In the last 12 months there has been a lot of growth off a small base with the new gTLDs. According to ntldstats the numbers have grown from around 3.6m to just over 10m so far this year. This is around 270% growth this year (off a small number compared to the incumbents) and pretty good when you consider it wasn’t long ago when there were none. Yes, I know these numbers have to be taken with a grain of salt.....but let's ignore that for the time being.

The number one problem for the new gTLDs isn’t the initial flurry of sales and trying to hit yet another quarterly target. The problem is getting accepted by society as a means to navigate the Internet. Most people have been scripted to automatically type in .com or their ccTLD extension. To change this behaviour is going to take time.

You also can’t compare the new gTLDs to the early days of .com. They’re completely different. When .com was released, it and a handful of other extensions were all that you could get. It was a case of a limited supply and a massive latent demand fueled by billions of dollars of investor funds and media hype.

Tagged in: new TLDs
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