Domain Articles

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

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Saturday Musings - Rowing is a Pain

I made the big decision this week to purchase a rowing machine. After using it I’m sure that it’s one of those devices of torture that was first inspired by the Roman galleys that used to ply the Mediterranean Sea. I could have sworn that I heard the beating of the slave master’s drum as I pulled back on each stroke.

So why did I part with some of my hard cold cash for such a device? It’s really simple. Like many domainers I end up sitting in front of my PC for endless hours each day. It’s a sure fire way to increase weight, reduce health and lower my overall enjoyment of life. According to the salesman that sold me my rowing machine he said that I will feel so much better for having it…..but there is just one problem, I have to use it.

Escrow.com

If I’d purchased the machine and gazed lovingly at it for hour after hour then it wouldn’t do me any good at all. I could tell all my friends about my new gym equipment and wax lyrical about how I’m on my way to becoming an Adonis (I wish!) but nothing would happen until I actually used it. This is really similar to business.

I’ve heard lots of great plans by people explaining in detail how they are going to make a fortune doing this and that. Some of them even had a deck of powerpoint slides and a cashflow (only some of them) that proved they were going make a lot of cash. The one thing that they forgot was that they actually had to execute on the plan. Talk is cheap, results speak volumes.

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  • Michael Gilmour
    Michael Gilmour says #
    What I great idea! LOL....although I'm not sure that it would be a good idea to provide my wife with a whip. LOL!
Critical Insights Into the Domain Industry – Part 5

Check out the previous articles in this series on the domain name industry.

We now need to leap forward in time to 2014 when the first new gTLDs were launched. What does this mean for domain investors that has adopted a sales model? How will the price of .com domains be impacted by the new gTLDs?

I personally believe that the prices that .com domains receive for the stock-turn-model of selling domains will be maintained as the demand from the renewed interest in domains offsets the effects of a massive oversupply. As time goes by and the new gTLDs become more mainstream the prices of the .com domains and all other extensions will fall. If you’re a cash constrained small business why spend $1500 on a domain name when you can pick up something very similar for $10?

Escrow.com

This would suggest that if you have adopted this business model for your .com domains then brace yourself for a decline in sales prices. I should say that this excludes the top-shelf single-word generics.

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Tagged in: gTLD gTLDs
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Personal Musings - Travel Tips for the Frequent Flyer

I’ve just completed reviewing my travel plans for the next six months and it looks like I’m going to be doing a lot of international flying. This is good because it means more business but bad because I’m away from home. So where am I going?

Date Reason Destination
Sept 4 – 7 DomainFest Asia Macau
Sept 26-29 The Domain Conference Fort Lauderdale
Oct 18-22 ICANN  Dublin
Dec 31 – Jan 7 Vacation (Yeah!) Queenstown New Zealand
Jan 10-13 Namescon Las Vegas

 

As you can see the second half of the year is going to be pretty busy. I really don’t know what happened between NamesCon in January this year and DomainFest Macau…..nothing that I attended. Seems to me there is an opportunity for a conference to be organised around May.

Escrow.com

I love catching up with all of my friends at the various domain conferences around the world but what I really don’t like is the journey. Being from Australia, every flight is well over 10+ hours and sitting in a tin can for that long is never fun!

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Critical Insights Into the Domain Industry – Part 4

This is the fourth part in the series on the Domain Industry and it continues directly on from the previously three. Even with the decline in traffic revenues they have continued to underpin the entire domain industry since its inception. Everyone from the registry through to the parking company are dependent upon this steady relatively consistent stream of cash.

The one bright spot during this time was that domain investors began to set more realistic prices on their assets. This drastically improved the problem of domain liquidity and injected more funds into the industry.

Before the industry downturn domain investors honestly believed that every domain they owned was almost priceless….they were waiting for that magical pot of gold to appear at the end of their domaining rainbow. I remember one prominent investor publicly declaring that he automatically turned down all offers less than $200K!

Escrow.com

With the squeeze on returns really biting, investors were now looking for another business model to help them out. This was the birth of the stock-turn model of selling domains.

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Saturday Musings - My Windows Hell

Just over a week ago I was busily typing up an amazing analysis for my blog that covered “the meaning of life the universe and everything”. In other words, it was brilliant piece of work that caused my heart to skip a beat or two as it joined in the rhythm of my masterful keystrokes. I was in a really good place…..and that’s when disaster happened.

Some of you may be familiar with a BSOD. If you haven’t experienced a BSOD then let me say that the clock is ticking and that you should probably book in for an emergency session with either the local shrink or a big bottle of something that will make you forget about life for a while. Ideally, sharing the bottle with your shrink would probably be the best solution.

So what the heck is a BSOD? It’s a Microsoft Windows “Blue Screen Of Death”. Your screen goes blue (obviously) and a bunch of unintelligible gobble-de-gook gets plastered across which is really saying, “You’re stuffed.”

Escrow.com

So nearing the end of my epiphany I found myself staring at blueness. To say that my brain was momentarily trapped in some other dimension as it began to comprehend what had just happened was an understatement. I found my mouth moving but no words came out. I was stunned into disbelief. My PC had just had a massive stroke caused by some cancerous program deep within!

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Tagged in: microsoft
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  • Jonathan
    Jonathan says #
    I've been a Mac user since 1984 (dad was an Apple developer) and always took great pride in how my computer always just worked. E
Saturday Musings - The Bucket Theory

I often find myself talking to my own kids about buckets. These aren’t the regular buckets that you carry water around in but relate more to the short, medium and long-term plans for your life. Over the years, I’ve found that having buckets has been really advantageous in understanding my own direction in life.

Items in the short-term bucket are things such as earning money to put food on the table and a roof over your head. Without this bucket being constantly topped up then you’ll find it a lot harder to get through life.

The medium-term bucket is sub-five years. It has things such as education, training and gaining experience in it. This bucket is all about investing in yourself so that you can become better at whatever you do.

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Then there’s the long-term bucket. This covers who you are and why you do the things that you do. In this bucket are items such as character building, relationships, guiding life principles and typically spiritually related issues. There’s only two things that are certain in this world, death and taxes.. This is the bucket that is all about what you would like people to say about you when you die.

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Personal Musings - Get Off Your Backside!

I was talking to a young man the other day and I told him that if I wanted anything done then he would be the last person that I’d ask. He was a bit taken aback by the comment and asked me why.

I looked him in the eye and said, “Because you’re not busy.”

There’s an age old adage that says, “If you want something done then give it to a busy person.” The reason for this is that busy people put the item on their list and get it done while lazy people will get around to it one day.

Escrow.com

For example, the young man I was speaking to crawls out of bed around 11am each day, works at a local fast food place for maybe 20 hours per week and honestly believes that he’s working really hard. So what does he do with the rest of his time? Television, hanging out with friends and games are all high on the agenda.

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Critical Insights Into the Domain Industry - Part 3

I remember speaking at TRAFFIC Vegas 2008 and I put up the below graph on the projector. I indicated that the industry was in a mini-bubble with domains at hugely inflated prices. I had a large number of people come to me after my session and tell me that I was nuts. Was I wrong?

I believed that we were at point A in the chart and the mini-bubble was in full swing. So why did I stand up and pour call water over the partying atmosphere? To understand what I was seeing we need to understand the industry at that time. This is the state of the industry back in 2008:

  1. Market valuation were being underpinned by a few select domainers – no market depth.
  2. Domain investors were massively reinvesting their parking revenues
  3. Debt has entered the market.
  4. Flurry of new small investors hoping they weren’t too late.
  5. Lack of domain liquidity

Escrow.com

Anyone of these factors alone would inflate prices but combined, they created a massive bubble. Domains with little to no value went for crazy prices and traffic domains sold for insane multiples. The euphoria was like a contagion that was eating away at the heart of the industry as it danced to some strange beat. More and more people wanted to join the celebration as if there would be no end.

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Tagged in: critical traffic
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  • Rek
    Rek says #
    I agree, Thank God we made it this far. Quite a journey full of experiences and hardship. Maybe the ones no longer here weren't me
Personal Musings - Where are the Leaders?

Recently, I’ve been getting increasingly frustrated! It’s a state that I periodically go through as I wrestle with what’s happening in my life. So in the end, I packed my bag, kissed my wife good-bye and headed off into the country for a night and a time to get my head in the right place. No, I wasn’t leaving home….I was just needing to get a fresh sense of vision.

So what was frustrating me? Everything! You turn on the television and it pumps out endless amounts of problems; terrorism, race riots, wars, virus break-outs, droughts, floods, earthquakes…..and the list goes on and on.

Escrow.com

The biggest problem that I see in the world right now is not all those terrible issues but something much more insidious. Right now, there is lack of vision of where we are going as a species.

Where are the leaders that stand up and put the seemingly impossible before us so that we all respond by saying "we can do it!" JFK said the following in his speech about man going to the moon…

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Tagged in: rally cry
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  • Michael Gilmour
    Michael Gilmour says #
    Chris, thank you for your kind comments. As to answering your questions.....I started by taking some time out. No matter how busy
Critical Insights Into the Domain Industry - Part 2

This article continues directly from Part 1 in the series "Critical Insights Into the Domain Industry"

Google’s response to the aggregation of traffic by parking companies was to instantly grant a number of additional domain feeds to new parking companies. Some of these feeds had a honeymoon clause that allowed them to have a competitive advantage versus the larger incumbents. Many domain investors flocked to these new companies as they were seen as their salvation to paying renewal fees. This instantly re-fragmented the marketplace.

Escrow.com

Now that the market was split up again, Google instituted DRID’s (Domain Registrant ID) to reduce fraud (this was a good move IMHO) and CAF (Custom Ad Frame). CAF is where Google controls everything on the lander for a parked page.

Personally, I think that this overall strategy was a really clever part on Google. It allowed them to decrease PPC rates and completely control the entire domain channel without the threat of a wounded Yahoo stepping up to the plate. Some people get really upset by Google’s behaviour. What domain investors need to understand is that Google is obligated to behave in such a fashion on behalf of their shareholders.

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