Showing posts with label from-buyers'-own-mouths. Show all posts
Showing posts with label from-buyers'-own-mouths. Show all posts

Thursday, 5 July 2007

"If they had wanted $5 million, I would have done it in a blink of an eye."

0 response
http://www.forbes.com/entrepreneurs/2007/07/05/google-yahoo-pets-ent-manage-cx_ll_0705tabibi.html
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Entrepreneurs

Meet Noah Of The Internet
Lisa LaMotta, 07.05.07, 12:15 PM ET

Alex Tabibi’s business card features a dog, a horse, a bird, a ferret and a fish.

Call Tabibi, a former oncologist, the Noah of the Internet. His ark: a burgeoning online catalogue empire called UnRealEstate. Formed in 2002 with his brother Carlo, the company sells a slew of products through a collection of sites with generic yet specific URLs
--such as Bird.com and Ferret.com
--and splits the revenues with product suppliers.
[[.....]]
Snatch up the most-searched Web addresses in the right markets
--specifically, those with a younger, Web-savvy customer base and no clear leader serving their needs
--and you can't help but make money,
he says.
[[.....]]
A big key to this strategy is buying those Web addresses.
Staked with capital from a family real estate business in Los Angeles,
the Tabibi brothers bought their first URL
--Dog.com--for $500,000.
UnRealEstate now includes
Bird.com,
Fish.com,
Ferret.com,
Horse.com,
Bike.com,
Garden.com,
Wind.com and
Solar.com, among other names.
(Construction-equipment giant Caterpillar (nyse: CAT - news - people ) wouldn't part with Cat.com.)

Some of the URLs cost just a few thousand dollars;
others, such as Fish.com, set Tabibi back about $1 million.
Two weeks ago, at a URL auction in Manhattan, he paid $95,000 for Fountain.com
--a good fit, he thinks, to go with his Garden.com and Greenhouse.com sites.
(The synergies between things like ferrets and fish are less clear;
any operating scale comes from sharing information technology functions like data warehousing
and search algorithms.)
Related Links:
The Most Expensive Web Addresses
Master The Domain Name Game
Marching Up The Search Stack
[[.....]]
While Tabibi admits bidding on URLs is as much art as science,
he and other masters of their domains do have a few strategic guidelines.

First,
and most obvious,
he wants names that are easily found by
Google (nasdaq: GOOG - news - people ),
Yahoo! (nasdaq: YHOO - news - people ) and other online search engines.

Next,
he looks for the singular form of a word--like Bike.com instead of Bikes.com.

Length is important too:
Even though a Web address can be 63 characters long,
people don't tend to remember or type in snake-length names.

Another variable is whether the name is a single word or a phrase.
Single words are worth more
-- Garden.com, for example,
will come up in searches for
garden,
garden tool,
garden hose,
garden tractors,
garden furniture and so forth,
making it more valuable than any one of those phrases.
"A simple name change can change conversion rates
dramatically,"
says Tabibi.
[[.....]]
"We got something for $150,000," says Tabibi, barely suppressing a chuckle.
"If they had wanted $5 million,
I would have done it in a blink of an eye."
[[.....]]

Thursday, 28 June 2007

flicker.com piggybacks on any success o' flickr.com e.t.c. , The Advantage Of Owning The Generic Domains .com

4 response
http://www.conceptualist.com/
http://www.conceptualist.com/?p=160

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The Advantage Of Owning Generic Domains
Published May 15, 2007 in Domain Names.

No one will argue there’s already a shortage with type-in generic domains.
Now take it 10 years forward, or 20.

A new startup is founded and its founders are looking for a domain name for their business.

Let’s say, just a random example ( ) their concept is to create a
funeral homes directory, but of course,
Funeralhomes.com is registered many years ago.

What are they to do? They go and find a different domain of course, say
Fuenralhomes-newname.com.

They put their site together,

hypothetically speaking,
a better site then[[than]] the current leader Funeralhomes.com, and start to market.

They happen to be experts and do extremely good job marketing, and achieve the unimaginable
– they become market leader.

What is happening with the traffic to funeralhomes.com
though?
users

who do not remember the complicated/creative
name of the startup
[[[[[[[[[ Fuenralhomes-newname.com e.t.c. ]]]]]]]]]
tend to remember the concept behind the name
(especially if they heard of the generic before),

and they type funeralhomes.com.

Traffic leakage goes up at funeralhomes.com
thanks to the new startup. Even if funeralhomes.com goes out of business traffic will still be there
thanks to the new startup.

the more traffic the startup command,
the more leakage.
[[[[[[[[[ 'the edittor2w notes : :::::
that's ex-actly the tragedy happenning 4[for]
flicker.com v. flickr.com
[[[[ o k o k , not so much a tragedy 4[for] flicker.com ]]]]]
]]]]]]]]]]]]]]]]]]

How’s that for motivation??
The cost gets higher as some users, even though acquired at great cost, “get lost”
This by the way is happening today every single second of the day and most companies,
I would guess over 99.999% of them, don’t realize it.

This is the long term power of generics.

It isn’t just about today,
It is also about those startups 20 years from now.
Whatever they gonna do, and those who succeed,
will (fortunately to generic domain owners) keep leaking traffic to generic domains.

5 Responses to “The Advantage Of Owning Generic Domains”

Feed for this Entry Trackback Address

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5 John
Jun 11th, 2007 at 9:05 am
Recently,
I finally ‘realized’ the power of generic domains while working on an Adwords campaign for a small business.
Either I pay Google to send traffic based on keyword searches to this particular business,
or I buy all the generic domain names around this business
and drive that type in traffic to this website.
Generics alone won’t solve the traffic issue, I’d still need to advertise.
But acquiring good generics would be a one time high-ish cost if they are already registered
(then there’s just annual renewals) for x amount of traffic.
Google Adwords, on the other hand, wants to be fed according to clicks or impressions.
And I could easily pay 600 dollars a month on Adwords.
That makes
spending 5 - 10k for good generics look cheap.
I wonder if Google will begin to notice if advertisers begin picking up generics and forwarding that traffic to their sites. And
I wonder if Google will step in and start sucking up domain names.
They sure have the computing power to do so.

—-ANSWER—-
Congratulations!I don’t think it is meaningful loss to big search engines that people have some direct traffic such as from domain names, as businesses need to expand, as you indicated, even with a good generic you are still going to buy traffic from the engines.As far as Google/Yahoo/MSN getting into the game and acquiring domains, I believe that is the end goal (wishful thinking anyways) of med size companies such as Marchex, NameMedia, ,Demand Media, Ireit.

Leave a Reply

Welcome back 2w.com (Change)

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Wednesday, 27 June 2007

SharedReviews[.com]

0 response
http://blog.sharedreviews.com/industry/hence-the-domain-name/

Hence the (domain) name Posted by: Frank under Industry

Wednesday Jun 27th, 2007
at 8:42 am

While there are many things that make us different from other
web2.0 startups, there’s one item I’d like to touch on - our domain name. Web
2.0 companies often end up creating artificial names for their companies, be it
because it’s the trend or in order to avoid buying a premium domain name. So why
did we pick a descriptive domain name?
Peter and I worked a lot with domain
investors during our previous jobs. After seeing them buy generic names - a lot
of them with existing type-in traffic, it just made sense to us to use a
descriptive name for our startup.
While type-in traffic to our SharedReviews.com
domain was initially small,
the descriptive nature of the name helps users to
remember it.
We also registered about 100 variations and typos of our domain
name and redirected all of them to the SharedReviews.com site - something I
think every company should do.
What type of branding do you prefer, which
names do you personally find easiest to remember?
(This post was inspired by
something I just wrote over at Domain Name News.)

Share This

Tags:
descriptive domain name, domain name news, generic names, startups, traffic,
web2.0

Frank Schilling the World Famous Domain Investor

0 response
http://www.seobook.com/archives/002242.shtml
Interview of Frank Schilling, the World Famous Domain Investor
[[17th May 2007]]

[[.....]]
Having coined the term domain investor,
Frank Schilling is a recognized leader in the domaining field.
He talks about domaining on his blog at
frankschilling.typepad.com
I recently asked Frank Schilling if he would be up for an interview and he said sure.

[[.....]]

[[ seobook : ::::: ]]
What is the best domain you regret not purchasing?

[[ Frank Schilling : ::::: ]]
Cameras.com sold for 1.5 million.. That was a really tasty one.. I chickened out over a million. Wish I could get in the Delorean and go back in time on that one.
Also
Food.com sold to the food network in a San Francisco bankruptcy court in 2003. it went for $300,000 ish .. I should have bid 500k back then.

[[.....]]

[[ seobook : ::::: ]]
Is it too late to get into domaining?
If you were starting today which model would you go after?
Would you try to buy a few strong domains
or try to own a much larger portfolio of weaker ones?

[[ Frank Schilling : ::::: ]]
I think
there are so many untapped opportunities here..
Within a few years, hundreds of thousands globally are going to be directly employed in this industry.
It is early not late.
This is like California in the 1960’s. -- yes, it’s not the 1920’s anymore,
but there are still mountains of untapped opportunity.
I would probably focus on buying and selling, flipping up and bootstrapping profits back into the business if I had to start today.
Also SEO and PPC keyword arbitrage.

[[.....]]

[[ seobook : ::::: ]]
What are your favorite cities to visit?
How does real estate there compare with domain name prices?

[[ Frank Schilling : ::::: ]]
I like Los Angles and Las Vegas a lot.
It’s funny because those cities real estate histories have parallels to the domain industry.
In Southern California you have Irvine
where one man basically acquired millions of acres through the early 1900’s and then sold to a large corporation in the later 1900’s.
Today the seller looks like a fool because he sold so cheap
when viewed against the development
which has occurred in the surrounding area.
Yet had he not sold, none of the roads, utilities, infrastructure would be there,
so the area would not really be as valuable.
So if there is a comparison between domains and real estate, I think
“development naturally follows acquiring the land” and
“prices increase as the people come in”
are the two over-riding factors.

[[.....]]

[[ seobook : ::::: ]]
How many ways do you categorize domains?
What types of domains are the best from an investment perspective?

[[ Frank Schilling : ::::: ]]
We have 60 main categories such as “cars”
and then 1600 subcategories including “car accessories”, “towing”, “insurance” etc.
The best domain-names are generic defensible keyword-style
(one two and three word)
phrases which get some trickle of organic generic-intent type-in traffic;
for nothing more than the keyword-weight, gravity and resonance of the generic words
that make up the domain name.

[[.....]]

[[ seobook : ::::: ]]
Many domains tend to sell for a multiple of PPC earnings. In 10 years time do you think the baseline will move to some other metric?

[[ Frank Schilling : ::::: ]]
It already has.. No good domain portfolio has changed hands since BuyDomains and that business would have sold for considerably more than the rumored amount had the company’s former owner been engaged in selling advertising alone, vs selling his names. Prior to that there was ‘Name Development’s’ sale to Marchex (Yun Ye transaction). No large, high-quality portfolios have changed hands since. Other sales have been smaller or split-portfolios consisting of good names interspersed with trademark issues.
Individual names often sell for 100 years PPC.
No high quality domainer would dream of selling a portfolio worth potential billions to a third party for 10-12X PPC revenues.
PPC is a flawed multiple because it works off a rev-share.
If you buy a portfolio for 10X
and it is on a 50/50 rev share
(after “cost of services” through Google Adsense)
that means
you sold your portfolio for 5X what Google could make with it.
Maybe
3X if you exclude the amount Google shaves for smart pricing.
[[[[[[[[[ 'the edittor notes : :::::
------------------
even may b[be] only 1.5x e.t.c.
in case of that
u cant park your property directly with Google
due2[due-to]
b[be] un-able 2meet[to-meet]
those requirements of minimum monthly traffics e.t.c.
n
[and] there4
u'r forced2park w/ the domainspa this kind o'[of]
domain parking middlemen
who can meet those minimum requirements
n
[and]
the typiccal domain parking middleman takes away
an other 50% or even more
off of anything left by Google e.t.c.,
i.e. ,
u can take only 25% or even less o'[of ]
what your property can earn w/ Google e.t.c.,
------------------
'the 3x above-mentionned by My Dear Sir Frank Schilling
's only for the case of that
u could directly park your property w/ Google e.t.c.
]]]]]]]]]]]]]]]]]]]]]]]]
That is so insanely cheap.
Only a fool would give names away like that.
If I were selling I would pick a walk away number
(the youtube style multiple)
or I would sell names individually.
The breakup value of large portfolios will be in the billions if they aren’t already.

[[.....]]

[[ seobook : ::::: ]]
You have mentioned that
you thought search was promoting too many anchor stores vs smaller boutique websites.
Do you think this creates an opportunity for other search players or adds value to topical community resources?
Do you see it becoming more or less profitable to make niche websites and domain names?

[[ Frank Schilling : ::::: ]]
I think of every domain name as an alternative search engine under the keyword embodied within the name.

[[.....]]

comments

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I think here in Germany around 80% of type-in traffic are .DE domains.
Wouldn't be surprised if it was similar in France with their .fr-tld.

Patrick on May 17, 2007 06:22 PM

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Hi Aaron,Great interview. Thanks.
It kind of re-inforces one of the larger acquistions I have recently made.
I wanted to start a community forum for Expats.
I had the choice of registering some mediocre domains or going for what I think is the real cream
- www.ExpatForum.com.
I ended up paying in the low $xx,xxx region for the name. Most people think I'm mad.
I believe that
when the site is successful
then the name will have amazing brand value power behind it.
I think ShoeMoney puts it so well when he says to always "Plan for success"...

Bob Sheth on May 18, 2007 06:19 AM

[[......]]

Great Interview.
All other things being equal between 2 sites.
The advantage of using a Keyword domain is 3 fold.
1) Gets Type-in traffic
2) Better Search engine listing for the keyword, both specific and long tail
3) Better CTR
& Lower pricing for the keyword in the relevency based PPC's
like Google Adwords and Yahoo-Panama.

Ravi Venkatraman on May 19, 2007 12:33 PM

[[.....]]

Very rewarding interview.
I seldom read through anything like this becuase it is so often fluff ...
this one has some real meat an dis very informative.

My own cut regarding the ccTLD's ...
their type-in use and value will vary significantly from country to country. I know that
.de, as already mentioned, is very widely used within Germany.
But I have a Canadian business associate who has his comapny's "brochure" type site on
www.hiscompany.com and
www.hiscompany.ca
His "brick and mortar" market is about 70/30 US/CA, but
his traffic on the web site is more than 90/10 .COM/.CA

Dave Starr --- ROI Guy on May 20, 2007 08:18 PM

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Sunday, 24 June 2007

B-Factor and Domain

0 response
[[[[[[[[[ 'the edittor explains as the spelling correcting dictionnary : :::::
i think
my dear Sir Frank Schilling may have misspelled ,
"je nai se quoi" seems2make n'o[no] sense , as witnessable @ google , may b[be] : :
"je ne sais quoi" that right spelling ,
http://www.thefreedictionary.com/je+ne+sais+quoi
]]]]]]]]]

B-Factor "je nai se quoi" and Domain Names
http://frankschilling.typepad.com/my_weblog/2007/05/bfactor_je_nai_.html
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May 06, 2007
B-Factor "je nai se quoi" and Domain Names

http://www.marketwatch.com/news/story/wsj-worth-more-future-profits/story.aspx?guid=%7BD4BA89F9-B9CA-4526-9AA0-B0783323715B%7D
Quote:
"Rupert would even acknowledge that some part of his interest in the WSJ goes beyond economics,"... The value of companies should in theory be equal to the total worth of their future cash flows, Buffett explained. But some businesses, such as sports clubs, movie studios and important national newspapers, have an extra value Buffett called the "B factor." .. The B factor at Dow Jones is huge, probably second only to the New York Times in the whole world," Buffett said.

Ughh .. The New York Times? Come on Mr. B. .. maybe in 1978 when the BeeGee's sang about it in Saturday Night Fever. We can all understand the tenor of what Mr. Buffet is speaking to of course. There is a power, influence, branding and cachet value that transcends the cash-flows the business can bring.
Domain names are the clasic "B Factor" investment of course. Why else pay 140X for a name like snoringcure.com ($8,000+ at Snapnames.com today). It will be a frosty day in Hell when PPC revenues pay for that one, but I now own a great snoring name! I can sell products relating to the malady .. some of them may cure my snoring (much to my wife's relief). It is generic, descriptive,
easy to buy traffic for,
easy to arbitrage - I could probably live off that one name! Man you gotta love domains. NYT example notwithstanding.. Buffet is right.

Posted at 08:55 PM in Domain Names (Domains)

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Comments

Frank - I thought your business revolved around ppc as opposed to developing or selling domains?
If so, you are not likely to develop snoringcure.com to make a profit on your $8000.Or have I misunderstood?

***FS*** Everything is in development.. it's just happy coincidence that the best names to develop also bring a trickle of PPC revenues. In this case, the intrinsic value of a name as a brandable site, as a tool for buying traffic from search engines far and away eclipses what I can make selling PPC right now.

Posted by: JP May 07, 2007 at 12:12 AM

Frank,
Domain name newbie from UK here & a regular reader of your blog.
What volume of typed-in traffic would you expect for that domain name? What's so good about that domain name that prompts you to pay 8K? Why not develop a new snoring related domain name and save the 8K? I presume I'm missing something here!
JC

***FS*** Just a trickle John.. its about the intrinsic value of the name.

Posted by: John Cronin May 07, 2007 at 03:34 PM

$8,000 could really be a fair price if you take the revenue that could come of it in let's say 5 year period. There are probably a billion if not more people with snoring problems. And I'm sure that cures for this aren't too cheap. A huge potential market and expensive products... I don't think it would take 120 years to earn those $8,000 back.English isn't my native language, so excuse me if this sounds stupid... but did you buy this name and what was the point you tried to make in the end?

***FS*** No your English is fine.. multiples are maleable

Posted by: Business Card Guru May 11, 2007 at 03:40 AM

Frank, what are your thoughts about highly-descriptive three-word generic .coms, given that you mentioned lower PPC names often are very developable. Do you own many/any currently?

For Example:
NewWirelessPlan.com
Do you see increasing value in these generics, IYO?

P.S. I was on Grand Cayman recently snorkling Hamburger Reef and thought about you working there. Coffee "on me" next time!

***FS*** I like compound search phrases providing they have a high overture style rank apart.. Reason? If people are searching for the phrase as a part of common vernacular via the engines, then it's possible to harvest those visits from the engines via arbitrage or paid search plays. Also the sitres are more recognizable to the average surfer as a common phrase they are "looking for anyway".. That said.. I also like memorable multi word strings if they are catchy and have resonance: seewhathappens.com <-- recent superbowl commercial.

Posted by: Dean Phillips May 14, 2007 at 04:44 PM

Same outlook for longer famous phrases?
> reportsofmydeath.com

Posted by: Robert June 15, 2007 at 12:11 AM

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[[.....]]

[[[[[[[[[ 'the edittor notes : :::::
i classified this post under the label `` easy2 buy traffic for '' ,
----------------------------------------------------------
because : :
----------------------------------------------------------
an ad in tv e.t.c. =
too dear +
too short ,
[[
a 30seconds spot in tv can cost u upto
USD 2-2.5 mm in the time of SuperBowl e.t.c. ,
----not----including---- any cost of ad-production e.t.c. ,
which can cost u an other cluster[s] of USD millions
]]
so
ynot[whynot] have ur dn b[be] rememberred4ever
@ 1st Glance of your ad
????
acquiring a good domain does it ,
then ye dont need2do so many ads again-n-again
then ye dont need2do so many ads again-n-again
----------------------------------------------------------
many visittors start w/ recalling your dn in order to [re]visit your site
especially//expecially
@ cyber-pubs or
@ public libraries e.t.c. ,
----------------------------------------------------------
there4 , if your domain isnt good enough ,
then
u need2spend million$$ 2[to] repeat your ad in tv e.t.c.
but ,
W/out Any guar. of good conversion,
+
W/out Any guar. of 4ever-result,

[[[[[[[[[
in case o'[of]
u cancelling only 1 ad in tv e.t.c.
with a best domain ,
then ,
u can so forth-right-away save

million$$ , o.k. ,
millions of Yen at least
]]]]]]]]] ,
[[[[[[[[[
indeed
indeep ,
just too many many expensive ads result in nothing lasting ,
just too many to list here + in order to avoid embarassment ,
there4 .....
]]]]]]]]]
there4 ,
a best domain saves million$$ marketting fees of ad in tv e.t.c.
+
sometimes even saving million$$ yearly4ever ,
----------------------------------------------------------
Good-Domain is
Good-Start ,
Good-Start-Is-Half-Succe$$

Good-Start-Is-Half-Succe$$
[[ the above-saying 's the longtime's proverb , not invented by us
]]
----------------------------------------------------------
hey man ,
that isnt any rocket science ,
that is only the kid's level's common sense , ye cant comprehend
??
----------------------------------------------------------
please b[be] reminded -
a job well begun is a job well done.
a job well begun is a job well done.
]]]]]]]]]