Random Domaining Notes

This is not the post I planned on doing today but due to a technical difficulty I don't have the bandwidth to fix right now I thought I would post a few domaining notes that were not quite large enough to justify their own post. Here goes...

What may of been one of the coolest things in my keyword research happened today, while researching various keywords coming to my blog I noticed that I had a couple searches for "St. Louis Domainers" show up minutes before in my Statpress results. Thought that was interesting since I am in the St. Louis area. Well, literally minutes later I had a call on my cellphone from a domainer in the St. Louis area interested in meeting and discussing domains sometimes, he was the one searching.  Just a cool, fun experience to see the search result in a phone call. Starting to think its a Missouri Domainer Mafia, the person today, Patrick Carleton (Associated Cities), Aron Meystedt, Tia Wood, and me. I know theres more of you out there!!!

Next note, if you are not twittering get to it. Although I have a hard time sometimes fitting what I want to say into 140 characters I find myself getting more from my Twitter communications and social network than I do from most other online networks at this point but I will admit to neglecting my Facebook account due to Twitter. I have been able to acquire domains I would not of found otherwise, create domaining relationships that would not of occurred otherwise.

I want to give a shoutout to Esa and Sri at Estibot.com. After my minisites compared post a few weeks back they have contacted me and found that when the files were transferred there was some corruption that caused some content to be truncated, etc. Great follow up by them. Esa was top notch in communications concerning this and had the team on it right away. Thanks!!!

Was just reading a post on Techcrunch concerning the changes that are coming in Digg Search. For anyone that has used Digg for link building and search traffic this could cause some changes in the traffic flow. Keep an eye on it.

I want to also thank all of you for reading, the blog has been up for a few weeks now and the results have been better than I could of expected from a networking and acceptance standpoint. Good people in this domainer group. I plan to be back to the minisite and how-tos posts in the next day or so and continue to give ideas on how to either choose names for outsource development or develop on your own rapidly.

OK, now for the biggest thing in this post, I PROMISED my daugther that I would mention that tomorrow is her 8th Birthday!!! She is standing over my shoulder right now and making sure this sentence is typed exactly to her liking. Happy Birthday Little Diva!!!!!

Why Do You Buy Domain Names?

Why do you buy Domain Names?  That is a question I have asked myself before. Now to be clear, I buy them for one reason, to make money online. There are very few domains I buy without a purpose, it should either have keyword potential for minisites or immediate resell potential which is why I probably have always been so adamant against brandables with no immediate keyword value or generic potential. 

After I read the post on Domain Name Wire yesterday concerning making For Sale a larger option on parked pages it made me think a bit about why people domain and the various models they use to make money (or attempt too).  I think in many cases domainers are a mix of the various models below. Which model do you fit?

High End Speculator - This domainer model buys a name based on pure speculation of moving the domain at a higher price, normally at a significantly high ROI. This person does not focus on hand registration of domain names but rather on picking up premium names and moving them.  This is the pure Domainer model as I see it.  This model needs bigger For Sale signs:)

Hand Registration Flipper - This model works well for getting started, picking up domains on the cheap and flipping them for 2, 5, or 10 times the registration cost within a few hours, days or weeks. This is a great way for people to get started and move upmarket on domains. Normally these are sold on the forums.

Minisite Domain Flipper - Domainers doing this buy domains, put minisites on them, and then flip the domain based on revenue/traffic multiples. This works well for people looking to buy revenue names and do not want to necassarily develop them.

Passive Income Domainer - This domainer type buys domains not to sell but to create an income stream from the parking (or affiliate) income generated. This domainer really does not care about for sale signs and is more concerned about creating a stream of income that requires little upkeep or effort per day.  If they happen to get an offer great, but their point is streams of income.

Site Developer - These domainers buy quality domains to develop into fully blown out websites, each domain purchase is for a specific purpose and has a specific business model associated to it.  Some would say that this person is not a domainer although more and more you see people talking on the forums about this site being sold or that sold being sold, but if you look deeper it was not a domain it was as developed site. A crappy name that gets developed into a successful site and gets sold at a high price is not a DOMAIN  being sold it is a BUSINESS being sold.

Domain Collector - This person just likes to pick up domains to acquire items and have them, in many cases they may not realize this (sorry if you realize this is you after reading). They really do not focus so much on the revenue or domain selling aspects as much as acquiring large quantities of domains.

Expired Traffic Domain Flipper - This person buys expired domains that have traffic from sources such as backlinks, may have Google Pagerank, and normally has revenue associated to it. They make money moving these names based on revenue multiples and do flips after a few months. They can use this money to reinvest in more revenue names or invest in quality generics.

What model are you? 

I am sure there are many other models that could be defined.  As much as I think bigger for sale signs are great for many domainers in some cases the focus may not be on getting the name in front of the buyer but may be on finding ways to increase CTR or PPC values.

I just put up a new poll, vote for what type of domainer you are.

On a separate note, I have a buyer looking for Blog name, should be something focused on training bloggers , blog webinars, how to make money with blogs, something that matches those topics.  Needs to be a .COM and price range is in the $100 range. Please use my contact me form if you have something.

 

Domain Name Buying and Selling Do’s and Don’ts Part 3

OK, final installment of Domain Name Buying and Selling Do's and Don'ts. Some of the comments I have got through DM on twitter and in email from those that know me have been fun and actually have led to some fun ideas for future blog posts. Keep in mind these are mistakes that most domainers have made at sometime or another (myself included) and are meet to help not berate.

After todays installment I will leave this theme of posts for a bit:)

1) If you are selling a name based on traffic and revenue, DO make sure you test it at multiple parking providers first. Although I prefer Parked.com in most cases I find that certain names perform better at other parking providers (I do much better with adult names on SedoPro).   Now why it is important, I recently sold a name on 2 years revenue that at Parked.com was making approximately $20 a month. I tested this same name on SedoPro and it made $80 a month, thats a major difference if you are looking at a 2 year revenue multiple. $480 compared to $1920 just by taking the time to test on multiple parking companies.

2) Do NOT backorder domains at just one drop catcher. You will miss names you want guaranteed, it takes no more than 3 minutes to add the backorder on a second site (or even 3rd). I routinely use Snapnames and Namejet (to a lesser degree Pool) and have even on occasion use Godaddy backorders. If its a good name its worth the effort to cover your bases.

3) Do NOT ask for appraisals on forums, when I was a newbie I did this, its bad for 50 different reasons. Its not worth the effort.

4) If you are trying to move a traffic name be prepared to provide more details if its a name you are asking for more than $1XX on. I see people acting surprised when people want to see referrers, keywords, 3 months revenue, etc. If you cannot provide that is fine but do not expect to get the same revenue multiple that someone who can provide would get.

5) This one is more of an annoyance than anything, READ the forum rules before posting a for sale thread. The rules are there for a reason, the rest of us are abiding by them, you need to as well.

Thanks for reading once again. If you are into traffic names item #1 above is probably the most important one out of this 3 part series.

Domain Name Buying And Selling Do’s and Don’ts Part 2

Getting ready to board a flight but thought no time like the present to post the second list of Domain Buying and Selling do's and don'ts. Had some good commentary on Twitter and email after the post yesterday.  Enjoy the second installment:

1) Brandables - Do not buy brandable anything, I do not care if it sounds really cool, is 5 letters long, and is .com. If you are buying hundreds or even dozens of these you could of spent that money on a quality domain that has value. If a group of guys buzzing on coffee are brainstorming ideas for names of a company and searching real time the chances of them a) hitting on yours and caring enough to buy it, or b) not moving onto to another idea on their whiteboard, are pretty much slim to none. TeenDomainer.com had a nice post on why not to do this in .ME, .INFO, etc today as well.

2) Do not buy 5 word .coms and expect to move them at prices that match single word .com prices. Its ok to buy a keyword rich 3 word domain, it has worked well for me on Minisites and for a niche product thats great. But do not buy MyCoolNicheProductNameInRed.org and expect it to do as well as a single word .com. I am amazed (amused) everyday by the names that are being pushed everyday on the forums like this. On that note.

3) Do not list everyname you own as premium. When I scan the forums for domains to buy it is almost an automatic ignore as soon as I see PREMIUM KEYWORD DOMAINS, or SUPER PREMIUM.  75 percent of the time those names are weak, very weak. And on another note...

4) Do not ignore the forum sales forums. Its a buyers market right now, there are bargains to be had. NOTE: This item may of been a bad idea, competition.....

5) Do NOT buy premium .TV names with $5,000 renewals unless you have a solid plan to recoup your cost with a site development. Not that I had any with $5,000 renewals but I did have one with a $500 renewal. Its was a very nice name that even fit the extension well. I dropped it, it hurt to do it, but at the end of the day it made since and with the money saved I was able to invest in a traffic name that actually makes a profit.

More to come, I post these for people to learn from my mistakes that I made early on when I got started, and from those that I speak with daily. Don't take offense if you are making or are have made these mistake. I may not have made all of them but some of these are from experience.

Domain Buying and Selling Do’s and Dont’s

Everyweek I make at least a couple Domain related transactions, whether it be purchasing a name on Namepros.com or selling a name through email or Sedo there is usually some negotiation that takes place. Rick Latona has a series of blog posts concerning general selling do's and don't which some people have a hard time accepting. People just do not like the truth sometimes, especially when it may be something new they are learing or even more so when it is something they no but just do not want to admit.

I came up with a list of more than 30 do's and don'ts  for when dealing with domain transactions but limited my list to 5 and will post more in later blog posts, some of these are obvious but for a newbie coming in or for someone who is simply new to any transaction based business I hope these can help.

1) NEVER, I mean NEVER accept the first offer. Even if you think the number is fair understand that its a starting point. When making a counter offer NEVER counter with your lowest acceptance price. Example, recently I sold  a name on Sedo for $2,000.  The first offer was at $750, did I counter with $2,000, no, I countered with $3,000. If I would of countered with $2,000 they would of offered something lower. This increased my transaction value by hundreds of dollars.

2) When buying names make sure you have the money to buy, do NOT string out the seller for days, weeks, months coming up with the funds. If you cannot buy it do not make the offer. Its ok to say no if the seller comes back with something that does not meet your budget, but once you commit you better be ready. I had a transaction string out for 3 months last year due to this. I had already posted a name was sold then the person suddenly kept having excuses for the funds not showing up.  I still had the name but the hassle was not worth it. Never again. (One exception, if you work out payment plans ahead of time)

3)  Do NOT believe the traffic numbers on Godaddy auctions. Its been proven time and time again that these numbers are not accurate and can be driven up by unsavory characters buying traffic to push up prices. Do your research, if you cannot figure out where the traffic is coming from then do not take the chance. I have seen many a name that showed hundreds, if not thousands, of visitors per month that after doing a bit of research could not figure out any reason why the site could be getting that much traffic. There are plenty of how-tos available on how to check for backlinks, Alexa rank, etc for a name. Save yourself some money and use them.

4) OK, so a funny but very true one, people make jokes all the time about buying domains when drunk. Seriously, its funny but true, if you have a list of 100 domains in your cart at your register of choice and you know you had to many Gin and Tonics do not hit BUY:) I say this one almost in jest but I am sure I have a couple names I have dropped (cancelled...) due to this.

5) Be careful not to jump on every overly hyped extension to hit the market. I will admit freely that no one has a crystal ball and some may actually do well. But if you invest all your domaining dollars in .TV, .MOBI, .ME, .TEL (let me emphasize that last one .TEL) you will not do as well as focusing your dollars on .COM, .NET, or .ORG. I have made my mistakes in this area, learn from my mistakes here. That said, I have made some large domain purchases in one of those listed above and am a believer (.ME for full disclosure). That came after people (money guys, marketing guys) caught on to it and actually funded a project based on the branding and possibilities of it. Note that it was based on MONEY not emotion. Domaining is a business not a hobby.

I am sure people will have either strong agreements, disagreements, or comments. Feel free. There are dozens more that could be listed.

Books For Domainers Not About Domaining

I spend alot of time focused on reading books about marketing, online marketing, and other areas that at the end of the day will make me a better domainer and business owner, because if you are running your domaining business properly it is a business. If you are focused on developing your domains into real online destinations this is even more important as you want repeat customers and provide a product and experience that they find better than your competitors.

Here are 5 books that I have found valuable, if you have more feel free to comment or suggest more:

Click: What Millions of People are Buying Online and Why it Matters
Author: Bill Tancer

This book was absolutely fascinating in its analysis of online user behavior and how search matters. As domainers we focus on keywords and search to understand what names are valuable. This book will take you to a new level of understanding and appreciation for search and the importance.

Outliers: The Story of Success
Author: Malcom Gladwell

I was a big fan of both The Tipping Point and Blink by Malcom Gladwell and this book did not disappoint. The book will show you how seizing upon an opportunity at the time it is presented is the most valuable thing a business will ever do. It shows how being at the right place at the right time may be the most important thing to being successful though. Interesting read.

Made To Stick: Why Some Ideas Survive and Others Die
Author(s): Chip and Dan Heath

If you want to know how to communicate effectively and make people remember you, your idea, or your product you will find this book useful. Personally think this book should be handed to every salesperson or marketing employee I will ever work with or hire.

The 4 Hour Work Week: Escape 9-5, Live Anywhere, and Join the New Rich
Author: Timothy Ferriss

If you have ever dreamt about being able to work anywhere, travel constantly, and enjoy every minute this book is for you. This book really could be the the holy grail and inspiration for many domainers trying to escape their daily grind sitting in their cube at work dreaming about running their own business. With tips on outsourcing tasks effectively and delegating responsibility to allow yourself time to LIVE it was a great and useful read.

The Long Tail: Why the Future of Business is Selling Less of More
Author: Chris Anderson

A recently revised version adds even more detail to the book that made the term "The Long Tail" a common term. I can remember reading the original Long Tail article in Wired magazine. Once again, as domainers we understand the value of search terms and niche markets. This book was the first to really show how and why that model works. If you want to understand niche marketing read it.

I purposely did not put any affiliate links to Amazon.com for these books, I have found them valuable in their own right and think that shows even more by not using them as a sales tool. Enjoy and let me know what you thought of them.

One rule I live by is if I enjoy or find a book useful I pass it on to someone else who I think will find it useful, a good rule to live by.

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