Why I Built SlipperyElm.com

Elliot Silver
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33

I want to take a second to thank you for voting in the poll where I asked you to give your valuation for SlipperyElm.com. There were 217 total votes, and about 46% of those who cast a vote think the name is worth $1,000 or less, while about 54% of voters think it’s worth above $1,000.

If I was going to vote in this poll, I would have selected between $3,000 – $6,000 for the domain name. I personally think it could be sold for somewhere around $4,000, which is why I paid $1,000 for it at Sedo in private. I don’t think it would have necessarily been an easy sale, but I think it could have been sold for that amount, especially given the comments by a couple of people familiar with herbal remedies.

That being said, I felt that I bought the name for a good price and I have the opportunity to add even more value by building a website that has traffic. I felt that I could spend around $75 on custom articles and a few hours of my time putting the site together using a free web template. At worse, I drove my cost up to $1,100 (approximately) for a name I think is worth around $4,000 before development.

While I am growing the traffic that comes to the site to learn about slippery elm, I am also able to monetize it. IMO, I will earn far more from Adsense than I would if I had $1,000 in the bank.  At .4% interest, I would only earn about $4/year on that cash in the bank. However, I will bet this name makes around $20/month within 6 months (maybe more). There have been a few paid clicks already, ranging from $.25 to $2.00/each, so depending on where things shake out, it could be significantly more than my prediction.

I am fortunate to be able to take $1,000 out of the bank for this type of investment, and I understand that many people couldn’t. It was just a few years ago that I paid for my first domain name that was $1,000 and it made me nervous. Had this been a $20,000 or greater investment, I probably wouldn’t have gone this route, since I could probably make more flipping names with the $20k in principal rather than letting it sit and build traffic on it.

For me, the bottom line is that I believe I bought an under priced domain asset (I bought it after a couple rounds of negotiations), and instead of trying for a quick flip, I am going to do my best to increase the value of the asset and earn more income than I would have had in the bank. I am going to hope to sell the name for greater than $10,000 once traffic and or revenue justify the value.

Domain Names, Stocks, Commodities…

Elliot Silver
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7

I don’t own thousands of domain names, but I own a fair amount of domain names that could be easily liquidated if necessary. I can’t imagine having to sell my domain assets abruptly, but I suppose one never knows what the future will bring.

In addition to my domain name assets, I own physical real estate. I also have own stocks and funds that cover a wide variety of investments and various industries, although I tend to not invest much in Internet companies, as I have enough exposure via my domain name assets and websites.

I understand there are a lot of people buying gold and silver – be it in funds or physical. Some people buy call and put options, although that’s something I don’t really mess around with.

With inflation generally higher than interest rates, you’re essentially losing money by keeping it in the bank. How are you investing these days aside from your domain assets.

Advice on Legal Questions

Elliot Silver
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0

Have you ever taken a look at the terms and conditions page when you register a domain name or buy one in the aftermarket? In almost all cases, they are huge, and to someone without a legal degree, there are a lot of issues that aren’t exactly clear.

As a domain investor, I have read about quite a few legal issues on various websites, UDRP sites, and domain forums. It’s given me a basic understanding of domain related law, but not enough to provide any real advice to anyone.

For some reason, in the last few days, I’ve received a number of emails asking me for domain name legal advice. I’ve recommended that the people ask an IP lawyer with domain name experience. Sure, I might be able to give accurate advice, but I might also give bad advice that a lawyer would never give.

If you have a legal question, it’s best to ask a lawyer. I provided a list of domain name lawyers a while back, but here’s a refresher since there seems to be quite a few legal questions right now.

A lawyer may not be cheap, but bad advice can be costly.

Use the WhyPark Directory Model on Geo Keyword Domain Names

Elliot Silver
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11

I want to start this post out with a bit of a caveat. I haven’t personally tried the directory application on a local keyword domain name yet, so this is mostly just a suggestion and not based on my experience. I do use the WhyPark directory app on ActingCoach.com and have at least one paying advertiser.

I think geo keyword .com domain names like PhiladelphiaPlumbers.com, SanFranciscoElecticians.com, and BostonLocksmiths.com are strong domain names. If the profession has many competing companies in that city, it could be a big opportunity for development. The city should also be large enough that many people are looking for a company in this field in the particular city (for example, RonkonkomaPlumbers.com might be a bit limited).

One way to manage development at a more minimal cost is to use WhyPark’s directory app. I would recommend having the company create a custom layout for you to your specs (around $200 for that I think) or hire someone to do it for you on eLance. As much as some people may dispute how a site looks, I am one who believes it’s important to have a good looking, updated website to get advertisers onboard. Additionally, I recommend a custom logo as well.

I would also use a copywriter (like TextBroker) to write a number of helpful articles related to the domain name’s content. This will at least get the site off the ground to start, and it will not only make the site look more populated to potential advertisers, it will also help with Google indexing and search engine traffic.

Once the site is launched, use your Google Webmaster Tools and Analytics accounts to track visits and search queries. As traffic grows, you should reach out to potential advertisers on the phone and via email. Although some people will probably be willing to sign up if they find your site, it will be much quicker to call or email them first. This way, you know they know about your site.

Having traffic is important because many potential advertisers will want to know they are getting value for their advertising dollar. I would charge anywhere between $5-20/month, depending on your location and the competition.

It’s easy to set up the WhyPark directory app, and it can be a time saving, cost-effective way to build out a directory website on a geodomain name. It’s something I will try when I have the right name.

Rob Sequin Guest Post: Options for Your Domains

Elliot Silver
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16

This is a guest post written by domain broker, Rob Sequin.

As part of my 2011 planning, I have been giving considerable thought about the current and future use of my domain names. This nice thing about owning a number of domains is that domain portfolio owners have numerous options for what they can do with their domains.

Of course everyone’s portfolio is different as are business models and goals but I thought that it may be helpful to offer some guidance about use of domains. Here is a list of what you can do with your domains…

  • Development
  • Forwarding
  • Leasing
  • Minisites
  • Nothing
  • Parking

Development

Summary: Website development requires skills and software. To develop a site you need to have a server, website design software/platform like xsitepro, WordPress, Dreamweaver etc. Development requires lots of time and skill or money if you have to hire a developer.

Pros:

Adds value to the domain so long as your development is appreciated by search engines, visitors, direct advertisers and potential buyers. Gives you the ability to place Adsense, affiliate ads, sell products, get direct advertisers etc. Ability to track everything with Google Analytics code.

Cons:

Time consuming and may be developed differently from what your visitors, direct advertisers or potential buyers are looking for thus just a waste of time.

Forwarding

To Developed Website

Summary: Forward related domains to a developed site already in your network that would be an appropriate “lander” for the forwarded domain.

Pros: Visitors land on a developed page therefore you get the best use for this forwarded domain. Developed site gets more traffic from type ins from relevant, forwarded domain. Why park a domain for pennies a day if you can forward to your site and capture a potential direct advertiser or customer. Why not spend those pennies a day and “buy” this traffic?

Cons: You have to have a related developed domain as a “lander”. Cannot offer forwarded domain for sale if it is pointing to a developed site. No stats for forwarded domain unless masked. If masked then visitor cannot see URLs of developed site. No search engine love for forwarded domains.

To Retail Sales Website

Summary: If you have a developed site that is a retail sales site, forwarding your domains to this sales site can increase sales.

Pros: You can have some advertising on the site but if it’s for sales of domains, limit ALL outgoing links. Direct sales to buyer, no third party marketplace with anonymous negotiations or commissions. Potential to upsell buyer more similar domains. Why park a domain for pennies a day if you can forward to your site and capture a potential buyer. Why not spend those pennies a day and “buy” this traffic?

Cons: Same as above to Developed Website.

Leasing

Summary: I know there are leasing sites and opportunities out there but not practical for most domain owners.

Pros: Generates guaranteed income over what Adsense, sales, leads or direct advertisers will pay you.

Cons: VERY difficult to find anyone to lease your domains, you need a STRONG contract and need to make sure leasee is not using your domain in bad ways. You give up all control of the domain.

Minisites

Summary: Epik, Whypark and DevHub are hybrids of parking and development. Not all domains are good candidates for minisite development but a great option for the right domains, usually product domains or long tail domains.

Pros: May generate more revenue parking and may get some search engine placement.   Adds value to domain since content is directly relevant to domain. Minisite platforms are very advanced today and offer many ways to add content and revenue generating features. You can probably have a “This domain for sale” link on the lander.

Cons: From my limited experience, I have not made any money nor created any search engine traffic from minisite development.   No public sales marketplace at minisite companies.

Nothing

Summary: Nothing means nothing. I am amazed how many dead landing pages or registrar landing pages I come across.

Pros: Not using domain could help if you are TM squatting. That’s about all the Pros I can come up with J

Cons: Dumbest use of domain, shows owner does not care at all about domain, adds zero value. In fact tells potential buyer that you are uneducated about domains, not using it and therefore you should expect VERY low offers and of course no revenue or search engine placement, no stats either.

Parking

Summary: Many people say that parking is dead or dying but this is by far the easiest way to make the most revenue with little effort. I have used Sedo (Google feed) and Parked (Yahoo feed). I admit I do not make much money from parking, which is not my primary source of revenue. I will say that I have tried MOST of the parking companies at one time or another and I have found that I like working with Sedo or Parked.

Pros: Change the nameservers, optimize the lander, set it and forget it.

Cons: Probably no search engine ranking but I have seen my domains rank with Sedo and Parked pages.

Sedo Pros: Best parking revenue, domain for sale link, sales marketplace, good stats but confusing

Sedo Cons: Cannot negotiate directly with buyer, buyer is anonymous, sales commission, no custom content. Landers are very generic.

Parked Pros: Custom domain for sale link, great stats, simple user interface, ability to add custom content, plenty of photos directly relevant to keywords.

Parked Cons: Adequate revenue, no sales marketplace. I understand that the transition to Bing has not gone well and Yahoo feed parking companies may need some time for revenue to recover.

Summary

You should have all your domain names in a spreadsheet or in some manner that they can be sorted and categorized. Make a column for near term use and long term use. Ultimately your long term goals might be something like this:

  • Development 5% to 20%
  • Forwarding 10% to 20%
  • Leasing 0% to 5%
  • Minisites 10% to 30%
  • Nothing 0%
  • Parking 40% to 80%

Short term use could be parking while long term use could be development. Parking is a great way to at least see what kind of traffic a domain receives then you can make a better decision about developing it. Be sure to have a clear understanding of what you want to accomplish.

If you want a revenue stream then test parking, test minisites and test development. If your goal is sales then be sure to have your domains listed for sale in several locations and/or forward them to your own retail sales site. If you goal is to bring in direct advertisers then you’ll want to develop good websites with unique content that offers value to your visitors.

Good luck. I hope this helps with your domain planning for 2011.

Many Trademark Holders Don’t Protect Their Brand in Today’s TLDs

Elliot Silver
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7

There have been a whole lot of complaints from trademark owners that new TLDs could potentially cause massive amounts of cybersquatting.

Similarly, it could cost them tens of thousands of dollars or maybe much more to protect their brands in a variety of new TLDs when ICANN releases them. This whole debate sounds pretty interesting and the trademark owner contingent makes a good point about this.

Well, it would be a better point if they actually owned all of their brand names in existing TLDs, or if the ones they didn’t own were being cybersquatted in different TLDs.

I thought it would be interesting to take a look at some leading brands to see if their brand names were sitting unregistered, which I believe is what will happen for many new gTLD domain names. For instance, Xerox.sport hardly seems to be a domain name that would be coveted by cybersquatters.

Here are some unregistered brand names in various ccTLD and TLD extensions:

  • HewlettPackard.tv
  • NewYorkTimes.travel
  • McDonalds.aero
  • Intel.ac
  • MercedesBenz.sc
  • Gucci.jobs
  • MorganStanley.im
  • Xerox.fm
  • Danone.la
  • Motorola.name
  • Disney.mn
  • Budweiser.vc
  • Accenture.bz
  • Hyatt.ac
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