After reading an excruciatingly long thread on DNForum that deals with allegations of scamming, stolen domain names, missing funds…etc, I wanted to share some general advice when buying and selling domain names. The advice I give is only based on how I personally do business, and I recommend using an attorney if that makes you more comfortable.
Before I purchase a domain name, I always check the Whois history to make sure the name looks like it is free and clear of problems. Frequent changes in ownership, different/inconsistent email addresses or phone numbers, and incorrect-sounding information always ring bells in my head and requires further checking. I also like to search using Google and the domain forums to see if the name has ever been in a dispute or had “issues.” Because I mostly
Kevin Discusses CTR
Kevin posted an interesting article about analyzing your own click through rates rather than relying on an outside source to do it for you.
“It’s time for everyone to realize there is no stats uniformity between all the ppc providers, nor the click rev programs at G & Y. Trying to figure out and compare programs is simply a waste of time. You have to create your own analysis methods and bottom line everything.
Kevin is pretty good with numbers, and his post is an interesting read. I’ve noticed differences in how stats are reported between parking companies, stat counters, and server logs. While the bottom line is always the revenue generated, it’s important to know the actual click through rates so you can determine if you are presenting your visitors with relevant information.
Read the rest of Kevin’s article on his blog.
Getting Started With Development
Of course it is probably unrealistic to develop all domain names in your portfolio, assuming you have a decent amount of names like I have. But for those of you who are inclined to dip your foot in the development pool and at least give it a shot with a few of your names, I will be posting advice from a few domain developers throughout the next couple of weeks. Development is difficult, but it is manageable.
I don’t think the domain investment industry is dead or dying at all. I just think it’s time we start thinking about ways to profit from our domain name investments in ways other than parking and selling.
Getting Serious About Domain Name Development
Domain investors must change the perception that there is easy money to be made simply by investing in domain names. While many early speculators and adopters were able to do quite well, there is a perception that everyone in the domain industry is getting rich fast. Because of this perception, our domain names are a target. I don’t think there has been a time when our domain names have been put in such a perilous position by people who want to take them from us.
As most people are aware, the recently proposed Anti-Phishing Consumer Protection Act seems to be a vehicle intended to allow large corporations to claim that generic domain names infringe on their brands. This cleverly written bill sounds like it is intended to protect consumers, but the heart of it seems to be about stripping Internet entrepreneurs of their rightful domain names. Large corporations will be the beneficiaries of this bill, as they could use its vague language to take a privately owned domain name. Most of us aren’t viewed as Internet entrepreneurs, but rather people who got lucky and rich by making a wise speculation.
This perception also causes much internal strife, as some people who try to break into the industry do so without a strong ethical footing. Every day, hundreds of new domain names are registered intentionally containing the trademarks of well known brands, something that can be seen by reviewing the growing number of UDRP disputes. Some people also try to capitalize on catastrophes by registering related domain names immediately after a terrible event, and listing them for sale shortly thereafter. Most of the time, I would bet that this is done by people who aren’t having success on the straight track, so they feel the need to take shortcuts. This gives the domain industry a black eye, and it gives outsiders more motivation to try to penalize us by taking our domain names.
Folks, I hate to say this, but there isn’t easy money to be made in the domain industry.
With very little exception, parking revenues are down throughout the industry. This can be attributed to factors far too numerous to list, but the bottom line is that parked domain names aren’t going to make you rich – unless you spend millions of dollars to acquire them – in which case you probably won’t be parking them. Parking is still a good option for domain names that are waiting to be developed, but the key is that they need to be developed.
I believe we are at a serious crossroads in our business. While many people in the industry successfully brought us to the place where we are now, we need to reevaluate who we look at as the “industry leaders.” Whether we like it or not, the domain industry is changing. Gone are the days when people could make a ton of money parking or using arbitrage. Development is the key to long term success, and we should look up to people who are developing or have already developed some of their domain properties into successful businesses.
Development isn’t easy. There are so many spinning wheels with a development project, it is no wonder many people opted to park their domain names. Well, it’s time we take the bull by the horns and learn about what needs to be done to develop our domain names into websites. The transition won’t be easy, but I know we are all up for the task. While many early adopters spent 18 hours a day attempting to secure the best domain names several years ago, it is time to take the same initiative with a focus on developing our names. Just like a real estate developer doesn’t need to be a professional architect, domain owners don’t need to become professional programmers. We need to learn the basics and work with the experts.
In several years when we look back at 2008, I think we will note it as the year the industry changed its focus. The people who develop their domain names will be on top of the industry, and those who don’t may suffer. It is time that we do what we can to protect our domain names, and I think development is the best solution. In the coming weeks, I will do my best to speak with developers to give as much advice as i can. There are plenty of resources out there, and it’s about time we look into them and move forward. Web 2.0 is here, and it’s time we catch up and make the most of our domain assets.
Spamming From Your Domain Name
People have asked me to speculate on why a domain name of theirs could possibly be banned by Google. There are many potential reasons, but an acquaintance of mined mentioned that spam related to the domain name could potentially be a reason for banning. From what I understand, it isn’t very difficult to spoof a spam email to make it look like it came from a particular domain name. If this happens and the domain name is put on a spam list, it could potentially lead to other negative ramifications.
One possible way to see if your domain name is being used for spamming is to create an email account with your hosting company, and have it act as a “catch all” for any email that comes to any email address associated with the domain name. While your inbox
Lease to Own a Domain Name
I was giving advice to someone today about buying a domain name that is currently generating significant parking revenue. The owner is using a min-site with Adsense to generate this revenue (we’ll say $5,000 annually for the sake of this post), and the potential buyer thinks he could earn much more if he develops it further. The owner’s asking price is steeper than the buyer is willing to spend (let’s say $100,000), but I think the buyer can get creative with his offer in an effort to strike a deal.
In a situation like this, I think a lease-to-own offer would be