Domain Industry News

Pressure is on Oversee.net

Oversee.net LogoBased on events and announcements throughout the domain industry during the last couple of years, as well as declining PPC earnings trends and harsh economic conditions, I believe there must be considerable pressure on Oversee.net. Here’s a quick third party view of things that have transpired.

Oversee.net purchased Snapnames, which was the leading platform to purchase expired and deleting domain names. They had many exclusive drop catching deals in place with some of the leading registrars.

A few months later, Enom launched Namejet, a direct competitor to Snapnames. Some of the exclusive registrars later shifted from Snapnames to Enom, costing Snapnames some of the better dropping domain names.

Oversee purchased Moniker a leading domain registrar and auction house that primarily held its live auctions at TRAFFIC shows during the year, grossing millions of dollars. TechCrunch reported the purchase price at $65 million.

Oversee announced staff layoffs.

Oversee holds a great annual domain conference in January, DomainFest, which is held in Hollywood, California with considerable fanfare and high praise from industry professionals.

Crowd favorite and Director of Business Development, Ron Sheridan departs from Oversee’s DomainSponsor.

Rick Latona enters live auction business directly competing with Moniker auctions at some TRAFFIC shows.

Rick Latona signs exclusive deal with Rick Schwartz and Howard Neu to partner on the TRAFFIC shows, leaving Moniker on the outside. In 2009-2010 TRAFFIC will expand to 6+ domain conferences annually, and it doesn’t appear that Moniker will be the auctioneer.

Fabulous announces free security feature which will compete with Moniker’s expensive Max Lock program ($19.99/domain or $124.99/portfolio), and Fabulous also announced a free privacy protection service that will compete with Moniker’s privacy, which costs $4.00 per year.

I know Oversee.net is managed by some smart people, but it seems that many deals they’ve made haven’t worked out as well as they wanted them to work out, and in other cases, competitors are offering better products/services at better prices. Oversee companies were the best of breed in some categories, but now it seems that’s being chipped away rapidly by nimble competitors. Oversee is a well funded company with big time VC backer Oak Hill Capital Partners, but who knows how much of that investment remains and how much previous investments are currently worth.

The people that make up the company are a primary reason why I do business with more than one Oversee company. However, with tough economic times, there are difficult business decisions that have to be made. The pressure seems to be on Oversee, and it will be interesting to see their next move.

Fabulous: Free Privacy & Better Security

FabulousI received an email from Fabulous this morning containing some great news for domain investors who use Fabulous as their domain registrar. Fabulous announced that they are offering two new features and additions that will benefit domain investors, one of which I had requested on my blog a number of months ago. Let’s discuss the two new features available to Fabulous clients:

1) Whois Privacy

Over the years, a number of people have asked Fabulous to provide privacy protection on their Whois data. While Fabulous allowed just a few domain names to have privacy in the past, they are now giving everyone privacy – for FREE. While the cost of privacy protection various from a few cents per domain name to several dollars at other registrars, there is no cost at Fabulous.

Every domain using the Fabulous Whois Privacy Service will be given a unique identifier, and all email and phone messages related to domain names will be automatically redirected to the domain owner. This is surely going to either cause other registrars to lower their prices considerably or risk losing domain registrations.

To show how popular this is elsewhere, just have a look at DomainTools’ Registrant Search Tool for “Whois Privacy Protection Service, Inc” which was found in about 2,131,377 domain names. Also, a search of Moniker’s “Moniker, Privacy Services” was found in 527,369 domain names. They are laying down the gauntlet with a popular added value service.

2) Fabulous Security Key

Basically the way the key works is that you will log into your account as per normal, using username and password. To activate the Security Key, you will go to the Manage > Security page, select “Fabulous Security Key”, then insert the USB device and click the button.

You can then select what areas of the account you want to protect with the Security Key. Once this has been setup, to gain access to those sections of your account (Sales, Transfers, Name Servers, Pushes) that are protected, you will need to insert the Fabulous Security Key, and click the button. The Fabulous system will verify that you are authorized to visit that section of the account and allow you to make the necessary changes.

With domain theft seemingly at an all-time high and reported on domain forums and elsewhere daily, this will give domain owners added protection over their portfolios. I don’t believe another company is offering a security system that is as comprehensive as Fabulous. (UPDATE: Name.com was first to market with this, and they have been offering a security key fob for the past several months). Not only will a hacker need to steal someone’s login and passcode, but they will also need to have the security key fob, making domain theft virtually impossible.

Incidentally, In December of 2007, I wrote a post called Registrar Security: A Call to Action, where I requested security key fobs at registrars. From my post:

I think a security key fob with a changing passcode (similar to what Paypal offers) could help secure a domain registrar account. I would pay a premium for this service, and I am sure others would as well. Having good security is a unique selling point that distinguishes some registrars from others. Having the best security system in place before competitors would certainly give one registrar a major competitive advantage. Most registrants wouldn’t want multiple security key fobs, so consolidating all domain names at the most secure registrar would be the most likely outcome.

This is great news from Fabulous, and domain owners will benefit.

Mayor Koch Endorses DotNYC LLC for .NYC

Not only was Mayor Ed Koch one of the best mayors New York City has had, but he is also a philanthropist and has a great sense of humor. Today, Mayor Koch announced his support of DotNYC.net and DotNYC LLC for the .NYC gTLD. In addition to a press release, the team from DotNYC LLC, which includes CEO Antony Van Couvering, released a video of Mayor Koch, which can be viewed below.

Domain Roundtable to Hold ICA Auction

Just received this notice and wanted to share it:

Washington, May 22, 2009 – The Internet Commerce Association (ICA) today announced that Thought Convergence, Inc. the owner and operator of the popular Domain Roundtable conference, taking place June 14-17 in Washington, DC, has graciously offered time during the Aftermarket.com premium domain auction to sell domains donated to the ICA by members and those wishing to support the advocacy group. The Aftermarket.com auction will be held during the conference on June 16th at 4p.m.EDT until 7p.m. EDT.

The ICA, a non-profit organization, is encouraging the domain community to donate domain names for this auction event. Applicants can submit their domains to the ICA by email to info_ica@internetcommerce.org. All of the proceeds from the domains sold in auction will go directly to supporting upcoming ICA initiatives, such as lobbying for domain owner rights in Washington and with ICANN. The domain donors who participate will receive a personal “thank you” on the ICA website and will receive an email from the ICA, confirming the amount received from the sale of their donated domain for tax purposes.

“The ICA was founded to protect and defend the rights of domain owners and developers. By participating in our first live auction event, each domain professional has the chance to directly affect the level of protection and pull that they have in Washington,” said Jeremiah Johnston, president of the ICA. “With the support of the Domain Roundtable organizers and those in the domain community who contribute, the ICA board is confident that a successful auction will help strengthen our resources and further our political progress.”

For those not attending Domain Roundtable, but who are interested in participating in the ICA Auction, www.DomainRoundtable.com offers an online platform, where potential buyers can register to bid. The ICA is also accepting private donations to support initiatives such as its Legal Defense Fund and the amicus briefs filed on behalf of its members’ interests. Donations can be made online at internetcommerce.org/donate or by check payable to Internet Commerce Association at:

Donations
Internet Commerce Association
1301 Pennyslvania Ave., NW
Suite 500
Washington, DC 20004

About Internet Commerce Association

The Internet Commerce Association, a trade group comprised of members who own, develop and operate domain names for the purposes of online commerce, is a leading voice for domain owners to ensure their rights are not affected by the politics of Washington, the policies of ICANN, or wherever threats to our membership exist. For additional information, please visit www.InternetCommerce.org.

Free Credit Report* .com

I read Jamie’s post about the folks behind the “Free Credit Report .com” commercials and agree that it will be interesting to see what happens with their direct marketing campaign, which includes television and interactive media. If you didn’t read Jamie’s post – or are too lazy to click over, basically the Free Credit Report people can’t say that their product is free, as a result of the new credit card legislation. They also must link to AnnualCreditReport.com, which does provide the free annual credit reports.

One thing I did notice is that the company behind AnnualCreditReport.com seems to understand domain names and consumer behavior, as they have also registered typos, including AnnualCreditReports.com, AnualCreditReport.com, and AnnualCreditReort.com. I can’t definitively confirm this because the registrations are private, but all were registered around the same date, and all are hosted on the same name servers.

However, as smart as this company is, they are also pretty dumb. They bought the typo domain names, presumably for defensive purposes, but none of them resolve! Instead of forwarding the traffic from the typos, they go to an error page. This is a stupid mistake!

If you are going to buy defensive domain names, especially if they are typos and the visitor intended to visit the site, you should make sure they resolve to the right place! I suppose it might not be necessary if your defensive registration is something like AnnualCreditReportSucks.com or something like that where you just don’t want someone else owning it, but at least lead the way for the fat fingered potential customers/visitors who mistype your correct domain name!

Quick Hits for the Weekend

Wedding season has started again, and I am in another one of my best friends’ weddings tonight. I am in Detroit (well, Dearborn), and from what I can see, Ford branded everything around here. Apparently the Mighty Ducks are staying at this hotel tonight… kinda neat I guess.

I think the WhyPark/Parked deal makes a whole lot of sense for both companies. They each have a very large number of domain names under their “control,” and both have different experience in monetizing these names. I don’t know any terms of the deal, but from the outside, it looks like they have created a stronger company.

Every time a huge world story hits, its amusing to see all the different variations of domain names that are created. On the domain forums, Ebay, and other venues, I can’t help but laugh at the long tail keyword swine flu names that are being sold and/or discussed….

They’re almost as bad as the swine flu jokes I am seeing all over the place – one of the downsides of Twitter 🙂

Congrats to Moniker on selling Ad.com for $1.4 million. It goes to show that Moniker (and other companies) do work hard to get bids from people outside of the domain industry, as I’ve heard the bidder was a large advertising agency that wanted to rebrand.   You can now see the auction of Ad.com in a video posted by Rick.

Sorry to keep this short, but I have to head out to lunch with the guys. What other quick hits did I miss from the week?

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