The End of Whois?

The New York Times is reporting that according to an Associated Press report, the whois system may no longer be used. According to the article:

“The Associated Press reports that the Internet Corporation for Assigned Names and Numbers, which sets rules for domain names, may allow the system to end because of a disagreement over how it should work.

Part of the issue is that the registrars—a rather low margin business—have been charging domain owners an extra fee for the equivalent of an unlisted phone number—a Web site without real contact information listed in the whois directories.”Source New York Times

Many people have complained about the whois database because it can be data mined for email addresses,  which  makes it  a major source of spam to domain owners and businesses. Unsolicited emails generated from user Whois queries are both annoying and frustrating to domain owners.

Eliminating the whois would be a boon to aftermarket companies like Sedo and Afternic, as domain investors would spend more time searching those sites in lieu of whois searches.   This would be time consuming for domain investors, and it would certainly narrow the amount of available domain names for sale.

Perhaps an alternative to scrapping the whois system would be to allow free privacy services to domain owners instead of the fee  registrars currently charge.  This would allow people to become unlisted, and it wouldn’t be financially burdensome for those who have hundreds of names in their portfolio.

If the whois database is eliminated, I foresee companies offering historical records for a fee, which would make owners susceptible to continuing to receive email.   Although scrapping the system might seem like the easiest and quickest fix, in the long run, I don’t think it will help the domain industry.

Real Estate vs. Domain Names

A great post on Sahar’s Blog this morning comparing the opportunity in Fort Lauderdale real estate to the opportunity in domain names.

“One of the interesting facts I picked up on is the land on Millionaire’s row (which now is being refered to as “Billionaire’s row” due to cheaper money) was given away for free back in the 20’s. The first thought of course is how people overlooked this great opportunity back then? Then the second thought took me back to 1994, when Network Solutions was still giving away any domain you wanted for free, if you just asked for it. Can you imagine? You could have picked up million dollar names only 13 years ago, as many as you wanted (could have structured within different companies at ease) as long as you asked for it.” — Source: The Conceptualist

Read the rest of Sahar’s post here.

Domainer Magazine on Amazon.com

Domainer Magazine can now be found on Amazon.com! Congrats to   Jerry Nolte and Mike St. John for their tremendous efforts in launching Domainer Magazine and for the impact its had so far on the domain business.

Everything sells online. Even Duck Eggs.

Everything sells online. Even Duck Eggs.
Internet entrepreneur Sai Pola’s DuckEggs.com offers the perfect reason why people should buy generic domain names. People who navigate to a specific site like DuckEggs.com have one thing in mind when they arrive – to purchase duck eggs. Using partnerships with farmers whose ducks produce some of the finest quality eggs, Sai’s website allows users to get exactly what they want.According to the article,

“The right domain name conveys credibility, is memorable and can deliver potential customers directly to an ecommerce website without the site owner spending a penny for advertising. The best domain names are comprised of the generic name of the product or service being offered.” –Source: Press Release via Forbes

DuckEggs.com is a perfect example of a specific generic domain name giving direct navigators the product they want, building loyalty and revenue.

CEO Sells Discover.Com domain for 5M, CEO Gets Fired

CEO Sells Discover.Com domain for 5M, CEO Gets Fired

Great link on Sahar’s Blog.

“Gonna Party Like its 1999”

Pardon me for stealing a line from Prince’s “1999,” but I think it is relevant for the topic of whether Internet companies are currently suffering from Irrational Exuberance, creating an Internet bubble similar to the one in 1999 and bursting the following year.

Dot-com fever stirs sense of déjà vu,” an written by Brad Stone and Matt Richtel featured today in the International Herald Tribune, discusses the idea that a great deal of Internet companies are overvalued, similar to the conditions that existed just before the .com bubble burst in 2000.    

Up until the bubble’s sudden burst, investors valued fledgling Internet companies at much higher revenue multiples than they could possible ever realize, effectively creating unsustainable valuations.    Investors were buying into unproven concepts, and unproven company founders were spending their newfound wealth unwisely. The article points out many similarities between pre-bubble 1999 to the conditions seen in today’s markets. The naysayers believe that today is different because many of the successful Internet companies are generating positive cashflow now, however, it seems like they are spending it recklessly on new startups without regard to potential revenue.

Like the original Kings of the Internet who wasted billions of dollars on unnecessary luxury items, the new Internet Titans should remember the failures of the past. A business is only as strong as its revenue and growth, and based on the experience of people in the online adult entertainment business, viewers don’t necessarily bring revenues. As Aaron Kessler of Piper Jaffray said in the article, Internet companies “are buying users instead of revenue and profitability.”