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General Domain Information

Canadian Sex Acts

Elliot Silver
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14

I was watching the show How I Met Your Mother on CBS last night, and the characters discussed a website that they visit, which is all abo0ot (pun intended) Canadian Sex Acts – CanadianSexActs.org.   The site lists the made-up names of a whole bunch of comedic “Canadian Sex Acts,” and clicking on each link opens a pop-up page with a photo of Canadian actor Alan Thicke and an error message.

Oftentimes production companies mention domain names/websites in television shows and movies, but they fail to register them (or they’re already owned by someone else), and the result is interested traffic to someone else’s website.

In the case of CBS’ How I Met Your Mother, the characters mentioned the website, CanadianSexActs.org, and the domain name had been purchased a couple of weeks ago – although it has a private registration so I can’t confirm that CBS does own it. The site doesn’t mention the show, nor does it mention the production company or network. In any case, it’s a fun parody website, and it was smart to register it beforehand.

“Forced Entrepreneurship” and Domain Names

Elliot Silver
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11

There’s an interesting article in the New York Times today discussing how difficult economic conditions and a tough job market are forcing people to think about how they can make their own work. “Forced Entrepreneurship,” as it is referred to by Mark V. Cannice, (ED of the entrepreneurship program at the University of San Francisco), is where people figure out a way to make money from their own work.

One of the easiest ways for a person to do this is setting up a website and complementing it by using online social media venues like Twitter and Facebook. I’ve seen an uptick in domain offers, although they are mostly for brandable domain names owned by friends and colleagues.   I believe this is a sign that many forced entrepreneurs are looking to build their unique brand online, and when they find their idea domain name is already registered, they are trying to buy it in the aftermarket.

I personally don’t really care to invest in brandable domain names, as I liken them to lottery tickets, but I think there is growing interest. With the job situation poor for several months and getting worse, many people are going to give up on their job searches, and some will try to build a business on a dream they may have had for years. I think this is going to lead to more domain sales and registrations.

Teaching About the Value of Domain Names

Elliot Silver
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7

I got together with some of my former colleagues a couple nights ago at a memorial party for a colleague who died suddenly last week. We were discussing the progress of my former group, and we started discussing the Internet strategy they have and where it’s headed.

They are in the process of launching a new stand alone product website (their first stand alone site), although they were only able to acquire domain names that are variations of the product’s name (for example MyProduct.com, ProductOnline.com, MyProductOnline.com…etc). I asked why they didn’t go out and buy the straight up Product name from its current owner, and they didn’t really have an answer other than the fact that it’s owned by someone else.

This got my mind turning.   Here is a group at a huge company that has seen tremendous growth, are about to launch a serious Internet campaign/website, yet they don’t really understand the value of domain names and what it would mean to own the Product.com domain name.   I assume many companies are in a similar position, and educating them is difficult.

I would imagine a numbers argument would be the way to educate them, showing that the Product.com domain gets a % of traffic (intended visitors) which could be lost if they don’t search to find the correct website.   Figuring out the lost business as a result of not owning the domain name should be the amount of money they could/would pay to acquire it.   However, once the site is launched, it’s unlikely that the owner would sell it, especially if he is fearful of a litigious response.

How do you educate people about the value of domain names?

Are Numeric Domain Names an “Emerging Trend”?

Elliot Silver
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15

I had my first debate/discussion via Twitter (albeit a short one) yesterday about whether numeric domain names can be considered an emerging trend. I read Inside Domaining’s tweet about the topic, and I disagree because values are stagnant and down for most numeric names (as they are just about across the board). I cited my experience selling 887.com late last year as evidence of a difficult market, and I also have experience selling 4 number .com domain names and 3 number .net domain names in the past.

Inside Domaining countered back that 2 and 3 number .com domain names were selling great last year, which is something I do not dispute. However, they sold well last year because TJ Demas bought many of the big ones for huge prices for a special project. IMO, this doesn’t make for an “emerging trend” simply because one buyer bought some names and had to pay a huge sum to get them   (ala Rick selling iReport.com for $750,000).

Just as when the 4 letter .com domain names sold out last year, the perceived values went through the roof and they were selling for great sums. Now that people are realizing most are useless, prices are bottoming out. The buyers are disappearing and people are realizing that rarity does not equate to value at all times, and some domain investors lost a lot of money.

I believe if someone pays a considerable sum for a numeric domain simply because TJ bought several last year for his project, the buyer will probably lose money. IMO, this is like a person owning toy-related domain names claiming that toy names are an emerging trend simply because Toys R Us paid $5.1 million for Toys.com (which I am sure will happen).

This industry isn’t like real estate where you can look in the MLS for neighborhood comps.   All domain names have unique values.

So… what do you think… Are numeric domain names an emerging trend or not?

Elliot’s Blog Newsletter

Elliot Silver
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4

I recently exchanged emails with the director of my grad school program (MS in Direct & Interactive Marketing – now the Integrated Marketing Program) at NYU, and I let her know about some of the things happening in my business and personal life.   Among other things, I mentioned that I am using my direct marketing skills just about every day.

After thinking about how I am using them and how I could be using them better, I decided that I should add a newsletter to my blog.   I figure I can send out weekly or bi-weekly emails to let people know what the most read and most commented articles I posted have been, and I can provide other updates.

A newsletter is one of the best ways to communicate with interested parties, so I might as well start one up and see how it goes.   I know someone will ask, but I am not looking for sponsors – especially because I don’t know how regularly I will send the newsletter, nor do I know how many people will eventually sign up.

So… feel free to sign up for my newsletter.   I will probably send the emails out on a Saturday or a Sunday and they will probably not be regularly sent at first.   Also, in the comment section here, please let me know what you would like included in the newsletter.   Here is what I am thinking right now, but I would like suggestions:

  • Links to most read articles of the week
  • Links to most commented articles of the week
  • My top ten dropping domain picks of the coming week
  • Links to articles of interest off site

Domain Assets Strong Despite Economy

Elliot Silver
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2

I don’t need to share any recent sales data to show that the economy is impacting domain values.   I think the bottom line is that good domain names still sell for high prices, and average to below-average domain names are difficult to sell these days.

One thing is certain though.   No matter how difficult the economy is, nor what happens to currency valuations and/or fluctuations, domain name assets are stronger than many other assets, and they are very similar to land and precious metals, all of which are limited and have intrinsic value.

Regardless of what happens with the economy, precious metals such as gold, silver and platinum will still have value. They can be used as bartering tools (if necessary) and they can be used just about anywhere in the world.   Likewise, the best real estate is the world will still remain valuable.   You won’t be able to make a ridiculously low offer for a piece of land on the water in Palm Beach any time soon or ever because there will always be someone there with a better offer – be it cash or cash equivalents.

Domain names can’t be lost (unless you forget to renew them), they are difficult to steal if you are careful, and good ones are valuable just about anywhere in the world you go.   The Internet is one thing that binds just about the entire world, and it isn’t going anywhere.

Sure, people may be struggling to survive financially and things may appear to be getting worse, but as far as I can see, the impact is somewhat isolated.   I think some people need to spend less time watching the news and more time focusing on how to improve their own economic conditions.  

Fear is as dangerous as what is feared.

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