Generic Domain Names

Face.com: From $160k Domain Sale to Rumored $100,000,000 Sale

Not only is  Face.com  a fantastic domain name, but it’s become “a technology company with the best-in-class face recognition software.” TechCrunch is  reporting  that there are “rumors that it is being acquired by Facebook for up to $100 million,” although the CEO didn’t confirm (or deny) the rumor.

I do not know much about company that owns Face.com (Vizi Labs), but it’s interesting to see one of the  Whois contacts  is “John Berryhill Attorney Trust Account,” so perhaps there are domain industry connections there. In any event, there are at least two domain industry connections associated with Face.com.

According to  Nat Cohen’s blog, domain investor Andy Booth once acquired Face.com for $160,000:

Securing Face.com was a big deal. It was not easy to acquire, but I saw a listing on Afternic, where it had a $130,000 bid on it. I contacted the owner and established that he was looking to sell it, but wanted the market to dictate its value. After numerous calls, I convinced him to accept my $160,000 offer, and we got the deal wrapped up. I felt that given the general domain market, this kind of money was more than value for such a premium, generic domain and later DNF appraisals and the resultant sale would affirm this belief.

It looks like Andy owned the domain name sometime around  August 15, 2007, and it appears to have been subsequently re-sold to a company called Vevron  shortly thereafter. I reached out to a representative from Vevron (someone with many domain industry ties), and they confirmed that the company sold the domain name to its current owners, but details are covered by a non disclosure agreement.

It’s interesting to follow the history of a fantastic domain name like Face.com and see it grow into a big business.

Lewis & Lin Defends Tucks.com from UDRP Filed by Johnson & Johnson

When one of the largest companies in the world files a UDRP, most would probably think the outcome would go in their favor, regardless of the descriptive nature of the domain name.  Johnson and Johnson, one of the largest health and consumer goods companies in the world, filed a UDRP to try and wrest the Tucks.com domain name from its owner,   Chad Wright of WebQuest.com, Inc.

Tucks is J&J’s brand of medicated ointment pads for hemorrhoids. J&J uses TucksBrand.com for its website.

The WIPO decision was just handed down, and the panel ruled in favor of WebQuest, who was represented by the Brooklyn-based law firm of Lewis & Lin.  I asked Brett Lewis to comment on the decision and he said, “This is a great decision for legitimate domainers. The Panel thoughtfully evaluated the evidence, or lack thereof, and concluded that the Complainant had failed to demonstrate that the domain name, , which is a dictionary word, had been registered and used in bad faith.

While the respondent conceded that J&J does have rights to the Tucks trademark, they argued five points in defense of the domain name. These points include that it’s a dictionary term, “Tuck” is a common last name, the name was owned for many years without incident, the owner had no intent to sell it to J&J, and upon a change of parking companies, Tucks-related ads showed accidentally until it was noticed by the owner and switched.

I want to share some of the panel’s findings, which I think are important for domain owners to note:

The Panel accepts generally that a respondent may have a right to register and use a domain name to attract Internet traffic based on the appeal of a commonly used descriptive term, even when the domain name is confusingly similar to a complainant’s registered mark.

However, that domain name must have been registered because of its attraction as a dictionary word or descriptive term, and not because of any value corresponding to a trademark; the use of the domain name must also be consistent with its attraction as a dictionary word or descriptive term. “

“Although the Panel has some reservations about the overall credibility of Respondent’s Declaration, the Panel accepts Respondent’s sworn statement that he was not aware of the TUCKS mark at the time of registration. However, even allowing that the trademark was known to Respondent, the registration could have been in good faith and for a legitimate purpose if Respondent’s use of a common word was intended to be descriptive, as explained above.

The Panel takes into consideration that Respondent’s website did not refer to the TUCKS trademark or advertise complainant’s competitors for a full nine years after Respondent’s registration. The record also shows that the website, for at least a few years, used a dictionary meaning of the “tucks” term, before linking to Complainant’s competitors during a six-month period in 2011.

“On balance, the Panel concludes that the Complaint provides insufficient evidence to conclude that the disputed domain name was registered in bad faith.”

There was quite a bit more to the decision than just what I posted, and you can download the full decision here  (a Word document)  since it has not been posted on the WIPO website yet.

Occupy.com Launches in Time for May Day Protests

In October of 2011, Occupy.com was put up for sale by its owner, and it was brokered by New York based domain name and IP attorney  Karen J. Bernstein. I put up a poll at the time asking the value of the domain name, and about 30% of those who responded thought it was worth less than $10,000, although I am quite sure the price was much higher.  While the Occupy.com domain name had value due to its descriptive nature, the Occupy movement certainly increased its value tremendously.

At the beginning of this year, it was reported that Occupy.com had sold for an undisclosed sum. According to an article on MRC.org  a few weeks ago, “Filmmaker David Sauvage co-founded Occupy.com with film producer Larry Taubman after they purchased the domain “for a large confidential sum” to give voice to Occupy activists.”

As the Occupy movement prepares for its May 1st day of action across the United States, it appears that Occupy.com has launched as a home base online for the Occupy movement. The “Alpha” version of Occupy.com contains quite a bit of information about the movement and its events. The site appears to have launched in early April.

It will be interesting to watch the Occupy.com website evolve.

Why CSN Stores is Rebranding & Moving Away from Descriptive Domain Names

CSN Stores (now known as Wayfair) is a company that knows quite a bit about descriptive domain names. The company runs a number of businesses on domain names like Bedrooms.com, BedroomFurniture.com, Luggage.com,  Upholstery.com, Strollers.com, and many others. One issue the company has as a result of using so many domain names is that there is no main brand recognition. Consumers may have done business with more than one related website, but they probably wouldn’t know.

According to a recent article in Inc. Magazine and posted on Yahoo Small Business Advisor, the company is pivoting away from operating on many different descriptive domain names and uniting under one brand called Wayfair.

There are some very interesting tidbits in the article, which I think anyone investing in domain names should read. Some bits I found particularly interesting include:

  • The company pulled in sales of more than $500 million in 2011. Its head count is approaching 1,000.
  • Part of the reason you don’t know about Wayfair is that the company doesn’t quite know itself yet. For the first nine years of its existence, it was known—if it was known at all—as  CSN Stores. Rather than one brand, CSN Stores was a collection of more than 200 almost absurdly narrow niche sites, with names such as HotPlates.com and EveryGrandfatherClock.com.”
  • The 200 sites are gone; in their place is Wayfair.com, which Shah and Conine hope to make synonymous with all things home-related. The idea is that Wayfair will be a destination, not a site you stumble upon while searching for a new chaise longue.”
  • This was a big move, perhaps the biggest the company could make. For years, CSN Stores had been intentionally mysterious. Anonymity, after all, has its benefits: There’s no risk of damaging the brand if there isn’t a brand to damage. Even the biggest customer service screwup on one site was unlikely to affect customer loyalty on any of the other sites.

In June of 2011, I wrote about the company’s $165 million funding round, which had been identified as being for “acquisitions.” At the time, I surmised that the company might look to acquire great descriptive domain names, but I am not sure if that’s really what happened considering the re-branding effort.

The Inc Magazine article is a great read with quite a bit of detailed information about the founding of CSN Stores and how it’s grown, thrived, and adapted, and I think it’s an article well worth reading when you have an opportunity.

Thanks to Steven Kennedy of SK Creations, Inc. for telling me about the article.

Utah Tourism Uses Call to Action Domain Names in Campaign

I’ve seen quite a few television advertisements created by the State of Utah’s Office of Tourism, and I think they’re pretty solid when it comes to their call to action domain names. Not only does the state promote VisitUtah.com, but it also promotes SkiUtah.com  in its commercials, although the later is owned by the Utah  Ski  and  Snowboard  Association.  The Office of Tourism also operates a website in a subfolder on the state’s Utah.gov website.

There have been several times when I wanted to book a ski trip after seeing one of the commercials, especially since great skiing is just an hour from Salt Lake City, so they tell me. I think my next ski trip will likely be to Deer Valley or Park City instead of Breckenridge, Colorado.

One issue I noticed though is that the VisitUtah.com website does not appear to be ranking well in Google. When I searched Google for “visit Utah,” the site isn’t even listed in the top 100 results. Perhaps this could be related to the home page’s title tag being simply http://www.visitutah.com instead of the more SEO friendly Visit Utah, Plan Your Utah Vacation, or some other targeted SEO friendly keywords.

VisitUtah.com does appear in Google when I searched for the exact domain name, so it isn’t banned by Google. For some reason, the page title appears in Google as Utah.travel, which possibly was the former domain name or another domain name used for the same website. I believe it’s likely that the home page title tag is simply the url, instead of search engine friendly keywords, and it probably should be changed.

In my non-expert SEO opinion, the website needs to be looked at by a SEO professional to improve its search rankings. It’s great that the Utah.gov site is ranking well, but with sites promoting tourism like VisitUtah.com and SkiUtah.com, they should be dominating SERPS. When that happens, they will see an increase in traffic, and hopefully bookings.

On the other hand, it appears that the SkiUtah.com website is doing well in Google. A search of Ski Utah reveals the site as the top ranked in Google for that keyword. You’ll notice the search engine friendly page title “Ski Utah: The Greatest Snow on Earth – Home,” which is most likely helpful to its rankings.

I really think it’s quite important for the VisitUtah.com site to have some SEO attention paid to it. The Office of Tourism does not own Utah.com, so people searching Google for the Visit Utah website are more apt to land on Utah.com than their promoted website. With a call to action domain name that sounds like its telling people to visit Utah.com, it’s critical that they have everything else in order.

The Office of Tourism created a fantastic website in VisitUtah.com and Utah  Ski  and  Snowboard  Association’s SkiUtah.com is great. Kudos to them for their strong campaign, and with a little work, it can be even better.

BTW, Utah is an AWESOME place for skiing.

5 With… Patrick Ruddell, ScienceFiction.com

Similar to what I’ve been doing on DogWalker.com, Patrick Ruddell has been building a brand on the category defining domain name, ScienceFiction.com. I read about the remarkable growth of the website on Domain Name Wire, and I was  very interested to learn that Braden Pollock was getting involved with the site.

According to Patrick, “Braden and I had some great discussions while aboard DNCruise 2 last September which continued on land. After some negotiations and buying out my previous partners, Braden came into ScienceFiction.com, LLC as an equal partner in November.”

I think this growth story is a testament to how someone with a category defining domain name and a solid development and business plan can create a business. For Patrick, the revenue is not yet there, but with the growing audience, it certainly will be there very soon.

I reached out to Patrick to ask him some business related questions, and his responses are below.

ES: How have you been growing the site and what are you doing to drive traffic and awareness?

PR: Quality content and a lot of it. I can’t say any of our traffic success has been from SEO because we haven’t done much. What we have done is work on putting out quality content in bulk. With a team of roughly 15 writers we publish 7-13 articles per day. Beyond content, social media has been an excellent source of traffic for us. Also having 15 writers with their own social media outlets and being active in places like Twitter, Facebook and StumbleUpon is a bonus.

ES: Are you active in the Science Fiction community offline and on other sites? Do you think it’s important to be active in the community?

PR: Unfortunately I have not had the time, just yet, to be an active member in the community offline, only through social media and email. I do think this is important and something we plan to change in 2012.

ES: How are you monetizing the site and how is it working out?

PR: So far we have only done a single Google Adsense ad which brings in less than $1,000 per month. We did this more of a test to see what that specific location would generate on a monthly basis. With this in mind we can set a base price for that ad space. With the site now one year old, and certain traffic goals met, we plan on turning our attention to ad sales. We just hired our first in-office employee which starts next week. One of her primary responsibilities will be reaching out to potential advertisers with our marketing opportunities.

I’ll share this story, which gives me a lot to look forward to. Only a few months after our launch, a cable channel reached out to us for advertising. Their budget, to my surprise, was $25,000 for a theme-takeover of 10 days. Unfortunately at the time our site was only getting roughly 45,000 per month, not what they were looking for. We closed December with 439,000 visits and over 1.2 million pageviews, certainly closer to what they were looking for. Focus for us to date has been getting eyes to the website.

ES: We all make errors along the way. Have you made any missteps that you’ve learned from that others may benefit from learning? How did you correct them?

PR: Where do I start, there have been many. If dealing with partners, know their strengths and weaknesses. Without going into specifics this alone was the biggest stress on ScienceFiction.com until Braden joined the business. Know your product. Before diving into the business I wasn’t what you would call a sci-fi geek. That has changed as I now own hundreds of comic books and watch A LOT of sci-fi tv shows and movies. I’m still working on earning my sci-fi geek badge, getting closer every day.

ES: What advice would you give to people looking to build a brand as you did?

PR: I’m not just saying this as a domainer, start with a premium domain name. Operating under ScienceFiction.com has given us credibility from day one. The science fiction community itself may not be aware of domain name values, but they know with our address that we are serious about what we do.

And a second piece of advice, call it a bonus, hire multiple writers. Do whatever you can to get included in Google’s news feed. This has been the single biggest boost to our site’s traffic.

Thanks for the interview Elliot. Let me give a quick shout-out to my amazing team. They have done a killer job writing and getting the word out. Their love and knowledge for science fiction and website has helped us grow tremendously.

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