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Rick Schwartz

Work in Verticals You Know

Elliot Silver
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5

Rick Schwartz and Chef Patrick recently posted about dropping crappy domain names. I completely agree with this, but I think the bigger problem is that many people can’t distinguish whether a domain name is decent or crappy. The great ones are obvious to most, but some people have problems where they believe a domain name is good and has value, when in fact, nearly everyone else would say it sucks.

In my opinion, there’s no way you can beat a generic term or phrase with a brandable name. Of course, you can sell a brandable .com name to a willing company for a lot of money, but chances are good that those who have done it own thousands of brandable names and need that big sale to break even or possibly make a bit of profit. Always look at the big picture, and when you do, I think you will see that generic keywords will make you a lot more money in the long run.

One way to make sure you are buying generic .com terms is to focus on verticals you know – at the very least when you are first starting out in the industry. If you are a direct marketer for example, think about all of the types of products you use (business reply envelopes and flash drives), phrases you discuss (return on investment and presentation deck), and services you use (telemarketing reps and call center monitoring). Write a bunch of these down and see if the phrases as .com domain names are registered.

For the names that aren’t taken, put those phrases into keyword tools such as Vurr, Aaron Wall’s Keyword Tool, and Google Adwords keyword tool, and see how many people are searching for those exact phrases (correct spelling and all). Depending on the tool and the phrases, results can vary. For a sanity check, compare your long tail phrase to the short tail to see what the difference is. For example, if you look up “call center monitoring” in one of the tools, cross check it with “call center” so you can compare how many people are searching for the long tail vs the better short tail. If the numbers look good, it might be worth registering.

Another piece of advice is that if English isn’t your first language, you might not want to register English .com domain names. On occasion, things get lost in translation, and even the slightest change can render a name worthless. Instead of focusing on English .com names, perhaps you will have better luck focusing on names in your primary language. ccTLDs are hot, but I am sure people also search with their language + .com, so if you want to stick with .com, that may work, too. Don’t force it though.

It’s important to focus on verticals that you know, because you may end up registering dozens, hundreds, or thousands of dollars worth of domain names that nobody will ever want to buy. A year from that point, you will be stuck deciding whether to renew those names, the fruits of your time spent a year prior, or to let them drop and take the realized loss. IMO, stay lean in these times and only register good names.

Remember, it’s my opinion that you can’t go wrong with .com. Also, remember, it’s generally better to own 1 domain name that is really worth $8,000 than to register 1,000 average domain names at a cost of $8,000. At least if you need liquidity, it will be easier to get cash by selling ONE name than by trying to sell 1,000 domain names.

TRAFFIC Silicon Valley Auctions

Elliot Silver
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6

Both Moniker and Rick Latona have released preliminary lists for live auctions that will take place during the TRAFFIC conference in Silicon Valley April 27-30. Below are the lists, with my favorites bolded. Unfortunately, I won’t be attending the auction, as I am traveling to Burbank for a few days right after the GeoDomain Expo in San Diego.

Moniker auction:
111.org $1 – $5,000
15yearmortgagerates.com No Reserve
24.org $25,001 – $50,000
700.com $10,001 – $25,000
accreditation.com $5,001 – $10,000
ad.com $250,001 – $500,000
affiliateadvertising.com $1 – $5,000
aircraftengines.com $5,001 – $10,000
allterrainvehicles.com $5,001 – $10,000
allusion.com $1 – $5,000
announced.com No Reserve
antihistamine.com $5,001 – $10,000
athletic.com $25,001 – $50,000
authorization.com $10,001 – $25,000
automating.com $5,001 – $10,000
backgammonsets.com $1 – $5,000
backhoe.com $25,001 – $50,000
baptistchurches.com $1 – $5,000
barbequegrill.com $5,001 – $10,000
bargain.travel $1 – $5,000
bicentennial.com $1 – $5,000
bionic.com $5,001 – $10,000
blackpanthers.com $10,001 – $25,000
BoatRepairs.com $5,001 – $10,000
bottledwater.com $25,001 – $50,000
breeding.com $25,001 – $50,000
bribes.com $1 – $5,000
buffoon.com $1 – $5,000
BuildingPermits.com $5,001 – $10,000
businessbankruptcy.com $1 – $5,000
californiacommercialrealestate.com $1 – $5,000
CampingSupplies.com $10,001 – $25,000
Cancun.org $5,001 – $10,000
caribbeanvacations.com $100,001 – $250,000
carpetstores.com $5,001 – $10,000
chargingstations.com $10,001 – $25,000
cheerleaders.org $1 – $5,000
collegecourse.com $10,001 – $25,000
comedyclub.com $50,001 – $100,000
commitment.org $1 – $5,000
corporatejets.com $50,001 – $100,000
cosmetician.com $5,001 – $10,000
creditchecks.net $1 – $5,000
cureforcancer.com $1 – $5,000
datingwomen.com $5,001 – $10,000
debtcollection.org $1 – $5,000
debug.com $10,001 – $25,000
dietandexercise.com $1 – $5,000
dietician.com $25,001 – $50,000
diets.net $10,001 – $25,000
discountairfares.org $1 – $5,000
discretion.com $10,001 – $25,000
domainauction.com $100,001 – $250,000
downriggers.com $1 – $5,000
EarnMoney.com $1 – $5,000
europeanvacations.com $100,001 – $250,000
ewills.com $5,001 – $10,000
ExecutiveAssistant.com $5,001 – $10,000
exhibiting.com $1 – $5,000
explored.com $10,001 – $25,000
fatalattraction.com $1 – $5,000
federalairmarshals.com $1 – $5,000
ferriswheel.com $1 – $5,000
filebankruptcy.com $50,001 – $100,000
filet.com $10,001 – $25,000
financing.net $50,001 – $100,000
findjobs.com $100,001 – $250,000
fixture.com $25,001 – $50,000
flatpaneltvs.com $5,001 – $10,000
flightinstructors.com $10,001 – $25,000
FloridaAttorney.com $5,001 – $10,000
foreclosurerefinance.com $1 – $5,000
freightlines.com $1 – $5,000
garagekits.com $1 – $5,000
gardencenter.com $10,001 – $25,000
gardenofeden.com $10,001 – $25,000
ghoststories.com $25,001 – $50,000
glasspanels.com $1 – $5,000
glutenfreerecipes.com $5,001 – $10,000
golfcaddy.com $1 – $5,000
governmenthousing.com $10,001 – $25,000
graders.com $5,001 – $10,000
greatfalls.com $10,001 – $25,000
hairwax.com $5,001 – $10,000
HeadShot.com $5,001 – $10,000
highspeed.net $1 – $5,000
homemortgage.net $5,001 – $10,000
hotproducts.com No Reserve
illegalimmigrants.com $10,001 – $25,000
imageconsultants.com $5,001 – $10,000
indianaforeclosures.com $1 – $5,000
influential.com $10,001 – $25,000
intelligentdesign.com $1 – $5,000
invasion.com $10,001 – $25,000
john.mobi $1 – $5,000
Jonesboro.com $10,001 – $25,000
junk.net No Reserve
kidnap.com $10,001 – $25,000
kingcrab.com $5,001 – $10,000
laptopcomputers.info No Reserve
lineart.com $10,001 – $25,000
lists.net $1 – $5,000
liveauctions.com $25,001 – $50,000
loancalculator.com $250,001 – $500,000
lz.ca $1 – $5,000
maintaining.com $1 – $5,000
marketingfirm.com $50,001 – $100,000
marriages.com $25,001 – $50,000
mbajobs.com $50,001 – $100,000
mediarooms.com $10,001 – $25,000
migraine.com $100,001 – $250,000
millionaire.org $5,001 – $10,000
modernhouses.com $1 – $5,000
mouthguards.com $1 – $5,000
moviemaking.com $10,001 – $25,000
movingservice.com $1 – $5,000
mr.org $5,001 – $10,000
noevil.com $1 – $5,000
nonprofits.com $10,001 – $25,000
officesupplystores.com $1 – $5,000
onlinetelevision.com $10,001 – $25,000
organicchicken.com $5,001 – $10,000
organictea.com $10,001 – $25,000
oxygentanks.com $10,001 – $25,000
packages.net $1 – $5,000
photodeveloping.com $1 – $5,000
physicalexamination.com $5,001 – $10,000
pinballwizard.com $1 – $5,000
pitches.com $5,001 – $10,000
plans.com $100,001 – $250,000
popupblockers.com $1 – $5,000
pornos.net $25,001 – $50,000
primers.com $5,001 – $10,000
punks.com $1 – $5,000
realty.com $1MM – $5MM
redistribution.com $1 – $5,000
reelect.com $1 – $5,000
refund.me $1 – $5,000
reimbursement.com $1 – $5,000
rejected.com $5,001 – $10,000
relatives.com $25,001 – $50,000
rentcenter.com $10,001 – $25,000
repaired.com $10,001 – $25,000
researchcenter.com $10,001 – $25,000
respected.com $1 – $5,000
retrain.com $5,001 – $10,000
roomairconditioners.com $10,001 – $25,000
sacked.com $5,001 – $10,000
salinas.com $50,001 – $100,000
samuraiswords.com $25,001 – $50,000
SanBernardino.com $25,001 – $50,000
santaclara.com $100,001 – $250,000
season.com $25,001 – $50,000
sham.com $10,001 – $25,000
shutter.com $10,001 – $25,000
siamesecats.com $1 – $5,000
silos.com $10,001 – $25,000
slots.asia $10,001 – $25,000
sports.info $5,001 – $10,000
stallions.com $10,001 – $25,000
statenislandrentals.com $1 – $5,000
steakknives.com $10,001 – $25,000
stimulant.com $5,001 – $10,000
sued.com $1 – $5,000
sushirestaurants.com $10,001 – $25,000
taxinformation.com $5,001 – $10,000
Telemarketers.com $25,001 – $50,000
terrorist.com $10,001 – $25,000
toasterovens.com $25,001 – $50,000
trafficaccidents.com $10,001 – $25,000
transferring.com $1 – $5,000
travelconditions.com $5,001 – $10,000
usedhummers.com $10,001 – $25,000
viajes.com $1MM – $5MM
vixen.com $10,001 – $25,000
wager.co.uk $1 – $5,000
weddingcards.com $10,001 – $25,000
WeddingGift.com & WeddingGifts.com $250,001 – $500,000
workoutclothing.com $1 – $5,000
ycg.com $1 – $5,000

Rick Latona’s Auction (first half)
French.com $200,000
rickshaws.com $1,000
propertymanagers.com $8,500
antiqueautosales.com $1,000
Belgium.com $500,000
apartmentnetwork.com $1,000
Sofas.com $250,000
apparelshow.com $1,000
divorcio.com $50,000
archers.net $1,000
SavingsBonds.com $1,500,000
asianflu.com $1,000
TripleCreditReports.com $33,000
bigsizes.com $1,000
Seoul.com $750,000
footballs.net $1,000
PinballMachines.com $40,000
pickles.net $1,000
JobPlacement.com $100,000
TennisCamp.com $1,000
Novelties.com $90,000
spa.travel $1,000
Palermo.com $65,000
jet.travel and jets.travel $1,000
RemoteControls.com $25,000
mudracingtires.com $1,000
Purebreds.com $15,000
HealthSnacks.com $1,000
TempLabor.com $15,000
MotorcrossRacingTires.com $1,000
NiceLegs.com $6,000
Matchable.com $1,000
SleepingPill.com &
SleepingPills.com (pair) $500,000
ConcealedGunPermit.com $1,000
DietPill.com $500,000
DataReader.com $1,000
Menos.com $18,000
NetMarketers.com $1,000
SanJose.net $7,000
BuckeyeState.com $1,000
coaddiction.com $5,000

Does a Big Sale Raise Domain Values?

Elliot Silver
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22

I am in the midst of a discussion with one of my blog readers, Bruce Gittleman (who gave me permission to use his name and domain names), and the discussion centers on whether Rick Schwartz’s pending sale of Candy.com will lift the values of four domain names Bruce owns, CandySweets.com (reg’d in 1999), WeLoveCandy.com, SheLovesCandy.com and BuyGreatCandy.com. There is a saying, “a rising tide lifts all boats,” and some people liken it to a big domain sale increasing the value of similar or related domain names, but I don’t think it applies in this situation.

After a large domain sale like Candy.com, world event like the election of President Obama, or tragedy like the tsunami in Thailand, people register thousands of domain names with the hopes of capitalizing on the increased publicity. It is my belief that 99.9% of these types of domain names do not sell. Although Bruce didn’t specifically register his brandable domain names because of Rick’s pending sale, if they are put up for sale now, they will compete with thousands of other similar names on sites like Ebay.

There are several reasons that I outlined why I think Bruce will be hardpressed to sell his domain names for a profit – especially given the current economic conditions:

  1. Since nobody has contacted Bruce since 1999 (assumption), chances are good that nobody will all of a sudden want them… so
  2. Bruce will have to contact candy companies on his own to sell/market them, which is   very time consuming
  3. It will be difficult finding someone who wants these, so Bruce will have to sell them on the concept rather than just on the value of the names alone.
  4. Once Bruce gets someone interested, he will then have to convince them to spend the money.   Bruce has already invested over $75 in renewal fees alone + the time it takes to convince them that they need the domain name
  5. It’s very difficult to convince a company to spend thousands of dollars on a brandable name, when they can just as easily spend $8 to register: TheyLoveCandy.com, SheLovesCandies.com, or another unregistered brandable domain name

There are always people who spend hundreds of dollars on “trendy” domain names that are mostly a waste of money, in my opinion. Instead of spending $800 dollars on 100 new registrations like these, it would be better to buy one $800 domain name that gets some traffic and actually has meaning, rather than creating brandable domain names that nobody cared to register in the past.

Generic domain names like Candy.com and Auction.com sell for 7 figures because everyone around the world knows them.   They haven’t been developed into businesses before, yet their brand value and goodwill is already immense. Additionally, the type-in traffic is and always will be strong, and this traffic can be converted into sales immediately after turning it into a business.

In my opinion, 99.99% of the new registrations that come after big sales are worthless. In general, I do think similar meaningful names like CandyBars.com and Auctions.com become worth more as domain names, but I really don’t think brandable names become more valuable.

What do you think?

BTW, I thank Bruce for being a good sport about this and allowing me to use him and his names as examples.   If the four names he owns are of interest to you or your company, drop me a note and I will put you in touch.

Schwartz Set to Sell Candy.com for $3m

Elliot Silver
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11

Rick Schwartz has announced that he reached a deal is set to sell Candy.com for $3,000,000 + an ongoing percentage of sales. The domain name was is said to be purchased by an undisclosed US candy maker.

Several months ago, I believe Rick had been forwarding traffic from Candy.com to Hersheys.com, but I don’t know if this might be a precursor to the sale.

The recent million dollar + sales of names like Auction.com, Toys.com and Candy.com show that the domain market is still strong at the top.   Brands are great, but one word category killer .com domain names that get significant type-in traffic will always get type in traffic, and these domain names can consistently drive revenue for a company.

***Update***

Although the title of Rick’s article says “Rick scores a sweet deal,” indicating that a deal was finalized, some of the content from inside the article indicate that the deal might not be completely closed yet.   “In what will be another landmark deal, I am able to report that Candy.com is set to sell for $3M plus an ongoing percentage of sales to a US based candy company.” I don’t think Rick would have reported this on his blog if he wasn’t certain it would close, but I wanted to post this update.

Tucows Stripped of WADND Registrar Seal of Approval

Elliot Silver
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7

Subscribe to Elliot's BlogIn an email sent by Rick Schwartz today, World Association of Domain Name Developers Inc. announced that Tucows has been stropped of the WADND Registrar Seal of Approval that was awarded on October 22, 2007. To receive this seal of approval, a registrar has to meet the following criteria set forth on the WADND website:
1. Registrar must agree to cooperate with all other Registrars when a domain is claimed to be hijacked.
2. Registrar must have 24-hour Hot Line for reporting stolen domains or other registration problems.
3. Registrar must delay transfer, or double-check authenticity of purchaser when transfering a domain to a Registrar who knowingly harbors hi-jacked domains.
4. Registrar must have “Executive Lock” in place that can only be removed by direct communication with Registrant.
5. Registrar must have a minimum of one million (1,000,000) domains registered.
6. Registrar must provide sufficiently direct means to unlock domain locks, so as to not unduly deny a legitimate transfer request from a verified domain name registrant.
7. Registrar must collect emergency contact information from registrants, other registrars and resellers to respond to an urgent restoration of a hi-jacked domain.
8. Registrar must define and make clear the emergency procedures which can be instituted in events where emergency contacts are not available.
9. Registrar must provide clear and readily accessible information to registrants regarding domain locking and domain name protection measures offered by Registrar.
Below is the press release distributed today:

The majority of non-obstaining Board of Advisors from the World Association of Domain Name Developers Inc. has voted to revoke the WADND Registrar Seal of Approval awarded to Tucows.com. Tucows has continually chosen stockholder interests over domainer interests. The latest plan, selling expired domains they kept from their own customers for failing to timely renew.
http://www.thedomains.com/2008/10/29/tucows-now-selling-the-expired-domains-they-kept-from-their-customers/
http://www.thedomains.com/2008/10/31/tucows-responds-to-yummydomainscom/
http://www.whizzbangsblog.com/index.php/20081110486/MyBlog/Conflicts-between-customers-and-registrars.html
And earlier this year:
http://www.thedomains.com/2008/06/21/ethics-of-domain-drop-auctions-tdnam-and-namejet-called-out-yesterday-today-we-call-out-tucows/
http://www.thedomains.com/2008/06/25/tucows-response-to-our-post-not-good-enough-and-heres-why/

Uneducated Comments from Amateurs

Elliot Silver
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32

Subscribe to Elliot's BlogThese past couple weeks, I’ve been irritated by people making uneducated comments about end-user sales being too high. On various public domain forums, some people seem to think that end users are paying too much for domain names that define their nice or define a major category in their niche. I think these comments are uneducated and somewhat baffling.
If your family owned a diamond or jewelry business on the 4th floor of a building in New York’s famous diamond district, how much would it be worth to be able to buy out the lease of the shop right on the corner of 47th and 5th, which is passed by tens of thousands of people a day?   This location is far more lucrative to a diamond dealer than it would be to someone else – say a ski shop.   I wouldn’t expect the owner of a ski shop to criticize a diamond dealer for paying millions of dollars to secure the best slot in the diamond district, so why are some domain investors critical of domain sales to end users – the people that know their business?
Some of the threads where comments were being made seem to be more of a personal nature directed at Rick Schwartz and his recent sale of RoomDividers.com.   There are people who are actually alluding to a conspiracy theory or some other dumb bullshit (like Rick is going to stake his rep on a $75k deal).   For fuck’s sake – leave Rick alone.   It’s easy taking potshots at one of the domain industry leaders, but it makes you look like a clown.   By no means do you have to agree with everyone, but there is a way to disagree without being disagreeable.
Think what you want about whoever you want, but when you air your views out in the public, people may be less inclined to do business with you, and it’s your reputation that will take a hit.

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