Steven Kennedy’s development story motivated me to build a site on my own to show just how simple it is – even for someone without much development skill (like myself). I wanted to find an animal-related domain name that wasn’t registered, as the point of my experiment is to start from absolute scratch. I did some research focusing on sea-life and sea creatures, and I honed in on species of sharks.
After doing some research, I learned about the Chain Catshark, and I saw that Aaron Wall’s keyword tool showed 65 daily Google searches and 93 total daily searches. There were also just a few thousand sites indexed in Google that even mentioned the Chain Catshark. I saw that ChainCatshark.com was unregistered, and I went to work at around 4:30 in the afternoon.
I found a site for free web templates, and I downloaded one of the templates I thought would look nice. The only requirement they have is a link in the footer. I then found a GNU free to use image on Wikipedia, and I began to play around with the template. I wanted the template to look as customized as I could with my limited technical expertise, and it was fairly easy to do with Dreamweaver.
After adding Adsense spots and making color and font changes, I began to do some research on the Catshark, Chain Catshark habitat, Chain Catshark food, and other Chain Catshark information. I used several reliable internet resources for my information in order to provide visitors with the content they are looking to find. I created individual pages for several topics related to Chain Catsharks and wrote small articles for each.
Overall, the entire project (research to development) took just under 4 hours of time. Hypothetically, if I paid myself $100/hour, I will need this site to make $.15/day consistently to profit on an 8 year revenue multiple – basically less than 1 click per day. If I was able to do 2 of these a day (I won’t – I would rather work on Burbank.com or Torah.com), I could probably sell these sites for a nice return down the road.
While I don’t expect to make a lot of money from the site or others like it, I do want to show that you can make money by registering new names without having to hope that someone randomly makes an offer on the name before it expires. If you have a passion for something and buy a domain name related to that interest, learn how to build a small website and spend an afternoon developing. You probably won’t get rich, but you will learn how to use html in a low risk setting. I should also add that it’s nice to be able to mess around like this – being my own boss is great. 🙂
***I am headed to another wedding in a couple of hours, so I won’t be approving comments until I return.
Domain Investor to Domain Developer
While I haven’t stopped domain investing by any stretch, I have been spending quite a bit of time on development. From Tropical Birds, to Lowell, to Burbank, and soon to Torah, I’ve been learning as much as I can about development. Even with my severe lack of technical and programming knowledge, I’ve been able to learn enough to tread water with the help of my developer, a few friends, and Dreamweaver.
The purpose of development is to drive traffic to the website with compelling content, and either sell ad space or use Adsense to generate revenue. A parked domain name can be great if the domain name receives traffic. It’s a very low maintenence way to generate revenue from a domain name, and it’s perfect for someone with hundreds of domain names. However, if and when possible, I am a firm believer that development is critical.
A friend of mine, Steven Kennedy, is also a domain investor with some great domain names in his portfolio. Recently he decided to spend a day building out one of his domain names, SpiderMonkeys.com. Steven did a considerable amount of research on spider monkeys for his articles, and he used xsitepro2 (a web design program) and xheader (a header creation program) to build the custom site. Steven is monetizing it with Adsense banners. In my opinion, the site looks top quality, and it only took a day to create.
Not only will Steven be able to retain the visitors who type-in his domain name, but he will attract new visitors through search engine results. Google and Yahoo like content. With a little bit of link building, some additional keyword research, a bit of SEO work, and time, Steven will have a website that receives much more traffic and hopefully additonal revenue. It took him a day to do this, and it’s something everyone can do.
Google Alerts Drive Website Content
Writing unique and relevant content for a blog or a website can be difficult. With the Internet, news is old minutes after it hits the most popular websites. With sites like Drudge and TMZ, a news story that is interesting will be read by thousands of people within minutes of a news aggregator posting it on their website or blog.
One way I keep my blog and websites updated is by subscribing to Google Alerts. I have key phrases that would be most relevant to my websites. Not only do I have certain keywords set as alerts, I also have key phrases in quotations. I know I won’t be the first person to post a news story, but it’s always good to have fresh content on your site.
Also, it’s important to credit the original source of the news story for a number of reasons, but most important for legal purposes and credibility. If the source isn’t generally the most reliable like CNN or NY Times, it’s important to see where they found the article, so you can investigate. To add uniqueness to the article, I recommend adding your opinion or spin of the story – what it means to you or to people who will read the article.
You might not be first to print an article or news story, but if you offer good analysis, people will still be interested in reading what you write.
5 With… Warren Royal, Owner – Bobbleheads.com
Warren Royal has been in the online world for a while. He started a small BBS (Bulletin Board System) in 1988, and it grew over the years to be one of the most popular online systems in the country in 1993. At that time, Warren serviced subscribers from all over the world, and registered his first domain, so that he could expand his mail services to include internet mail. (He still has that domain today).
Later, as the internet became more popular, BBSs lost favor, and Warren converted his BBS to an Internet Service Provider, and offered dialup and website design services to his clients. Warren became very involved in domain acquisition in 1998 to assist clients with some new products and services he offered, and he still has most of those domains today.
Since that time, Warren has gone back and forth between entrepreneurial activities and corporate technology management. Warren earned his MBA degree at night, and for many years, he worked as an IT manager in the mortgage industry – and eventually became the CTO for a large mortgage company in Atlanta. At that time, he was commuting 2 1/2 to 3 hours each day to his office. In early 2007, the mortgage industry imploded, and his employer shut down literally overnight. Warren decided to go back into business for himself again, and to focus on internet and domain development. And since then, that’s what he’s been doing.
In the meantime, Warren also published a pictorial history book about his hometown in South Georgia, and has launched Shreveport.com and a number of other smaller GEO websites. One of his projects, Bobbleheads.com, has also been keeping him busy, and the site has become one of the most popular bobble head doll websites.
EJS: 1) When you were thinking about buying Bobbleheads.com, did you already have a plan for the website or did you come up with the plan after owning the name?
WR: When I saw the domain Bobbleheads.com at auction, I knew instantly that I had to have it. It was an extremely active auction, but I was determined to get it. It was the type of domain that you could develop, or park, and do very well with it either way. I didn’t know a single thing about the bobblehead business, and wasn’t exactly sure what I would do with it, but I knew it was the type of name that you could build a business around. Then, the next month, the singular version (Bobblehead.com) came up for auction, too – and I was also the successful bidder of that one. Once I bought the two names, and spent some time researching the industry, I decided that there was a great market opportunity, and to move forward and to develop a full business plan around the names.
EJS: 2) Are you finding it challenging to run a business like Bobbleheads.com while managing other websites such as Shreveport.com?
WR: Bobbleheads.com definitely keeps me busy, and it is a challenge. I’ve completely bootstrapped it, and am trying very hard to keep it a “one-man-operation”, but it’s starting to outgrow me. It is my first real internet business that is based upon actual products and services rather than being completely “virtual”. This is a significant difference from many websites. In the real world of product sales, you have to purchase and store inventory, deal with credit card processing and sales taxes, keep shipping tape and cardboard boxes on hand, and provide superior customer service. It’s a real business. Currently, we stock about 210 different products and over 3300 individual pieces- and we’ve only been in business for 5 months! It is still manageable, but if it continues to grow I will need to add staff.
EJS: 3) What was the process you undertook to develop the site, find products, and build an ecommerce website?
WR: Due to my extensive web development background, and my exposure to web technologies and tools, I decided to undertake the project myself. I found some great third-party technologies that gave me almost everything that I need, and was able to build the core site myself in less than a week. Setting up the interfaces with the credit card and shipping companies was a little tricky, but the software that I chose does a really good job of dealing with these complexities. As far as the products, I had to teach myself everything that I could about the industry. I called every vendor I could find, and fortunately they were very helpful and brought me up to speed quickly as their partner.
EJS: 4) Could you have had the same success with a name like eBobbleheads.com or CoolBobbleheads.com?
WR: No way. One obvious benefit is the substantial type-in traffic that I receive as a result of having this name. From the moment I opened the site, I had visitors who were looking for bobbleheads and were ready to buy. That was with zero marketing or advertising. But the greater benefit has been the instant credibility that I have been able to achieve with important industry contacts, such as vendors, and large corporate customers. When you own the name, you own the brand – and you are viewed as the authoritative resource for your category. Additionally, my site is now #1 on Google for the search term “bobbleheads”, after only being up 5 months. I’m not sure if that would have happened if my domain was something different.
EJS: 5) What are your goals for your domain/development business, and how does Bobbleheads.com fit in to that plan?
WR: Bobbleheads.com is doing very well. It has been profitable since the first month, and my monthly sales have grown almost 10-fold since June. The election has had a huge impact – we’ve sold over 500 election-related pieces alone. And we haven’t even hit the holiday season yet – I’ve heard from industry partners that we should expect sales to explode in November and December. Once I get through this busy season, I’ll probably hire a fulfillment company to take over the physical aspects of the business, which will allow me to scale it to a much larger size.
Long term, I plan to create several more businesses like this one, where I can bootstrap them and build them into substantial businesses. I also see Shreveport.com and my other Geos as being significant opportunities.
***BONUS QUESTION***
EJS 6) How did the Rick Schwartz bobblehead come about?
WR: I got the idea during the TRAFFIC conference in Orlando earlier this year, shortly after I had acquired the name. An artist had just drawn a great caricature of Rick, and I thought it would be great fun to do a custom bobblehead of him and surprise everyone at the NY Traffic show. I approached Rick, and he said “Sure!”. He is a great sport, and thought it would be fun. So we decided to move ahead with it.
I contracted with a partner who has offices in Mexico and China, and they had an artist sculpt his image in clay. We went through several versions, and Rick approved each one along the way, before they finally “fired” the clay figure and created a mold. They were then produced in China and hand-painted, and then we shipped 250 of them to New York just in time for the show. They were a huge success! I supplied the 250 TRAFFIC giveaways as a promotion, and am offering the rest at Bobbleheads.com.
We are going to do more; we are considering other candidates for the next
promotion. Stay tuned!
Managing Your Domain Business
In order to weather this economic storm, I have been spending most of my time and some of my money on developing and re-developing my websites. I believe it’s become very risky to invest in some lower to mid-priced domain names with the hopes of quickly flipping them, so instead of buying a $3,000 name with the hopes of selling it for $5,000, I am now spending that money on developing my sites (such as Burbank, Lowell, Secaucus and TropicalBirds). Yes it most certainly can still be done obviously, but it is more difficult.
I believe businesses will always need to advertise, and Internet advertising is a trackable way to advertise. Advertisers can determine campaign ROIs and adjust advertising expenses based on this. My sites will offer affordable advertising opportunities, that will be more economical than Google Adwords campaigns in most cases – or at least that’s the idea. The more advertisers that sign up and create custom landing pages within Burbank.com, the greater the traffic will grow and more value all advertisers will receive.
At this time, especially given the tax burden faced by most domain owners who consider their domain assets inventory, it isn’t wise to spend a ton of money on domain names that may or may not sell quickly. I am fortunate to not have registered a considerable amount of new domain names, so I don’t have to make the renew or drop decision, but I know there are plenty of people out there who are doing that right now. While it might not feel good to have to do this, I believe it will lead to a trimmer and more agile company.
It’s tough out there right now, and every decision you make could have a major impact on your company’s bottom line and/or its ability to survive. For me, developing strong advertising venues via development is hopefully a way that will allow my business to survive and ultimately thrive once the economy is more stable. Perhaps you need to look at your domain assets to see how you can better stay afloat.
Part Two: So What is a Click Really Worth?
With apologies for stealing Mike’s title, I wanted to show another example of the great point he made (and one that many others have also been saying). The main reason why I am developing some of my websites is because I want to generate the most revenue per visitor. I believe there are 4 levels of doing this – the top 3 of which can only be harnessed by developing a domain name rather than parking.
- Selling your product or service to visitor
- Selling another company’s product or service and earning a commission
- Selling advertising space directly to a company who sells that product or service
- PPC advertising
While I was reading Mike’s post about what a click is worth, I received the following email from one of my developed websites:
Hotel Name: Doubletree Hotel
Note: There may be a time delay for this reservation to be reflected in the property’s reservation system.
Map/Driving Directions Local Weather
Reservation Details
Check-in date:: Friday, October 10, 2008 Check-in time: 1500
Check-out date: Sunday, October 12, 2008 Check-out time: 1200
Number of rooms: 1
Number of nights: 2
Number of adults: 2
Room description: 2 Double Beds Non Smoking Non Refundable
Rate Information
Room #1
Rate type:
Rate breakdown: 134.10 USD for Friday, October 10, 2008
134.10 USD for Saturday, October 11, 2008
Total rate: 268.20
Taxes and fees: 42.90
Total (1 Room): 311.10
Payment Information: $311.10 USD charged to your credit card to secure this special rate. This amount includes room rate, tax recovery charges and applicable service fees and extra person charges, if any. Hotel rates are based on double occupancy unless otherwise noted. Charges for extra persons and / or children may apply and will be due directly to the hotel at the time of check-out.
It can be very difficult (if not impossible) for a domain investor to build and manage a completely separate company on one of his domain names (see Bobbleheads.com as a great example of a business run by a domain investor). A business owner needs to be passionate about his industry, and running a business takes a tremendous amount of time and effort.
However, there are happy mediums between running a full business and operating a pay per click website. Mike illustrated how a click that would have earned him $1.00 turned into a $300 sale. Likewise, my hotel reservation would have yielded a $1.00 click, but now I made 10-20x that on the sale. While obviously the conversion rate needs to be 10% or higher for this particular sale to make sense, most of my hotel reservations yield greater returns.
Depending on the product or service our sites promote, we really could be giving away the house when we park domain names.



