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Publicly Traded Banks.com Enters Into Agreement with Domain Capital

Elliot Silver
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14

I just learned that Banks.com, a company that is publicly traded on the American Stock Exchange under ticker symbol BNX, has entered into a “sale-leaseback” agreement with domain financing company, Domain Capital.

It appears that Domain Capital financed the Banks.com domain name for $600,000, and Banks.com is required to make monthly payments of $14,273.96 for 5 years. With interest, the total amount Banks.com is required to pay over the course of the agreement is $856,437.60.

For me, it’s good to see publicly disclosed deals like this because it shows others that there are options for domain financing. I would imagine it could be tough to get a bank to give a loan on a domain name without a significant amount of red tape (if at all).

The guys at Domain Capital attend virtually every domain conference and tradeshow, and they know the market better than most, allowing both companies to strike a fair deal for a valuable domain asset. This allows a domain owner to get liquidity more easily.

The company filed a SEC Form 8-k to announce the details of this agreement.

Use the WhyPark Directory Model on Geo Keyword Domain Names

Elliot Silver
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11

I want to start this post out with a bit of a caveat. I haven’t personally tried the directory application on a local keyword domain name yet, so this is mostly just a suggestion and not based on my experience. I do use the WhyPark directory app on ActingCoach.com and have at least one paying advertiser.

I think geo keyword .com domain names like PhiladelphiaPlumbers.com, SanFranciscoElecticians.com, and BostonLocksmiths.com are strong domain names. If the profession has many competing companies in that city, it could be a big opportunity for development. The city should also be large enough that many people are looking for a company in this field in the particular city (for example, RonkonkomaPlumbers.com might be a bit limited).

One way to manage development at a more minimal cost is to use WhyPark’s directory app. I would recommend having the company create a custom layout for you to your specs (around $200 for that I think) or hire someone to do it for you on eLance. As much as some people may dispute how a site looks, I am one who believes it’s important to have a good looking, updated website to get advertisers onboard. Additionally, I recommend a custom logo as well.

I would also use a copywriter (like TextBroker) to write a number of helpful articles related to the domain name’s content. This will at least get the site off the ground to start, and it will not only make the site look more populated to potential advertisers, it will also help with Google indexing and search engine traffic.

Once the site is launched, use your Google Webmaster Tools and Analytics accounts to track visits and search queries. As traffic grows, you should reach out to potential advertisers on the phone and via email. Although some people will probably be willing to sign up if they find your site, it will be much quicker to call or email them first. This way, you know they know about your site.

Having traffic is important because many potential advertisers will want to know they are getting value for their advertising dollar. I would charge anywhere between $5-20/month, depending on your location and the competition.

It’s easy to set up the WhyPark directory app, and it can be a time saving, cost-effective way to build out a directory website on a geodomain name. It’s something I will try when I have the right name.

Rob Sequin Guest Post: Options for Your Domains

Elliot Silver
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16

This is a guest post written by domain broker, Rob Sequin.

As part of my 2011 planning, I have been giving considerable thought about the current and future use of my domain names. This nice thing about owning a number of domains is that domain portfolio owners have numerous options for what they can do with their domains.

Of course everyone’s portfolio is different as are business models and goals but I thought that it may be helpful to offer some guidance about use of domains. Here is a list of what you can do with your domains…

  • Development
  • Forwarding
  • Leasing
  • Minisites
  • Nothing
  • Parking

Development

Summary: Website development requires skills and software. To develop a site you need to have a server, website design software/platform like xsitepro, WordPress, Dreamweaver etc. Development requires lots of time and skill or money if you have to hire a developer.

Pros:

Adds value to the domain so long as your development is appreciated by search engines, visitors, direct advertisers and potential buyers. Gives you the ability to place Adsense, affiliate ads, sell products, get direct advertisers etc. Ability to track everything with Google Analytics code.

Cons:

Time consuming and may be developed differently from what your visitors, direct advertisers or potential buyers are looking for thus just a waste of time.

Forwarding

To Developed Website

Summary: Forward related domains to a developed site already in your network that would be an appropriate “lander” for the forwarded domain.

Pros: Visitors land on a developed page therefore you get the best use for this forwarded domain. Developed site gets more traffic from type ins from relevant, forwarded domain. Why park a domain for pennies a day if you can forward to your site and capture a potential direct advertiser or customer. Why not spend those pennies a day and “buy” this traffic?

Cons: You have to have a related developed domain as a “lander”. Cannot offer forwarded domain for sale if it is pointing to a developed site. No stats for forwarded domain unless masked. If masked then visitor cannot see URLs of developed site. No search engine love for forwarded domains.

To Retail Sales Website

Summary: If you have a developed site that is a retail sales site, forwarding your domains to this sales site can increase sales.

Pros: You can have some advertising on the site but if it’s for sales of domains, limit ALL outgoing links. Direct sales to buyer, no third party marketplace with anonymous negotiations or commissions. Potential to upsell buyer more similar domains. Why park a domain for pennies a day if you can forward to your site and capture a potential buyer. Why not spend those pennies a day and “buy” this traffic?

Cons: Same as above to Developed Website.

Leasing

Summary: I know there are leasing sites and opportunities out there but not practical for most domain owners.

Pros: Generates guaranteed income over what Adsense, sales, leads or direct advertisers will pay you.

Cons: VERY difficult to find anyone to lease your domains, you need a STRONG contract and need to make sure leasee is not using your domain in bad ways. You give up all control of the domain.

Minisites

Summary: Epik, Whypark and DevHub are hybrids of parking and development. Not all domains are good candidates for minisite development but a great option for the right domains, usually product domains or long tail domains.

Pros: May generate more revenue parking and may get some search engine placement.   Adds value to domain since content is directly relevant to domain. Minisite platforms are very advanced today and offer many ways to add content and revenue generating features. You can probably have a “This domain for sale” link on the lander.

Cons: From my limited experience, I have not made any money nor created any search engine traffic from minisite development.   No public sales marketplace at minisite companies.

Nothing

Summary: Nothing means nothing. I am amazed how many dead landing pages or registrar landing pages I come across.

Pros: Not using domain could help if you are TM squatting. That’s about all the Pros I can come up with J

Cons: Dumbest use of domain, shows owner does not care at all about domain, adds zero value. In fact tells potential buyer that you are uneducated about domains, not using it and therefore you should expect VERY low offers and of course no revenue or search engine placement, no stats either.

Parking

Summary: Many people say that parking is dead or dying but this is by far the easiest way to make the most revenue with little effort. I have used Sedo (Google feed) and Parked (Yahoo feed). I admit I do not make much money from parking, which is not my primary source of revenue. I will say that I have tried MOST of the parking companies at one time or another and I have found that I like working with Sedo or Parked.

Pros: Change the nameservers, optimize the lander, set it and forget it.

Cons: Probably no search engine ranking but I have seen my domains rank with Sedo and Parked pages.

Sedo Pros: Best parking revenue, domain for sale link, sales marketplace, good stats but confusing

Sedo Cons: Cannot negotiate directly with buyer, buyer is anonymous, sales commission, no custom content. Landers are very generic.

Parked Pros: Custom domain for sale link, great stats, simple user interface, ability to add custom content, plenty of photos directly relevant to keywords.

Parked Cons: Adequate revenue, no sales marketplace. I understand that the transition to Bing has not gone well and Yahoo feed parking companies may need some time for revenue to recover.

Summary

You should have all your domain names in a spreadsheet or in some manner that they can be sorted and categorized. Make a column for near term use and long term use. Ultimately your long term goals might be something like this:

  • Development 5% to 20%
  • Forwarding 10% to 20%
  • Leasing 0% to 5%
  • Minisites 10% to 30%
  • Nothing 0%
  • Parking 40% to 80%

Short term use could be parking while long term use could be development. Parking is a great way to at least see what kind of traffic a domain receives then you can make a better decision about developing it. Be sure to have a clear understanding of what you want to accomplish.

If you want a revenue stream then test parking, test minisites and test development. If your goal is sales then be sure to have your domains listed for sale in several locations and/or forward them to your own retail sales site. If you goal is to bring in direct advertisers then you’ll want to develop good websites with unique content that offers value to your visitors.

Good luck. I hope this helps with your domain planning for 2011.

Leverage the .CO Godaddy Super Bowl Commercial to Sell Domain Names

Elliot Silver
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12

Godaddy Super Bowl CommercialAccording to a post on the .CO Registry’s blog, Godaddy will use at least one of its Super Bowl commercials to inform consumers about .CO on the massive stage that is the Super Bowl. Each year, millions of people across the world watch the Super Bowl, and advertising on it was one of the primary ways Godaddy first became a household name.

One can assume that when the Godaddy Super Bowl commercial mentioning (or featuring) .CO domain names airs, a lot of people will be interested in learning more about .CO domain names. They will visit Godaddy.com, and they will search for their favorite .CO domain names, hoping to register them.

Since there are now over 600,000 .CO domain names registered, I would imagine most people will find their coveted .CO domain names previously registered by others. Many of these domain names are probably owned by domain investors, and some of those names may actually be for sale, although consumers most likely wouldn’t know that or wouldn’t know to look.

It might be a very smart idea for you to list your .CO domain names for sale on Godaddy’s sales platform, where your name may be seen if a visitor searches for it or for something similar. The sales commission rate is very high at 30%, but when you consider the potential exposure, it’s not so bad.

What’s the Domain Name Worth?

Elliot Silver
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24

Ordinarily, I don’t solicit public opinion on the value of a domain name, but I am also not one to reveal the price I paid for a domain name either. I am planning to do both of these things in a couple of days.

On Saturday, I wrote a blog post about the launch of SlipperyElm.com, a pseudo mini-site. On Wednesday, I plan to write an article sharing some insight into why I built the website on this domain name instead of simply flipping it. I hope this will help you when you’re thinking about spending the time and money building out a website.

You can help me a bit if you give some feedback on the value of the domain name.  Here’s some info to use when you anonymously appraise in the poll below:

SlipperyElm.com was originally registered/created in 1999. The .net is owned by Thayers (company that sells slippery elm lozenges), and the .org and .info are also registered. The exact match search volume for “slippery elm” is 4,400, but the broad match, which includes longer tail terms like “slippery elm lozenges” is considerably higher.


5 With… Andrew Allemann

Elliot Silver
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1

Domain Name WireAndrew Allemann’s Domain Name Wire was the first  domain investment blog, and since that time, it has maintained it’s status as the leading domain blog. Since 2005, Andrew has been providing unbiased industry news and insight on the business of domain names.

It came as a bit of a surprise to me a couple of months ago when Andrew announced that he was going to work for Directi, as Senior VP  of Business Development for several of Directi’s media businesses.

I wanted to give Andrew some time to settle into his new role before asking him some questions about this move and how it will impact him, DNW, and domain investors. I appreciate that Andrew took some time out of his very busy schedule to answer the questions below.

ES: What were the factors that contributed to your decision to work for a large domain-related company?

AA: I’ve had a couple companies talk to me over the years about coming to work for them.   It makes sense — I have deep knowledge of the industry and the key people.   I also spend much of my time thinking of ways to make the industry better for domain name owners.

ES: What changes will be noticeable on Domain Name Wire, and how do you plan to alter your reporting on articles that may conflict with your new position?

AA: My deal with Directi includes me retaining ownership and control of Domain Name Wire.

Now that I’ve been working with Directi for a couple months, I can safely say that you shouldn’t notice many differences on Domain Name Wire.   As I announced my new role I reached out to several of my sources and companies in the industry to let them know about the change.   I was expecting some of them to clam up about working with Domain Name Wire in the future, but this was not the case.   Most were supportive.   If there ever is an industry where partners are also competitors, this is it.

As far as DNW content is concerned, if I spend 1 hour a day instead of 8 hours, the difference in what my readers get out of the site probably drops only 10% or so.   There will be a few stories I’m late on or don’t cover because I don’t have time, but this will be minimal.   I’m also working with some industry freelance writers to bolster the site’s content.

Whenever I write about a Directi product I will include a disclaimer in the story.

ES: With a number of domain companies hiring these days, what made you choose to work for Directi’s media businesses?

AA: Leaving the world of being a full-time entrepreneur was not an easy decision.   Had Directi not brought an incredible opportunity to me I would have declined.   Several things drew me to Directi:

-It’s constantly innovating.   It’s not a company that will ever say “Let’s just stick to what we’ve been doing.”

-There’s no committee to make decisions.   It’s in the hands of a couple smart brothers, which means the company is nimble and can move on opportunities quickly.

-It’s based in India.   One of the most important skills needed in today’s world is to be able to work across cultures.   I’m learning quickly what that entails.

-It’s not just a domain company.   I want to expand my knowledge base.   For example, we just launched Media.net, a contextual advertising solution for developed web properties.

ES: For those of us who may not be familiar with the company, please provide some information about it and let us know why we will want to work with your company.

AA: Although Directi owns a top 10 domain name registrar and various related businesses, I’m specifically working with Directi’s media businesses.   This includes two parking companies (Skenzo and BigJumbo) and Media.net, a contextual advertising solution.

Very few domainers have dealt with Skenzo because it targets bigger players that earn $50,000 or more a month.   We recently relaunched BigJumbo, which gives all domainers access to our parking technology regardless of size.

ES: What are you most excited about in your new position?

AA: I’m working with some dynamic and successful people that live half way around the world.   I don’t think about it day-to-day, but it’s really quite amazing: I walk into my office, turn on a big screen TV, and suddenly I’m video conferencing in high definition with people 10,000 miles away.

There’s also nothing boring about this role.   Every day is different, whether it be working on a marketing strategy, making a sales call, or evaluating a new opportunity the company is considering.

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