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5 With… Alex Tabibi, CEO of TABcom

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Alexander A. Tabibi is the founder and CEO of TABcom, the multi-divisional internet company that focuses on the pet, equine, garden and green spaces, and uses ultra premium generic domain names to do so. Now among the 200 largest e-tailers in the United States (Internet Retailer – 2008), TABcom develops and maintains ‘conscious lifestyle’ websites that offer products, community and interactive content for enthusiasts with an interest in a variety of leisure activities.

Among other generic domain names (some which are added in the interview), TABcom operates Dog.com, Horse.com, Garden.com, Fish.com, Bird.com, and PetSupplies.com.

Alex Tabibi grew up in Manchester, England and moved to the United States when he was 19 to escape going to medical school. However, a few years later, he ended up going anyway. “Tabibi – my family name – means doctor,” he says, “so there was quite a bit of pressure in the family to become a physician.”

Tabibi is a board certified physician and began his career as an oncologist. He earned his medical degree from the USC School of Medicine, where he graduated with Highest Distinction. However, at the age of 30, he made the difficult decision to leave medicine when he realized it wasn’t fulfilling his true calling – his entrepreneurial spirit and desire to build a business.

After leaving medicine, Tabibi and his brother Carlo, launched the privately held investment firm ZCapital and developed a specialty in technology companies that use new media to deliver a range of new services and/or old services more efficiently.

One of the companies in which they invested was a canine catalog company called Dog’s Outfitter. When that company went out of business in 2002, the Tabibis bought it out of foreclosure and changed its focus to e-commerce. This led to the founding of PetsUnited and soon they had added Dog.com, Horse.com, Fish.com, Garden.com and Ferret.com, among other sites to the organization’s portfolio.

“Dog products are as different from horse products as solar products are from garden products – but the processes that need to work efficiently to do one correctly are the same for almost any vertical,” Tabibi comments. “So my brother and I targeted verticals that we felt were economically sound and were either developing or very fragmented.”

In 2008, Tabibi brought in an entirely new management team and led a complete transformation of the company. Under his leadership, the company fully integrated its IT, marketing and operational infrastructure.   By moving from multiple platforms that were a result of legacy systems from disparate acquired companies, they have successfully unified and upgraded the look and feel of the sites and have also improved navigation and search capabilities.

This re-engineering of the company led to its subsequent rebranding as TABcom in 2010. Now, TABcom is poised to strengthen its position as a leading destination for end users with a variety of lifestyle and leisure interests.

“TABcom is much more than just a random list of great domains,” says Tabibi.   “We offer our users a one-stop interactive online experience that holistically integrates community, commerce and content. Most importantly, we have a deep understanding of the interests of our consumers because we share the same passions as those who visit our sites.”

I’ve had the opportunity to speak on the phone with Alex, exchange many emails, and do some business with his company. I am appreciative of his willingness to share information with readers of my blog in this interview below, and I hope you enjoy learning more about Alex and his company. You might also find his interview in Forbes and INC to be interesting as well.

EJS: Your company owns the best collection of developed animal/pet related generic domain names. How do these brands help your business, and would you have the same success without them? How would your strategy change without them?

AT: Thanks Elliot. Actually we own many domains within the pet space that nobody even knows about. Then we have green and leisure domains ranging from solar.com and green.org.

They are sitting on the side – waiting for our platform to be developed. As for how these generic domains brand our business – I cannot sufficiently emphasize their importance. From bounce rates to SEO and business development – they have helped tremendously. Our success is definitely based on them in part – but at the end of the day – it is just one of hundreds of
elements that have to be executed well.

Our strategy – being in effect based this number of generic domains would be entirely different without them. I do not consider TABcom as an “e-commerce” company. We are really building a factory that can build online ecosystems integrating commerce with content and community. The intelligence and platforms are built to work in many different areas. Our technology and processes therefore have to be scalable to a degree – which is unmatched in its breadth. Some companies have the e-commerce part down very well. But integrating all of these – dozens of times – making sites relevant to their niches – is no easy task.

EJS: Although generic domain names are valuable to a company, having several different ones doesn’t necessarily help a company build its brand. What challenges do owning different generic domain names pose on your business, and how do you overcome them?

AT: The TABcom brand is not what we are trying to push. Recognizing that there is a common company delivering this level of experience across many domains is more valuable to me from a b2b experience.

The experience is what will brand us. The idea is to brand the e.g. Horse.com domain such that the equine world will think of us for all their online needs. So we will overcome the issue – simply by delivering on our goal of delivering an outstanding experience throughout all TABcom powered properties.

EJS: What advice can you give to owners of generic domain names who are interested in building a business on them?

AT: Call us. We now have the infrastructure to allow you to monetize them using a best of breed technology. Our technology is designed to be product/niche agnostic and we will save you millions of dollars in cash and years of heartache.

But seriously – outsource what you can. Anything you can think of is already being done. Find good partners, keep your costs low and be as efficient as possible. It’s all about cash-flow at the end of the day.

If you can afford it – buy secondary domains around the first to increase the SEO value of your domains. SEO is key.

But don’t think that just because the domain is strong that it will overcome everything. That is far from the case. Again – e-commerce is complex as so many things have to work together to give the consumer the experience they expect. From page loading times to product delivery – everything still has to be optimized.

EJS: In your interview in Forbes in 2007, you disclosed that about 10% of your company’s revenue was from self-branded products which I assume are more profitable and can help build your brand to consumers. How has this number changed since 2007, and what is your goal for this in the coming years?

AT: Our sales in our existing brands in the private branded segments do remain – but as we cast a wider net of products – e.g. Entering the garden category – we were not going to do private labeling.

We are actually moving to e.g. Dog.com branded products rather than having “private labels” under other brands. This has not helped our branding until now – so that is part of the reason for the change.

EJS: How is your company coping with the difficult economic conditions?

AT: We believe that the problems we are facing in our company – while excacerbated by the economy – are at the end of the day our problem to have solved. E-commerce is still growing – and our niches are relatively unscathed. Again – I hate to blame the economy for anything as I feel that given our breadth of products and number of domains -we should be able to grow through it.

That said – we have reduced the less profitable marketing spend and have accelerated the introduction of new sites so we have a larger pool to monetize.

An extra drink or two – now and then – does some good to0 – mind you 🙂

Flipping.co: .CO Worth “4% of .COM”

I went to check on a submission I made at Flipping.CO, and I noticed that the domain names had appraised values next to them. Curious about how these were appraised with barely any sales results, I sent an email to Flipping.CO’s Francois Carrillo to ask how the values were ascertained.

According to Carrillo, the .CO appraisal is “4% of .com.”   It’s an interesting (and somewhat arbitrary) number that was based on Carrillo’s “experience and first sales.”

I don’t know if he’s right or wrong, and only after the auctions are done and secondary market sales are reported will we see how things shake out in terms of valuation. I haven’t sold any .CO names yet, and although I’ve received a couple of offers in the mid $xxx range for a three letter .CO, I have passed, preferring to wait until a solid aftermarket forms.

If you had to guess, what do you think .CO domain names are worth compared to .COM?

Potential Problem with Paypal Subscriptions

I’ve had a good amount of success with DogWalker.com, and there are around 250 paying advertisers on the site right now (maybe more). Nearly all of them pay annually using a Paypal subscription, which is connected to my company. As every business owner knows, recurring payments can be an important revenue stream (just ask Domaintools, Apple, and every other company that employs auto-renewal subscriptions).

Perhaps due to the website’s success or the fact that it’s a very good domain name, DogWalker.com has been my most inquired about asset. Offers from entities ranging from dog walkers to large companies outside of the domain space have inquired about buying the domain name and website. As with everything I own, there’s probably a price for which I would part with it, so I’ve thought about the feasibility of selling the website.

The Paypal account I use to collect payments is associated with my company, and it is attached to bank accounts, email addresses, and websites that aren’t related to the DogWalker.com website. I’ve searched, and there doesn’t appear to be a way for me to automatically change the billing/subscription email account for the current advertisers without having to get them to re-subscribe.

Herein lies a big problem. If I were to sell the website, the buyer would have to contact all of the advertisers with auto-renewing subscriptions and have them sign up again on a different system. It’s not the end of the world, but as my experience tells me, the cancellation rate could be significant, and it would wipe a considerable amount of recurring revenue from the books in the future.

If you build a website and use Paypal or any payment collection service, make sure it’s independent of your other websites, email addresses, and separate entities. If I end up selling the website, it will be a process to convert the current advertisers.

I am fairly certain that I am going to spin off this website into its own entity in the near future, and it will have a separate bank account, payment account, and be completely independent of my other businesses. Had I known that I would have this many advertisers in less than a year, I would have done this from the start. I have also learned that there are tax advantages to selling a business rather than selling an asset of a business, although that’s not something I am entirely familiar with yet.

DomainFest Recap + CNN Coverage

domainfest globalWhen Oversee.net announced the one-day DomainFest event in New York, I didn’t think I was going to attend due to previous travel obligations. After speaking with a few friends who were coming in to NY specifically to attend the conference, I made sure I would be back in time, hopping on a red eye flight and arriving a day before the conference.

I am very glad that I was able to make it. There was an announced crowd of about 200 people, and there was never much down time during the day and evening prior to the show (there were a couple of private parties and random get togethers). I don’t usually attend panels and speakers at conferences, and last week’s conference wasn’t much different. I spent the sessions just outside the ballroom catching up with friends and colleagues.

The Expert Networking session in which I participated was well done. It lasted for two hours, but it didn’t feel like it was that long. I had the chance to meet with several people whom I had never met, and also met with a few people who read my blog, which was very cool. I know others who were less interested in this were in private meetings or were talking outside of the ballroom.

The live auction is usually a highlight of a domain conference, and although CNN and the New York Post were in attendance to write articles, it wasn’t as exciting as usual. A couple of big sales I heard were going to be made never materialized, and it seemed like many of the names were far overpriced. The auction houses are keen on bringing new inventory to market, but many of these names are still priced unrealistically, probably a reason why they weren’t in auction previously. Knowing Monte and his team, I will not be surprised at all if a couple big deals are announced in the next few days or possibly weeks.

One thing that was most impressive to me was the diverse turnout. Many of my friends from outside the area didn’t attend, yet there were still 200 people who showed up. Not only were domain investors and service companies there, but others were there as well – many of whom are only somewhat involved with domain investments.

This morning, CNN posted a video article with auction coverage, so you might want to have a look when you have a chance.

All in all, this was a great conference.

BP Cares About BPCares.com

BP CaresThere was a lot of commentary on Rick’s Blog when he mentioned that he bought and was successfully monetizing many BP-related domain names. It seems that whenever Rick writes something controversial, there are dozens of opinions voiced in the comment section of his blog, and this post was no different.

I received a Google News Alert today about an article appearing on Charlotte, North Carolina’s Fox affiliate website about the owner of BPCares.com. Apparently BP wants to acquire BPCares.com from the registrant, and he isn’t interested in selling it to the company. According to the article, the domain registrant purchased this and other companyCares.com domain names apparently after seeing NBACares.com used in action by the National Basketball Association.

The article mentioned that BP has tried to buy this domain name more than once and that the company keeps calling him about the name, but it didn’t mention whether BP threatened a UDRP or any other legal action. In my opinion, it wouldn’t be outside of the realm of possibility if it did threaten legal action, especially since the owner apparently confirmed that he registered other names related to other companies.

Smartly, the domain owner does not appear to have BPCares.com monetized (or even resolving to another website), and he didn’t mention a sales price, so perhaps his aim wasn’t to profit from the BP brand. However, it does appear to be listed for sale on Sedo without an asking price.

I don’t understand the motive for having this article written, as it only serves to show that he did register the domain name along with other corporate domain names that are similar. A quick search shows the registrant also appears to own GoogleCares.com and DisneyCares.com. If the registrant or someone he knows hadn’t mentioned the situation to the news station, it likely would have remained below the radar.

Let’s hope for his sake that BP doesn’t care enough about BPCares.com to take legal action because that could get quite expensive.

Special Birthday Deal at ThemeForest

I am a big fan of ThemeForest.net because the WordPress and website themes they offer have made my life easier and they’ve saved me a considerable amount of money. My developer emailed me a few days ago to let me know that the special birthday offer its parent company (Envato) has annually is now running.

I received an email from Envato a couple of days ago announcing the offer, and if you are a developer or a domain owner who wants to develop, you should have a look at what it includes:

“The bundle includes a $50 MediaTemple hosting voucher, five blog and website themes, five Flash and Unity3D files, six code packages for CSS, JavaScript, WordPress and PHP, seven motion graphics projects, sixteen PSDs and vector files, three CG models and textures, six royalty-free audio files, four Tuts+ Premium tutorials and a $10 voucher for Rockable Press. When you buy the bundle and open it up for the first time, you’ll be amazed at the value inside!”

You will basically receive templates, files, and other packages that would ordinarily cost hundreds of dollars individually. However, if you order before August 24th at noon, the entire package costs just $20. To put that into perspective, I paid $32 alone for the Los Angeles WordPress theme a couple of weeks ago.

Check out the Envato Birthday Offer to see everything you will get.   This is an affiliate link, but I will earn something like a dollar a sign up, so no big deal if you don’t use the affiliate link. I think it’s a great deal and will be ordering a package. I don’t know how I will use it yet, but I am sure I will find a use for it in the next year.