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Domain Investors Need to Take Better Care of Valuable Domain Names

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In April of 2008, Jay Westerdal announced that his company had the exclusive sales listing for the generic domain name Harmony.com, and the reserve price was $5,000,000. I don’t recall seeing whether the domain name was sold or not, but I just saw that a UDRP was filed at NAF for Harmony.com on November 12, 2009 (Case #1292225).

Since the NAF doesn’t list the Complainant yet, I can only guess it is the parent company of eHarmony.com who would file a complaint, as they seem the most likely to want the domain name. At first, it would seem like a company is making a grab at this great generic domain name, but if you take a further look at the parked page, it looks less like that. Not only is there a link to learn about purchasing the domain name, there are also dating site links, including one for eHarmony.com. This was just on the main landing page, without even having to do a search to influence the results.

Harmony.com Screenshot

I believe this is similar to a recent case involving Dolphins.com, where the owner had football-related PPC links, and the Miami Dolphins filed a UDRP for Dolphins.com. Although the domain owner does have very limited control over what content is displayed on parked page, owners need to be very careful not to put their valuable domain names at risk.

In a UDRP, a trademark owner needs to prove three things: 1) the complainant has a trademark right that is identical or confusingly similar to the domain name in question, 2) the domain owner has no right or legitimate interest in the domain name, and 3) the domain owner registered and used the domain in bad faith.

Sure, virtually any company can file a UDRP for any domain name they would like (as we’ve seen many times with cases like Pig.com for example), but we shouldn’t make it any easier for them to use the UDRP process to acquire domain names. Harmony.com is a good generic domain name, and it will be interesting to see how this plays out.

Two Ways to Find a Developer or Designer

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If you’re like me, at some point you’ve been paralyzed in making a business decision about development because you don’t know any developers or designers. When I wanted to develop my first website with a friend, we posted a wanted ad on Craigslist, only to be inundated with responses from all over the world. How the hell were we suppose to find a developer when there were 200 responses, with basically the same content but prices varying from a couple hundred dollars to ten thousand dollars?

Although web templates at design sites such as ThemeForest.net are great for people who have some development knowledge, they’re still a foreign language to people who don’t have this background (like me a couple of years ago). In the past couple of years, I’ve found two great places to find developers. Forget about posting help wanted listing in domain forums, which you probably do just because you don’t know where else to turn.

I found my first designer Mike (Six One Five Design) after holding a contest at Sitepoint, which is now called 99Designs.com. You can basically create your design brief and set a price for your work, and assuming your offer is reasonable, you will receive submissions from which to choose. Your design brief does not have to be technical. Write down your ideas, mention other sites or features you like, and be as specific as possible.

99 Designs is especially good to find logo designers. Instead of paying a single logo firm $2-300 for 4-8 designs from 2-8 designers, you can allocate $300 for your project, and you’ll get dozens of designs (or more) from hungry designers. As people submit their designs, you can eliminate those that don’t work for you, giving contestants more of an idea about what you want. You can also browse around other contests and ask designers you like to compete in yours. This is a great way to find a designer.

If you have a project that requires programming knowledge, eLance.com is another great site to find a developer. You can search for a developer based on level of expertise, and some have even taken exams given by eLance. They have a ratings scale, where past clients have given ratings, and they also have an earnings scale as well as the number of repeat customers. This is great because trust is such an important factor when developing. eLance also handles escrow to further protect you (although downpayments may be required upfront).

eLance also allows you to create a brief and invite companies to participate. Give explicit instructions about the work you’d like to have done, and search for potential companies with which you’d like to work. At the end, you can choose a winner after communicating with the different providers.

One downside that I have found to development is that it seems to be much cheaper to work with a company located outside of the US. As a result, language barriers do exist, and communication can at times be a bit difficult. However, with all things considered, you can find a great designer and/or programmer to help develop your domain names.

Please remember these two pieces of advice that I have learned:

  1. Most successful developed websites owned by domain investors require work. You can’t generally build it and make money without work (PalmSprings.com and Bobbleheads.com are two examples)
  2. It might behoove you to work with a programmer and designer that work well together. While their work is akin to someone working on a car’s engine and someone else working on the paint and interior, both need to work together smoothly, otherwise you can waste time and money.

My Experience with Forums

On two of my more heavily trafficked websites (Burbank.com and TropicalBirds.com), I added forums for people to chat and have discussions. Since the domain names were fairly targeted, I assumed that people would be happy to join and begin interacting, which would help build brand awareness and recognition. I was wrong.

On TropicalBirds.com, I added the forum and paid a company to seed the forum with posts. I also added links to the forum on the sidebar of every page, and in some of the text as well. While the comment seeding initially spurred a bit of discussion on TropicalBirds.com, that didn’t last long. There were heavy periods of quiet, with the occasional sign-up. Not a very good result.

Likewise with Burbank.com, I added links on the home page and side navigation. I also added a “discuss” icon and link on news articles, after I created a topic in the forum. Although there is more traffic to the Burbank.com forum than TropicalBirds.com, there is little discussion.

I had heard spam could be a big issue with a forum, but I don’t really have that problem. I had a bunch of spammy sign-ups with TropicalBirds.com, so I made it so that I need to approve all new members.

Forums can be successful, but those require significant moderation efforts and time to contribute. If you are thinking about adding a forum to your website in order to make it come to life, it could be a waste of time and money if you are committed to running it. Forums can be very good for a developed domain name, but they certainly aren’t a magic bullet.

Google & Yahoo Appeal for More Online Drug Advertising

Executives from Google, Yahoo, and dozens of pharmaceutical companies are in Washington DC today appealing to the Food and Drug Administration to expand online drug advertising. Although drug companies spend huge sums of money on marketing and advertising in media outlets such as television and print, they hardly spend money online.

According to a Yahoo Finance article where this news was reported, pharmaceutical companies “spent more than $4.3 billion on patient-targeted advertisements last year, though online marketing represented about 3 percent of that amount.”

If their budgets for online marketing grew to the same percentage as most other advertisers, this would be a boon to web publishers who would be able to display drug-related advertisements with their Adsense accounts, and parked domain names could have more competitive PPC bids.

Don’t get your hopes up yet though. According to experts, the FDA isn’t expected to make policy changes until 2011.

Increase Readership by Sharing Personal Stories

When you are building a website, one thing I think you can do to help build your brand and readership is to share personal stories with your readers. If they have a vested interest in getting to know more about you, they will also probably be more interested in visiting your website and referring it to friends.

This morning I was checking out Kennel.com, a CCIN website. I read the story about David’s first experience with a Cavalier King Charles Spaniel. Although I couldn’t relate to the death of a dog, I immediately thought about my dog, Lucy.

Yesterday, when my wife and I were walking her off leash in Central Park, she decided to check out an area that was under construction and cordoned off. The area has thick brush, and we couldn’t find her for close to 10 minutes, but it felt like much longer. Eventually, my wife saw a construction worker sitting under a veranda and called down to him to ask if he had seen a dog. He looked behind him, and said, “you mean this one right here?”

Anyhow, if you can write an article or story on your site where readers can relate, they will probably return – and/or comment, which could stimulate further conversation. This is one reason why it’s good to focus on developing websites on domain names with topics of interest to you.

Owner of NewYorkNewYork.com Sued

The   owner of the domain name NewYorkNewYork.com has been sued by New York-New York Hotel & Casino, LLC for trademark infringement, cybersquatting, unfair competition, trademark dilution, and other related complaints. The lawsuit, which can be downloaded from the Las Vegas Sun website (pdf download), was filed in the state of Nevada on November 6, 2009.

In the lawsuit, the plaintiffs have alleged that,

“Recently, Plaintiff learned that the Infringing Domain Name has been linked to a website that prominently features the NEW YORK NEW YORK LAS VEGAS HOTEL & CASINO trademark (the “Infringing Website”). Specifically, the NEW YORKNEW YORK LAS VEGAS HOTEL & CASINO mark appears in the banner of the Infringing Website, next to a graphic of Plaintiff’s New York- New York Hotel. The Infringing Website does not include a disclaimer explaining that it has no affiliation with Plaintiff. When Internet users click on the banner, they are redirected to a website enabling them to book hotel reservations at Plaintiff’s New York-New York Hotel.”

In looking at the current website which contains various New York City related banners, it appears to me that they are using Ian.com as a booking engine for the site. Ian.com is the Expedia travel affiliate program, and they work with hotels throughout the world to book reservations. When a visitor uses the booking engine, they are able to search for cars, flights, and hotels throughout the world, including Las Vegas, where the New York-New York Hotel & Casino is located, all the while staying on the NewYorkNewYork.com website.

It’s unfortunate for the defendant, as I am not sure of how much control he would have over the results served by the booking engine. Further, it would seem advantageous for the hotel to be listed, but I imagine they would rather control the domain name if possible. From the looks of it, I don’t see how the owner of the domain name is at fault, although I am not an attorney nor do I have a legal background.

One complication for the current owner is that the lawsuit indicates the Hotel contacted a previous owner expressing concern over something similar that was done in the past. According to a screenshot on Archive.org from February of 2006, there were links to the New York-New York Hotel & Casino on the home page of the website. However, it doesn’t appear that the current owner is doing anything in bad faith. In fact, New York City is the default search when a visitor lands on the site.

I think this will be an interesting case to watch, since there are quite a few geodomain owners who use booking engines like Ian.com and WC Travel for their hotel results, and there are probably plenty of domain names that could potentially be infringing on certain marks.