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Rick Latona’s Great Rates on Newsletter Domains

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I just saw Rick’s post about financing domain names purchased through his newsletter and think its a pretty good deal. If you are able to develop one of the domain names he is offering, you can probably be cash flow positive on it in short order.

To put this deal into perspective, I want to create an example.   In the past, I’ve seen Rick offer names for 10x annual revenue.   Say you buy a $10,000 name from his newsletter.   Assuming a 10 year multiple, the name is making about $2.75/day.   If you put $1,000 down, the monthly cost (at 1.25% monthly) is around $112.50.   On PPC revenue alone, the domain would make around $85/month.

If you develop the domain name minimally, add a few extra pages of additional content, find paying advertisers, find a good affiliate relationship, or do more link building to grow traffic, I would think you will see the revenue grow fairly quickly.   It wouldn’t take a whole lot of work to be cash flow positive on a deal like this.

WeddingPlanning.com on Ebay

I don’t know the buyer or anything about the domain names, but it appears that WeddingPlanning.com, WeddingPlanning.net and WeddingPlanning.org are being offered for sale on Ebay with a Buy It Now price of $150,000 – which I think is great considering the keywords. There is also a “make offer” option as well, in the event you would like to submit an offer under $150k.

Wedding planning is a large industry, and it can be very profitable for luxury weddings.   I also saw that the seller is selling EventPlanning.com, EventPlanning.net and EventPlanning.org in another auction.

Your Internet Persona Follows You

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There are a lot of people on the domain forums who don’t have much business experience, and there are others who do have business experience but don’t have much Internet forum experience. Many became domain investors by accident, and by one way or another, they found a place like DNForum or NamePros.   I had been selling domain names for two years before even realizing there was a domain industry and   DNforum was the first Internet forum I joined in early 2006.

Yesterday, I received an email from a person who shall remain nameless informing me of a new service he was offering.   I recognized something in his email, which reminded me about a person on DNForum, and a subsequent email revealed that they were “business partners.” After exchanging a couple additional emails, one of which was mysteriously from his partner’s email address – all under the same email string, I became even more suspicious, and I am not interested in working with or publicizing their company as a result.

Whether the emailer and “his partner” are different people using the same Gmail account is something someone else can determine, but I want to use this as an example for a post I had been meaning to write.   I’ve never done business or had a dealing with this person’s “partner,” yet I was reluctant to do any business with him or even work with him because of this person’s domain forum persona.

There are a number of people who I would put in the same category as this person.   From seeing their posts on domain forums, I wouldn’t do business with them for a variety of reasons. There are scammers, spammers, cybersquatters, lowballers and other people whose business practices I find abusive, annoying, or unethical.

Using Google and other free resources, it’s fairly simple to link a person’s name with their online identity (as I did yesterday). I think people should consider the implications for their forum commentary before they post. Not only could it impact their business today, but it could have long term implications, too. Career advisors recommend that job seekers review their Facebook/MySpace pages before applying for jobs.   Likewise, domain investors should know that there are always people who will judge them based on their Internet persona.

Generic Domain Names Bolster Strong Brands

Quick… without taking much time to think, what brand of toothpaste do you use in the morning? What brand of pasta do you use when you make your penne a la vodka?   There are many products and services we use every day without even realizing the brand we use, and this is why generic domain names are important for companies of every size to do their best to acquire.

From my experience in corporate America on the advertising agency side and the client side, I think companies focus far too much on their individual brands and corporate image rather than on how consumers generally remember them. Large corporations have brand managers, whose role it is to manage a particular brand within the company. They have a set budget, and they spend their money frugally on a large variety of strategic tactics. They don’t usually have the knowledge about domain names and their usefulness.

Companies need to worry a little less about their branding and embrace the fact that consumers don’t necessarily know who they are, but they do know what they are, especially in the case of products that can be easily purchased and researched online. Some national brands fully understand that a generic domain name doesn’t need to be used in lieu of its standard branding, and they wouldn’t sell their domain names as they wouldn’t allow another company to use their brands.

A generic domain name can compliment a company’s brand, as demonstrated by Rum.com, Scotch.com, Toothpaste.com, Pasta.com, and many other companies who are using generic domain names to help support their brand.   Whether a consumer looks for rum via Rum.com or Captain Morgan, Diageo is covered. Getting companies to realize the value of generic in assisting their brand is the difficult part, and as domain investors, we need to teach others about the high value of industry and category defining generic domain names.

Considerations for Working With Affiliates

Subscribe to Elliot's BlogI was thinking about something today regarding affiliate relationships for your websites and online ventures. When you choose to partner with a company, make sure there are no ways for the customer to be lost during the hand off from your site to theirs. If a customer leaves your site, you should be guaranteed that they won’t end up making a purchase without your site getting the credit.

i can think of a couple examples off the top of my head, which will lead me to questioning my affiliates later this week:

1) If the customer can call the company, they should have to enter a unique code for your website. If they don’t have to do that, the sale won’t be attributed to your site.
2) If there is no automated sales process and they can negotiate the price with the company, you may end up losing the sale.

It’s important that you work with affiliates who make certain that you get credit for all sales attributed to your website. You should also work with affiliates where the product is easy to purchase, the sales process is seamless, and the entire process is trackable. All of this will lead to a long and mutually beneficial relationship.

Lizzy Grant’s YAYO

Subscribe to Elliot's BlogYou’ve probably seen her at one of the domain shows in New York or Florida, and now you can see Lizzy Grant online, in her music video, YAYO.   In addition to a great family, Lizzy has some serious talent. See more of Lizzy Grant on her website, and if you happen to live in New York City, she is performing tomorrow at National Underground – 159 E. Houston @ Allen St. at 8pm.

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