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You’ve Got to Know When to Hold ‘Em, Know When to Fold ‘Em

Elliot Silver
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14

“You got to know when to hold ’em, know when to fold ’em.
Know when to walk away, know when to run.
You never count your money, when you’re sittin’ at the table.
There’ll be time enough for countin’, when the dealin’s done.”

I saw Rick Latona’s post today about his company exiting the mini site space, and I immediately thought of Kenny Rogers’ 1978 song, The Gambler. Rick’s company, AEIOU.com, has decided to exit the mini site development space, citing the lack of profitability, “The reality is there is no money in web design.” Although I disagree with what Rick said about web design because I know people who do quite well, I believe he has much bigger fish to fry, and I can commiserate with that decision.

I spent some time building my own mini sites, and although it’s enjoyable to see a project completed on a good domain name I own, the reality is that they often aren’t worth my time and effort. Like Rick, I have bigger fish to fry. When I have started new mini site projects, friends have told me I should focus my efforts on my bigger projects (Torah.com, Burbank.com, Lowell.com…etc), but for me, it was more of a learning experience than anything.

The mini sites I built are earning more money than when they were parked, and instead of having them sit idly, they have pages indexed in Google. However, in retrospect, they weren’t really worth my time and effort, since that time could have been better spent doing other things that are more profitable (researching, buying, and selling domain names for example). Chalk it up to a learning experience I can have as a full time domain investor.

Anyhow, like the Kenny Rogers song, it’s important to know when you’re taking time away from profitable endeavors and doing something that isn’t going to help your bottom line, it’s time to throw in the towel. I’ve pretty much thrown in the towel on developing mini sites on my own to save money, and there would have to be a compelling reason to do another one since my lesson has been learned.

CatOwner.com – Domain on Sale

Elliot Silver
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0

I am selling CatOwner.com, a domain name with a registration date of 1998. Marchex owns the plural CatOwners.com and they also own DogOwner.com as well. Cat owners spend millions of dollars per year on food, medicine, and supplies for their cats. Many love their cats like they love children.

The acquisition price for this domain name is just $1,800. I think this could make a great forum or blog. Multi-venue posting, and first to post “sold” will get this great domain name. The domain name is registered at Moniker.

Domain Contracts Can Be Critical

Elliot Silver
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7

I had a situation last week where I wanted to close on a domain name, but the seller had concerns about the domain sales agreement I sent. Since I use a standard domain agreement I had created by a domain lawyer based in New York, I was a bit taken aback by his concerns. I thought about it for a few minutes and realized that I may have been the same way had someone random offered to buy a domain name I owned and then sent over a two page legal agreement for me to sign.

I explained to him the different sections of the agreement, which included a section discussing the cost and payment terms, a section where it states that the domain name isn’t encumbered and/or had no trademark issues, a confidentiality clause, and other standard contract sections. I even explained that when he buys a big ticket item like a car or television, and even when he checks off a box of terms and conditions when registering a domain name, he is signing a contract.

In the end, I opted to move forward without the agreement rather than kill the deal. I was able to determine he was the original registrant 12 years ago (only able to see Whois history dating back to 2001), and everything matched up. Since I paid via Escrow.com and it’s a generic name, there were no special details added to the standard agreement.

On deals where certain conditions need to be met, it’s very important that a contract is used to protect both buyer and seller from any legal troubles that may arise down the road. It’s important that both parties’ expectations are laid out in the agreement, along with the ramifications if terms aren’t met. Rick had a post about his Property.com deal this morning, and you can see why an agreement can be very important, especially when it involves more than a domain sale.

I recommend using a sales agreement on most deals that you do, especially because you can re-use a boiler plate agreement that you paid for once. A standard domain sales agreement is one tool that is good for you to have on hand, and it isn’t very expensive to have created for your business.

Now’s a Good Time to Watch Snapnames & Namejet

Elliot Silver
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5

I don’t really keep tabs on drop auctions, unless I am bidding on them. I also don’t generally place a bid on a domain in auction to watch it, even if there are many other bidders involved. However, Mike’s post, which has little to do with drop auctions, should make us more aware of what’s dropping.

With PPC down, companies are less cavalier about spending significant money on dropping domain names because they simply won’t be able to maximize the value with a parked page. For domain investors that develop or that buy and then target end users to re-sell, this is a big opportunity. Names that were selling for 4 figures are now selling for 3 figures, and there is less competition – especially for longer tail keywords. Some can even be picked up for registration fee after the auction ends.

In addition to the PPC slide, domain tasting has been virtually killed. This is causing more domain names to drop than ever before, allowing domain investors with a sharp eye to get deals. IMO, there are many great domain names that would be perfect for niche businesses, but they don’t get much type-in traffic. These types of names can be perfect for a quick flip to a targeted end user buyer.

I talked about a good deal I got on CabCompanies.com a while back, and every day, there are dozens of great domain names like this that would have sold for much, much more several months ago – or would never have even dropped. If you haven’t been paying attention to Snapnames or Namejet auctions, now is a very good time to do so.

Royal Bobbles Offers Dr. Martin Luther King Jr. Bobblehead

Elliot Silver
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4

This is not exactly domain-related news, but it’s big news for a domain investor who has become one of the dominant online bobblehead retailers since acquiring Bobblehead.com and Bobbleheads.com for $36,000. Congrats to Warren Royal and his growing bobble empire! This goes to show what you can do when you acquire a category killer domain name in a vertical you like.

From the Royal Bobbles press release:

The officially licensed Dr. Martin Luther King Jr. Bobblehead will be available for pre-orders in mid-December through Bobbleheads.com and other quality bobblehead dealers.  Produced by Royal Bobbles LLC, this oversized, limited-edition model with exquisite details—crafted in high-quality resin—will come in a colorful collector’s box and be sold at the King Center, museums, gift shops, and through online web stores, like Bobbleheads.com.

“We are honored that the King Estate has granted us the opportunity to produce the Dr. Martin Luther King Jr. Bobblehead as the first in our series of great ‘American Heroes’,   said Warren Royal, Founder of Royal Bobbles.   “The King Estate is rightly very selective about the products which they authorize, and the outstanding quality of our product line was a major factor in their decision to work with us on this exciting product.”

Best known for his “I Have a Dream” speech—delivered at the 1963 March on Washington—Martin Luther King Jr., the youngest man to be awarded a Nobel Peace Prize, is considered one of the main leaders of the American civil rights movement.   And since his assassination on April 4, 1968, political, civil rights, and historical memorabilia collectors around the world have grown increasingly interested in preserving his memory.

However, with most of the documents, personal items, and artifacts related to this slain civil-rights leader’s life rightfully gathered in institutional collections, MLK memorabilia collectors will have an exciting opportunity to acquire their own treasured centerpiece of American history with Royal Bobbles targeted release for the Dr. Martin Luther King Jr. Bobblehead on King’s birthday (January 18, 2010), an historically significant time of the year when interest in and the value of King Memorabilia consistently rises.

Long Island Business News Article About Domain Industry

Elliot Silver
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4

There was an article in Long Island Business News yesterday focusing primarily on Andrew Hazen, a Long Island Internet marketer and domain investor. The article discussed how Andrew got started with his domain investments and on how domain investors are finding success. Although the article requires a subscription, you can read a free version, here.

In addition to information about Andrew, the article also quoted Mike “Zappy” Zapolin about his company’s Beer.com purchase for $80,000 and subsequent sale for $7,000,000.

I was also quoted in the article:

“Elliot Silver, chief executive of Manhattan’s Top Notch Domains, is not as gung ho as Zapolin. “There’s no such thing as easy money in the domain investment industry, but if you know what you’re doing and take calculated risks, it can be lucrative,” Silver said.”

When the reporter reached out to me, it seemed that it was going to be an article about how lucrative the industry is. Based on first hand experience and observation, I know it’s not as simple as it seems to make money. I hate to be the “Debbie downer” but I don’t like to see people blindly enter our industry thinking they are easily going to get rich by buying and selling domain names. I’m no rocket scientist, but it did take a few years before I was able to do this full time.

One recommendation I have for anyone who is just getting involved in the industry or anyone who wants to grow their domain investment business, is to read advice from successful domain owners.

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