There is no need to have a live blogger at tomorrow’s Domain Roundtable live auction. All of the action can be followed live using the Live Auction Interface. If you sign-up in advance, you can even use the interface to bid from home. Although the selection of domain names isn’t as premium as some have hoped, I think this feature will set the auction apart from other auctions. Auction begins at 11am Pacific time.
According to an article in Business Week, Fave.com is apparently “held by a cybersquatter.” On the second page of staff writer Kerry Miller’s article, “Does Success Hinge on a Domain Name“, the author states:
“And while the naming process is typically most fraught for Web-based businesses that consider their Web addresses central to their branding, domain-name availability is becoming a key consideration for other new businesses, too. Jon and Jeff Seymour found that Persona, their first-choice name for their localized Web browser, was already trademarked. Their second choice, Fave, wasn’t
I received the following email on Sunday regarding changes in the Snapnames commission plan. While the commission plan is good news for higher value sales, names that only sell for the minimum of $60 will have the commission rate more than doubled. Instead of paying a $12 commission on a $60 sale (20%), we will now pay the new $25 minimum. With this in mind, I am going to have to reevaluate the domain names I submit for Snapnames auctions, as most of my sales were for the minimum.
Matt Kramer of The Bulletin, a local Philadelphia newspaper, discusses the 15 most valuable assets a business owns that many owners don’t understand. Among assets such as Customer List (#1), Building (#5) and Trademark (#8) is a company’s Domain Names (#9). According to Matt:
“A client of mine bought hundreds of domain names that would attract individuals looking for a mortgage. As the mortgage market declined, so did his business. One day, one of the biggest mortgage banks in the country came in and made him an offer of millions of dollars for all of his domain names. My client knows that the mortgage business is cyclical, but the amount that was offered allowed him to retire.” –Source: The Bulletin
This writer is on point. With targeted generic domain names becoming more valuable over time, sometimes a company’s domain name may be worth much more than a company realizes. There are many examples of companies using their domain names simply for email addresses and not having a website. This may be due to the owner’s reticence to spend the time and money developing an online business plan. Whatever the case may be, the company is almost certainly leaving money on the table. While a domain name may simply be an afterthought to some companies, others are willing and able to use the domain name as the centerpiece of their business. This is the root cause of a domain name being an overlooked source of value for a company, but in reality, it could be a large part of its net worth.
According to Alex Viega of the Associated Press, Universal Music Group purchased a stake in the social networking and music download site Loud.com. The price paid and size of the stake were undisclosed.
“Record companies have historically relied on developing new artists and making money from the sale of music or from music publishing.
However, investments in other types of businesses are becoming more common as the industry struggles through a protracted CD sales slump.
Record labels are also looking to strike deals with recording artists that give the labels a slice of touring, merchandising and other revenue.” –Source: Forbes.com
This is an important purchase for Universal as it will allow them to tap into a large base of loyal hip-hop music fans. With Universal’s music labels offering downloads of various artists for $.99, this purchase seems to make sense for all parties. The difficulty and expense in developing and growing successful websites reliant on social networking and user generated content leads me to believe we will see more traditional companies buying stakes in successful online communities over the next several months.