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Two New Features I like About Domaining.com

There are two new features I really like about Domaining.com. The first is that I can now filter the blogs and domain news sources I want to read from those that I don’t. There seems to be data overload in the domain space, and it’s annoying when I miss a good article from someone I respect because it got pushed down by articles I avoid.

The second feature I like and could probably create on my own (but don’t) is the Twitter feed with “domain” as the keyword. Any time someone posts a Twitter update and it contains the word “domain,” it is featured on Domaining.com.

There have been a few times where people ask simple domain related questions that can be answered by an industry pro. This can open new doors and lead to new introductions. There have also been plenty of times where people are critical of domain owners, calling them squatters and other uninformed comments. This creates a good opportunity to educate.

As far as Twitter goes, I am just a rookie but am quickly learning about the power it has. People across every walk of life use Twitter, and it gives unparalleled access into places you might never have imagined going.

Consider Alternate Spellings

One thing I think about when evaluating domain names to purchase is the possibility that there are alternative spellings to the domain names – both accepted spellings and common typos. If the alternate spellings are common, I typically won’t buy these types of names, because there will often be confusion, and the last thing I want to do is develop a website and find that people accidentally navigate to the alternatively spelled domain name.

This is something I am especially cognizant about when the alternate spelling is commonly accepted as the proper spelling – or their is a commonly used abbreviation.   A quick example of this is a name like FortWorth.com and FtWorth.com.   I would have a difficult time paying 6 figures for either of these names, because there will always be confusion – especially when pitching businesses over the telephone.   I would find it annoying to have to explain, it’s “F-O-R-T Worth dot com” or visa versa.

If you do have the opportunity to buy a good domain name that has common misspellings (both accepted and unaccepted spellings), and you are gung ho about development, I would try my hardest to buy the misspellings as well and do a 301 redirect to the properly spelled domain name.   Once you begin to develop your website, you are going to increase the value of the typo, making it more expensive for you to acquire down the road.

This is one of the little things to consider before your development project.

How .nyc Can Become the Extension for New York City

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I am not a native New Yorker.   I have only lived on the Upper West Side of Manhattan for six and a half years, but I feel like a New Yorker.   I hate crowds of tourists, I try my hardest not to pass through Times Square, I love running/rollerblading/playing tennis/walking in Central Park, I know I will never make it on time if I need to take the W train, and I keep my elbows out when walking past people meandering on the sidewalk during rush hour. The only way you could tell I am not a native New Yorker is my Sox and Pats gear. I am also a domain investor.

When I was in graduate school at NYU, the reason I moved to New York, the director of the program challenged us to think like marketers and like consumers. It was critical that if we were going to develop direct marketing strategies for brands, we couldn’t just think about ways to market products. We had to put ourselves in the minds of the consumers who would buy our products, and we needed to think about whether our marketing efforts would appeal to them.

In the case of the .nyc extension, I am able to think like a domain investor and like a consumer, and I have a pretty good idea about how the .nyc extension will be successful. I can also imagine how it could struggle.

Several years ago, the city of New York rolled out its 311 phone line. This is the number you can call for just about anything and everything related to New York that isn’t an emergency. If you need information about paying taxes, call 311. If there’s a car alarm going off at 2am outside of your building, call 311. If you see a rodent in a restaurant, call 311. This is the phone number to connect you with the city, and most people who live hear know about it through a variety of television, subway, billboard, and other advertising efforts.

For consumers to adopt .nyc as they adopted 311, I think a few things need to happen:

I think every government organization, entity, office and program will need to use .nyc for their website. Whether this is forwarded to the existing .gov or not, we, the people of New York, need to know that .nyc means connecting to New York City, it’s government, businesses and everything else related to the city.

Every city marketing effort needs to be branded .nyc. Mayor.nyc should go to to the mayor’s office, FDNY.nyc should go to the Fire Department, 311.nyc should go to the 311 system, CentralPark.nyc should go to the Central Park Conservancy, and Weiner.nyc should not go to Gray’s Papaya, but should go to State Representative Anthony Weiner who represents the city.

If the city adopts .nyc as their extension, consumers will begin to adjust to it, and they will adopt it as well.   However, it can’t just end at the city government.   The .nyc extension will not be commercially viable if the businesses in New York don’t buy their domain names, which is where the revenue generation steps in to the picture.   I am all for capitalism, but the people running the .nyc extension need to do something to ensure legitimate New York City business get their domain names so New Yorkers use the extension to find their favorite businesses.

If AtlanticGrill.nyc, PerSe.nyc, Bloomingdales.nyc, and MenuPages.nyc end up with PPC links on them or go to a Sedo for sale page, I will probably never type in a .nyc domain name to find a local business. When I am on my Blackberry, I never type in a .mobi, because I know the chance is good that the brands I want to find don’t even own their .mobi name!   Two immediate cases in point are JetBlue.mobi and YouTube.mobi. In my own humble opinion, I would say that the consumer marketing effort of .mobi has not been good, and I the registrations of .mobi domain names have stalled (846,994 registered as of February 1, 2009 vs. 956,412 on October 1, 2008 – source: 2009 and 2008). Out of the 14 extensions on that list, .mobi is the only one to have lost registrations between October and February.

The .nyc extension isn’t a new technology that stands out from other extensions and would give it a unique selling point.   The extension is a marketing effort that needs to be branded and sold to consumers in addition to businesses. I think it will take a big effort to make it work, but I certainly think it is possible.

I should also add that I think this will be a boon for the owners of NYC.com. No matter how much effort is done people will still add the .com after .nyc, which will take them to a NYC.com subdomain.

New York City Set to Cash in on .NYC

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With the economic crisis causing a major impact to New York City’s revenue, the city is hoping to cash in on the .nyc extension, which they hope will be approved quickly and available to sell by next summer.

According to an article appearing today in Crain’s, “City Council Speaker Christine Quinn announced during her state-of-the-city address Thursday that the “.nyc” domain will start generating a fresh stream of revenue for the city next summer.” Quinn also said that the .nyc extension will generate millions of dollars per year in licensing fees for allowing the group to create the extension.

With the uncertainty of gTLD approvals, I certainly hope the city isn’t counting on the revenue too soon.   My biggest question related to the .nyc extension… who is going to get RaysPizza.nyc?

Be Prepared for Tax Time

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It’s only February 12, but I am already thinking about tax time in just a couple of months.   I am not a finance or numbers guy, so I use an accountant to file my taxes, although I keep very good records of sales, expenses and other transactions.

One thing that made my life easier a couple of years ago was Sandy Brooks’ Domain Tax Guide. When I first explained to my accountant what I did as a hobby, he understood it, but I don’t think he knew anything about it.   At the time, I had made about $1,000 in profit, so it really didn’t matter at all.

As my income continued to rise, the tax impact did as well.   A couple of years ago, when domain revenue became a significant income stream for me, I sent him a copy of the Domain Tax Guide and asked him to read it and use it as a reference when doing my taxes.   If you are making a few thousand dollars or more, you should know the advantages and disadvantages of doing things certain ways.

A few things I think are important that are discussed in the Domain Tax Guide include:

  • Benefits of forming a LLC or other legal entity
  • When to consider domain sales inventory revenue
  • Whether domain names are assets
  • Depreciating domain name assets
  • How capital gains taxes work with domain names

There is a lot of value in the Domain Tax Guide, and although these are affiliate links, I strongly recommend using the tax guide as a reference – whether you file your own taxes or you have an accountant filing them for you. I’ve definitely saved a lot more money than this e-book cost.

WhyPark Monetization Changes Announced

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WhyPark announced some changes to their monetization model today, and these changes should lead to higher payouts for domain owners who have sites with WhyPark. It’s also a good way to test your ad system vs. their feed in a vacuum environment (testing is the best way to see what works and what doesn’t).

Personally, I used WhyPark for my wine-lovers website, Oenophiles.com. I was very pleased with the support from WhyPark, and the name is doing better with them than it was doing parked (by a lot).

I will be publishing an interview with WhyPark CEO Craig Rowe next week, and I am sure industry veteran Stephen Douglas will have some good input as well.

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