Subscribe

Home Blog Page 1422

Investing in Call to Action Domain Names

Major corporations seem to like call to action domain names nearly as much as they like their branded domain names. Call to action domains can be more memorable to a consumer than just the brand, and it typically encourages the consumer to take action quickly. They are less expensive than generic domain names, and they’re more readily available.   They can also be more trackable than a standard brand URL.

Call to action domain names are frequently used for a short period of time, usually during a company’s interactive or integrated marketing campaign. They are liked by companies because they can help spread a message, usually in a fun way. They aren’t typically expensive to acquire, and many of the creative ones that incorporate a company’s brand are unregistered.

For a domain investor, the problem with owning these domain names is that there are several obstacles in selling them:

1) The company could easily change a word to differentiate and buy an unregistered version (CallUsASAP.com could easily be changed to CallUsRightNow.com)

2) Because they are short campaigns (usually), the budgets for creating the advertisement are typically more limited – with the exception of the Super Bowl and a few other big advertising times.

3) It’s hard to find one of these names before it’s in demand, and to acquire a great number and hold on to them, it can be cost prohibitive.

4) Usually the advertising agency creates the advertisement, and they don’t want to spend their allotted budget on a domain name, when the money can be billed for internal labor costs rather than external unrecoverable costs like a domain name.

5) On a creative pitch, there are usually 5-10 ideas and 3 final ideas presented to the client.   Between the internal agency pitch and the pitch to the client, there isn’t much time to negotiate a domain acquistion.   Agencies won’t pitch an idea to their client unless they know exactly how much a domain name costs.   Getting in touch with some domain owners is difficult, and if they can’t secure the name before the final client pitch, the idea may be ditched. The last thing they want to do is get the client on board with a great idea, only to tell them it’s not feasible because of cost or because they can’t even get in touch with the domain owner.

I get a lot of emails from people asking my opinion on call to action domain names. While I think many of them are neat from a consumer’s perspective, I think it’s very difficult to sell them to a company. I highly doubt a company will tailor an expensive advertising campaign around a domain name, and they probably wouldn’t acquire it for a future campaign (all of this assumes the domain owner is even able to get in front of the marketing decision maker).

My advice is to own a couple of these names if you must (buying them at registration fee), but don’t spend too much money on them.   Buying call to action domain names is more like playing the lottery.

***Edit***
Just for further proof about this, next time you see a call to action domain name, do a Whois History search on it. See if the company was the original registrant and when the domain name was registered. If you see that it was previously owned by someone, drop them a note and ask them about it. I’ve learned some interesting things about domain acquisition strategy (much of it I can’t post because they asked me not to make it public). I think you’ll find that most of the call to action domains that are being used were originally registered by the company using it, rather than being older domains acquired in the after market.

Bensalem.com – Reduced Price

2

This domain name is now pending sale – to be completed on Monday.

Rick Latona’s Great Rates on Newsletter Domains

14

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

3

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.