Domain Name ExposeExposing Domains & Domainers

This will be the first of a two-part article detailing insight into the past and the future of the internet. Before delving into what is to come in the not-so-distant future, I would like to offer some tech history for those unfamiliar with the creation of the internet. Following that I will be sharing some of my personal experiences and ideas regarding the .COM space.

First, there were local computer networks established within government organizations and universities across the globe. In 1973 the TCP/IP protocol was being developed by Vinton Cerf from Stanford and Bob Kahn from DARPA which would allow diverse networks to connect to each other. Did they ever.

In 1985, the first domain name was registered (Symbolics.com). Years pass and a select few savvy entrepreneurs, businesses and investors including IBM, Intel, AT&T and Cisco stake their claim by applying for .COM domain names.

By 1995 the networks had exploded and become the world wide web, a collective pool of human knowledge. Millions are aware, if not getting involved actively or passively. The internet did what it is now known to do very well, that is, grow!

ICANN was established in 1998 as in independent organization with the task of managing IP addresses and domain names.

Just prior to ICANN’s formation in 1997, a major internet milestone was reached. 1 million .COM domain names had been registered. It took 12 years. This number is now dwarfed in comparison to the over 80 million .COM domains registered today.

Over the past two decades the internet has grown to become an integral part of our individual lives and society as a whole. It may even be getting the recognition it deserves with a nomination for the 2010 Nobel Peace Prize.

The .COM top level domain has reached it’s 25th anniversary! You can join in the celebration and learn more at 25YearsOf.com

The .COM Bubble (Our 15 Minutes of Fame)

The .COM Bubble was the period from 1995-2000 during which investors poured massive amounts of funding into internet and technology startups. After seeing record rises in stock valuations, business was moving lightning fast and without caution. It turned out to be quite a big mess. I prefer to remember this as the period in which over 20 million .COMs were claimed.

In 1997, I taught myself how to code websites and soon had my very own one-man web hosting and design company up and running. I witnessed the boom in online business and began to create my own web properties, communities and sites for local business by contracting for design work and reselling hosting.

Along the way, I made a few domain sales on eBay and Afternic. Unfortunately, I lacked the capital to invest very much in domains (oddly enough, domain registration was $75 per year back then). A small barrier that would soon be broken down.

If you entered into the domaining industry after 2000, like myself, then you probably have a little nagging feeling that you somehow “missed the boat.”  The forethought and technical understanding to apply to register keyword domains was held by a select few. Many of those individuals are now famous today for their successes.

One of those founding domainers is Frank Schilling who holds one of the largest domain portfolios in the world. In an older post on DotSauce I featured some predictions from the pros, from which I’d like to share this quote by Frank:

Today, getting a good domain name may be pricier than it was in the early days of domaining, but dollar for dollar you are still far better off investing in .COM domains because .COM is a global brand.

There is still countless opportunity today, still massively profitable investments to be made in .COM domains. You simply need to break down the barrier of entry into this business.

The .COM Barrier

There are a few things that prevent your average internet enthusiast from becoming a successful domainer. Let’s review them and help break down the .COM barrier.

1) Price - High quality .COM domain names sell for $1 million+ seemingly every month. Countless small and medium sized sales in the hundreds to several thousand dollar range are made every day across many domain marketplaces.

Most would agree that it is easier to make more profit by investing in high quality domains at a price tag of a few hundred dollars each which can later be sold for several thousands rather than do lots of smaller sales. While this may be true, raising the initial capital is a barrier that many face.

You can, however, get started now with those smaller sales. New .COM domain registrations are around $7 if you use a coupon code and there are other bargain deals in the aftermarket to get you started towards building a valuable portfolio.

2) Domain Industry Knowledge – A successful domain investor understands the big picture. They know the life cycle of a domain, it’s expiration process, the registrars and organizations involved. They know the best research tools, analytics and data to discover worthwhile domains.

Some domainers have all this down to a science and keep watch for the latest news and notable sales.

It would be difficult to get far without a solid understanding of the domain aftermarket and domain names themselves. Having a passion for what you do goes a long way.

3) Common Sense – Unfortunately, this is a big part of the barrier to overcome for success in domaining. Without common sense, your experience domaining may not be such a pleasant one and could turn into a money-sink. One needs to apply common sense when undertaking these domain business tasks.

• When registering or buying a domain be sure the vision for your domain is clear. You want to know that it is worth your investment and ideally have potential end-users present. With new tools, like Estibot, it is becoming easier to evaluate a domains potential, but further research and a human’s perspective is always recommended.
• When choosing how to monetize a domain through development or parking. Without significant time invested in development and content creation, most mini-sites or landing pages will not be indexed high enough on search engines to be worth the time invested. As for PPC parking, if your domain does not receive enough traffic to recoup the yearly renewal fee then don’t bother with it. Many domains are not fit for either, and that’s OK. Instead, focus on sales or your established websites.
• When marketing domains for sale, pricing your inventory and negotiating sales you need to have a good understanding of the liquid and potential value of your domain. What a name may sell for years from now is not a realistic interpretation of present value. Understanding who you are marketing to is also a very important factor in determining a successful sales price.

Be reasonable, be real and learn from your mistakes to overcome these and the other barriers to .COM success.

The Future

In part 2 of this article series I will be exploring some of the latest innovations, research, data and predictions of how the internet will evolve and grow over the coming years.

I’m very excited about writing this feature as I’m somewhat of a futurist, early adopter and science-fiction fan. Or maybe it’s because I don’t want to miss the boat again. How about you?

Please subscribe by RSS, by email or follow @DotSauce on Twitter to be notified about part 2, The Future of The Internet!

This article is from DotSauce Magazine.

I’m sure you’ve come across some of the following resources before, at least I hope, because I’ve selected some of the very best publications catering to online business entrepreneurs.

These websites are some of my favorite destinations where I try to consume as much relevant information as I can. I hope you find time to check them out, subscribe or follow on Twitter because it is definitely worth it!

1. Hacker News

A social news sharing community hub that was started by the popular venture capitol firm YCombinator. There is always fresh online business news to be found with a heavy sampling of programming and technological innovations. (Twitter: @HackerNews)

2. Inc. Magazine

Inc. Magazine provides inspiring and educational articles on small business, marketing, social media, branding and much more. They have some of the best interviews with successful entrepreneurs. My favorite interview is with WordPress founder, Matt Mullenweg who shares how he works from home. (Twitter: @INCMagazine)

3. Mixergy

Like Inc. Magazine, Mixergy also provides phenomenal interviews, but this wildly popular blog has taken it a step further with countless live video sessions with successful online entrepreneurs. Tune in to learn from business experts like Seth Godin, Timothy Ferris, and Gary Vaynerchuk as well as some less-known upstarts that made it big. (Twitter: @Mixergy)

4. AdvertisingAge

AdAge, as it is commonly referred to, is an industry leading online marketing publication. Comprehensive coverage and in-depth articles for big and small business marketing, branding and what is to come in the new age of social media. (Twitter: @AdAge)

5. eConsultancy

This blog is one of my favorite publications because they provide a selection of articles on subjects ranging from website management, SEO and marketing to usability and social media. eConsultancy is always looking out for what’s on the horizon for online business. (Twitter: @eConsultancy)

6. eMarketer

eMarketer provides profoundly insightful articles because they do some serious research, gathering data from thousands of sources. eMarketer analysis of media usage by the public and internet marketing trends is definitely a must follow. (Twitter: @eMarketer)

7. Social Media Examiner

As you might guess, Social Media Examiner is all about Facebook, Twitter, and Linkedin success. This popular blog has become a phenomenal resource containing articles on optimizing your marketing and brand building efforts across these networks. (Twitter: @smexaminer)

If for some crazy reason you want more (I know you do!), please follow me on Twitter @DotSauce where I’m often found sharing resources related to small business, marketing, social media, web development and domain names.

I hope you found these resources for online entrepreneurs useful. Consider passing this article on to a friend to share the knowledge!

This article is from DotSauce Magazine.

Nothing compliments a domain name like a really nice logo design. The creation of a brand identity immediately increases the value of any domain name. In some cases a professional logo design can turn a $7.50 domain registration into $1000+ brand package.

Here are three businesses that really get it when it comes to uniting well designed logos with domain names.

Brandstack

Brandstack (formerly IncSpring), which I wrote about here and listed in the Top 20 Places to Buy Domains in 2010 was originally a marketplace of logo brand designs.

Designers were naturally coupling domain names with their brand creations to further increase their value and interest. It works both ways. A quality .com domain name will make a professional logo design all that much more valuable.

Brandstack has continued to improve their platform over time to make it a user-friendly marketplace for both buyers, sellers, designers and domainers. So, they now have a unique area just for domain name sales (with or without logos).

Brandbucket

Brandbucket is similar in concept to Brandstack, but they cater specifically to quality, pronounceable and short .com domains.

If your domain qualifies to be listed on Brandbucket they will create the logo for you and help to market your brand for sale. I have not listed here personally, so I can’t speak from experience, but there is likely a hefty commission fee to be paid upon a sale.

Pricing across Brandbucket seems to be inflated for the majority of listings. I’m sorry, but you’re not going to get $4000 for Oscula.com, don’t fool yourself.

Castello Brothers

Castello Cities Internet Network at CCIN.com is owned by brothers Michael and David Castello, two or the biggest players in and supporters of the domain industry. I’d like to point out some of their portfolio as they obviously understand the value of a quality brand image.

How To Cash In on Logo Designs For Your Domains

With the vast array of open source software and tools available today for web development. Web design, logo creation and branding is actually the biggest challenge a business or individual faces when launching a web presence.

Obviously not every domain name is destined to be a brand. It’s ultimately up to you to decide which of your domains is best suited for brand creation or if it is worth the investment to hire a designer.

Like I mentioned previously in the bit about Brandbucket’s pricing, you need to be reasonable with your asking price and have a clear goal in mind. That goal should be to make a sale. Many of the brands on these marketplaces will sit for years because they are asking for a fraction too much, making the sale unrealistic.

Get In Touch With The Creatives

Connecting with designers is now easier than ever. Twitter is a great place to start. I have been creating a Twitter list of designers myself that you’re more than welcome to check out. There is also a list of domainers if you’re interested.

Alternatively, there are always popular freelance marketplaces like oDesk, available to hire designers on the cheap and you can post an ad for your design job for free on FreelanceSwitch.

Here’s an idea: If you can’t afford a professional logo design for your domain, consider befriending a designer and offer them a percentage of the proceeds from the sale of the brand.

Has creating a logo brand for your domains help you make a sale? Do you know of any other businesses or services that get it when it comes to domains and logo designs? I would love to hear about your experiences. Please leave a comment below.

This article is from DotSauce Magazine.

I thought this would be a nice question to see what you might be interested in learning more about. There are numerous resources and tools available that make domaining more accessible to those just getting started and experienced domainers alike.

Note: My apologies for the duplicate publication. DotSauce Mag was transferred to a new server and this latest article was lost in the process.

If you previously responded to this poll your vote was lost, sorry!

I am almost positive that “Selling domains to end-users” is the obvious answer to this poll question. End user sales is the most profitable and difficult task a domainer faces. So, I have excluded that response to get a more realistic view of interests. Here are your options…

Building a Domain Portfolio Website

In a previous poll on DotSauce, I found that 37% of respondents had created a custom domain portfolio website. With open source software like WordPress, it’s fairly simple for the average person to create a nice looking web presence.

It pays to learn some of the more advanced features and find the right plugins that complement your site.

Marketing Domains for Sale

I’ve written about selling domain names a few times. It’s always a popular subject as one might guess! Have you embraced new tools, avenues and resources for selling domains in 2010?

Creating an Email Newsletter

Some of the biggest brokers in the world rely on their email newsletters to bring in the sales. Have you considered creating one? There are lots of options in this space, some paid, some free. There’s also the question of just how to get people to subscribe and buy.

Valuating / Appraising Domains

This is a definite skill that can’t be learned over night, but with each sale and purchase you make or hear about experience is gained. Learning from industry experts and keeping a close eye on the aftermarket is a good place to start.

Automated appraisals are a popular topic right now, but are they really useful for valuating a domain for sale?

Researching Domains to Purchase

There are many great tools and techniques for researching expiring domains and domains on other marketplaces and drop houses. Sometimes it can be a bit overwhelming.

Negotiating Domain Sales

This can be a difficult task as each domain sale is unique. Many have shared sales letters, email correspondence, tips and tricks on asking prices, making offers and bartering. What really works?

Please select an option below and click “Vote!” Thank you!

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Subscribe to DotSauce to be updated on future articles and resources related to the topics you’ve just read about. And be sure to come back soon to view the results of this poll!

This article is from DotSauce Magazine.