Morning Folks!!
Business is looking to the 22nd Century while businessmen are STUCK in 20th Century thinking. Stuck! Their mindset is STUCK!
So when you are stuck, you complain. And so they do. But their complaint just boomerangs on them. They have to stop being "Cheap Bastards" and adjust to this century. Here is my key point and I have written about it since DAY ONE!
If you open a real world brick and mortar business there are EXPENSES. Recurring expenses. Stupid expenses. Un-needed and unwanted expenses. All those expense added together are expensive! So if these folks want to LEAP into this century the FIRST thing they need to do is get a piece of paper and list EVERY single expense they would incur just to OPEN a storefront. But since these guys are STUCK, virtually NONE of them will actually do that. And it was CRAZY RICK that started that comparison in 1996.
The bigger the store, the bigger the prize. One .com can fulfil the work and needs of millions of storefronts. Amazon.com has how many storefronts? I guess SEARS was stuck. How much does it cost to build a big box store and furnish, man and insure it? How long does it take to build? The invisible ghost called Amazon is eating your lunch and soon it will be your dinner too.
And I forgot to mention you will man your stores with a bunch of know nothings that don't have a brain and are probably too busy on the phone helping someone there that can't even buy at the expense of the customer waiting at the register with cash in hand and ignoring you.
See the Internet's biggest bonus is not dealing with idiots. Get out of my way. I will pull it off the shelf, bring it to the checkout, swipe my own card and I am on my way. Why be frustrated with idiots?
But I got off the path. So they build and build and spend and spend and they fight a losing battle. If you sell a shippable product and that is your brick and mortar focus, the way you get unstuck, is by closing down stores. You have already branded yourself. If the Internet is not your #1 hub and source of sales, you are doing something very last century and eventually it is going to cost you your business.
So not to spend some REAL $$$ when making your mark on the Internet and therefore being a cheap bastard, is your #1 mistake. PLEASE consider those startup costs. EVERY single penny. RECURRING BILLS, LIKE RENT AND INSURANCE AND GARBAGE AND EMPLOYEES AND ELECTRIC AND ALL OF IT.
Now go shop for a domain name and you will have an overwhelming choice of quality in the marketplace. Big difference between developing for the sake of it and a business transforming itself for greater sales, greater distribution areas and greater profits.
Let me make it really simple. When I go to a restaurant and the owner is a CHEAP BASTARD, I never go back. Ah...How do you spot a cheap bastard?
Well for a restaurant he serves and off brand ketchup for example. They don't serve real butter they serve some spread crap. The cream comes from a box and you add water. Now if they do this stupid cheap shit in front of you, can you begin to imagine the shortcuts they will take when buying their food?
So a stupid extension may have similar ramifications. A silly .com will do the same. If "to" is in your domain, you MUST own the version that as the number "2" in it as well or you have a gaping leap that lasts forever. The invisible tax you pay and think I am an idiot for even telling you about it. Wake up cheap bastard. You are so damn cheap that it is costing you more money than actually being a sport and doing it right.
Cheap bastards build on sand. They take shortcuts that end up costing more money. They are wired for failure. Like the saying goes, if you don't have the time to do it right the first time, how the hell are you going to make the time when you have to go back and fix it?
Rambling? You bet. This stuff is all connected. Do it right and you get rewarded. Do it on the cheap and it always costs more.
In 2010 we licensed out T.R.A.F.F.I.C.. A new formula was put in place with new shows around the world. Ticket prices were dropped from $1795 to $395 and many were comped trying to get folks to the shows. It was a rotten formula. If you cut your price by 75% you should triple your attendance and more. Did not happen. Instead only 1/3 showed up. Everything was done on the cheap and the product suffered and so did the benefits. The Hong Kong show they planned had to be cancelled. The prices were low and the formula was gone and so was the result. Fixing something that isn't broken can have devastating results and it did.
It drove me crazy watching what we built come tumble-down from the sidelines. But I bit my tongue and knew I had some rebuilding to do in 2011 when the deal expired. Not the way I do things. So I know about this stuff first hand. Doing it right gets rewarded and doing things on the cheap comes back to haunt. Change the formula, change the recipe and change the result. As I told Howard at the time, it was a bridge over troubled waters as 2010 stunk economically.
So until end users see the comparison and take it and actually weigh it seriously, domain values are still very CHEAP! So there is no excuse whatsoever to settle for an inferior domain name. No matter what the extension, inferior has great costs and not so many benefits. The invisible cost of lost sales will put the small guy out of business and cost the big guy MILLIONS and MILLIONS and MILLIONS because THEY were cheap bastards and don't have the ability to see things as they are. They had the dollars, had the budget, did not have the VISION and CHEAP won the day! Cheap Bastards FAIL!
UPDATE: As Michael Berkens has reported today, Jaguar/Land Rover is the latest to have been found GUILTY of Reverse Domain Name Hijacking (RDNH) on the domain name MountainRovers.com. So yesterday they could have been called "Cheap Bastards". Today they can be called "Would be THIEVES!" They tried to abuse the system because this multi-billion dollar company and their lawyers tried to short-circuit capitalism and try to hijack another entities domain name by an abuse of the system. Here is my take on that action! Complainant is Jaguar Land Rover Limited (“Complainant”), represented by Jennifer M. Hetu of Honigman Miller Schwartz and Cohn LLP, Michigan, USA.
Rick Schwartz
Joe the .com guy
that was so great I want to cry!
I would add that to even think about a gtld, .net or cctld puts you in the cheap b@stard category.
Observer
We are now entering a time when simply visiting (no downloading/clicking mail, etc) a website gets a visitor’s computer virus-infected. Caution: Do not visit any websites with cheap domains no matter how high they are placed on a search engine site.
Kevin Murphy
Calling entrepreneurs “cheap bastards” won’t win you, or domainers in general, any fans in the internet populace at large.
Many, many people starting online businesses bootstrap it with their own meagre savings. I was forced to be creative with my brand because my first few choices of domain were priced well out of my range. I’d like to think I’ve made a pretty good success of my business anyway.
I’m sure there are many people who were forced to give up on their entrepreneurial ideas because they were priced out of the market by domainers.
Not everybody is a multimillionaire, Rick.
Rick Schwartz
Gee,
My comments were aimed at corporates that CAN afford not to be cheap bastards cuz it is costing them millions in lost business.
I know what it is to be broke Kevin. Being “cheap” has to do with the decision making process. It becomes an excuse for doing it wrong or taking advantage of somebody else.
Rick Schwartz
Like REVERSE DOMAIN NAME HIJACKERS!! Don’t you think those folks are CHEAP BASTARDS?? I sure as hell do!
Rick Schwartz
“I was forced to be creative with my brand because my first few choices of domain were priced well out of my range. I’d like to think I’ve made a pretty good success of my business anyway.”
Yeah, and you got a dot com. You were not a “Cheap Bastard” going for an immitation. You spent some time and thought of a way to still do it right.
Rick Schwartz
“Well for a restaurant he serves an off brand ketchup for example. They don’t serve real butter they serve some spread crap. The cream comes from a box and you add water. Now if they do this stupid cheap shit in front of you, can you begin to imagine the shortcuts they will take when buying their food?”
Again, it is about the decision making process. Do they throw out the bad chicken or serve it until somebody gets sick? Why? because they are cheap bastards. They did not do it the right way. No excuse for that. And their cheapness likely costs others some discomfort along the line. That makes them a bastard. ;-)
Scott Alliy
So, what we have here Rick is a classic case of uneducated consumer combined with a lack of value in the sales presentation. I.E. You know the value of domains I know the value of domains but the end users have not been properly educated either by domainers or by a trade association which as I understand it we are about to get benefit from. Their ability to read and understand and transfer the 9 value points in the domain name certification standards that I wrote will go along way to turning cheap bastards into educated consumers IMO
Regarding entrepreneurs, creative financing concepts like jointventures.com are designed to overcome that obstacle and BTW I am sure Kevin as well almost all know that you are talking about Corporations and not startups as you have been for years.
Rick Schwartz
Cheap Bastard Defined:
“A man usually of good socioeconomic status that never pays for jack. When on a date with a woman, he either makes her pay or takes her to a real cheap restaurant.”
Want to know how many Domain millionaires get PISSED AT ME because I have the audacity to expect them to pay to attend TRAFFIC like everyone else? Well guess what?? They are cheap bastards because they can afford it and expect OTHERS to pay for them. On the otherhand I have personally sponsored some domainers that had the desire that could not afford to come, but since they were not CHEAP BASTARDS, I helped them out.
Rick Schwartz
“Not everybody is a multimillionaire, Rick.”
That’s pretty insulting Kevin. I expected more from a guy like you. I won’t apologize for doing well since I went broke and learned a lot of lessons that I have tried to pass on. I come from VERY humble beginnings and I have always given back. So that was a cheap shot and well beneath you. But that is ok, you probably speak for others that are stuck with your mindset as well. Tainted as it is.
Kevin Murphy
I got a .com because I knew I would be writing about a predominantly American industry with a (presumably) predominantly American readership. Had I been writing for Brits, I would have quite happily got a .co.uk. Had .blog, .news etc been available I may well have opted for one of those.
Kevin Murphy
“That’s pretty insulting Kevin.”
Is it more or less insulting than “cheap bastard”?
Rick Schwartz
Did I call YOU a cheap bastard??
YOU made it PERSONAL.
Want to go further down that rabbit hole??
That gives YOU a license to be an ASS?
SF
A lot of these would be buyers (cheap bastards and boot strappers alike) seem to have a huge chip on their shoulder towards domain investors.
Whether they can afford it or not, they simply cannot get past the fact that “some domainer” thought of it first and got there first …and stands to profit from it.
Once the economy Fires Back Up, maybe attitudes will begin to change as many begin to realize what is at stake.
Rick Schwartz
Here ya go…..
Another RDNH and another CHEAP BASTARD!!!
LAND ROVER can’t afford to do it the right way Mr. Murphy??
What NAME would you like to call them??
Get that hair outta yer arse. They ARE what I said they are.
And last time I looked, CHEAP BASTARD is a lot nicer than being an actual THIEF!
http://www.thedomains.com/2013/08/19/car-maker-land-rover-found-guilty-of-reverse-domain-name-hijacking/
Kevin Murphy
“Thought of it first” doesn’t always reflect reality, and may give investors too much credit, especially when portfolios are picked and maintained according to algorithms and traffic data.
Kevin Murphy
Sorry, Rick, I didn’t realize you were talking about a multibillion dollar car manufacturer. Your article talks about a guy opening a restaurant.
Rick Schwartz
I point out the restaurant guy because he can afford to do it right and an example of a business to avoid. There is always another place to eat at the same or a lower price with better food.
But the higher up you go, the stupider it gets. Land Rover? P&G? Heads should roll over at land rover and i am composing my post right now.
Rick Schwartz
Many, many people starting online businesses bootstrap it with their own meagre savings”
You are assuming every .com that is for sale costs a lot of money and we see every week people picking up .com’s for$100, $250, $500, $1000, $2000 so instead they register a .whatever for $30.
We are talking less than first and last months rent on anything in the real world for a worldwide and expanded presence. When they get “Cheap” that limits them and that is costly. The first thing you need to do to CURE CHEAP is to illustrate and educate why somebody is being cheap. And for every bootstrapper, there is a guy with a $1000/month car lease. ;-)
Morty
C’mon, Kevin, “cheap bastard” is a pretty benign statement. You have to have really thin skin if that upsets you. It was not even directed at you specifically.
Regarding the post, I gave up on corporates or even older folks ever coming around, even though some have. The younger generation in their 20’s don’t seem to be so belligerent towards domain owners. They are the next ones to take the power from retiring corporate players and from “pops” who could never wrap his head around paying 100K for a domain.
Kevin Murphy
I wouldn’t say it’s a wholly “benign” statement, Morty, but I was not upset either.
It just struck me that directing an insult at your potential customers is perhaps not such a great idea, especially when many of them already think your whole business model is parasitical.
That’s what my original comment was trying to reflect.
Morty
I’d like to add something about being cheap or not:
Right now I have a 22 year old kid that singed a financed six figure deal, paying monthly, I have a piece of his company, and he still wanted to do the deal.
It is a category killer domain.
He had to move into a smaller apartment with his fiancee, work more hours, work weekends, scour in his “spare time” for investors, etc……. This kid is doing EVERYTHING he can to do it right. He was no cheapskate on the domain.
He spent two years trying to get me to sell the domain but I would not because he had no substantial money. After I saw his passion and determination and finally spoke with him I realized that this is the guy for the domain, at least passion-wise.
Part 1 of 2
Morty
Part 2
He told me he spent nights just laying in bed trying to figure out how he could tie up the domain so he could develop it. Well, he now has. He’s not missed a payment, has spent a year on launching it, launched it and the site is growing pretty quickly.
Point is, most people won’t do this. They are too cheap in regards to personal sacrifice or cash sacrifice. This guy gave up almost everything under the sun to make it happen.
So I say to those that chose a “less expensive” or different domain then the one they really wanted: Did you really try? Really? Are you sure?
Joe Parvin
Kevin, this is a “tempest in a teapot” based on a misunderstanding (I hope) of Rick’s remarks. He’s clearly not calling the destitute wino, clutching a bottle of Night Train, a “cheap bastard” for not buying a superior beverage. I wouldn’t even call the wino a “drunken bastard”, because that’s not the way I express myself, but the message is clear. Instead of “cheap bastard”, would “parsimonious ignoramus’ be more to your liking? – Would anybody be reading a blog about “parsimonious ignoramuses?”
florida
I don’t know what we would do without rick. NO ONE ELSE HAS THE BALLS TO SAY IT
David
“And I forgot to mention you will man your stores with a bunch of know nothings that don’t have a brain and are probably too busy on the phone helping someone there that can’t even buy at the expense of the customer waiting at the register with cash in hand and ignoring you.”
I have encountered that many times and find it annoying and maddening too. Why do the idiots at the desk think an often long-winded phone call is more important than a live customer ready to check-out? Not surprising people prefer to buy online rather than deal with idiots in retail establishments.
florida
aw shut up you political correct granny. stop whining
florida
kevin is part of the problem. I bet he’s a democrat that has “feelings”.
BullS
Morty,
Don’t you think it is better for you to help him out NOW by not taking payment (little payment), give him all the resources he needs so he can finish the project early and share the revenue with you?
I am working on a killer app(cloudnursery.com) with a kid and taking no money because I want him to finish the project so we can share the revenue. I even buy all the app tools he needs to get it done.
Win-Win situation
Kevin Murphy
It’s much worse than you can imagine, Florida, I’m not even American.
And I’m a vegetarian!
Rick Schwartz
Kevin,
I see from your words that you have a very low opinion of the domain industry and domainers. But you never answered the question. What would you like to call Land Rover and others? And whether you like it or not, the question I asked was completely bonafide. The only PARASITES I see are coming from the other side of “Capitalism”.
Kevin Murphy
Which words give you that impression Rick?
You know I write a blog about the domain industry, right?
If you’re asking me if I think RDNH is right, then my answer is: no, it’s not right.
DonnyM
Adding to the restaurant comment, the worst is when you spend 50 bucks or whatever for dinner and then they bring out a shitty cup of coffee to end the meal. What do you remember about the place at the end of that night, that shitty cup of coffee they served you.
Then you have people that look down on waiters they tip shitty 5-10% on a 200 bill. But then you have the waiter that will tip 50% on a 20.00 bill. What does the waiter remember at the end of the night- The Tip? Q-Are they cheap or do they just don’t know what to tip? I think with domain names it is a combination of being uneducated about the end result of a good .com and and just being CHEAP.
Jaguar/Land Rover Found GUILTY of Reverse Domain Name Hijacking (RDNH) - The Rick Schwartz Domain Name and Traffic Blog RicksBlog.com | Home of the "Domain King"
[…] Post:Not Enough .Coms or Too Many Cheap Bastards? Next […]
Rick Schwartz
Kevin,
When you go to twitter and say “One reason people hate domainers” and link to this post YOU are perpetuating something.
Then when you comment here:
“It just struck me that directing an insult at your potential customers is perhaps not such a great idea, especially when many of them already think your whole business model is parasitical.”
You seem to want to spread the word that domainers are parasites. I think that is what you think by another comment of yours I will post in a sec.
Rick Schwartz
“Thought of it first” doesn’t always reflect reality, and may give investors too much credit, especially when portfolios are picked and maintained according to algorithms and traffic data.”
That’s how you think?? Sorry pal, there were no “algorithms and traffic data” when I started. I hand registered each of my domains or negotiated a buy with a 3rd party one domain at a time. And I don’t begrudge those that chose a different path. They have many more domains, sometimes make much more money, but I am not jealous of their success. I applaud it!
Kevin Murphy
I think the blog post we’re commenting on here is more likely to make people hate domainers, yes.
You’re not doing yourself or your profession any favors by making out the customer is at fault for not wanting to pay your prices.
As we all know, domain names are only worth the price the buyer is willing to pay. If they’re not willing to pay the price the seller is asking, perhaps the seller needs to up his or her game rather than blaming the buyer.
For the record, for the avoidance of doubt: I don’t think domainers are parasites, and I haven’t said anything that should give that impression.
Kevin Murphy
My comment wasn’t directed at you, Rick.
But as you know, industry-wide hundreds of thousands (I’d say millions) of domains are registered by software, not by a domainers with a bright idea.
Rick Schwartz
“But as you know, industry-wide hundreds of thousands (I’d say millions) of domains are registered by software, not by a domainers with a bright idea”
I guess they take the risk and they can win or lose. I am not into that game but Guess what?
We have those 600-900 gTLD’s coming out and each of the owners PRAY that some domainer will register 1 Million of their domains and they could give a rats ass about the idea or business behind the registration.
LSM
Its still easy to get killer .coms under 10 grand if you’re not a complete fucking retard, know how to effectively use your time by ditching the price-dreamers and focusing on the people who prefer cash to dreams.
There’s a big, big secret about domain acquisition methodology and a certain huge VC firm known for their seeding, but I won’t go there.
Reality bites...
Being a cheap bastard can work, but generally it’s only pin money existence. Being a cheap bastard is not scalable, it follows the old adage of ‘penny wise, pound foolish’.
Cheap bastard to me is synonymous with dumb arse. They think small and they think in the literal world, what is before them, simple linear cause and effect.
Unfortunately cheap bastard logic needs to be drummed out of people and it takes a while, there’s a whole set of basic logic parameters that they need to retrain in. Big Corporates can act cheap bastards because their arse can be joined to their elbow.
I’m just waiting for a whole business strategy to be talked out how large corporates better work with fast moving smaller entities because it seems time and time again large corporates acquire these smaller firms and then kill them with process. That’s dumb arse.
Reality bites...
How Google was so dumb arse that it killed Checkout, something that should have been its golden goose. They have all the advertisers, they have untold traffic but they were so crap on execution and follow through that they snatched failure from the jaws of success.
LSM
There are plenty of large businesses willing to make five and six figure marketing expenses. Its just that a lot of corporate decision making about ‘internet stuff’ is inadequately nuanced and instead, gets passed off as a “Yes/No” question to some asshole who, in his soul, is not a businessmen but a garden variety tech neckbeard altruist. You think that guy understands marketing operations? No chance. He understands servers, anime cartoons, Mountain Dew and porn.
None of this is in defense of the completely idiotic, delusional assholes in domaining who have no idea how to price a domain to actually sell it (you know who you are) but there have been far too many cases of domains that were priced fairly, were totally synergistic with a businesses marketing operations but didn’t get a budget allocation because some server network monkey down the hall got to make the call on something he was totally unqualified for.
Mike Searles (@WebcastWords)
Rick, you are a rambling know-all.
And I agree with you.
Ramble for me anytime with your wise know-all opinions.
I’m all ears.
Danny Pryor
this is a test comment only