The Rick Schwartz Domain Name and Traffic Blog: RicksBlog.com – Home of The Domain King®

Morning Folks!!

Now I see the numbers and now I can say without doubt that the entire landscape of the domain industry is about to have a dramatic shift. The single biggest shift EVER! An earthquake.

There is no question in my mind that folks are about to shift their TRUE type in traffic to Frank or one of the new companies using Frank's feed like Domain Power and another company set to make an announcement next week.

NEVER have so many domains and so much traffic shifted to one specific entity in this short a time with so much more to come. NUMBERS! That traffic is coming from all these other parking companies and implosion is not out of the question. I'll explain why in a moment.

The mini site has transformed into lead generation, email capture and other models that are taking advantage of the strengths of each individual domain.

The other day I mentioned that your current parking company was “Hosing” you if you have pure type in traffic. Now I can confirm it. Hosed is not the adjective I would use today. Today I would use something much stronger.

So as this unfolds you are going to see some wild stuff going down as these companies scramble to stay afloat. They are going to tell you how strong they are but that may not last long. Their traffic is being gutted as I write this. The BEST traffic. They are watching the OIL come out and they are about to be stuck with the mud. Slow moving mud with limited traffic.

A company can only lose about 35% of their business before they collapse. We are going to see some very aggressive marketing while they FIGHT for survival. Some may not make it and the ones that do will be smaller and weaker. NO DOUBT!

Stay tuned. All I know is NUMBERS and the NUMBERS are about to bury the greedy. Wait til you find out how much this shit is costing you. You are going to KNOW things you don't want to know. Let's see how many will still carry water for these companies once the truth is known.

If you have PURE type in traffic you will be STUNNED by the numbers. Domainers have taken back control of their industry and there are going to be some very unhappy folks!

What will those companies say when you have a domain making .86 cents a day and then starts making $30????????? Sorry we have been screwing you all this time?? Sorry we were getting fat on YOUR traffic??? Sorry we were taking MOST of the payouts?? Sorry but we are FRIENDS?? BULLSHIT!!!

Now obviously this is the most extreme case right now. But the increase overall is staggering. So....

Sorry guys, you got away with it long enough. It's OVER BABY!! Enjoy the mud.

And if you don't believe it.....see what I wrote back in 2009 when I suggested that an event like this could and WOULD do! I am sure I suggested it even before that. Why?? Because I have seen it happen before.

'One new solution by any of these companies has the power to disrupt the entire sector. It could put companies out of business virtually overnight. The market is fragile and no sponsor could afford a mass movement of traffic and survive.'

And here is a classic from 2008. I described the event. but as always, it is the timing. So here we are NOW. Just 2 or 3 years off schedule. ;-)

And for the record, I don't want to see anyone go out of business. But I do enjoy seeing the oil separated from the rest of the mix and having the existing companies get paid FAIRLY for the service they provide. Will it be too little too late? Certainly is not up to me.

Have a GREAT Day!!

Rick Schwartz

Morning Folks!!

What do you do when the .com version of a domain is registered and is not for sale? Do you look for something different or do you choose another extension?

HTFJYRTZYSXW

For me, it depends. If the name lends itself naturally to another extension, then I will register that. Which are my favorite default NON dotcoms? Well depending on the particular domain name I may go for .org, .tv, .me and once in a blue moon, a .co.

I have said for many years that .org is the #2 extension and it leapfrogs over the .net which has no identity. As time goes by I like .tv more and more. I own Rick.tv (a recent present) and Golfing.tv, Bloopers.tv among others.

My only objection to it 10 years ago was that there were still .com’s laying around to get registered with type in traffic that would provide the income to buy as many .tv’s as you like. Just a strategy and TIMING which is always the key.

I have a number of domains with a .me extensions. Some with other partners. Like Meet,me, Date.me, Love.me and Marry.me. Some on my own like Rick.me, Wager.me and also a few last name and first names with a .me extension.

Most extensions are worthless to me. They are a segment of a smaller and smaller pie by population. I want to cast the widest and most targeted net I can. Most extensions limit that and the groups get smaller the more .whatevers there are.

So come in 500 new extensions. While registrars may find profits, domain investors will likely find liabilities. Without massive National and International television advertising the average guy on the street will not recognize or use any of them. So they become .meaningless.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Did Bing do something that puts Google on their heals?? Youbetcha!

Bing has made an announcement that might prove to be the biggest blow ever dealt to rival Google.

'In short, search for something on Bing and, if you have activated Facebook results, you will see which pages, products and websites your friends like and recommend -- very high in results, no matter if that website routinely ranks first or dead last..'

http://www.websitemagazine.com/content/blogs/posts/archive/2011/05/16/bing-forever-changes-search-and-SEO.aspx

So for those that did not believe Bing could make an impact, please read my 3 posts on Bing since their inception in 2009 and see who got what right.

Also PCWorld.com just came out with their take on things.

Tis is just the first of many new changes and challenges to come for Google by the likes of Microsoft, Facebook, Apple, Groupon, Living Social, Twitter and a host of others. By the Fall you will make no mistake the war these folks will be waging.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

What happens when you are a refinery and all the oil is pumped out and all you are stuck with is mud? Well the Domain Industry may soon find out. Frank Schilling now has a new Parking Company with a direct Google feed to make you more money IF and ONLY IF you have PURE TYPE IN TRAFFIC. Oil, Gold, the best traffic. HTFJYRTZYSXW

'A no-frills domain monetization platform, for experienced type-in traffic operators.'

I think for the FIRST TIME we will see what happens when you really filter the traffic to have only the best. No domains where the traffic could be anything other than PURE type in traffic. It took the crappiest payouts ever for the BUST to really happen and now we are witnessing it in real time.

If you have that pure type in traffic we all know and love, then you will soon be going thru Frank and his new venture at InternetTraffic.com. I don’t even have to pitch it for him. He does not even have to pitch it. He just has to do it and he has and this is a really good thing for a lot of us.

'You WILL make significantly more money here.' Frank Schilling

Congrats to Frank for breaking away in a big way and perhaps turning the tide as this may significantly change the industry landscape in the coming months and years. The NUMBERS will tell the rest of the story and the NUMBERS may disrupt a lot of PPC companies in our space and how they do business. Especially WHEN folks find out that they have been getting hosed!

Be patient, there will be a floodgate of domainers lined up to open their accounts this week and start earning 'Significantly more money'. Each account will be pulling their traffic away from another parking company. The BEST traffic! The most profitable traffic. How much business can a parking company lose and still be viable? And remember, they won't be 'Bleeding' traffic. There will be a mass exodus and more of a rupture.

And it does not stop there. There are more options and other solutions coming our way. I know folks that are quietly working on big things. All I can say is in a few months things are going to be very different around this industry and you will finally get a BILL for your friendships when you see the difference in earnings. Then maybe folks will understand who pays for what and wise up. How much does YOUR friendship cost? I'll be your best friend too if I was making 50% or more on YOUR payouts!!! On your traffic. On your BACK!

And let's hope the takeaway from this is that Yahoo and Google finally see the difference between Mud and Oil and pay out accordingly. I think we can agree that Frank can represent the best interest of domainers and our valuable traffic better than the likes of some companies in the space that may have driven a wedge between Yahoo, Google and domainers in the past.

This is a really great day for old line domainers that have and believe in Type in Traffic. It may be a really bad day for some others that try every trick in the book to get more traffic regardless of the quality and pretend both are equal.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

When you are free to think and go where others need permission, it removes limits of what you can achieve. How you can change things. How we as domainers have the POWER to change our own destiny.

There are some wonderful things about to happen to our industry. Why? Because domainers are taking back their own destiny. I have several cases in point.

You have to start your day with 2 things. Both are your health. The obvious one and then your financial health. If you have those, life is good. You also have future health. One you may exercise your body, the other you need to think and exercise your mind.

How to change things? By organizing and having likeminded people do something very specific that have a great impact and a goal oriented result. Read that one again because that may just end up being the focus at TRAFFIC this year. That’s the equation for those that understand what I mean by that.

Domainers are being challenged and that is a blessing in disguise. It all starts with an idea and there are many folks working on new ideas and I like them all.

Whether you want to accept it or not, income is your report card. You don’t have to compare to mine or Bill Gates or anyone but your own income. Up or down? By how much? What’s your monthly nut? When you track EVERY single monthly payout and truly know what your nut is then you know whether you are on the path. But you have to count everything. And then add 10% to cover the stuff you missed or are unexpected.

Your business plan may be challenged in times like this. But this is how you grade what you built. Built to last or is it washed away? If it is washed away like those houses along the Mississippi, then look at it as an opportunity to get a fresh start and start over with what you have learned. You can start over as soon as you do the thing I have said since the get go. “Make sure your FIRST domain purchase is a winner” Build on a winner not on a loser.

If you have 10,000 names and make no money, dump the 10,000 names for whatever and know you now have $75k or so to get that FIRST domain name. Get one that makes $8/day and start there. That’s just a starting point and a direction and that puts you ahead of 90% of the universe.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Capitalism is about taking a risk and being rewarded if it works out. That is why so many take risks every single day. The risk/reward level is huge. You never know how big the upside can be while knowing exactly what the risk might be if you do your due diligence.

So we are entering a period in which you are going to have to defend owning large quantities of domain names. Let’s define “Large” as anything over 250 domain names. May not be large to us, but will be to those looking in.

If you look at my posts from 15 years ago you will see that the thing that concerned me the most would be over reaching government intervention. They would target valuable domains and assist those that decided they had more of a right to that domain name than you do.

The defense to all this is the risk we have all taken to get whatever degree of success we can harness by the system that they invented. They set the rules. They set the standards. They set the boundaries. They set the entire playing field.

Given that playing field we all invested in this medium. We did our job by making new business and trailblazing new paths. Personally I invested $500k in renewal fees and in excess of $5 Million acquiring my portfolio. We took risks when nobody else stepped up to do it because they did not see what we saw.

THEY STILL DON’T SEE IT!!

Sure, they see what happened in the last 15 years but they still have not figured out what happens in the next 5 years. THE 5 years. The 5 years that changes how we look and value domain names. All the silly formulas will finally look as silly to you as they do to me.

Domains valued on PPC. Now that is funny!! But as funny as that is, that is the standard the industry adopted. What PPC and a domain have in common in value is way beyond me. Why?? For one reason PPC did not come into play until about 5 years after I started. So was I supposed to wait for PPC to be invented so I could put a value on a domain name? See how SILLY that is??

These were VC formulas that everyone swallowed but NEVER had a true bearing in relation to a domain name. I say this over and over again to be on record and for those that disagreed before now can see what I see and why I see it.

EVERY domain is unique. You can not value a domain on a set of guidelines or ratios or payouts or formulas. That is a false system based on nothing.

Comparative sales? Way over used imo. There is very little relation from one domain to another unless it is the same keyword with different extensions or a plural or some other DIRECT relationship.

The value of a domain is not what it is, it is what it can become. Not 5 years ago, 5 years from now. When you chase yesterday you need formulas. When you chase the future you need vision and gut. You need to see things as they will be not as they are and not as they were.

There is an endless supply of domain names. There is not an endless supply of ideas. So to extract the value of the domain it always will and always did come to the idea. The vision. The profitability of that idea and the size of the audience.

Folks in this business have single domains that get more traffic that some of the cable channels. That’s pretty powerful. That’s just one of the many mediums we compete with while having things in common. Both able to grow and have more power based on the idea and content and the ability to attract others.

I have more projects on my plate today than at anytime in 15 years. It’s hard to keep track of to be honest. Partners, joint ventures, equity stakes, development, new businesses, boards, etc.

There is a time to mine and a time to take your booty to town to sort out and see which nuggets are the ones to keep, collect, build on and which to bury for the future. Which you thought were gold and find out was mineral rock. Until now there was no time to do that. There was a “Unique Opportunity in Time” in play.

Now don’t get me wrong. That unique time is not over. It is just spread out. Mining is more specific. The aftermarket is more targeted. You can take your time and be more deliberate of your selections.

Take a deep breath. We are entering the GOLDEN AGE of domaining. Corporate America may be on the slow boat. But they are on the boat.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Yesterday was not a good day for Domainers but many don't know why. In 2004 WADND filed a lawsuit to stop Verisign from raising their prices 7% a year regardless that their costs are going down, not up. When we ran out of money ($56,000) and there was no support from the industry the lawsuit was combined with that of CFIT. That suit lasted from 2005 until yesterday. Howard gave hundreds of hours to the cause “Pro Bono” as did others. It would have cost several million to carry on this suit and with little support, game over.

So for every 100,000 domains in your portfolio, you are about to spend $50k more a YEAR in fees the first year. Another $50k the second year and another $50k+++ for every year in the future. So in 10 years from now with compounding increases, 100,000 names will cost you about $300,000 MORE than they do today. That will destroy some of the models out there. Turn them from an asset into a liability and therefore will be dropped. MILLIONS of domains will fit in this category.

So Verisign is your new partner. The $$$ they take are right off the top. PROFITS!

My mindset had a hard time ever playing the quantity game because at $100 a pop, you have to make decisions of what to get and what to leave. That sucked. But that was the reality. That was what I had to deal with. Maybe a blessing in disguise as my portfolio is among the smallest not the biggest.

When domains went down to $6, it changed the way some viewed things. With payouts strong, they bought and bought. But there is always a tipping point. A point you just don’t want to get to. But when you are aggressive, that is the pitfall you always have in front of us. We push the envelope until the envelope pushes back.

Ok, the envelope is pushing back. What to do? Well if you are surprised, then you may also be in trouble or at least have a problem. These are the stormy waters I have been speaking of as early as 2007 and 2008. You could see it back then. The event started back then but would take years to manifest themselves. Well, consider things manifested and there is more to come.

If you have been paying attention to what I have been saying you are way ahead of things and life is on top of the rapids. Slow, serene, peaceful. You get to enjoy the days. Even if it is cloudy or raining or cold.

Now the other folks are still in the Rapids. They are having a hell of a time keeping the raft upright. They are still dealing with those other elements just not in the serene way others are.

See the difference? When you see it coming you can build that financial bunker to see you thru. When not, scrambling day and night to keep it together. Been there, done that. No fun.

But now that you know, you have an opportunity to size it down and benefit from what you have learned. Like traffic on a domain does mean something regardless of the naysayers.

When I started I knew nothing. I still don’t know much. But when you own a great domain name you have the luxury of time to figure it out and you got those folks that dream that say “If I only had SuchandSuch.com I could do this and that. That's the time!

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

So I am sitting at home in my office yesterday and a weird car with a giant tower passes by. WTF?? I thought it was some pest control company with the Eiffel Tower on it. I decided to go outside and take a picture when the car came out of the Cul-de-sac.

I took 3 pictures as it came down the street. The driver is photographing and so am I. I was surprised to see Google Maps on the side of his car. I asked a few others if they have ever seen one of these and they said 'no'. I just thought I lived a sheltered life and these things were everywhere. But apparently not.

So fwiw.......

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

My Business Model never included Google, Bing or PPC. Never had Facebook or Twitter to depend on. It was a nice perk along the path, but the model never included them because they did not exist so it is easier for me to brush off the current changes as a non event compared to those that are here BECAUSE of those companies etc.

Think about that one for a minute. See while all that was a pleasant and scenic detour, for me, it was the main path for most. Now there is some heavy duty scrambling going on. I know those spread sheets are going to be all over the place for everyone reading this. For me, I just pick up where I left off in 2001. Really!

I guess that can only lead to huge consolidation in the future. The first evidence of that will be late July? Why then? Because that is when all the .CO renewals come due and THAT is going to be a barometer of not only how .CO is doing but how the general population of domainers are doing.

This is a very visual test we are about to see in just over 60 days. We will find out about the viability of a new extension and at the same time see the financial strength of domainers and whether they will risk more $$$ if they have yet to see any real activity. From the outside and when I discuss the issue with others, it would seem that things have stalled. Fast out of the gate with milestones announced has given way to speculation about registrations.

I would say that maybe they did 600,000 in the first 60 days and another 150,000 thereafter. Just a guess for reason of example. So how many will be renewed? That is the $64 question. My guess is that it will be UGLY!

Just yesterday I learned I will be challenged with one of my .co domains. I hope to shove it up their ass as they got the trademark AFTER I registered the domain name.

Notice any companies disappearing? People disappearing? They don’t put up a billboard or make a big announcement. One day you just wonder what happened to so and so?

It would appear to me that a major shakeout is coming. Is already in the works. Is quite different than anything we have seen previously. At the same time new folks are coming in and they have no guidelines and really don’t care. Whatever it takes to make a buck.

Meanwhile while all this is going on internally, outside the industry they are making great strides to understanding why their domain name is so important to their futures. Why their domain name is the foundation of everything they do from this point forward. Why the domain name is like a diamond with many facets. It is your name, your address, it describes what you do in many cases and it is the lifeline that determines your future. Wind in your face or wind at your back. Fighting a blizzard or surfing with the waves.

.co, .xxx, .whatever are all likely to have the same end result with a few exceptions along the way. Sorry, but the facts are stronger than the hopes of the second coming. There are hundreds of extensions and soon to be thousands. A great success on .com does not make you wake up and get all of the others extensions. On the other hand, a great success on one of those thousands would likely create the appetite to want the .com version.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

The reason domain prices are down is not because of value, it is because of domainers with circumstance and mortgages to pay as well as fees that may be eating them up. So assets are being sold cheap to bridge the gap. How long will this last? That depends on domainers not the market. The market is strong. Domains are selling. But Domainers or many of them are now financially weak compared to where they were.

The big squeeze is on. A great time to buy great domains for a fraction of their current and eventual value. The biggest shift of domains since PPC came to market is currently going on. The bad news for PPC companies is that domainers start with their most trafficked domains to start new projects. And that is underway at full speed.

Read what I wrote in 2008 and 2010. I don't have to get it all right. I just have to predict the general direction and understand WHY so that I can benefit from it not be hurt by it by staying ahead. I share what I see. Is there a single domainer reading this today that believe PPC is their future? It is a great tool, but maybe I would compare it to sitting on an active run way. Imagine how those attitudes have shifted when the VC guys flew through the Industry with their FLAWED formula.

On the other side of the coin the first week of May produced the most domain unsolicited inquiries of any week in our history. Serious offers. So I expect we are in a very “Sweet spot” as far as new, large, ground breaking projects. Arrived on schedule and will only heat up as we go through the most aggressive working summer Corporate America has seen in decades.

Just remember one thing. Your asset is unique. It can not be replaced. Value comes from many areas and to this day, I would trust less than 10 people in the industry to put a true value on a domain name. And even they would have to be in a room to discuss all the aspects of the value.

Even if you are not making money today you can always start in a different direction and change things. It is amazing how much success you can find and opportunities you can seize if you look in different directions and see the world the way I do.

Have a GREAT Day!

Rick Schwartz