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

Morning Folks!!

It was 1997 when I started making my annual July 4th posts. Some have been public, most have been private. One of the times of the year to pause, take notice of where you are where you are going and why you are going there. They are always upbeat looking to a bright future. There is still a bright future with domains and in domaining. If not for realizing I/We have the best investments in the world. The most portable investments, the most lucrative and the most universally expandable, then I would be pretty nervous about the future and my friends, there is a LOT to be nervous about. More than at anytime in my life and even years before that. We are entering uncharted territory both economically and politically. A huge bust is coming if we stay on this path. Of course, all the 'Experts' will be surprised. Seems they are always chasing the train that already left the station. Always a few steps behind. Keep in mind, we have yet to feel the impact and pain for those that have lost their jobs. This will begin to manifest itself now that unemployment benefits and savings are running out for those that got laid off early on and are still not employed. We are about to see what happens when a city or a region hits 15%, 20%, 25%. How desperation manifests itself where it affects the lives of others.

If you think I have been exaggerating about the state of the economy, the state of the industry and the future of both, let me take the time to tell you that it is you that is underestimating what is happening and what is to come. It is you that will be surprised and unprepared. It will be you that will be scrambling while those that prepare are sucking up opportunity. Because that is what my posts are about. Opportunity! But if you are not in a position to take advantage of opportunity, you will watch it pass by. If you are in denial about the pitfalls, you will surely be a victim of them.

There are major shifts in strategy going on throughout the industry. Don’t think so? Then we are watching a different movie. Weak domainers are getting weaker. Strong domainers are smart enough to see what is coming and are scrambling.

That’s the way I see it. My record speaks for itself. The reason I have a record is I say what nobody dare says. I ask the questions that folks don’t ever want to even think about. I say/ask it early and often. Could this be a summer of discontent? Could there be a disastrous fall? Could things be getting worse, not better? Fasten your seat belts!

Hope for the best, prepare for the worst. Anything in between and prepare to pay a price. Dare to ask questions of “What if this”, “What if that?” Be bold enough to find the answer. The best answer. Even the ones you don’t want to find. Even when you are ridiculed for doing so.

Here is a secret. The only reason my 2008 and 2009 have been record years for me personally was I started preparing in 2007. When do you think it is time for you to prepare? You can disagree, but you can only avoid the gravitational downturn we are going to face by a plan and preparation and even that is no guarantee. Last fall I said that after there is a glut of goods on the market, it would be followed by shortages. I can identify several items in society that are now in a short supply. Can you? Do you have a stock of these items? My job in life is staying at least one step ahead of the masses. One step ahead of you.

In the meantime, you can hear some more of my thoughts in this Podcast done by Ed at OzDomainer.com.

See you on the other side.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

This is the best! No, this is better! Forget them this is the way! No, this one has a better solution. So now that we have established that everyone is full of shit, it is time to allow them to redeem themselves.

Let’s talk NUMBERS folks!! Only numbers. Specific domains and specific numbers. Don't list one, that does not count.

List 50 domain names. List the income on ppc or whatever the starting page. List the income on a new solution. Mini -site, Affiliate Marketing, CPA, CPL, choose your poison. Let’s see NUMBERS not bluster. Numbers. Dozens of domains not isolated blips. Folks have 100,000 domains, so list 1000 names. Just 1% and let’s see numbers. Doing it once on one domain, does not count. You must be able to repeat and do it hundreds of times, thousands of times, not 3 times. List with daily traffic and earnings and then the revised numbers after any type revision. If you are not willing to post NUMBERS…..I believe nothing. Not just ONE domain. Minimum of 12. Then repeat next month. The following month as well. A solution for 1 month is no solution at all. Let me see a domain grow over 12 months, 24 months. Come on. I think it is all Bullshit. I think 90% of the posts these days are just self serving BS.

Now the truth of the matter is there are tried and true ways to make more money off a domain. First is building a full blown business. Second is hooking up with someone with a full blown business. Any questions? The whole point is being able to do this on a mass level and repeat, repeat, repeat. Let’s peel back all numbers, all costs, all time involved. Real numbers. Not percentages. Not hocus pocus. DOLLARS and CENTS!

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

I have often said the greatest value of the Internet is that everyone gets their own soapbox. Ya never know when just one guy on one soapbox can change the world. Here’s an example of what I see as the power of the Internet. Check out this organization with 500-600 employees. Most could not pass the employee screening test at Taco Bell.

http://www.youtube.com/watch?v=y7o9p0fP6cQ

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

The first half of 2009 is over and now the tough times are coming. Put your head in the sand, fine with me, but when the big guys are hurting the small guys are getting decimated. Nobody runs around posting about their great failures but if they were to do that the boards would all crash from posts. Don’t kid yourself. A significant part of the domain industry is in absolute collapse. Large, worthless portfolios are burying the big and small worthless portfolios are making small guys look for a new formula because crappy domains STINK like dead fish.

Folks need to get out of their head that my posts are about doom and gloom, they are not. They articulate a problem and search for the bi-product. Search for the crevices in the economy that fortunes are made of. They are about navigating some of the toughest times we have faced in many decades and coming out of it stronger and with life changing businesses. But to do that it is about adjusting before being consumed. About being one step ahead and not one step behind. Those that are not 'Surprised' by events are prepared. They ask 'What if' questions and are not afraid of the answers. Nor do they dodge the question. The road is full of twists and turns and unexpected events. Knowing the terrain before others figure it out present great opportunity. So my posts are about opportunity and reality.

Significant amount of domainers are sitting on a worthless empire. That's reality. Renewing year after year waiting for the domain fairy to appear. The dream ends now. Those domains first try to be sold on the market and when nobody takes the bait, they are destined to drop and we’ll see if someone else can repeat failure.

So now even the big say this is a good time to sell some domains to make up the shortfall of PPC income. So we are getting some very nice domains coming to market at really good prices. If the guys with the crap want to turn it around, get rid of the crap and buy quality this time around. Nobody forces you to keep choosing domains that mean nothing. And until you hone your skill of picking domain names you can have complete access to .anything and you would still pick worthless domains. I see it with every new extension. Folks have their choice of quality if an extension is to hit at some point in the future and they still pick worthless or secondary domains. It’s almost like they are afraid to date the pretty girl.

This era will be the very last opportunity for domains that have meaning, that have value, that have great future value to be bought at prices that are downright cheap. Circumstance has made an appearance right into the middle of the domain world. I am not sure how long it will last. Months? Maybe a year or so. The one thing about domains, being unique assets and a once in a lifetime opportunity to but these domains, you still have to have cash to take advantage of what is out there. No cash, you are sitting on the sidelines. So even those in good shape that may be thin on cash need to get rid of their weaker domains to fill them in with stronger ones, ones that can fortify your portfolios and add great value.

Timing, timing, timing and then there is the time. This is the time. This is the best opportunity to buy domains since 2003. 6 years ago. So on one hand things are bad, but bad produces good, produces opportunity. So when you focus on the adverse you are likely to find the opportunity hidden in a place nobody is willing to look.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Funny, human nature sometimes prevents us from realizing how much impact a person makes in your life until they are gone. I was never a crazy Michael Jackson fan. However I can say several of his songs put me in specific places in my life at specific times. For Michael Jackson it was cruising down Van Nuys Blvd looking for girls when I was in High School and the one single moment I can remember most vividly of that era was listening to the Jackson 5 on that Friday night. Decades ago but I can still touch it with my mind like it was last Friday Night.

This morning I also learned something that we both went to the same high school in Encino. Different years, but I was surprised nonetheless when I heard that this morning.

I guess I look at him and see 3 stages of a life. The first stage was the Jackson 5 and I still remember their appearance on Ed Sullivan. The kid stole the stage and it was so obvious that nobody could compete. Then of course there is the “Thriller” stage that probably secured his place in history and not just here but throughout the world. I am seeing how intense his fan base is. Finally the weird stage in which we have all been a witness to over the last years. The man in the mask. The man with boys. The man that nobody could really define. Shocked by his death but not surprised.

So in the days ahead we will find out how he actually died. It probably won’t a be a pretty picture. I won't post my guess here, but I don't think this will be a great mystery.

This has been a tough week but an interesting thread and lesson to be learned. For me these 3 are of my era. I was around to see all in their big day. All 3 were cultural icons in one way or another of their time. Ed McMahon died of old age. Farrah died of cancer, Michael died too soon. Someone put it like this: Death of the elderly, the sick and the sudden. The 3 faces of death. Which one will we have?

Born to die with a few years of life sandwiched in between and folks waste time with bullshit and crap.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

The #1 question I always hear is basically how do you pick great domain names? To that I can say it is all about nouns, adjectives and verbs. That is my guiding light of picking domain names. My foundation. The best domains other than 1 word nouns, adjectives and verbs are 2 word domains. A noun.com preceded by an adjective or a verb. So you can start with the base which for example would be Candy.com which is the noun. Then the job of mining begins. How many different ways can you either describe candy or categorize candy? There are hundreds if not more.

Candy.com
Hardcandy.com (Adjective, Noun)
Oldtimecandy.com (Adjective, Noun)
GetCandy.com (Verb, Noun)
Eatcandy.com (Verb, Noun)
SweetCandy.com (Adjective, Noun)

You can repeat this for every noun there is. However I focus on “Commercial” type domains. Items to purchase. Businesses to create. Sometimes the two word domain can trump the one worder because it is more specific. It is not limited to this but this is the foundation of how I mine. Verbs are great as well. Travel.com would be a verb domain. Then you could describe different ways of travel with an adjective or a noun.

So when you see unrelated words stuck together with a .com on the end…..that is NOT a domain name. I am not sure what it is. Great domains have certain elements. Finding them just depends how far down you want to drill. A domain like candy already has been mined and mined so little is left. But other NOUNS have not been mined to that degree. Pick a noun any noun. You are now on your way.

Have a Great Day!

Rick Schwartz

Morning Folks!!

Can Friendship hurt your Overall Business? Ever think about that one? Ever think that getting too close to business associates can work against you just as it can work for you? Can cloud your judgment, your business sensibilities and responsibilities and even values?

I think when you examine it there is a very fine line. It’s not easy to come to decisions to begin with, but how much should the friendship weigh when you are in a business environment and making business decisions?

As time goes on this will be a question that more and more domainers will be asking. They have to ask. We are dealing with survival in many cases if not all cases.

These are not easy questions. They may not even be questions you have thought about. But when you are faced with the crossroads, what do you actually do? I often describe myself as “Loyal to a fault.” It is actually something I am fighting. Sometimes loyalty can go too far. Can flirt with what you believe is acceptable, unacceptable and what you believe in is right even when they are your friends.

The industry is becoming a very tangled web. So many folks doing business with other folks and friends and there is a point where the cross business can actually become a hindrance. So many “Type A” personalities., so many egos, lots of peer pressure, so many desires and dreams, so many this and that all rolled together and here we are. We will experience the good, the bad and the ugly. As it should be I guess. However much more interesting when you can pull back for a moment to separate the positives from the negatives, the good things from the bad things, the understanding of the role each of us play, and how we interact.

Friendships can be the foundation of a business or the undoing of it.

We are an industry of friends and associates and personalities networking together with many that irritate this one or that one. At some point the irritation can poison the water but so too can the friendship. Can override the main mission. Can distract and destroy. Business has no friends. Business is all about friends. Two sides of a tight rope.

Just something to think about and how it relates to our little universe. Einstein once said something like he really was not that smart, he just spent more time thinking about things and went deeper than others.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

I look at a domain as growing fruit and myself as a farmer. With fruit you have to plant and have the patience to let it grow, to ripen, to sweeten. You have to nurture and tend to them. Keep an eye on things. If you pick it too soon it has little value. Wait too long and it may go bad and you miss your opportunity to have food.

It’s hard to believe that the first 10 years of this new millennium are coming to a close. My first domain sale occurred in 1999. So 10 years ago. So I decided to make a list of the domains I have sold and the prices I have sold them for. The one thing common to each of these sales is in every case the buying party contacted me first.

Unfortunately I promised not to reveal the buying party but I can tell you it was a domain I bought for either $70 or $100 in 1996 and sold for $225k last week.

1999 eScore.com $100,000 (Kaplan Education Services)
2002 eCruise.com $100,000 and stock options to xxxxxxx.com (NDA)
2003 Men.com $1.32M to Kevin Leto / Men.com LLC
2006 PartnerCash.com $110,000 to PartnerCash.de
2008 236.com (Can't publish price) To IAC
2008 iReport.com $750,000 To CNN
2008 Property.com $5M++ and full equity stake to Foreclosure.com
2008 RoomDividers.com $75,000
2009 Candy.com $3M plus 2% royalty from gross and other considerations to Melville Candy Co.
2009 Undisclosed domain. $224,000 bought for $100 in 1999.

Total over $10 million on 10 domain deals PLUS Equity stake in Property.com, 2% Royalty from Candy.com, and stock in xxxxxx.com. Plus other considerations, options and alike.

Plus I have sold a sprinkling of other domains at TRAFFIC to help market and create some excitement. Nothing I wanted to sell and maybe 4 or 5 total domains.

I sold TeenModels.com for about $75,000 which in my mind was a trade for a domain costing a bit more that helped to round out my portfolio. Kinkysex.com at about $80k. Trade by two simultaneous cash to cash transactions.

Each sale I make is a sale I can build on. You can build on. The industry can build on. Each sale any of us makes adds to the valuation process.

We each have our methods and variables. If it works for you, that is all that counts. Just never underestimate the power of a business on the corner of the busiest intersection in the world.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

On June 8th I sent out the following email to those in our database. I then decided to post it as well so everyone is aware of what we did, why we did it and the outcome. The tickets we put up for sale at $895 are gone and the $1295 is now in effect. However we want to give every domainer and sponsor one last chance to secure this price simply for buying your ticket a few weeks early. But at COB today, that price will be gone and will not be offered again.

'As
I have stated this is YOUR
show. So we will try some different things in New York this October.
You will still get the same level of service and networking that you
have come to expect at T.R.A.F.F.I.C.. The parties will all still be
great. You just won't gain as much weight as previous shows but there
will still be plenty of food and drink to make your networking and
business experience the best it can be.

Now your part in this experiment is to register early. Like right now. At $895 we are rewarding those who
commit early. This is the formula we need to still put on a great show.
The prices will eventually rise to $1495. This price level is important
to us as well. Some folks can't decide early for one reason or another
and that is fine, but we MUST charge more which again is part of an
overall formula to produce a first class no nonsense show that brings
new speakers and top level keynoters. So this is a significant savings
for your planning ahead and getting on board early. Plus spouse rates
are just $199. HOWEVER, THIS PRICE IS ONLY GOOD until June 30th or 100 tickets, whichever comes first. So those who want great prices now have
the opportunity to save hundreds of dollars. The larger crowd that we
will attract will allow us to still serve great food and drink for
which T.R.A.F.F.I.C. has become known. You have three weeks! The price goes up no later than July 1.

We are already deep in planning the New York
show. It will come at a time that will prove to be more timely than any
other show we have ever put on. We are going to reach out way beyond
the domain industry to bring in new blood and new views as we trail
blaze together once again. We are in uncharted waters and many
decisions need to be made. This show will help you define a direction.
Chart a course. Start to focus on building and creating businesses by
studying the market, looking for voids and new opportunities.

Finally, let me take a minute to set the table and be clear about our
intentions. This is just an experiment. We are doing this to increase
attendance and open up TRAFFIC to a wider audience. We reserve the
right to increase prices back to regular levels if we see there are no
real results. So if price has been the barrier we have heard about for
so long, that barrier has been removed. This experiment only works when
we each do our part. Our job is to keep costs low and still provide the
great networking and speakers etc. Your job is to sign up
right now. For companies with multiple employees, this is a significant
savings for just making a decision right now over postponing it for 60
or 90 days. So please, help US, help YOU'

Thanks for your time!!
Rick and Howard

So that's about all I can say. For those that wanted a more affordable TRAFFIC, this is your chance. We have done our part now it is time to act, make a decision and change your destiny. Many have taken advantage of this discount just for acting early. Prices will continue to go up. Back to $1995 in fact when you delay until show time. This is the formula we need to use to be able to offer a top shelf show in every way and detail. Those asking for discounts after the prices have changed will be turned down and I will point you to this post as well as the emails sent. Once the price option is gone at each level, they are gone and we won't be cutting special deals. We can't, we won't and please don't even ask as we will be forced to say 'No'. Something we hate to do, but there is no alternative and so we are clearly on record. We also have 5 and 10 corporate packs available, but no package is less than the $895 that will be replaced today with the $1295 price point.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

If you are a true developer and ideas are what you have and you know how to make a website earn income, it does not matter what domain name you have. You will do well. You could do better with a great domain but that may only be marginal. The IDEA trumps all so let me state that for the record. With a great idea, you can do anything.

Now for everyone else, especially those buying and investing in domain names, let me explain why type ins are important. Are the key in my view of the internet and domains. Besides getting lucky and somebody just happening to want your brandable domain, not even that can happen unless it get at least ONE TYPE IN!

A type in is a validation of your thought process. If you can’t get just 1 person out of 6 billion to see what you see, what does that say? Let’s say you have a domain. There are 6 Billion people on the planet. It gets zero type ins for the entire year. So this means that each day of the year 6 billion people had the opportunity to type in your domain and none did. Do the math. 365 days x 6 Billion people = 2.19 TRILLION daily opportunities to type in a domain and nobody did!! Then of course you can take that 2.19 trillion number and multiply it my the number of websites that each person surfed to and multiply again. That is your chances of anyone typing in this domain and then the odds go up about being interested in this domain. Hey maybe the second year will be better.

On the other hand just ONE type in a day changes that equation to 1 in 6 billion. Do the math!! Focus on the numbers. 10 a day would be 1 in 600 million. 100 a day 1 in 60 million. 1000 a day 1 in 6 million. 10,000 a day 1 in 600,000.

So when you see the equation you come to realize how important just ONE type in a day is. When you realize that it becomes hard to buy domains with absolutely no traffic whatsoever. To me, these are not domain names, they are lottery tickets if they are based on a hunch or an event to come or a phrase to come or anything with zero traffic. I admit, I play the lottery with domains. But I also realize these are lottery type domains. Nothing more, nothing less.

Show me one domain with 10 visitors a day and I will say that has more value than a portfolio of thousands of domains with no traffic. One is an asset, the other a liability. I can double 10 and get 20. You can double zero and get….??

This is MY compass. It does not have to be your compass. But I believe I have made a compelling case why my way works. I believe I have demonstrated many times and many years why it works. How it works. Folks want to enter the domain business all the time, they want to know how to do it. Here my friends is your stating point. For those stuck with liabilities and not domains, nobody is forcing you to accept the same failing method you may have used yesterday. You can change it starting today.

Have a GREAT Day!

Rick Schwartz