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

Coming this summer.

December 26, 1995-December 26, 2015

Morning Folks!

It is early November as I start to write this blog post; my first in about one and a half years and since my retirement over a year ago, and what a year it has been. But this post was 20-years in the making and it may be years before my next. When I look back to that period, the "Dark ages" as I call them, never in my wildest dreams did I expect the success I have enjoyed and the great folks I have met along the way. Thousands of folks. Some that have been helped and influenced by my words and thoughts and I by theirs as well. Some that were provoked by those same thoughts but also might be motivated by them.

That is the most rewarding part of the journey. To make an impact in the life of a family is how I define success. The by-product of their success is good karma. And that goes a long way because I truly believe that whatever you give out in life comes back 10 fold or more. Good or bad. I just learned early on that it was much better to have the good come back; I avoid the bad. I shut out the negative and I annihilate the evil. That's how I think and that's how I roll. It pisses off the evil. The negative get angry. And I focus on the good because they are focused on doing it right. Like I have said for years, "There is the right way to do something and there is every other way". My search is to find right not be right.

We are not politicians that have to stand by every belief. Some think they need to speak for me by twisting my words to suit.  As a businessman I have to reassess things whenever there is new information. It can never be ignored. Good, bad or ugly, it must be factored in. And truthfully, many ignore the bad and ugly and oversell the good. They don't want to hear what they don't want to hear.  That is a recipe for disaster on any level. If you believe something and proof comes that you are wrong, you must pause. It may be time for an about face and a reality check. If not, that's the definition of being lost.

20-years ago TODAY I saw something so big and so life changing that I just wanted to share it with the world. It could easily pay off the liabilities and so much more. I look back to what things looked like then and where we are today and it is like being in outer space. We have come so far. But the Galaxy is massive and we have barely scratched the surface. But the 20-year plan is intact and you are witnessing the booster rocket this year. The rocket that takes us all into the next 20 years.

Think of a 20-year old young man or young lady and ask what will they accomplish in their next 20 years? The point is their best years and our best years are just starting not ending. Domains ARE the real estate of the future. It was true 20 years ago and it is FACT today. The only difference is no one understood or cared  about that FACT 20 years ago when it happened. They do now . China is just the first of many frenzy's coming as different groups and different businesses and industries realize the power a great domain has. The power comes from EXTRA sales and growth. Massive sales. Boundless and borderless. Treasures to be unlocked like gushing oil wells.

Is a domain a commodity? An investment? A safe haven? Real estate? Yes and much more. It is the most portable asset the world has ever known. But bigger than all that is that a great domain name is an equalizer. When you see the world through my eyes you will see what I see. That was why I spent so many years publicly writing about it and each with a time stamp and my real name or trademarked handle.

I saw something and related to something that most folks did not see or relate to and THIS was the basis for my entire outlook on the Internet. I realized from the get go that this was an opportunity my father did not have, my grandfather did not have my great grandfather did not have nor his father before him. This was life-changing and there was no mistaking it.

I just wondered day after day, month after month, year after year, how could so many miss something so big? How is it possible? Where were the CEO's and Sales Managers? My jaw would just drop thinking about it.

More than anything else I knew the Internet gave power to the powerless. The greatest equalizer ever invented and the price of admission was low and if you were poor, you could access for free via the library. That leveled the playing field for everyone. And the first words I ever wrote on the Internet were based on Martin Luther King's words. Because when we were behind a keyboard, no one could see us they could only judge a person by the content of our words and thoughts and over time on our deeds and our character. White, black, rich, poor, New York or Timbuktu. Clean or dirty. Dressed nice or not at all. A new swiss army knife that would change lives in a way that few have still quite understood. But how long would it take for those very people to realize what was in front of them? 1 month? 6 months? A year? 3 years? Brick and mortar stores did not embrace the Internet. They saw it as a threat not an opportunity. It was attacked a s a "Fad" back then.

3 years had always been my horizon for watching a business mature and run smoothly and profitable. No, that would just not be enough time for this one. Very few businesses were online and not all even used email at that point in life and the 35-50 year old still were computerless because they were working too hard to have time to get that far. But their kids had computers and their own parents had computers. When do the people in the middle come? 10 years? Well I figured it would have to be an entire generation, 20 years! Yup. That would be about right. But 20 years was the START of the race not the end of the race. 20 years just to get to a place that I could begin to demonstrate what I had seen and why it was so strong and therefore the reason I would never waiver. 20 years before I actually started to earn money. The question for me was how do I pay for domains at $100 each knowing it might be 20 years? So when they paid for themselves and more, I had to adjust my game accordingly and there was not a moment to lose. I think that was when I stated to get time wasters out of my life. I had no time for nonsense. I had an empire to build.

I KNEW my theory was right because I saw something real, tangible and marvelous. Grandparents and grandchildren now had a daily way to communicate in a new medium. It was less intrusive because email allowed you time to respond on your own terms and maybe with a little more thought. Well when I saw this, I knew we were not looking at a fad. I knew at that moment that how we interact was about to change and relationships would change and it was a great thing that would happen. 1n 1995 the masses were not yet online. And while folks will laugh at things like Prodigy and AOL, those were the "training wheels" that many of us non techies needed. I remember early versions of CompuServe. Really?? It was very frustrating to even dial up and get online let alone navigate. There was not much to navigate either. We are several years before Google was even founded.

I saw it unfold and layout in my mind. I started writing about it in 1996. I was discovering things by the day. I never saw anything like this or as big as this or a more powerful equalizer than this. And for the folks that say they have no opportunity today. REALLY??? For a $10 bill you can put yourself in front of the world and make an impact. For the cost of a pair of Nike's you can become a domain investor. To this very minute. There is more opportunity than any 1 person or 1000 people could reap at anytime. I have watched people come into this field and make a mark quickly. I have seen people flail and fail year after year. Much more of those. But they fail because they have a basis that is not understood by anyone but them. They don't understand the masses and when it comes to sales and profits it gets even dimmer. If you have a solid business background, if you understand real estate, if you are a market investor, then you should be able to learn about domains in a very short time today.

The conversation now is much different than the conversation of 20 years ago. Now I come to the table with some level of credibility. Friends and foes may exist but my reputation is untarnished because I had the character to understand that reputation is everything on and off the net. And 20 years later I may be a foe but chances are they got screwed by their friends along the way. I never screwed them. I always tried to help them. And I love when someone realizes their foe has been a better friend than many "Friends" that crossed their paths over the past 20 years. And that is my single greatest accomplishment. I know I helped to influence many willing minds along the way. I get more satisfaction in that then almost anything else. But I have enjoyed riding the wave and in my first year of retirement having a plan come together and take a victory lap of sorts. What a ride, what a parade. The message about domains has been received worldwide and now there are thousands more that will spread that message.

And it just gets better from here. There is a time to reap and a time to sow. I saw that getting the right Internet real estate was the most urgent and time sensitive of all things. And I knew there was plenty of time to build. Just like oceanfront land or land in Times Square. Securing the location was the key and time was of the essence. I wrote many times about how I literally slept on my computer. My fingers hurt so badly from 16 or 18 hours of searching Network Solutions for available names. There were no tools. Nothing else to look them up. No one knew in the real world what a domain name was. But I pounded away day after day in the 2nd half of 1996 because by that time I was pumping out gold. Then the sense of urgency grew exponentially. By 1997 I was buying 3rd party domains. I was not alone. I was competing with a host of others. Not many. But enough to lose a domain by seconds. Literally. 5 seconds one time I remember. But that just gave me even more fuel to keep going. My fingers were in pain every day. But I used different fingers and slowly kept going. And of course I was laughed at and ridiculed along the way. I was told I had more money than brains on more than one occasion. After this year, they are finally right!!! lol

I LOVE this medium called the Internet. My words are all on record with my real name or known moniker since the day I came online. They are date stamped and they may be copied or circulated but all can be tracked back right to me and my thoughts. Even along the way I was mostly retired. I looked forward to every Monday and I could not believe people would not check their websites or their email from 5PM Friday to 9AM Monday. They were running 24/7 businesses, they were AWOL during business hours. Their sites would go down for days at a time and no one minding the store! Then they complained about business not being good and losing other people's money.

So you see the seed of my frustration. They were losing more business than they were doing and choking and in trouble while the key was sitting right in front of them. When I would point it out they would get all nuts on me. That made them lazy morons in my book. I just pointed something out and they generally went bat shit crazy. lol

I think there are more things that bond us together than separate any of us. However some focus on the negative while others choose to focus on the positive. The positive is what bonds us together. We love our moms, dads, family and friends, and we protect them. But some decide to focus on what makes us different and those are negative thoughts and come with bad or negative results unless there is a constructive way forward. You must clear the old land to make way for the new structure. So it is okay to identify something negative but to do that you need something positive and structural to hold things up and make it even better. Some people identify and fix problems. Some people make problems. Some people ignore problems. Surrounding yourself with like minded people is empowering. And listening to dissent is good as long as it is based on reality and facts.

King said "I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character." The Internet was the perfect place for that to occur and maybe in time it will. But for the first 20 or 30 years, it has also been a huge breeding ground for hate and bullying. An out of control epidemic that is just a tweet or post or comment away.

Here is a perfect example of a business theory or principal as I see it. Something I use to measure the overall long term all viability of a business. I have many of these. They are simple and act as my guide through all aspects of business:

You can sell average or even below average food at a great location (like an airport, stadium or boardwalk) and still stay in business. You can't serve lousy food at a lousy location and survive. Now you are free to disagree. But you would be wrong. Do I have a strong opinion? You bet! You don't stick to a plan this long and be a wet noodle that changes with the wind.

Here is another one. Let's say you had great food at that lousy location. Great food but it was difficult to stay in business. Despite the advertising it was out of the way. Simple remedy would scare most. His best hope for survival is to have 20 other restaurants open up all around him. That "flotilla" is what can save him. Now apply that to today and you will see why I used the word Flotilla".

Many real world examples have a perfect online parallel. Point is when you have BOTH, that is the ticket. So on the Internet great content matched with a great and easy to remember and spell domain name increases your bottom line in every respect. But since few can see it or measure it and extrapolate the sheer volume over a 10 year period, they ignore it. I am just saying that we are talking an invisible 15%-25% increase in business and  (or more) that is the cream of the crop because your expenses are all paid. But the beancounter never sees it on their excel spreadsheet. That 15% is a huge number (and it is so damn conservative because it could be 100% or more) if you do the math for your company. Want to argue? OK, make it a 2% increase. Do the math of what just a 2% increase would look like over a 10 year period. Once you make your nut, the next sales are the ones that grow your company and grow your wallet and propel companies and people to higher levels. Make hay when the sunshines. Means we work extra hard when things are good so when things are bad we can just take a lot of vacations and not worry or be stressed.

Sorry, I got a bit off track.....

Very little is talked about Highest and Best Use (HBU) for a domain name. The reason I TRY and get top dollar is I start at Highest and Best Use and work down from there. Very few of my domains will be used that way in my lifetime. But I don't care. I KNOW the value and until somebody gives me an offer that at least is on the path to HBU, I am not even going to respond. It s well known for a reason why my prices are high and stay high. But I am not unrealistic.

I tried to sell my NNN.com names for $50k each. They all laughed because it was too much. When they stopped laughing and started paying I was already at $100k. When they reached $100k in offers I was at $250k. When they reached that level, I was $350k. Then $500k. Then $750k. Then they finally caught up to me at $800k. The ones now priced at $1 Million I am told are too high. Stay tuned.

My basic premise that I employ is asking one simple question. How much would just one location cost in the real world. Rent, insurance the whole 9 yards. So if a small store has a $2500/rent that is $30k a year and over 10 years is $300k plus the other 9 yards. And the domain has much greater value now and in the future! And you only need one location in the .com world. Just one! Now that is an example on a small store.

Let's talk about my favorite whipping boy, Sears. Sears who at one time was the world's largest retailer. Maybe for about 100 years. They could have afforded the forward thinking minds to buy the domains that would have insured their future. It's been a decade since I was in Sears. How about you? They formed a flotilla with K-mart. Whoopee! But the point here is how much does it cost to operate ONE STORE?? Folks need to answer and focus on this to see the value I see in a domain. Here is the post I wrote when they closed up their flagship store in Chicago and the posts I made before they did it in which I suggested they close.

Another restaurant example. Do you know what the difference is between a restaurant with 100 people in line all the time as opposed to just one person in line all the time if they both have the same amount of seats? NONE!!! Absolutely NONE! It has nothing to do with sales or profits. A full house is a full house. Period. So folks are free to disagree and they usually do. But it is a standard I use. A measuring stick that is universal to all businesses.

However you could argue that one may be more efficient than the other and can handle more people in a shorter time even without adding tables. You can argue that one has servers that suggests food faster to prepare or more expensive or more profitable. My point is adding more people to a line you can't even serve does not help and you need to look in other directions to correct that. A perfectly tuned machine would always have one party waiting for a table and serving them well and efficiently once they get in.

In the furniture industry it manifested it's self in a different way and I can help show what I mean by efficiency. If I sold a truckload of wall units to a store in Houston and it took my factory 6 weeks to manufacture and one week to ship and the store 4 weeks to sell and then they place a re-order and have to wait 7 weeks, how many times a year can they order and how much will they spend? Want to increase that number in a very big way? I would BEG my factory to build that ONE UNIT for inventory. It was universally our best selling item by far. They had the room and the material. That way when an order came at 4 weeks, they could have it in store in one week! That saves 5 -6 weeks. They would grow their business and be more efficient if they built their number one selling item for inventory instead of each order. Simple!

First order January 1 for $100,000 deliver February 15th and sells out on March 15th.

Second order comes in March 15th and delivers May 1 and sells out on June 1.

Third order comes in June 1 and delivers July 15th and sells out on August 15th

Fourth order comes in September 30th and sells out October 30th

Fifth order comes in December 15th and the year is done $500k total.

Now if they were efficient:

First order comes in January 1 and is delivered January 8th and sells out on February 8th

Second order comes in February 8th and delivered February 15th sells out on March 15th

Third order comes in March 15th and delivers March 22nd and sells out April 22nd.

Forth order comes in April 22nd and delivered April 29th and sells out by May 29th

Fifth order comes in on May 29th and delivers June 6th and sells out by July 6th.

Compare the two.

Efficiency is the key to business without being cheap or cutting corners. 2x the business with a simple adjustment. And then look at the invisible perks. HUGE perks!

They know you deliver fast and are reliable. You never lose your floor space when they run out of goods. They are more likely to expand their relationship with you by adding new items. Now multiply that by your number of customers. Getting the picture? Problem is beancounters see a different picture or none at all. The factory foreman sees a different picture. The techie sees a different picture. All I can do is try to paint the picture I see and persuade my counterparts that it is in everyone's best interest. This is about math and being smart. PERIOD!

It's an ego boost to have a line or a bunch of orders to fill. But in business while your ego is getting a boost, your wallet is not and that does not make a smart business or businessman. You are free to disagree with math. And of course there are other variables. But one can't miss big things like this. I come from a place and I look at things through a multitude of lenses. It never scares me to find a new truth. It only scares me to hang on to being inefficient with an old one.

There has never been a better time for financial equality in history. Those protesting on the street would be better served behind a keyboard and seeking their dreams. No one is responsible for their happiness and success. It's not your fault or my fault that they are misguided and miserable. The only thing that holds them back is their mind, attitude, how quick they can learn, adapt and their work ethic. Some will learn that, most will wallow in self pity as a way of life.

What would my life have looked like if I was a professional whiner instead of sacrificing early on and working until I fell over? What if I gave up? What if failure was something that could defeat me? Instead failure empowers me because I am likely one step away from a success. I feel sorry for those that have to blame and excuse. It takes up more effort and energy than actually learning, overcoming and succeeding. But they are in a rush to nowhere. So just get out of the way and let them get there.

Here is the secret of failing. Fail for a reason. Fail and then ALWAYS go back to the point before the failure. Usually decisions come down to an either/or. Go back and just go down the path you rejected and you will likely find success just laying there for the taking. Problem is most people keep going forward and that is where the road map goes off the chart and direction is lost. Secondly and even more importantly, define the most essential and largest part of your challenge. I wrote about that here with my "Pyramid Post". The top of the pyramid will define success or failure in nearly 100% of all cases. If you ignore that piece of the puzzle, save it for last, or get it wrong; you lose! 

Identify the most important and time sensitive THING first. That is how I can spot failure a minute away; an hour away, a day or week away; a year away; 5 years away; 20 years away. And if I get it right, I can spot a success a year away; 5 years away; 20 years away as well. That top piece is worth at least 50%. Get it wrong, you automatically fail because all the other pieces of the pyramid add up to 50%. Where I come from, 50% is a failing grade on almost any level. It makes one directionless when they miss the top piece.

So with one 20 year plan in the books, It is now time to enjoy and capitalize on what the next 20 years may bring. OMG!!!! 20 years in which I employed the Rip Van Winkle and Rope a Dope strategies.

I read the other day that if you bought $1000 of Apple stock in 1980 after the IPO you would have over $90,000 today plus the dividends along the way. "Since the Companies initial IPO in 1980, Apple stock has delivered a 9.072% return, excluding dividends."

So looks like my NNN.com sales alone eclipsed that many times over in a much shorter time span. About 18 years shorter and about 80X the return since it was a $100 investment vs a $1000 then in the world's #1 stock. Even my smallest sale this year provided a larger return than Apple in HALF the time. And I also made dividends along the way via pay-per-click many times more than all the dividends with Apple.

Then you would have to factor in that the value of $1000 in 1980 vs $1000 in 1998. Adjusted for 18 years of inflation and you could easily be talking about $2500-$3500 or more. The price of a new basic Cadillac in 1980 was about $10,000. The price of a new Cadillac in 1998 was about $35,000. home prices went up even more percentage wise.

And what do I do with the money I earn? I'll buy APPLE!!!

Let me just end with this. I am in no rush to sell appreciating assets but you may see my sales in DNJournal.com often. Each time trying to set new records and blaze new trails that others can come and reap the rewards from. Domains, like land and developed real estate, will be passed on from generation to generation; from merger to merger. The content may be scrapped but the domain will always survive. It is fireproof but it is far from theft proof.

I believed one simple and basic fact 20 years ago. I guess that was the top of the pyramid for me; "Domains are a unique opportunity in time and will go up in value faster than any other commodity ever known to mankind." I identified getting the domain as the single most important, time sensitive and urgent part of the puzzle. That was a race against the clock and everything else could wait. Wait 20 years for the dust to settle and then decide what and where to build and expand. And for the record, I am referring to .com domains only and specifically. I think collectively we have more than proven that theory and can now establish that as fact. But it may take another 20 years for that part of the equation to be recognized by the "Experts".

I REST MY CASE!

Have a GREAT Day!

Until next we meet......Be healthy, happy and BestOfLuck.com

Rick Schwartz

Morning Folks!! 12/21

Tomorrow is my last post to celebrate my 20 years and then I am back off to being retired, silent and enjoying life. Hope to see you for the 25th in 2020.

If you have read my writings over the years you will know that I like to look at both sides of an issue. I can play devil's advocate. I enjoy balancing information and coming to a conclusion. Many close their eyes to new information. They get threatened by it. They have to lash out. Never understood why. Let the weight of what is discovered be the map forward not a meandering way to a dead end. I always adjust accordingly.

I may not be to the leading edge of technology but I have tried to keep up with it throughout my life because I always devised ways to work less and make more. I still have my original 12.5LB Radio Shack Cell Phone from 1981 and my collections of phones is over 100 including 12 iPhones. Cell service was expensive back then, but I devised ways to make it pay for itself and then some. Each new gadget I would buy may have been a bit speculative and some would say wasteful, but I always figured out a way to make whatever it was pay for itself. That way I could justify my purchases and continue to nourish my appetite for cutting edge whatever.

I have watched the evolution of the cell phone from a "Wasteful luxury" to one of the most important necessities in life. I have watched necessities of life reduced to complete insignificance. They still have a place, but their importance has been greatly diminished. Knowing the difference is key. Recognizing which items are candidates for that and which are not. Which have staying power and which will evaporate.

I have been is sales for 50 years. I understand the art and science of sales. I have seen sales through the eyes of 55 different industries. But what you sell is always what determines your level of success. That is where Need, Want and Desire are filters I use to qualify or disqualify any item that I might see. It was how I found success when traveling to Hong Kong and Taiwan and hundreds of trade shows.

What I knew in the years 1995 and 1996 was everything I had done in my life, everything I learned, every success or failure I had, was to prepare me for this domain name journey.

When it comes to the gTLD's, I just don't see the same thing. The demand is being driven by the sellers and domainers and end users are more focused on their .Brand as they should be. THAT is smart and that will keep them in the game no matter what happens. But domainers can't play in that pond. So for me, the top of the pyramid is not even in play.

The USA is .com centric. I don't see that changing to any degree. They will go to any url if it is in their self interest. Content will be what it is all about. Trust may become a big issue.

The reality is that 2 years into this experiment I have yet to see a single commercial on TV in the USA using anything other than .com with only a few exceptions for .org, .net and .tv. I have seen 3 and 4 words .com advertised. I have seen a number of things ending in tv.com advertised. I have seen domains with "dashes" in them .com advertised. I have seen one commercial with a .tv and I would expect more at this point. Sorry, that is directly related to the new gtld's. .TV vs .Horse. You decide which one is going to be used to advertise first and most. Lots of folks still waiting for .tv to take off. But no extension will have great value like .com until you see them used in real and long term advertising campaigns by folks that advertise all day long.

What do I see coming? My last post called the "Rick Schwartz Equation" is still fully intact. Still too early to see any clear winners. But there are several hundred losers and their carcuses are there for all to see. They are much easier to spot. The story really won't unfold until a truly strong new gtld comes along. In my mind .web still has the single best chance to shake things up. I think when .web is released you will see more registrations in their first week than whoever holds the number one spot the week before. That's what I see. And even that won't guarantee a success. But if .web were already out, it is my opinion half of the gTLDs would be on life support if they are not already. .web could become the next .com or the next .net. Either position is stronger than all others imo.

And speaking of the poor orphan .net. The stepbrother to .com. There are more .nets registered than all gTLD's combined. .nets that have a 1% value of their brother .com and 1/1000 the demand. We all have some .nets. So what? I get more inquiries on my .orgs. .Nets have been a piss poor investment. Thankfully they were all hand registered. You should see the arguments I had with folks about .com vs .net back in the day because techies looked down on .com. Does not mean there are not some .nets sold. So what? Who cares? But I would be scooping up .nets and .orgs today before .horse and most of the others. When they go into the boardroom, all the old extensions will be reviewed and .net, .org, .tv, .me, .info, .biz and others will be discussed and carry weight. It means that one may eventually break out as an alternative. Just not sure what happens to all the others. And when push comes to shove, .brand may be the way to go.

Despite what some say, I have welcomed new gtld's in the sense that it brings thousands of domain evangelists out into the public square spreading the word about domain names. There was a time there was only ONE doing that. Now there are thousands. That helps me and you. But that is a different discussion than taking hard earned money and reinvesting in a riskier side of things. Sorry, just not a path that interests me. Some believe that hurts .com and other extensions. Sorry, I don't believe that one either. Awareness is the key and that's what they bring. Whether the gtld flotilla will each fly on their own? Two words come to mind. Massive consolidation.

That said, the number of registrations will not determine value. The consumer and end user will decide their fate and therefore value not domainers selling to each other. Domainers are financially and emotionally invested. That is fine. But when you have that much emotion in something, you might not be open to the information you need. I am sure great collections are being put together. But the question is will those collections increase in value or become irrelevant in time? For every 1 gtld success there may be a minimum of 35- 40 failures the way I calculate. Possibly much more. Sorry, same or worse odds as Roulette. Gambling vs investing. Yes there will be winners and you will hear about them. But the losers will be a much larger group and they will multiply faster and they will be silent.

Then I always hear they are for "Start-ups." Well if I was looking at a startup and arguably the name you choose and your website are among the most important decisions you will make early on, and you chose a non .com at this moment in history, I would question your judgment. I would say you gave up looking too soon. I would say that for less than $1000 you can find a suitable and very good .com name. The headwinds in the way of lost sales will be more than you can afford. So if you can't afford a grand for a .com, you certainly can't afford a new gTLD. So cheap, misguided and lazy is the picture I see; Sorry. 

I think the keyword for the future is despite massive expansion is also massive consolidation. Folks that ignore the math will eventually be consumed by the math. But numbers don't have emotion or feelings. They are one of the few absolutes we have. That does not make me likable or charming. It makes me focused on facts and value. And if that pisses off those with skin in the game, they need thicker skin. The main fact of my focus is value, and you always must factor in circumstance and life expectancy. So if something is going to have great value in 85 years that's great! But you will be dead and so will your kids!  So it's more important to eat, pay the mortgage now and enjoy each day.

Clearly 3 out of 4 new gtld's are underwater by number of registrations. Of course the number of registrations may have little to do with the actual commercial success of a gtld. It just happens to be one of the only pieces of data we can judge by early on. Number of registrations may not matter to an end user. Then again, it may! I will judge by the total amount of money spent to advertise and promote any single gtld. That includes all Radio, TV, Magazine, Billboards etc.

Let me tell you how I define success...When I see 3 or more different corporations using the same extension to heavily and consistently advertise on TV and billboards etc. and promote their products and the campaigns last more than 90 days. That to me would be how I define a success. .Net is not what I would define as a success. But it has many millions of registrations. More than all the gtlds added together.

A registrar success is not a domain investor success and that has always been my main point. But through the lens of the registry game there are only a few clear winners out of the 400 extensions released so far IMO. And again many of the stronger extensions have yet to hit the market.

Here is a perfect example from just a few weeks ago and it is quite stunning. This headline from thedomains.com says it all when it comes to efficiency:

".XYZ Has More Domain Registrations Than Donuts 183 gTLD’s Combined"

As I write this the top 10 gTLD's have about 5.5 Million registrations.

Let me be clear on what I see in gtld land. If you want to point to .xyz as a success, then so be it. If you think .horse is the future. So be it. Everyone is free to believe what they want and invest as they choose. All I can do is share my vantage point and give it some basis. You can choose to ignore or embrace or even employ. No one is pointing a gun to your head. Take it or leave it. If my view threatens your view, that is your problem not mine because I don't care either way.

The current aftermarket, if there is one, is domainer to domainer and speculator to speculator by a huge margin when compared to end users. The demand by the end user is VERY SOFT! With 11 million gTLD's registered that is a minimum of $100-200 Million on the primary market possibly much more with the various premium and pricing schemes. The ratio between the primary market and the aftermarket is growing not shrinking. The aftermarket has yet to develop. Will it? I don't know. There is certainly strong evidence that it is very weak. Until that gap closes, IF that gap closes, is an important tipping point to watch and track. This is just another way to track what direction things are moving. Especially since now we are entering the third year of this.

What I see is based on the countless emails I get to sell me .whatever that would have no value if it were .com. What they are really trying to do is look for a bigger sucker than they are. Unfortunately most are suckers for one main reason. They still don't understand what makes one domain valuable and another domain worthless. Imagine jewelers that could not differentiate between diamonds and glass. Between tin and gold. You would laugh. Well when I get spammed everyday with the crap I see, oh my!!! Truly swampland and quicksand have much more value.

If you want to even be in the game of a gLLD success, I would focus on strong one word domains that are a known phrases and have commercial meaning. I have never posed a list of anyone's domain name that they have tried to sell me. If I did, it would make any professional domainer pee in their pants from laughing so hard. Remember, one domain that means something has more value than 1000 domains that don't.

The one thing I have stressed for years is to know the difference between an asset and a liability.  If you don't understand the difference, go learn it, understand it, then apply it. Your nice car may be an asset or it may be a liability. Depends on you. If it is paid off, it is an asset. If it is worth $20,000 and you owe $30,000, it is a liability.

My main point is please don't compare this to the domain rush of 20 years ago. The factors are so much different. The times are different. The world is different. Supply vs demand and Need, want, desire. Sorry, no one can hide from theses truths. Most importantly, the consumer has to embrace them and still holds the ultimate trump card. They will have the final say so. They may be more apt to adapt in areas where cctld's are used than the USA market which is dominated by .com. So region may play a role in this.

Overstock.co is still to this day the only canary in the mine we have seen using a non .com extension in a heavy advertising blitz. They failed miserably. But that was years ago and I am anxious to see the next big splurge by a non .com and see the results. Maybe the Super Bowl  will provide us that chance.  So if you want to look at a barometer each year and keep score, THAT my friends is the place to do it. The Super Bowl and Times Square Billboards. These are "Ground Zero" for forward thinking advertising. So until those venues are populated with gTLD's on their signs, and they are there long term, we still have a long way to go.

Let me end with this. I have never seen so many negative variables in any business in my life. Does not mean there won't be a HANDFUL of successes. Does not mean they won't be trumpeted loud and by as many as possible. But I would focus on eliminating the hundreds and hundreds of losers, that many want to just ignore, from the few with success. At least ask the question which ones can survive the long term? Ask what happens when a true and dominant extension like .web comes along? Will you have the funds to invest if ones does come along and catch on fire and is embraced?

I wish everyone great success in whatever path you choose. The surprises along the way will be many if you only see blue skies. The key is not being surprised but being prepared as to what will unfold; when and if it will unfold; and also get it right.

Tomorrow is the actual anniversary post I started with and then as I added these elements, realized it would be too long for just a single blog entry.

Have a GREAT Day!
Rick Schwartz

Morning Folks!!

12/18/15

It's been a while. Just a couple fun things as I countdown to my 20-year anniversary in the domain investment business this coming week on December 26th.  A 3-part series before I go back to retired life waiting for the 25th. But just like it was 20 years ago, people will be distracted with their holiday vacations. Today, just a little silly fun and humor. Hope you enjoy it!

Twas the day after Christmas when all through the house not a phone line was ringing so I just clicked my mouse.

My numbers were done and a spreadsheet confirmed that 1995 was over and 96 had begun.

The kitty-kat was nestled on top of my bed.  While visions of millions danced in my head.

I went out on a limb and there arose such a chatter, I sprang to my feet to climb the tall ladder.

Away to Windows I flew like a flash, tore open my mind and was just a bit brash.

To the moon and beyond in the new fallen idea the luster of money should soon appear.

With a few extra dollars so lively and quick, I knew in a moment it must be St. Nick

More rapid than eagles the coins they came and I whistled and shouted and called them by name.

Dot Com this and Dot Com that. Oh my goodness and look at dat!

Now pennies then nickels and dimes all day led me to discover new ways to make hay.

I plowed and plowed and plowed til May thinking of a time a score away.

I planted the seed to grow a tree and planted another to frame the sun. Oh my what a forrest it has become.

Two decades later I survived the zoo, Know one thing you never knew.

Whoever reads this and whatever they do. I'll promise right now to never bore you.

Domains to the rescue and on to the stars, to the moon and beyond and even Mars.

And time right now to fly away, I think I've had my my final say.

Good luck to all and to all a good night!

And here is a little extra bonus to twist your brain. I know it twisted mine!!

In 1996 I started writing using domain names I owned in a post I made that actually made sense. It was a little more colorful using only adult domains as you will see below and a bit easier confining it to one basic subject. So here is my modern day version: RATED R++. So be warned! 333 domains (at last count) used possibly making this the longest domain speak in history. Where is Guinness?

So while sitting with my virtualgirlfriend.com who was wearing sexyunderwear.com that I bought at the pornstore.com, sipping some chiantiwine.com singing christmascarols.com on my property.com having a little candy.com and watching some porno.com,  I got off my ass.com to go into erealestate.com where I figured I could make some homemade.com jointventures.com. It was like 1969.com all over again. It would help beginners.com and the unemployed.com take down their jobwanted.com sign to be able to retrain.com in computerservice.com or get bachelordegrees.com and become virtualteachers.com so they could get the greatestjob.com. Maybe someday make awardwinningsites.com. and make the top40list.com or even the top10list.com. That might send the topheadhunters.com looking their way and they will never kissass.com

So let's gettogether.com and startthinking.com then startbelieving.com then startmakingmoney.com so we can startliving.com on the way to delray.com and traffic2004.com and make new associations.com. Some were born in 1978.com while others were born in 1969.com or 1964.com or even 1923.com. I thought of all the widgets.com that would need wholesaling.com to onlineshoppers.com and who the beneficiaries.com would be and how that might impact the grandchildren.com who can shoptilyoudrop.com

Some wanted to gofishing.com. I wanted to do officework.com. Some thought I was pigheaded.com. But I thought of all the departments.com and I was not looking for a pissingmatch.com.

So first I went to the giftdepartment.com where I saw giftsformen.com and then giftsforwomen.com to find the hottestgifts.com with factoryrebates.com on the way to the servicedepartment.com next to the partsdept.com where I thought of some prankgifts.com for the starscars.com but I still wanted the hottestbargains.com.

I looked at the hottestbooks.com and the hottestfashions.com worn by the hottestcelebrties.com and hottestmodels.com going to the hottestplaces.com hanging with the hottestplayers.com but I was still focused on the hottestsales.com. The hotteststars.com in their pristinecars.com and limodrivers.com want to go to the hottestspots.com. They get the hottesttickets.com at the hottestshows.com and eat at the hottestrestaurants.com. But I am still looking for the hottestdeals.com on the hottestproducts.com at the hottestprice.com. But the hottestcelebs.com are going to the hottestclubs.com with the hottestchicks.com on the hottestdates.com all because they are hotshit.com and make the hottestmovies.com, hottestvideos.com and hottestmusic.com and become the hottestnews.com usually started by the hottestrumor.com and then they have to leave by finding the hottestfares.com and wherever they go they will still be the hottestgame.com in town.

I saw domains as goldfutures.com and investmentdiamonds.com and focused on investmentqualitydomains.com. I saw domains as  incomeproperty.com to buyandlease.com. I saw domains as foreigninvestments.com that would aid foreignrelations.com and capable of worldbroadcasting.com. The cheapest.com properties.com in the world and wanted to be the modelhomes.com worldchamp.com.

I had productstosell.com but I had to worry about protecting.com them as they were unsafe.com from the cyberbully.com and hijackers.com. It forced me to become an expert on trademarking.com. Because these asses.com were the biggestjerks.com and biggestassholes.com and would need a courtorder.com issued by a grandjury.com and then gosueme.com because bribes.com or a silly ceaseanddesist.com letter was just going to be my bestlaugh.com. They were nothing more than a rodent.com to me and I became their biggestmistake.com. Thanks to hallofshame.com and RDNH rulings.com I was able to give some lawtips.com to the inexperienced.com instead of lipservice.com.

They would bitch.com that I was a cybersquatter.com and hoarding.com undevelopeddomains.com and that was unnatural.com but I was just oildrilling.com not even posting realestateforsale.com.

The biggestplayers.com came to wager.me and it cost many thousands in protecting.com me and you and hopefully the futureanalysis.com would support that. My ladygodiva.com vs Campbell's;  My goofoff.com vs Lilly Inc.; My carnivalsucks.com vs Carnival Cruise Lines; My daisydukes.com vs Warner Brothers; My tstv.com vs Toronto Star Newspapers. lipservice.com vs who even cares? Slam Bam corporatebullies.com!! I won the biggestcontests.com  because I had the biggestballs.com before there was a UDRP process and saveme.com vs the world when there was one! NEXT!

What I was doing was topsecret.com but I had a workschedule.com to worksmarter.com as I could workanywhere.com and reside in the worldsbestplacestolive.com because I wanted to go to the worldsbesttravelspots.com and knew that if I had long term aspirations workingoff.com the Internet, the generalpublic.com, who may be the jurors.com, would understand the uniquemomentinhistory.com and sense of urgency at making my stake and would like to be filthy.com rich too. It's a kinkyfantasy.com that most people understand just like folks like freeshit.com and the dailydouble.com. I decided to gobet.com on it because ihavefaithin.com and I could buynowpaylater.com because Netsol had no xxxcashier.com to pay for ricksdomains.com and that gave me availablecredit.com that I would have never had.

When I was born cheapland.com was inherited.com. It was all sold and owned. There was no more freeadmission.com or freenights.com. But I did see that virtualbillboards.com could be planted throughout the world and I could compete with the worldsbestsalesmen.com with the worldsbeststuff.com. That gave me the bestodds.com that dailyevents.com would help me geteven.com and then use demonstrations.com by famousamericans.com at tradeshows.com and chatboards.com to getexcited.com about the hottestdomains.com where companies were exhibiting.com.

I don't eat russiancaviar.com but I can sell some. I don't wear cubiczirconia.com but I can sell some. I know nothing about uniformrentals.com but it could become a full time career. I am not into wholesalejewelry.com but I can get the bestvalues.com with jades.com and sparklers.com and even a pinkdiamond.com. I can buythat.com and then iexport.com.  I can buywholesale.com and buyworldwide.com. I could buycloseouts.com and I can buylobsters.com, buysoap.com, buyclothing.com, and look for the biggestdiscounts.com and clearences.com and buybargains.com then sellproducts.com and and sellthings.com like spyingdevices.com and startmakingmoney.com with highprofit.com specialties.com in 100 different industrials.com that delivers.com specialpages.com for a specialeffect.com then solicit.com thebiggest.com and bestsponsors.com with bestreferralprograms.com with the bestratings.com to send my besttraffic.com to and closethedeal.com

I may have had the worstsites.com but the enterbutton.com that led to the virtualtours.com made me millions by affiliateadvertising.com and I was still getting screwed.com by the biggestwinners.com with the biggestripoffs.com. They never saw domaintraffic.com before and that potenttraffic.com provoked a good screwing.com and fakeout.com every so often for my "Fake" traffic. I would say screwyou.com and tell them if they continue with sneaky.com stupidmoves.com like cheating.com me that they will earn a spot on unfairbusiness.org and I would make them the mostfamousperson.com on the internet with their bigripoff.com and let folks know what whores.com they were and that gave me the power to be an sob.com and I was not faking.com. They put me in the virtualcollections.com business.

I guess I was a shameful.com banker.com who was overeating.com with a wad.com of money and looking for honest webmasterprograms.com so I could become an authorizedreseller.com and promote advertisedspecials.com and add to my christmasclub.com. I started buying adultbooks.com at wholesaleprices.com looking at personalads.com because I knew singlepeople.com wanted to look for greatass.com and getlaid.com. The only way to make extracash.com back then was with porncash.com because there was no mainstreamamerica.com in 1996 and 1997. Google did not exist. So a dailyprayer.com would not even get you a freephonecall.com or cheapestfares.com if you are goingplaces.com like grandcentralstation.com fordirections.com on the way to see hitshows.com.

males.com wants.com hotdates.com with sexychicks.com, naughtwives.com,  and a cutie.com doing sexydancing.com. Some liked watching.com nakedbabes.com and booty.com and the sexiestegirls.com and became sexaddicts.com. They would wfeswap.com, then go to stripclubs.com and pickupjoints.com and look at the livebabes.com in the buff.com as they flaunt.com their sleazy.com shortskirts.com while faking.com hornyguys.com that they are their sexualfantasy.com before the vicesquad.com showed up.

prettymodels.com and partygirls.com were everywhere. men.com think they can makeout.com because they think they are a stud.com, get horny.com and start seducing.com the prettyladies.com and if I write anymore it will be x-rated.com and the prudes.com will get upset even tho whore.com, slut.com, vagina.com and virgins.com etc. are used all day everyday on TV that our kids gowatch.com and they are not censoring.com them and either are the grandparents.com because they are just wickedteens.com hotrodding.com to the stripjoints.com to have a cold-beer.com and make xxxvideos.com.

Makes you startthinking.com so startthere.com and startsearching.com. startoff.com by startworking.com so you can startvoting.com so that you can startout.com not being a starvingartist.com because you needmoremoney.com and then you can get preapprovedloans.com, speak to financialconsultants.com, taxplanners.com and become a stockinsider.com and maybe even a domainking.com and gofirstclass.com as you goup.com the ladder.

So after 20 years they can stoplaughing.com at the craziest.com idea because theking.com has written salestips.com on his tipsheet.com that many a domainseller.com like me have used to make the year's biggestsale.com. I'm not bluffing.com and ireport.com I can make you that can give me some bragging.com rights while retiredinboca.com relaxing on my casualfurniture.com and watching funnymovies.com

This all just reconfirmed.com that typeins.com were not a violation.com and realeyeballs.com by a realliveperson.com capable of finding and previewing.com realistic.com and reallygooddeals.com at the virtualshowroom.com  looking for dailyspecials.com and someday folks could even have a birthdayparty.com then start foolingaround.com at the punchbowl.com.  Just saywhen.com. That's virtualhorsepower.com says rickschwartz.com

And now that you made it through all of that I hope it brought a few smiles to your face and a few memories. Now on to my 20-year anniversary  posts next week..... Happy Holidays and the best to you in 2016 and beyond!

Afternoon Folks!!

In just a few minutes President Obama is set to nominate Bob McDonald to head the Department of Veteran Affairs whom you might remember was the CEO of Procter and Gamble when they were convicted of trying to reverse hijack the domain name Swash.com.

In what was I believe the greatest shakeup in 100 years at Procter and Gamble when then CEO Bob McDonald and his nearly entire army of executives were forced to step down.  I contend it was over the Swash.com Reverse Domain Name Hijacking decision as a final straw in which I wrote about extensively. Below is that exact post.

But I also called for his resignation as you can read below as well back in March of 2013:

Morning Folks!!

I am not happy that Procter and Gamble has been found guilty of Reverse Domain Name Hijacking but I am going to milk this story for every ounce it is worth and it may take me YEARS to do it. When it comes to Domain Names, Procter and Gamble was a guiding light in my book. Great respect because they figured it out. Even tho I vaguely recall them dumping a bunch of domains years ago. I think I might have gotten 1 or 2.

Reverse domain name hijacking (also known as reverse cybersquatting), occurs where a trademark owner attempts to secure a domain name by making false cybersquatting claims against a domain name's rightful owner. In this case not only did P&G make false claims, they also lied outright to the governing panel and got caught!

See when I started, P&G was already out there getting domain names or soon thereafter. So they understood about domain names very early. It is that reason that what they did is particularly troubling. I always liked and respected Procter and Gamble because they always moved well with the time and of course I like everyone else use a lot of their products. But all our lives. All my parents lives. All my grandparents lives and half of the life's of their parents before them. Whew!

They are the warm and fuzzy company that gave us many soap operas and toothpaste and all types of other things we use each and every day. They perfected the TV commercial long before any of us were even in the game or born. So it makes me sad to learn one of my heroes is now a would-be thief had the other party not fought back and exposed their fraud! Well done John Berryhill!

Who made that decision? Who was responsible for P&G overstepping in this outrageous manner? So outrageous that a 3 member panel called them out in a way I don't think I have seen before. Saveme.com case had very strong language. But this language seemed to be harsher in tone. I guess it is open to interpretation. But maybe because it was slapping a business giant as if he had no more standing than you and me. BRAVO!!

I am not mad at them. I am going to use Procter and Gamble to make many points over the next YEARS! Let companies KNOW if P&G is convicted of Reverse Domain Name Hijacking, you will be too if you engage in this despicable act. But I would just as well have them tell the story. I'd like to ask why a company worth billions would STAIN their reputation with this act that the common man would find appalling? Why would they not just come to an agreement with the owner? Now they pay the price and the price is priceless. How stupid is that??

I am angry, upset and most of all disappointed in a company that wrote the book on marketing and other things. They were true leaders of an era. Of many eras.

So what MORONIC company wants to be NEXT!!?? Who made the decision to do this? Why did they do it? What transpired that allowed them to risk so much for so little?? That's what I really don't get.

I am very disappointed. I am still going to use their products but they can't force me to look at their company the same ever again. These companies are playing with fire.

Maybe they should do some research into history and see what some little old ladies did to big companies that tried to build malls where their homes were located. This is akin to that. But in an age like this news flies and it is in ink.

Some SCHMUCK working at SOME DEPARTMENT at Procter and Gamble, decided it was worth GAMBLING the reputation of a 172 year old company. 135,000 employees. $79 BILLION in sales in 80 countries. And they had to try and muscle some guy with a domain? What would you call that Mr. CEO of Procter and Gamble?? I CHALLENGE you Mr. McDonald to come to our trade show and explain it to this audience and the wider audience? I CHALLENGE YOU!!??

Wow! What a HUGE blunder. What have you learned? Are you going to use the same tactics again? Are you pissed at me? Maybe you should be pissed but I am not the one you should be pissed at. I would be pissed at the person, department or firm that put the reputation of your 172 year old company on the line and LOST!!??

Besides all this your company, P & G, was found to misrepresent facts to the panel. Nice touch! Were you personally involved in that decision? You should RESIGN TODAY if you were. This is all my personal as well as professional opinion. I'll assume you were not involved in a low level decision that was this stupid and worse.

What say you Mr. McDonald? Personally I am just disappointed that a company I have always looked up to would stoop to this. I am sorry for the bluntness of this post but our industry has suffered from corporate bullies for nearly 20 years and this time the giant of em all went down and went down very hard. Very hard! A company that otherwise has been very wise in their domains and how they have conducted themselves. But now this STAIN and none of your STAIN REMOVERS will be effective on this.

Mr. Berkens points out that your folks LIED to the panel when your company said they did $40 Million in business on the 'swash' product.

““The entire Panel finds it more extraordinary still that in its Complaint the Complainant represented the SWASH brand to be a worldwide brand of longstanding with multi-million dollar sales, stating that over the last 4 years alone the brand had gained sales of over USD 40,000,000.”

“When this was challenged by the Respondent, the Complainant was forced to admit that the brand had only been on the market for 4 years, that sales had been restricted to the USA and that sales over those four years had totaled under USD 60,000.”

Most importantly Mr. Berkens points out one last thing:

Had the Respondent failed to respond, there is a very real risk that the Panel, relying upon the 1993 International registration and the substantial sales volumes claimed for the brand, would have found in favor of the Complainant. This Complaint fell very far short of what the Panel was entitled to expect from a Complainant of this stature.

So your company LIED Mr. McDonald in an effort to STEAL a domain that belongs to another company, Marchex, which just as easily could have been some mom and pop in Iowa that could not defend themselves and let you have the domain. You now join our 'Hall of Shame' and each time somebody is convicted of Reverse Domain Name Hijacking, we repost the entire list. Congrats!

So let me ask you directly Mr. McDonald, How many domains has your company gotten that it had to LIE about? Or that they had to make folks spend money they did not have to defend what was rightfully theirs and is now yours? Tell us that. Isn't that a fair question in light of what has happened? Maybe you should WANT to find out. WANT to make it right. If I have something wrong, please let me know.

Sir, I have been doing this for 18 years and what your company did is troubling and it is something that we as risk takers have had to UNFAIRLY endure. There is a free market place. Use it, don't abuse it. Right now you and your 172 year old company have to live with this. It probably means nothing to you but it may mean the WORLD to somebody else. So to get our message out we need to SHAME companies that engage in this abuse as there is no penalty for what we just saw happen. They just walk away.

Bob McDonald. CEO since 2009

Here is a list of Procter and Gamble Products. The asterisk are their *Billion Dollar Brands*. Come on Mr. McDonald. What say you about this? You sound like a stand up guy that served your country and company well. You have been with the company for 33 years. Don't you want to get to the bottom of this as well? Who put the companies good name in jeopardy for this? Who lied? What idiot is responsible? Marketing? Legal? Finance? Who? How many? Why would you allow this embarrassment to occur again or are you too big to be embarrassed? Any other abuse in the name of your 172 year old company. I sure as hell would want to know if I were in your position.

So we are forced to use Procter and Gamble as an example to sway the next MORON or the next company not to get involved with this despicable act of Reverse Domain Name Hijacking (RDNH). Help us do that Mr. McDonald and you will find an ally and we can call it a great day!

And as I read the history of the company I stopped as it described the 'Joint Venture' that started this company back in 1837. Wonder what Mr. Procter and Mr. Gamble would have done given the same circumstance? Before they even had billions? My instinct says they would have acted in a different manner and somebody there violated a 172 year old trust just because he or she was a cheap bastard that played fast and loose with the facts and refused to pay either fair market value or find an alternative.

Regretfully,

Rick Schwartz

http://www.ricksblog.com/2013/06/proctr-gambles-biggest-management-shakeup-in-100-years/#.U7GX4xYtQ6I

And here is the original post on the hijacking:

http://www.ricksblog.com/2013/03/reverse-domain-hijacking-and-the-virtual-scarlett-letter/#.U7GaOBYtQ6I

Morning Folks!!

Let's not minimize or maximize the Reverse Domain Name hijacking (RDNH) decision that came down against Procter and Gamble (P&G) over Swash.com back in March. But for a stellar company like P&G it is a black eye they should have never gotten.

So lets just deal with a few facts. This was what I wrote about the fallout back then.

This was my open letter to the CEO Bob McDonald that followed.

That was besides personally contacting each and every communications director for a comment without a single response.

But let's look and see what has happened in the days since. Exactly 90 days if you are counting.

The CEO, Mr.McDonald, steps down "effective immediately" at the beginning of Memorial Day weekend on May 23rd.  "Robert McDonald's four-year struggle to adapt Procter & Gamble Co. to a new world of more frugal consumers and tougher global competition has come to an abrupt end."

Did "Frugal" (another word for CHEAP) include giving him or those that report to him the order to try and grab Swash.com?

But that is not all. Then just DAYS later P&G announces "Organization changes". MASSIVE changes. I then asked myself when in my lifetime did I ever see a shakeup like this at Procter and Gamble and I just can't remember one. Can you? They even picked the former ceo A.G. Lafley to get the compnay back on track. Both men in the industry for well in excess of 30 years.

A.G. Lafley. Chairman, CEO, President

Straw that broke the camels back? I guess we will never know. But it was a straw and that STAIN remains with this company FOREVER! It happened and somebody in their organization made a very costly and unfortunate mistake. A mistake that could rise to the level of ending a career.

So as domain name investors this is a case we can point other would-be hijackers to which will let them know that no company no matter how big or small are immune to a decision like this and the repercussions that come both personally and professionally. Ignorance is no longer an excuse.

Have a GREAT Day!

Rick Schwartz

All that said, and without being too political, I certainly wish him well in trying to fix the problems that loom at the V.A. that really has a lot of people upset across the political spectrum.

Morning Folks!!

Go brew a pot of coffee, this is going to take a few minutes. What started as a simple equation blossomed into all types of adventures and mis-steps and examples in real-time that absolutely support my equation. An equation that may be all but lost in the clutter of events that just had great timing and so here we are. I think the word "Clusterf*ck" is just going to be more spot on with every passing day. I thought it would happen in very slow motion, but it is accelerating even faster than I would have imagined and I suggest there will be popcorn to replace the coffee by the end of this post.

We all see what we see and we all know what we know.  I come to conclusions early based on certain elements that fit in my personal equation. This equation filters out CRAP, HYPE and NOISE. It filters out the losers FIRST and spotlights the winners NEXT. That makes my job easier and pisses off the ones that don't win and/or don't count as much. Those folks have a tougher job to convince me and other people whether domainers or end users to buy into their vision.

Each new gTLD has or SHOULD HAVE a separate vision.  Is that not a reasonable assumption? I have learned many do not as stunning as it sounds. So is it my fault for asking about the "Vision" thing?

I have been writing this blog post for over 2 weeks now and I have been deciding whether to post it or not. Meanwhile I just keep working on it and whether it sees the light of day will just depend on who knows what. But events just keep unfolding that dovetail with what I have been saying.

I have written extensively about the new gTLD's EARLY to be on record and to be REAL and that showed a vivid difference in how and WHEN  I view the world compared to many others. And in my view of the world, nothing happens until a sale is made and I did my best to explain that. And while people throw around invisible sales numbers without actually ever making a sale, well, that is a MAJOR red flag to me. I know how hard sales is. I know how hard sustaining sales is. I know how hard growing sales is. I also know the difference between a solid sale and a weak sale. A sale that will survive and a sale that will collapse or end up being a loss.

I see things early for a reason and it is based on an equation.

I have gotten several emails about Moniker.com and their problems this week and folks want me to write about it. Well I did, 3 YEARS ago when I transferred all my domains out. It was not my first post on the subject as you will see. The Moniker mess happened 3 YEARS ago but the train wreck happened last week. Folks had AMPLE opportunity to heed the warnings. I still have about 14 domains there. Mostly .tel. But thousands were moved away. 

There will be a lot of elbows flying in gTLD land as we have seen with the firestorm of last week with Negari and Network Solutions, that just continues and now the plot thickens as Berryhill, Corwin, Negari and the ICA join others in the industry for a circular firing squad.

The skirmishes will intensify and broaden as there are a lot of competing interests. There are a lot of ponies in this horse race and the rails on either side are not enough to contain them. So you are going to see a vivid example of some raw nerves between other gTLD operators develop. You can't see this coming? Really?? REALLY????

Why is this a sure bet???

SALES BABY! SALES! They NEED sales. They are drowning without sales. They are choking for cash as it is in many cases. That is THEIR reality.

Not only that, but If you play in a game you set up with no rules, then don't complain when somebody breaks the rules or extends the boundary lines. Where does HYPE turn the corner and become DECEPTION? There are the nuances that are in play here. The debate is wide and the fallout is still in progress. The answers are murky. Deal with it. It's just part of the clusterf*ck that will play out in time.

I also understand that many bloggers are under a lot of pressure from different camps to write positive stories about them or gTLD's in general. Some have just about lost their entire credibility. Even Howard is pressuring me not to post things I am about to say. But I could give a rats ass about getting another sponsor or not. I won't sell my soul for that. If they can't figure it out, so be it. I will say what I BELIEVE and not what my FRIENDS want me to say.

Hats off to those like Konstantinos Zournas, MIke Berkens, Ron Jackson,  Kevin Murphy and others that report whatever facts they can find and I know for a fact that the pressure these bloggers are under is IMMENSE. And they are getting it from both sides. 

Sales have to be created and WE and everyone else has a RIGHT and a DUTY as well as an obligation to be skeptical if you are a serious investor.  You should EXPECT to have you feet held to the fire. Especially since we already had prior evidence that only a fool would ignore of how previous tld's have fared in our short history.

How do you create a sale?

You start with NEED, WANT and DESIRE. And in our case you can add SUPPLY and DEMAND. Other variables as well as you are about to see. And there are even more obstacles than I am going to discuss that is why I wrote so many posts coming at things from various ways and all of them had huge pitfalls. These are compounded obstacles and I am not sure any can survive them all. Especially when they are blind to them.

That said......

How do you create sales when you don't start with NEED, WANT and DESIRE from the right party and the supply is unlimited and the demand is almost non-existent and self-made??? And keep in mind, over 80% of all registrations are by domainers and the Registry's themselves or closely held companies. aka, Bag of smoke. Some say 90%. They say 33% and that is just laughable.

How do folks KNOW they need something they don't even know exists to begin with? This is the tip of the iceberg when it comes to exponential. Many icebergs because everyone at least gets hungry. Of course business may suck if you are a hamburger stand setting up shop at a vegetarian convention and you have no veggie burgers.

Hold on to your horses, it will all make sense soon to anyone that can have a warped thinking process like me.

This is NOT bashing gTLD's. It may as well be zoombibie stands. The RESULT would be almost the same.  What's a "Zoombibie stand"? A Zoombibie stand is as foreign and unknown to you as gTLD's are to the end-user.  Got that? Do you need one??? How long have you lived without a zoombibie?? Really?? Whose job is it to sell you that Zoombibie that you don't know about and probably could care less about? What color is yours? What happens when a competitor comes in and they have to SPLIT the zoombibie market?? Are only distributors buying zoombibies and they can't resell to the end-user?

The commodity you have does not matter. Coffee shops, hamburger stands. Lemonade stands, pizza joints. You name it. The thing with gTLD's, they are exponentially harder and few want to take the time to truly examine why.

Morning Folks!!

You can only ask questions and let folks answer them as they see fit. They get the rewards if it works and they suffer the consequences when it does not.

The minute I saw the answers by Daniel Negari to the questions posed, I knew his troubles had just begun and was about to get much worse. He just dug a deeper hole. My job was to let things unfold in a natural way and they did. There was little for me to say but to step aside and watch the implosion and the fallout as his non-answers would be picked apart by you the reader in the comment section and would cause the fury that would erupt as it did. My job was not to force the issue. But I could see everything that was about to unfold as it did the moment I read the answers. My very first thought was "The walls of Jericho are about to fall."

Mike Berkens has been writing about and discovered many of the goings on including:  "NSI is responsible for over 80,000 of the 96,246 registrations. If you netted out the NSI registrations .XYZ would have somewhere around 16,000 registrations which would have placed it around number 12 on the list.”

Others like Konstantinos Zournas have exposed this from the get go and he calculates they would be in 34th place not first.

I think folks like Ron Jackson, that has been covering Negari and .xyz for a while, feel duped.

Many others had their say as well and opinions are VERY strong.

I only posed one follow-up question and it went like this: "My only question is did you know about the network solutions deal in any way shape or form?" And I got the standard NDA answer.

I think the NDA violation would have been less damaging than the fallout already suffered by both these companies. 

I thought Negari would have come here and fielded the questions and concerns. I think not doing so only hurt his cause further inside the domaining community and made the firestorm much worse and will last much longer. I have been in this business a very long time and I don't think I have ever seen this level of anger by so many different corners of the industry. They feel as if a hoax as been perpetrated on them and the anger has grown each day that it has continued.

And when it comes to Network Solutions, they have done damage akin to Moniker years ago. I think they both need to DESTROY the NDA and come set the record straight. I think the one with most exposure is Network Solutions and where is ICANN?? No NDA is worth pissing away your reputation for.

I just hope when the next gTLD tries to pull something cute, the outrage is just as great. Friend or foe. RIGHT???

Now you KNOW what HYPE looks like in the RAW form but don't think for a minute that others are lily-white. Please! The shenanigans are way over the top. My advice, stop the bullshit and run clean businesses before you are ALL linked by the belly button. So stop the clawbacks and make sure you speak out loud the next time that happens.  It did not affect me personally but I think the practice is absolutely disgusting and I will continue to bring it up.

I guess it will be a few more days before they really get to 1 million registrations.

Lastly, NO DOMAINER has ANY OBLIGATION to support ANY new gTLD whatsoever, so don't buy into that nonsense. On the other hand the gTLD's have an obligation to treat domainers a lot better than they have.  They need us not the other way around.

Coming Next: The Rick Schwartz Equation

Rick Schwartz

Afternoon Folks!!

Gtld's Reach 1 Million in just 6 months!! Gtld's Reach 1 million in just 6 months!! Gtld's Reach 1 Million in just 6 months!! Gtld's Reach 1Million in just 6 months!! Let me repeat as you will see this SPIN on every domain blog and further. But what a load of CRAP!

The numbers are PATHETIC! The lack of marketing is REMARKABLE. Their attitude to domainers in some cases is off the hook.

Many promising millions of registrations and here we have over 125 extensions out and COMBINED they can barely get to a million after several months and NONE have even broken 100,000 mark. Well over 125 extensions and COMBINED they will have a party at a million. Whoopee! Really??

Watch http://ntldstats.com/tld daily and you will see that the MAJORITY of gTLD's have already STALLED. And this is still their debut period!! It gets worse from here not better. If they were planes, they would have already crashed and burned.

How many registered by end users that are not domainers and are not buying for defensive purposes? Trumpet that number if you can find it or figure it out. Get your binoculars out. It may be in the far distant future if at all.

How many MILLIONS of other TLD's were registered in the same time frame? Look at that data. With no trumpets or any fanfare. Where are the headlines? Most of them to REAL end users. And when one gTLD does something bad it tarnishes all of them. Something I have said for quite some time but many just dismiss. Misdeeds by one spill over to all and I have been stating that LONG before any came to market. How you could NOT see that coming is my only question??

Those that can make a coherent argument of why they belong in the eco system have a chance and that is why I have repeatedly said I believe there is a place for the .Geos in the eco system. Still not a sure bet. But at least there appears to be or could be a rhyme and a reason. An obvious rhyme and reason. But even so, it does not guarantee adaptation and other hurdles that many like to ignore and get pissed when I point out.

The obstacles they face IMHO are almost insurmountable and  the BIG obstacles they face are yet to come.  Can a few of the 1400 break thru? YES, maybe. That means that over 1300 won't. And I don't care if the registry makes money. That has NOTHING to do with investing in their extensions. Adaptation is what counts, not their profits or their losses. Inside baseball that has no bearing on anything. Buy into the company if you think the extension is that good and you like the registry model.  But last time I looked most of us are domain investors.  Just because 1400 companies decide to print stamps does not mean they become collectibles. Chances are quite the opposite.

Kool-aid and hype. The desert is coming soon and DOMAINERS are picking up almost the entire tab and being totally abused in the process. This practice of clawing back valuable domains is just one of many unethical practices I see going on right now and domainers are not ony powerless, but these companies now EXPECT to have the domain investor PAY FOR THIER MISTAKES! Keep eating shit folks.

The exaggerations are over the top. The promises are empty. The attitude to anyone that does not fall in line is stunning.

So I decided to Pre-empt the coming headlines in case it is a surprise if everyone runs the same headline at the same time. I guess then it becomes meaningless. Gtld's Reach 1 Million Registrations in just 6 months!!

1,000,000 TIMES!

Rick Schwartz

Morning Folks!!

First of all, I have no idea how I got in the middle of a firestorm that has nothing to do with me. But here we are. Folks will use my selected words to bend things one way or another and sometimes not bend at all.  It's almost comical. Almost all my blog posts are opinion based. Very few are news based.

But putting that aside.....

I had a near 2 hour phone call late yesterday with Daniel Negari. He gave a heartfelt apology to some words he regrets he wrote to/about me. I was surprised at the words given Daniel was on my chatboard years ago (he was a teenager at the time) and we never had any issues so I accepted his apology.

Daniel Negari has been under fire for days for a host of issues from his remarks to me on TheDomains.com, his arrogant selling technique and and the firestorm over the domain giveaway by Network Solutions. TheDomains.com, OnlineDomain.com, DomainIncite, and blogs everywhere includng DNJournal have many of the details and commentary. Most of these folks have multiple stories on the issue from a variety of sources and the comments and speculation only add more fuel. Some justified, some not. I think you will find all those links in these stories so just follow the bouncing ball if you need to get up to speed.

True passion by Negari is just getting ahead of reality. imo

So what happened with the Network Solutions giveaway of some 30,000 .xyz as a freebie? Who did what? My conversation was designed to answer those questions and sort out the events. You, the readers will be the judge. As always, answers may spawn new questions and I hope Daniel will come here and address them if they do. Here is the interview:

Q1 .XYZ was in the news this week when an email offer was discovered going to customers of one Registrar offering their customers a free .XYZ domain? Were you behind it?

First, I think it is important for everyone to understand the difference between a Registry and a Registrar, and the roles that each play.

A Domain Registry, like .xyz, .com, or .org is responsible for the operation of a particular domain extension. Think of it as manufacturer of a product.

A Domain Registrar is an organization that enables Registrants to register domain names. It is like a store where you go to buy a product - in this case its domain names.

The Registry Operator like .xyz, .com, or .org sets a fixed wholesale price for all Registrars.

Each Registrar (or store) then makes its own decision on the retail price it wants to charge for the different domain names (products) it offers.

We have over 200 registrars from all around the word in all languages offering .xyz domain names. I do not know the details of every promotion or marketing campaign that they are doing every day.

Here is what I do know:

Regardless of whether a registrar charges $100, $5, or gives the domains away for free, I get paid the ENTIRE wholesale price, which is the same price that every registrar pays.

Q2. Did you as a registry give away free domains?

No. The Registry Operator is unable to “give away” free domain names. I never even saw the email that the registrar sent to its customers until I discovered it on the blogs. As a Registry, I can only suggest an MSRP for a Registrar to display. However, a Registrar does not have to use that price.

Just like the price of .com, it is up to each Registrar to set the retail price of any domain registration.

Q3. Do you set the price that the registrar charges for a domain extension?

No, I do not set the price that a Registrar charges for a domain extension. That pricing is determined by the Registrar only.

Q4. Do you know the retail price that each of your registrars is charging for a .xyz registration?

No, I do not know the exact price that every Registrar is charging.

On all of our Registrar outreach materials we have suggested $9.99 retail pricing for .xyz domains, however, it is the up to the Registrar to determine the retail price that they offer to registrants ($14.99, $50, $9.99, etc…).

Q5. So what you’re saying is that a registry is like a manufacturer of a product. Let’s use Coke for example. So if Coke sells a 2 liter bottle to stores for a wholesale price of $.50, it is up to the store to set the price that they want?

That’s correct.

So if a store purchased a bottle of Coke for $.50 they can charge $1 or $5, $50 or sell it on a buy it get one free basis or give a bottle away for free.

As the registry of .XYZ like the manufacturer of Coke, I am paid my full wholesale price regardless of what the store or retailer sells it for

Here is another example. A gas station may purchase a bottle of Coke for the $.50 wholesale cost. Then when a customer fills up a full tank of gas, the gas station will give the customer the bottle of Coke for free. The maker of the bottle of Coke cannot control how the gas station owner prices the bottle of Coke. Again, in this example, xyz is like the manufacturer of the bottle of Coke.

Q6. In your first blog, you mention that .xyz is your “Gift to the World”. To many domainers this came off as arrogant. What were your intentions with this phrase?

I admit I am not the best writer, and sometimes I am not able to express my feelings on paper. By no means was I trying to sound arrogant, and I understand how some readers may have read into this. My goal with .xyz was to allow anyone, around the world, to purchase an affordable and generic domain name for any purpose. By opening up the .xyz namespace with no restrictions, no variable pricing, and a small amount of reserved domains (about 1,000-2,000), I feel that .xyz is the first new gTLD to allow for mass appeal and a worldwide audience.

That is what I mean by our “Gift to the World”.

End--------------------

You can draw your own conclusions as it is not for me to say one way or the other. These were the questions posed and his answers. Nothing more, nothing less.

Rick Schwartz