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

Morning Folks!!

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

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

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

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

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

THEY STILL DON’T SEE IT!!

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

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

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

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

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

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

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

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

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

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

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

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

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

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

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

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

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

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

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

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

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

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

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

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

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

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

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

So fwiw.......

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

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

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

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

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

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

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

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

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

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

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

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

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

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

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

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

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

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

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Look back to my earliest posts and you will see that my #1 job is a miner. Like you, I look up domains all day long that pop into my mind. Or I see or hear something that could catch on. Or I just find a hole in my own inventory. A missing piece of the puzzle. That happened to me the other night.

My wife is watching a show and they have an ad for “Income Property” which is another show on that channel. I say to her I think I own that domain. I look it up, sure enough. Hand Registered in 1996 for $100.

But that is where the story starts, not ends. I think to myself that the phrase “Income Producing Property” should be a domain I own that I would have registered. I looked it up. I did not own it. SHIT!!!

But again, that is not where the story ends. There is a price. $499. BAM! Grabbed that sucker! Does it have type ins? I don’t know and not the #1 priority on this one. Because it MEANS something. It is a phrase that is used and easy to remember. Because of that, it also protects my other domain because those two are wings of a bird. One may be a stronger wing. It's a category a heading a sector.

But again, the story does not end there. The domain had to meet my tests that I described in this post. It did. That means it has VALUE! You can start a business from this one domain and NEVER look back. That is my SUPER test. That’s why I have never made a distinction between domains. Short, long, this that. None of it matters unless it means something and you can run a business from there. A Business.

But again the story does not end there. I am sure those that want to be foolish will tell me what a worthless domain this is. I could have bought sex.com for $13 and they would come here and say I overpaid. But for the rest, this is an opportunity to point something out. For those asking the way. HERE IS THE DAMN PATH!

Somebody decided this domain was only worth $499. That person was not a domainer. No domainer reading this would have done that UNLESS they did not KNOW what they were doing.

I submit that the MAJORITY of those involved in the domain industry today no longer know what they are doing. That is why we see lackluster auctions. That is why we see such puzzling sales. The majority of “Domainers” have been hired by other companies in the space and many times that was their FIRST involvement with domains and the industry. I am sure they are FINE people. But that does not make them Babe Ruth playing baseball.

So this post is a way to illustrate so many things. Everyone wants to know how. So I am taking my TIME to point it out. Tell me I am wrong. Go for it!! $499.

For $499 a guy can go out and focus on this one domain and one sector of the universe and make his fortune. Disagree at your own peril. You are wrong from the get go. Now I am not saying this is a million dollar domain. It sure as hell could be made into one!

But now let me tell you why this has more value in the future than the past. In the 10-20 years or more it has been very hard to buy an income producing property because the prices of property were going up too fast and they would do the equation and come out upside down each time. It KILLED a sector.

Now we are in opposite times. You can buy a 1 bedroom apartment for $5000 or $15,000 or $50,000. You can cover your nut. The equation works again and in a much shorter time.

But the story does not end there. There was still a hole in my inventory. I did not own the plural. IncomeProducingProperties.com. But that also was out there when I looked it up for $1688. BAM! Grabbed that baby too!

But the story does not end there! The sweetest part is yet to come. I will let you folks be the “Sleuth” on this. Guess who owned IncomeProducingProperty.com?

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Why mince words? I found their statement pretty harsh for a guy that traveled to the ends of the world for these folks and cost him dearly not being with his family. But beyond that, it was filled with BULLSHIT imo and I think I can lay it out here.

First the Oversee statement from DNJournal.com:

'Predictably, the path Monte Cahn has chosen is needlessly confrontational and provocative. Regrettably, his perceived dispute with Oversee is a result of his own falling short of expectations. This action will do nothing to further his cause and will only result in the needless expense of time and attorneys fees. It is unfortunate that Monte’s actions will impact employees and clients of Moniker, the company he helped found.

Monte’s unfounded claims are well overstated and singularly without merit. We will vigorously defend this action and we look forward to resolving this in court at the earliest possible opportunity.'

This is the BULLSHIT Oversee had the NERVE to write and release yesterday about Monte.

Let me pick this apart like a VULTURE on a DEAD Pigeon.

Line #1:

“Predictably, the path Monte Cahn has chosen is needlessly confrontational and provocative.”

Predictably?? Are you kidding. The guy that saved Oversee from a HUGE confrontation in 2007? The guy that coined the word Coopertition? The guy that would go to any length to avoid problems?? TOTAL BULLSHIT from the get go.

Predictably? Maybe for ME….but for Monte??? TOTAL BULLSHIT!

Ok so that is CRAP #1 and on to #2

“Regrettably, his perceived dispute with Oversee is a result of his own falling short of expectations.”

Read the lawsuit. According to that, they fucked him 5 ways from Sunday imho in front of the entire industry. It rings of the truth given what I personally have witnessed over the years.

“This action will do nothing to further his cause and will only result in the needless expense of time and attorneys fees.”

Wrong! 3 strikes and it is going to cost Oversee more in lost business than the lawsuit. Trashing Monte was a VERY stupid thing to do imo and that was what this release was about. I don't even think 'Halvarez' aka Nelson Brady was treated so harshly. Remember, the ENTIRE INDUSTRY is watching.

“It is unfortunate that Monte’s actions will impact employees and clients of Moniker, the company he helped found.”

Actually this may be the biggest BULLSHIT here and there is a LOT if bullshit. It would seem that Oversee.net is PURPOSELY destroying what WAS the most trusted registrar in the business. That would explain many things. THAT makes sense considering what has gone on over the past months. I have now moved all but about 3 dozen domains from Moniker. The rest need special handling or just keep getting rejected for transfer.

They are FORCING customers to move. Let the employees of Moniker testify to that. They are just scared of losing their jobs at this point and NOW, now that THIS has happened, how much longer before they get thrown under the bus? Will they get fired if they testify in behalf of Monte? What kind of pressure they must be under.

The rest the courts will determine. And yes there are two sides. But with a history we have all witnessed with Oversee, there is a LOT to come out. You can only cover things up so long.

I wish I broke the Halvarez story. I could have gone 3 for 3. That was a CRIMINAL ACT that was handled in a way that created more questions then were answered. Wanna know why??? It is my STRONG OPINION/HUNCH that others in the domain industry and maybe at the same company would end up in the next cell. Maybe that will still happen. Personally, I NEVER believed he acted alone.

So we all need to do some serious thinking. Do you support this? THAT is the question. Does the Industry as a whole think Monte is getting the shaft? If you do, then it is time to come forward and say something. This is the time not to be afraid or intimidated. This is the time to stand up for something. And want to know why? Because when it happens to YOU, THIS will be the day that determines if anyone will care. Frankly, I don't have much hope or faith anymore in many who I used to. I'll just sit here and take arrows for YOU.

A contract is only as good as the folks who sign it. Just more proof how true this really is.

Have a GREAT Day!

Rick Schwartz

Morning Folks!!

Very few have written or blogged about the Oversee.net Lawsuit filed by Monte Cahn this week. Everyone announces their news like parrots. But this…….hardly a word!

Again, this should NOT be coming from me. But the silence is deafening. I am working on a post that will surely make some domainers take a stand. I don’t like seeing a hard working guy like Monte get screwed. DO YOU?? Most don’t care or are AFRAID to speak out. That’s WEAK!

Well, I have a few secrets I have never shared. I am going to let it out. I am going to post something and I don’t give a rat’s ass about those that will be angry. You either have VALUES or you don’t. Care about the future of your assets or not. Cheat or be honorable.

This Industry is getting screwed at EVERY level. Maybe the majority think it is easier to sit on the sidelines and say nothing. I won’t be joining you regardless of the CRAP I am going to have to endure. In the meantime. I URGE you to read the entire 20 page suit.

Have a GREAT day!

Rick Schwartz

Afternoon Folks!!

Monte Cahn Files Multi Million Dollar Suit Against Oversee.net, Lawrence Ng, Jeff Kupietsky.

Monte Cahn

This 20 PAGE COMPLAINT and multiple Counts could be a game changer!

10 different Claims of Relief!! Including multiple Breaches of contract.

Moniker was sold to Oversee.net for $35 Million in 2007. The damage claimed in the suit is not specific. I would imagine it would total up to somewhere in the $13M-$20M range with possible punitive damages on top of that.

Rick Schwartz

Update 5-5-2011:

I did not get the release but it seems DNW did. As this is a 'News Story' I will not post my personal opinion of the statement here but I will in a future blog post:

'Predictably, the path Monte Cahn has chosen is needlessly confrontational and provocative. Regrettably, his perceived dispute with Oversee is a result of his own falling short of expectations. This action will do nothing to further his cause and will only result in the needless expense of time and attorneys fees. It is unfortunate that Monte’s actions will impact employees and clients of Moniker, the company he helped found.

Monte’s unfounded claims are well overstated and singularly without merit. We will vigorously defend this action and we look forward to resolving this in court at the earliest possible opportunity.'

Morning Folks!!

Do you negotiate with ghosts? Who exactly do you negotiate with when you are approached about one of your domains? When you don’t know it is like doing business with a ghost.

Do you qualify them? Do you find out who they are? Do you know what bullshit you should just filter out and not pay attention to?

I respond to less than 5% of all inquiries. Why?? Because I don’t WASTE time. Your domain is as valuable as THEIR idea. THEIR business. THEIR end game. So do you think I am going to respond to someone that I already can see has a small idea? Their WALLET is directly linked to their idea.

I do have a few tools in my toolbox in the form of form responses. Educational responses. Fuck you responses. Just depends. But my #1 response is no response at all.

Have a GREAT Day!

Rick Schwartz

PS: For the word police. If you can't handle bad words you void yourself of REAL negotiations in the REAL world. Toughen up!!