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

Morning Folks!!

One thing I have always learned in life is the cover up is
worse than the crime. We have all learned that. At least we were supposed to
learn that the first time you told your parents a lie. You lied about something
stupid. I can guarantee it. We barely got punished for the bad thing we did
because the lie trumped the bad thing 1000 times over. We have seen it in politics countless times, the coverup is almost always worse than the initial crime.

What can I tell you other than my personal opinion and views and what folks out there are wondering right now? I hear domainers everywhere asking if there is a massive cover up
going on in this industry as I write this? Sorry, that is how it looks and that is the topic I see time and time again. NOBODY of
authority is coming forward. They are all hiding under their desks and sending
out a “Mouthpiece of coordination” that I never seemed to of heard of before the other
day when he made the mistaken post below before it was removed and everyone saw it.Now he is famous.

'My
understanding is you will primarily speak for the company in these
forums. To that end, let’s coordinate closely on what’s being said and
how to reply.
Let me know if you have questions from here. Thanks.'

Well I have not heard many replies to what is being asked have you. None at all other than putting back online what they removed. They say it only went back 24 months and others say it went back a lot longer. That is just one thing I could point to and domainers strongly voiced their OPINIONS and Oversee did what they were FORCED to do not because it was the right thing in MY opinion and that of others.

Have you read thesettlement contract? You waive so many rights I don't have enough room to post and I am no lawyer. But I will below* and if you sign it before the facts come to light, I just want to ask one question.....Did you actually read it and ask a competent lawyer what the ramifications are??

Trust. That’s what this industry is built on and it has been
breeched, business goes on as usual and I think it sucks! As we see from that 'Smoking gun' above. Domainers are wondering if a cover up may have started from the get go? If others are involved and when are they going to come forward? How many are in legal jeopardy and is that why there is silence? It looks more and more so all the time. Again, that is my opinion and those I hear expressed in both public and private conversations. We are all wondering the same things and their ain't no way to coordinate and control that unless you startsuing your own customers. Props and Great timing to their PR firm on that one if they were the ones to 'Coordinate' that.

On the surface it seems like they want to do the right thing but that contract is so over reaching that one only has to ask why and what are they really scared of? From outside here, it looks like they are TRAPPED in a catch 22. Damned if they do, damned if they don't. So from that perspective I feel bad. But not bad enough to ignore especially when I and others keep wondering if more are involved? Others could be in similar positions. Maybe even SYSTEMATIC! I don't know, none of us do but the contract gives strong clues imo and one of them birdies is going to sing someday.

I see that the entire industry is being tarnished. I really hate that part. Why do we have to defend and explain the indefensible? We as an industry are going to have to deal with the fallout and mess for years to come. The controversy is just starting. They gave our detractors the greatest gift in the universe.

I am really sick of making these posts. But each day the anger grows and each
day new ramifications come to light and each day new questions are being asked
and we are getting lip service or nothing at all because of the 'coordination thing' I guess. It’s just wrong imo. It is just
looking like a coordinated cover up with every passing hour and day and it started with that first post above, then the history controversy and then the lack of any answers on the simplest of questions. What
is your take? Time to stand up and DEMAND answers, not just ask for them! I would like to see them get on Youtube and tell us wtf is really going on? Who else is involved? Are other companies involved? Can't do that? I understand. But while youprotect your companies and you protect those that may be involved and while you take your TIME to answer these, I truly believe harm is being done to an industry we all love and expect to make a living from for the rest of our lives. Am I a bit upset? You bet your sweet ass I am and I hope others are as well as they start to understand the CLOUD this industry has been put under due to no fault of their own.

Sorry, that is the anger coming out that I have been trying to contain for a week now. I have said what I need to say and what I have to say. Strictly my opinion. But all based on the most recent events or lack of them and the questions being asked on the forums that are very good and going unanswered as well as new info on those boards. This is OUR industry and we will ALL be judged on this. We can either be like baseball and sweep it under the rug or have some class and backbone like Ron Jackson displayed yesterday in hisweekly sales report. Evidence that we will all be mopping this up for some time. Kudos to Ron!

'So, the way we have addressed this situation is to
put apermanent notice on all of our annualYTD
charts since 2005 as well as thecurrent
ones for 2009, advising readers that even though
SnapNames sales listed between 2005 and October 2009were
completed at the prices shown, some buyers may have
received refunds after October 2009 ofa portion of the
original prices they paid. We have also placed an asterisk on every
SnapNames sale listed on those annual charts to refer readers to the
notice in the chart footnotes.'

So like I stated above, WE may be cleaning up THEIR mess for YEARS to come before we even know the full details and impact. This just NEEDS to be said to set the record straight and let folks outside the walls of our industry KNOW that we do NOT operate like this! That while some engage in activities that are as we have seen, the core of the domain industry is made up of solid and responsible business people that do business on a handshake because of a foundation of trust. Grab a mop and SOUNDOFF!

Rick Schwartz

*I, the undersigned, individually and jointly, for myself and my successors, assigns, trustees, partners, joint venturers, directors, officers, affiliates, associates, managers, licensees, and for any other claiming through or under each or all of them and for any person or entity with or for whom I may have purchased the above mentioned names (collectively, the “Releasors”) hereby release and forever discharge, acquit, covenant not to sue and acknowledge complete satisfaction from, SnapNames, and its past and present parent companies (including Oversee.net), affiliates, successors, assigns, agents, attorneys, servants, representatives, employees, independent contractors, trustees, administrators, predecessors-in-interest, insurers, partners, joint venturers, stockholders, members, directors, officers, parent companies, associated companies, holding companies, subsidiaries, divisions, affiliates, associates, managers, licensees, accountants and consultants of any of the foregoing (collectively, the “Releasees”) for any and all claims, actions, arbitrations, charges, complaints, grievances, hearings, causes of action, actions, suits, damages, costs, expenses, judgments, liabilities, demands, inquiries, investigations, proceedings or suits of every kind and nature whatsoever, whether known or unknown, suspected or unsuspected, previously existing, or now existing, or hereafter arising, in law or in equity (collectively, the “Claims”), which the Releasors or any of them had, may have had, or now has, from the beginning of time to today’s date against the Releasees, collectively, or any of the Releasees, individually, for or by reason of any matter whatsoever relating to the auctions for and acquisition of the Domains, including without limitation, any Claims relating in whole or in part to the bidding activity of the SnapNames user associated with the user name “halvarez” (the “Released Matters”) for damages, restitution, disgorgement, unjust enrichment, civil penalties, statutory penalties, injunctive and/or declaratory relief, whether class, individual, representative, or otherwise in nature, including costs, expenses, penalties, and attorneys fees.

Morning Folks!!

As long as we are talking about “Shills”, let’s talk about
“Forum Shills”. What is this? These are guys defending the indefensible. Each
board seems to have at least one poster ready to defend each and every negative
thought. My advice, give it a rest.

But what this post is about is something many won’t like.
From the little I know and I, like you, know very little as not an official
word in days. So speculation grows. Some of that speculation is backed up by
some pretty strong evidence and there appears to be something that spills over
outside Snapnames and Oversee. If that were the case, the only way to ever find
the truth and the total depth of this would be an “Industry Grand Jury.” Now I
know this is not going to happen, but I still want to raise this because if it
does spill over, a Grand Jury would be the only way to figure out this entire
thing unless 'Deep Throat' sings. Inside investigations led by lawyers and PR firms with all types of motives and cover your ass thinking is a dog and pony
show. In Act 2, as you see will be silence and stone walling

I have seen this show before. Death by 1000 cuts. Mostly
self inflicted as it is normal for those on the ropes to calculate and when
they do, they usually miscalculate because they are in CYA mode.

Now as far as the “Class Action”……well it shows that there
is some real damages here. But at the end of the day, they may bring the house
down, but the share any one will receive will be more like $4.50. That said we
will see many lawsuits because of the shear size, scope and amount of money
involved.

PCWorld

TheWhir

As you can see above, this is making news in the mainstream
of the Tech universe. The Industry
has suffered great damage imo in addition to actual domainers. How many years did
that kick us back? Has anyone asked that? It is a setback no matter how you
look at it. A set back at our very core and with the largest representative of
the Industry involved in a multi million dollar scandal that has affected the lives of most people in it. Like I stated
before, this is where I just get angry. I do, I am and it is hard to put it in
words. I have seen things first hand. Then when I think that it may actually spill over to other companies,
other individuals etc, I just have to stop because I am about to be enraged. But I do think there is a CULTURE
out there that has continually done things that most would just find wrong and would it be wrong to conclude who headed that culture based on what we have seen? It’s like where do you start? All I know is that it angers me and it angers
everyone I have spoken with in ways they might not say publicly but future actions
will demonstrate. The TRUST has been broken and folks are asking the question
really at the core. Where is the money coming from for all these settlements?
The wide shared belief is that it will result in lower PPC payouts. Then in
effect domainers are just getting jerked off. Paying themselves with their own earned income?

Trust? The trust has been broken.
I have no idea how they can fix that trust without coming clean and letting it
all hang out. I guess it is go fo broke or possibly go broke. Silence and
stonewalling waiting for this to blow over is folly. It ain’t gonna happen. There is real anger out there and I think thepost I made last month about who you do business with has much more merit today.

Now I don't want to pile on but don't insult the intelligence of domainers. Give us some straight talk before nobody believes a word. How far reaching is this? REALLY? Has a police report been made? Who knew and WHEN did they know it? We already have evidence on the boards that is not consistent to the statements being made. Every HOUR and every DAY that passes will be painful until you guys tell theTRUTH and start to level with the industry. Sorry, but this is really beginning to get old very fast and anger is building.

These are my opinions but I doubt I am the only one that shares some of these things. And if I am, well, nothing knew. Just like some may use this post against me, detractors of the industry will use this scandal by the largest player in it against every one of us and point to it as further evidence that we are a corrupt, non legitmate way to make a living and they will do that for years and years and maybe longer than that. That is DAMAGE that you can't see or put a price on. The invisible price and cost each and every one of us will pay and bear the burden with for years to come. It becomes part of our foundation. Our flawed foundation. Ammunition for our enemies! That my friends is the real damage. The real disgrace. The real story from how I view the universe. For those that want to minimize the effect, so be it. For those that want to turn a blind eye and excuse it, that is why we are here to begin with.

Rick Schwartz

Morning Folks!!

This was supposed to be my Friday post but with all the happenings, I had to delay it.

If you had a choice and could hook up with 3 men of history
who would you choose? For me the answer is crystal clear. While I can name a
dozen more, the 3 I would choose would be Ben Franklin, Mark Twain and Albert
Einstein. Those 3 are already my guiding light. I look to them for answers all
the time. Ben Franklin probably the most.
Why these 3? I think for obvious reasons. But together they make a very well
rounded group of advisors. The inventor, the plain spoken and the genius. Add
more? Sure. Let’s put Thomas Edison in there. Henry Ford. Andrew Carnegie and
Hemingway to keep things fun and interesting.

Of today? Let’s start with Tony Robins. Who was the one that
started me on this journey back in
1993. Donald Trump who may be a
lot of things, but he gets it right nearly every time. Steve Forbes who understands the
economy possibly better than anyone.

So a tip of the hat to all these men of history and those to
be!
Who are your people of history? Some may be the same. Many
will be different. As soon as I post this I will think of many more that belong
here. But there are the first that come to mind and these are the ones I look
to the most for answers to complex questions.

Morning Folks!!

Okay, this is a barn burner of a post. As usual, I will say things others won't. Others can't. That is why they are so much smarter than me. Grab a cup of coffee and have a seat. The events of this week has and will affect your futures. Each time I go to post this, new news breaks.

The Sad Day in the Domain Industry continues. I think it takes time for all the ramifications to settle in. The entire industry needs to be paying attention and listening to the tales of woe. I see and hear anger growing not subsiding while the company tries to paint a happy face on this breech of trust.

First I got aphone call about the scandal. I knew it was big and had huge ramifications the moment I heard about it. One sentence was all it took. I knew it would takes hours and days to figure out. Next I receive an email in which the Snapnames Exec messed up andposted something not meant to be posted:

'Below the double line is the customer communication for use in proactive disclosure on industry message boards. A statement needs to be published on each of the boards copied in the attached e-mail from this morning. Disclosure time is 9:30 a.m. PT, concurrent with all other disclosures.

Please monitor the boards going forward and let me know what the feedback is like. If you need help on this, Corinne is available.
My understanding is you will primarily speak for the company in these forums. To that end, let’s coordinate closely on what’s being said and how to reply.
Let me know if you have questions from here. Thanks.'

Larry Fischerwrote some of his thoughts. 'I commend Oversee for dealing with the issue, however their reputation is tarnished.' I can’t imagine
what it must be like to know you may have overpaid by tens of thousands or hundreds of thousands, even millions. He could have put his kid through college a dozen times on his losses alone. Now multiply that. Franky,Kevin, iReit, just go right down the line. Each with losses that affected their businesses and lives. They could afford it you say? Ok, but how about the ones that can't? Much more of them and they are pretty pissed. Besides when you get scammed, it does not matter how much you have or don't have.

The entire sales history of the industry
has been skewered and voided because of how many times this happened. 50,000 is
an incredible number and until everything is transparent, we would have to
assume it is much more. The calls for publishing those back auctions has a lot
of merit and I think that is a must as a first step. The fact that it even ever came off screams the wrong message and we all know it! Update: According to 'Rob' with Oversee support, the info is coming back online)

This scandal affected the entire futures of domainers that
participated. Their destiny changed forever because maybe they did not have the
$$$ to buy that next domain. That is the unknown and invisible damage that
trumps all others.

This is just one of those things that as you read more and
more blogs and comments on those blogs, that this is laced with unintended
consequences far beyond the first look.
Lawsuits, class actions suits, and arrests. Yes, I think there will
eventually be arrests. And to that end, maybe even give Nelson immunity so we can hear the entire unedited saga and how far reaching this is. I don't know that anyone wants to see him in jail, however I can't speak for those that might and either way,I am sure everyone wants the full details. Full and unvarnished. Problem with that? They can't. The liability of the truth and all the details would be devastating imo. Nelson the fall guy? Could be. We have yet to hear any comments from him. Was a deal made to protect others to keep from being charged with a criminal act? Fact is, I don't know. What I do know is it is the #1 question folks are asking.

In an unrelatedpost a couple weeks back, I talk about how
much business a company can lose before it collapses.

Morning folks!!

This is for businesses 3-5
years or older.

During a recession if you
can manage to “Flat line” no growth……You are doing GREAT!

During a recession if you can manage to just lose
10% year over year.....You are doing GREAT!

During a recession if you can manage to just lose
15% year over year.....You are doing Pretty Good!

During a recession if you can manage to just lose
20% year over year.....You are doing about average!

During a recession if you lose 25% year over
year.....You are under great stress!

During a recession if you lose 30% year over
year.....You are under great stress and scrambling to stay alive and pay the
bills.

During a recession if you lose 35%-40% year over
year.....You are GREAT TROUBLE!

During a recession if you lose 50% year over
year.....You are probably out of business!

It is all
about numbers. So a poll was done yesterday onDNW

If I plug in the results of that poll and if I use my table
as a baseline, you can readily see the peril.

At the time of this writing with over 227 votes, 34% say
they will not do business with them again. 17% say that they just don’t know. So I take 50% of the latter number to
give me another 8.5%. Total 42.5% of customers lost on this one episode.

You would also have to factor in 2009 business. So if
business were good, it would offset that number. If business took a hit in 2009
during the recession, you can add that to the above number.

That does not count any other fallout that may or may not
happen throughout their empire. They may recover, it may get worse depending on the news to come and if we see missteps where they take data offline that was there before to try and further cover up things. Cover up? Well yes. They did take their time in going public. Yes, they are making folks sign a waiver for a “Credit”. Yes they did remove the historical data. Yes we are watching damage contol of something that is not controllable.

My numbers do not factor in the size of the domainers
they lose. So when you just deal with the numbers and the lawsuits that are sure to come, I don't see them surviving. That is what the numbers say without knowing squat. Without knowing who. But their competitors should not be too gleeful, they too will pay a price. They too will be suspected. They too will have to answer some tough questions and do more investigating.

One question I notice popping up is whether domains are safe at
Moniker? I believe they are. I still have my domains there. I have no plans to
move them. Larry Fischer also addressed this.

It has really taken me a few days to get my head around this
and I am still far from figuring out all the ramifications as I am sure many of you are. I don’t quite understand why
Nelson is not be charged with this criminally unless there would be a lot more
to come out. That is why I believe Nelson would be “Deep Throat” should that
come to be and I expect this will be beyond the control of Oversee once
domainers figure out the full impact of what was done to them, their businesses
and their futures. I say that because we live in a business where we are
dealing with “Unique opportunities in time”. So you also add into that equation
a limited pocketbook. So for guys
spending small dollars or big dollars, it affected their NEXT purchase. So if
you had $10,000 less or $100,000 less to work with, all those domains you could
have bought, were not. No biggie? Are you kidding?? Multiply by your lifetime earnings and how
much bigger your income could be today. Somebody will make that case. Many may
make that case. SnapNames won’t survive that. I expect they have no better than a 1 in 3 chance to survive collapse and/or bankruptcy. When I started this post I figured just a 1 in 4 chance of them going under at all. 48 hours later, the bleeding is getting worse. After hearing about the class action I discuss below, I think it just went much lower. I think now the question becomes how much damage does it do to Oversee? I think Snapnames will fold. It is to the point that I don't know how they survive. The damages exceed the value of the company.

Now please, these are my personal opinions based on all the
pitfalls and perils I see. I started working on this post on Thursday night. I let it sit and edit all day Friday and all morning today. This is a snake pit of problems and it will affect
more than just SnapNames. There is major fallout coming here. For example, all
reported sales involving “Halvarez” auctions need to be recalculated and we should get a REAL number of the total fraud that was committed. I feel and see anger building. No company can control the anger. They may be able to control some, but not all. How does anyone defend the indefensible without just painting a happy face?

Well that Happy Face just got 1000x harder to put on. The latest is the Class Action Website reported on by Adam Strong who had the funniest comment so far. 'Too bad Edelson doesn’t have an affiliate program'. This is game changer. There is blood in the water and everyone knows it. Do they go after just Snapnames who may or may not be in business in the days ahead or do they go right for Oversee?

Ever pick up a large rock that is melded into the dirt and
when you don’t expect it, you dislodge it and thousands of ants come out and other things with lots of legs? That
is what I see here. A weaker company would have already collapsed.

Shill bidding is one of the single oldest and worst problems in this
industry. From the days of the infestation of the old Afternic to nearly a
decade later. Only difference is the size, scope, magnitude and organized
manner. Isolated? I doubt it. Will
it end? Probably not but this will stem the tide. Will more come to light? Not a doubt in my mind. Do other
companies do it? If discovered will they collapse instantly? Should they collapse? Sure. Why not. Somebody will always come to pick up the pieces. What makes this such a big story other than all the obvious things is that we are talking about an officer of the company. An executive. Not some low level schmuck.

Like others, it is still sinking in. Great damage has been
done to more than just a company. An entire industry painted by a broad brush and that makes me angry. As you have read inTechCrunch, this has been hoisted and blamed on ALL domainers and the entire industry. Domainers getting blamed for what domainers had no control over. That is where I fall off the deep end. That is where my anger grows. A great trust has been broken. It is a sad event. I think what the
question is becoming: Should it and could it have been prevented? What was the
largest deal that Halvarez bid in? Total dollars involved? The questions are
just starting and the answers will tell the future. This industry is based on
one word. TRUST! We have seen TRUST broken on a small level. We have NEVER seen
it broken to this magnitide before we even find out the entire story and entire history. Thousands of domainers
each with their own story and own anger to deal with. Sorry, but this is bigger than just a company inside an industry even if it is the biggest in the space. Bigger because it is the biggest company in the space. This is akin to theBlack Socks scandal in baseball. It affected the entire game. Unfortunate as it is, this affects the entire industry in ways you would probably rather me not articulate. Some will excuse and some will minimize but make no mistake of thefallout that has yet to happen. Like nothing we have seen to date. Already thesecond TechCrunch article has been released in just 3 days and expect more to come from even bigger media.

What we have seen so far is the part of the story that would be allowed out in an effort to cover everyone's ass. So you can either worry about helping to cover their asses or start to start covering your own. Each company and each domainer has a responsibility to be good stewards of the industry. How we handle this may determine our destiny. Lord, I hope this is just a bad dream.

Rick Schwartz

UPDATE: For further Play by Play updates,TheDomains.com has been on top of this and also one of the largest victims to come forward so far with actual numbers of over 12,000 auctions that may have been affected. Plus a poll is there that suggests the bleeding is much worse than what I indicated above in an earlier poll I used. So anger is still growing and I don't think anybody knows where this train will end up. I feel bad for so many folks that are affected due to no fault of their own. Lawsuits are already flying and more are coming. This is a mess beyond anything that any one of us could have imagined just a few days ago.

Morning Folks!!

I feel the worst for those
that were friends ofNelson and were betrayed. I knew many that had his back
for many years. In the early days Nelson basically ran his entire business off
my first domain board. He was popular and had a lot of friends. I can’t imagine
how they feel.Adam Strong gave a taste of what that must be like. Betrayal
is a bad place.

The story broke yesterday afternoon. I doubt the depth of this has been totally revealed. Damage
Control for 10 days and it has been public only for hours. Nobody gets to
“Control” where this may go. I would hope there would be an independent
investigation as this obviously is something that cost many millions. Likely more
than that with damages. It affected folks around the globe and their businesses
and the cash they had to run those businesses.

I was not a common bidder at Snap so yesterday was the very first time I heard of “Halveraz”
the 'Ghost'. But also looks like there was plenty of smoke before the fire broke
out from what I am reading. Some suggest that Nelson is just the “Fall guy.” Who knows, but it will
all come out. This is a volcano. An unfortunate volcano. Now the question, who
else, where else???? Will Nelson become “Deep Throat'? Today, THAT is the
question. What does Nelson have to say if anything? Are there any other 'Suspected Ghosts' at other venues? One thing is for sure, companies throughout the industry better clean up their act. A scandal can bring down the biggest.

I feel bad for Monte and the crew as another piece of bad luck has hit. I can't even imagine what they are going through at this point. Like I said in the title, this one is rocking the industry to the core. Like nothing any of us have seen to date.

Rick Schwartz

Morning Folks!!

If my numbers are too low, just lmk. I just needed a
starting basis. Want more, I’ll plug it in. Think I should have it a little
less, I can do that as well. It’s numbers. Numbers. The rest is all bullshit.
If I can’t get 60 minutes in front of Microsoft, not a problem. I have ETERNITY
and the WORLD right here, right now! I no longer have to be there, I can be here and make a pitch. And so I have and so I will. It's also to the industry as well. I have watched billions pissed in black holes and blue sky's and they laugh at this. Huh? It is crazy to believe something based on numbers when you can do business with clowns and magicians that can make money disappear.

Monopoly?? I don’t think so. Just would own the most prime
category killing domain name business in the universe. That is a foundation
that does not get washed back to sea each day. It stands strong regardless.

So here is how I see the pie split. Add your name and dollar amount. Minimum is $10 Million inTOTAL Valueand included must be at least one domain with a high 6 or 7 figure value.

Note to Stephen Douglas. The seller is the ultimate appraiser as he is the only one that can pullthe trigger to do a deal. It is his decision. Nobody can force him. Circumstance might, but even then, some go down with the ship. Stephen, that should answer the question you posed months ago. I have thought about it. But today the answer appeared and for me, this is it. You can't force the seller to sell. But a bargain price can force a buyer to buy. Make sense?

Again, If my numbers are too low, just lmk. I just needed a
starting basis. I am not here to tell you what your number is or should be. Giveme the one you would walk away and into the sunset. These are simply my guesses bases on assumptions I devised in my mind. Some are way off high or low. I just pulled the first names that came to mind so this is far from a complete list. Don't shoot me if I omitted you. I omitted almost everyone. lol

Kevin Ham $350,000,000
Franky $500,000,000
Scott Day $450,000,000
Lawrence Ng $350,000,000
National A1 $300,000,000
Larry and Ari $200,000,000
Rick Schwartz $150,000,000
Mike Berkens $150,000,000
Xedoc $150,000,000
Roland $200,000,000
Lonnie $100,000,000
Castello Brothers $150,000,000

BuyDomains.com
Marchex
NameMedia
Demand Media
Parked.com (Domain Inventory)

The joke will be when the domains are worth $80 Billion and that schmuck Schwartz was trying to sell us out for a paltry $8 Billion.

Have a GREAT Day!
Rick Schwartz

Morning Folks!

You may laugh, but this is no joke. I am serious. This is an idea that I have carried with me for well over 3 years. Ask around and see.

In 2006 we were in Silicon Valley when I
first had this idea. I shared it the last night of the show with folks like Larry and Ari
and Marc and others like Franky and Kevin and all that would listen. I
explained it is easier to make a $5 billion sale than it is a $5 Million
sale at this level because it is
more meaningful. More impactful because of the instant marketshare. Who wants
to negotiate 100,000 separate contracts? But bring the big group of domain
investors to the table and that becomes a much easier job. A much easier sale. A much more attractive package.

Hey Microsoft, wanna buy the whole Domain Industry for $8 Billion?

Microsoft, Give me one hour of
your time and I will show you mathematically how to grab the biggest piece of
market share you can buy for the bucks and at the same time take the best most
potent traffic away from the competition and secure the future. Why rent when you can own? Why pay out
billions year after year after year leasing the traffic when you can own the
asset and those mineral rights?

How much is 1% more of the market worth?? How much do you think you will spend to get that 1%? Then on to 2%, 3% etc. How many YEARS or DECADES will that take?

So Microsoft, let me sell you the
domain Industry for $8 billion. Let me sell you the most prized collection of
keywords on the planet. Let me organize the biggest domain sale in history. Let's change the dynamics.

Call me. Email me. Not one other
thing that you can do to take so much of the market away overnight. Nothing. If there was, you would have done it. Not even 1.5% or you would have done it. Keep trying or secure that
market forever. Bing is great but
it needs a booster rocket and the domains can do that in such a way that boosts
yourselves and hurts the competition with one stoke of the pen. It will take
years and decades to do what you want to do. Maybe. Nothing to write home about so far and as my past posts suggest, I am a big fan. But with this deal, I can
show you with numbers how you can turn the tide…..NOW….TODAY……GAME CHANGER.

It took a lot of years to get
Microsoft to TRAFFIC. I sure am glad some of them ended in the limo withMike.
Your only risk is a great success beyond anything those meetings will be
producing. Give me a few minutes and a spreadsheet. Business is tough, why not focus on the obvious? Numbers don’t lie. Even in a depressed market the numbers work.

Have a GREAT Day
Rick Schwartz

Morning Folks!!

Every so often we hit a 'Crossroads in life'. A point where we make major changes and major decisions. For some change and decision are 2 of the hardest things. Those things do not come easy. Do not come without a lot of thought.

In January I will attend a domain show for the first time as
an attendee. The first time I can go to TRAFFIC with my wife and have no other
responsibility other than to make money and make deals. Something I seldom can
do when running a show.

So for the first time I will come to TRAFFIC in Las Vegas
and I look forward to a week of fun and enjoyment. I am excited to see what
Rick Latona and his team will present.
Younger, hipper and in tune with the needs of 30 something’s.

The Hard Rock is a great venue.
Younger, hipper and in tune with the needs of 30 something’s. lol But seriously, I look forward to seeing
TRAFFIC from the other side. Another side.

Many things will be different, but
many things will remain the same. Either way, it will add a new dimension, a
new signature. Something fresh and
different. And I am excited to see their vision as I know many of you are. You will have new faces that greet you
when you register and a new experience based on a solid formula.

So with this post, I ride into the
sunset for the first time since 2004. I am going to enjoy the year off. No schedules to put together, no panels
to assemble, no thinking all day and all night how we are going to make the
next show the best show.

Lots goes on to put on a show. Do you think it is easy to
pay $96/gallon for HOT WATER in New York?? It kills me, but we have little choice.
Coffee is even more! The opening night cocktail party costs over $200 per
person. Yup, you heard me right. $200 a pop. One person. Then add Breakfasts,
lunches, brunches, open bars, snacks,
food at registration. It is astronomical. So we went to the Big Apple.
We did what we needed to do 3 times. We paid the piper and have a series of
accomplishments.

On to South Beach next October. Costs are huge there too but
only $79/gallon for that hot water. Oh the save the day. So we are going to
restructure the pricing for South Beach TRAFFIC. Everyone benefits, everyone has to pay. That has always been
the premise behind TRAFFIC. That’s why I am such a prick about it. You expect
us to feed you and expect us to help your business move to the next level and we
are supposed to pay your way to get in the door? I don’t think so. Howard and I take great personal and
financial risks to put on these shows.
Our risk is much higher as we have nothing to sell and we do everything
First Class. At TRAFFIC, you gotta pay to play. Those that think TRAFFIC costs too much will never know how
much they lost by not coming and not investing in themselves. Not taking the
risk to move up to the next level. And to be blunt, it is not our job to reach
down and pull you up. We try, but the ultimate decision is yours.

So as I explained on stage at TRAFFIC in New York, we don’t
look to attract domainers that make $1000 a month. Sorry, these folks are
“Extras” from central casting. They don’t make you money, they COST you money
by wasting YOUR time with folks that can’t do a damn thing for you. Now I don’t
mean to insult or put down those that are on the ladder and make that
$1000/month. Keep going. I just believe it is not up to us to lower prices so
you can attend. Quite the contrary. I believe you need to raise your game and
take the risk. Step up to the plate. With our tiered pricing, everyone can
afford to come to TRAFFIC, you just need to take advantage of the early bird
specials we offer and plan ahead. That is the secret formula..

So as the Latona crew takes us to Las Vegas in January and
then around the world for the rest of 2010, I am hopeful that we are on the doorstep
of a great year with great things. Challenging as it may be, I think 2010 will
be the “Year of the Deal maker” As I stated early in 2009, make just ONE great
deal that you can look back to. In 2010, you need to make DOZENS of deals because the deals will be out there.

So I am coming to Las Vegas TRAFFIC with an agenda! An
agenda of deal making because for the first time ever, I won’t have the
responsibility to make sure the train runs and runs smooth and on time. My
“Conductors hat” gets passed to the Latona guys.

The bottom line, after 5 years…….we accomplished a lot. We
brought an industry together. We had too many “Firsts” to list. We made a
difference in the lives of a lot of people. That is a satisfying feeling. That
is something I will be proud of until the day I die. Our “Baby” is all grown up
and going out to see the world. Truth be told, that was a dream of mine a
decade ago.

I wish Latona and the crew all the best. Take good care
of our “Baby”. I can’t tell you the amount of hours we put in over the years.
But it was a labor of love 24/7 and I did it with my best pal Howard and that
made all the difference in the world.

A big thanks to Howard and Barbara and Ray and of course
my wife Alina for always going the extra mile to make sure that TRAFFIC was
more than a trade show. It was and is and will remain a “Family show” No rules.
No corporate BS. No meetings to figure out the obvious. Just a motto that if
you do it right, it will come out right. Take no short cuts. Do everything
first class. Never be cheap. The best ingredients = the best result. Pretty simple stuff when your focus of life
is not about losing your job. When
the focus is actually accomplishing something and not afraid to fail. Fail in
front of everyone in the industry. Fail and then rise to achieve.

So thanks for a great 5 years! I sincerely hope that we have
made a difference for you and your family. That is how we measure success.

Have a GREAT Day!
Rick Schwartz

Morning Folks!

Oh, so goooood to be home!

Yesterday closed a chapter in history that has consumed the last 5 years of my
life in a way few will ever know.When I think back to the winters before as I prepared for the
inevitable. As I have shared many times at the show, the last time I was on a
stage and spoke I was 13 at my Bar Mitzvah. 40 years later just the thought of that would make me
shudder. The thought of doing it again and going on stage and speaking in front
of folks?? Well truth be told, that took 5 years leading up to these 5 years. I
knew I had a mission I had to fulfill and I knew I had to overcome my single
biggest fear in life. I had no idea how I was going to do that. I just knew it had to be done or it would hold me back from things I needed to accomplish.

I am still not entirely comfortable on stage. Far from
it. But it is also no longer a
fear. It is a lot of things. Fear is still one of them, but the other things
override that one part and now it is propelling me again. I want to speak at
retail conventions. I want to
speak to diversified audiences of business people. Large groups. We need to get
the message out. I want to engage Main Street! Explain to them what they may be missing to transform their businesses from one on the corner of their town to one on the corner of the world and explain why it has not worked well for them so far and how to turn that around.

The folks that saw the seminar “Inside the Candy.com deal”
were treated to one of the coolest seminars we have ever had. Why? Well for one
thing I never ever met them until we all got on stage at TRAFFIC 3 minutes before the seminar. First I got up
and explained things from where I sit. I tested my #1 theory right in front of
everyone. I had no idea whatsoever if it was true or not. But I believe it with
every ounce of my being. Ron Jackson will tell you what that is in his article
next week. But I put it out there. Few can get away with it. I can. I Do. Then Greg Balestrieri and Joe Melville from Candy.com told their side of
the story and the negotiations from their side of the table. They also confirmed my theory. It was truly
compelling. Everyone there at that point heard from the end user and found out
why I hooked up with Greg and Joe. Hershey’s? Mars? Nestle? Never gonna happen.
This is going to be so much more fun and rewarding. All you had to do is see
the sincerity and passion in these guys and then the where with all to back it up and
history is made. They were born in the candy business and now they are going to disrupt that business. They are going to school that business. They are going to surprise that industry but it is not going to surprise anyone reading this.

From the left....Joe, Rick, Greg
For me TRAFFIC New York was satisfying. We did what we
needed to do in the toughest business environment of our lifetimes. The state
of the domain industry is STRONG! However the weak are about to be washed away
and even the strong need to get their financial houses in order. That is a natural
process. That was what 2009 was about.

I will let others comment on what they got out of the show.
But for us, we had a number of “Firsts” and in a future post I will explain how
those things will allow us to bring costs down without sacrificing.

From here we pass the ball to Rick Latona and his crew. New
ideas, new directions, new places. That allows Howard and I to focus on our one
annual show here in Florida. Next year it will be in South Beach on October 17th
to the 20th with pre-show activities staring on Friday October 15th.
So start planning for the bash on the beach. South Beach that is. Movie Stars,
Long Legs, domainers, the hippest place on
planet earth. The hotel? The Diplomat on Steroids! You’re gonna love it.

Have a GREAT Day!
Rick Schwartz

Morning Folks!!

Not sure how he finds this stuff, butOwenfound this today. I hope you enjoy it. Then check out the first comment. Also from then, posted a few minutes later. I love being on record. Right or wrong. Set in stone. It is the ultimate test and grade. This is why I say, 'Time is my Best Ally.' A little sweeter as this is now the 5th anniversary of TRAFFIC.

My 5 year anniversary is TODAY.
And for the record......the net is 5 years ahead of where I expected it would be at this point in time. Lipservice.com started this and has even survived WIPO.
The #1 question was always why aren't you building sites? Actually it wasn't really a question, it was more of an accusation. An assault on my judgment. A put down. Now 5 years later I can explain this, and with MATH, can prove it to be a safer and smarter road to travel than any other I could have chosen. My proof are all the dotcom failures laying on the side of the road.
The first year was the darkest. I felt so all alone but knew I was not. The Internet was little more than a wasteland of 'Under construction' signs or the first generation carcasses of a website that would remain. There were other domain speculators that I would run into time and again. We were mining the same mountains and the same veins at times. There were not many full timers then. Perhaps about 12 guys that I would run into. In those days the ONLY thing that gave me motivation to plow forward was losing a domain by just a day or two. I knew at that point I was hot on the trail. At $100 a pop it got expensive pretty quick. But I believed in what I was doing so strongly that I could not stop myself. It was like a disease. I was hooked. All day....all night. Mostly THINKING of domains that could be important pieces of property in a few years. And where were the bills?? Netsol had not billed me for over 100 domains for MONTHS. I would pay for what I could afford and risk losing ones that I had to wait to pay. But I did eventually pay for them all. If netsol had not done that I doubt I would be where I am. They gave me financing and that made the difference. Hence my respect for incompetence.
It was November of 1996 that I hooked up my first 300 domains. All adult and all pointing to the same place. (A trick in those days that few knew could be done). I made okay money until ONE day in March of 1997. The day I learned to ftp and to manipulate a simple web page. THAT changed my life and my destiny!! My first day of traffic experimentation had begun and while others made ,005 a click or a penny a click. I made a dime a click and more. I thought my calculator was broken. But then the checks started coming I realized my calculator was not broken. I had indeed harnessed some very potent traffic. That led me to the ynot board in April of 1997. A place that changed my life like this place has hopefully changed some lives. It looked and sounded a lot like it does here but with a few REAL geniuses and many VERY sharp individuals. Folks I could never match. Folks that are sharper when they sleep than I am when I am awake. WOW!! I was in awe. But I decided to work my way in and while coming out of left field I had something to bring to the table, the most potent traffic anyone had ever seen. It was the first time anyone called me a 'Webmaster' and I felt like I lowered all webmasters by being one myself with NO SKILLS that a webmaster would have. My motto: 'If you can cut and paste it, I can do it!'
The #2 question was always why don't you have employees working on this all the time building new sites? First of all it would have been a DISTRACTION for me. I was in a unique crossroads of life and I focused on domains like a laser going thru a peephole. It was more important to run in directions never gone before than to stop and invest the time where everyone else was. Besides, I understood that things would get CHEAPER in time. It was in my best interest to move slowly with development and run like a panther to obtain those domains to develop.
For example when I came along $39.95/mo for an adult site was next to impossible to get. I refused to be put on an adult server cuz of their history of getting clogged with traffic and thus putting you out of business. So you were lucky to get $50 a month sites. Many paid $299 A MONTH per domain. I understood that these prices would only come down in time. Today you can get it for free, or just a few $$$ a month. Imagine having a thousand domains and paying $50,000 a month for hosting. I would have been out of business before I started. So while I opened my first domain and had my first site built on this day, it was another 11 months before I hooked up the next adult domain.
I remember when nobody believed that I got my traffic by typeins. They did not believe that folks would type an address on the browser bar. They were great techies, but they did not understand that when they would start to advertise a .com on the tv that people would get there via the browser bar entry. You may laugh at that now, but that was the sort of silly stuff I had to overcome with LOADS of other crap. They called me names and by the time they figured out I was right on the mark, I had bought every domain I could think of and knew it could not be duplicated.
Bottom Line.....my way, it is not the only way. It is not the best way. But it was my way. It worked for me. While THOUSANDS of others tanked, with THOUSANDS of employees and BILLIONS of dollars invested by faithful stockholders it was all wasted for they had no plan.
Bottom line.....i went thru the jungle, the desert, the doubters, the laughers, etc etc and I am still on my campaign!! I have SURVIVED!!!!! May others have survived too. But WE are the true warriors!!
So I toot my own horn today. I am proud of what I have accomplished and realize it is only NOW that it TRULY begins. I knew the day I started that it would be many years before the soup would be ready to serve.
Today is the begining of phase 2. I go into it with several hundred active sites and about 125,000 daily unique visitors scattered among them. Now it is time to focus on growing that traffic and linking the sites together. Most orbit independently but that will eventually change.
5 years ago it could have cost me tens of thousands for an obsolete site. Today for a few hundred bucks you can get state of the art site and with the collapse, there is some real talent running around. While I still don't have a clue how to do most things on the net I have been able to accomplish the one thing few have done and that gives me a great advantage. I know how to turn a profit. A footnote for most, but profit is my guiding light and everything else is bullshit.
Build it small and make it work, growth will occur. Build it big with no direction and you get the problems most .coms are now facing.
The turtle wins EVERY time!!!
Remember one thing.......You can have ANYTHING in this world if you REALLLLLLY want it. Those that doubt this, they are 100% right!! :-))
Have a GREAT 2001!!
Domain King
Wed Dec 27 07:32:52 2000 - 216.34.244.106 - message #2845