Is Google’s Revenue Problem Directly Related to Domain Channel Losses?

Morning Folks!!


Has Google let the Golden Goose out of the cage? I am sure as hell going to make a case that is exactly what has happened. Let's be blunt, because domainers have been financially raped by Google over the past 5 years, domainers have abandoned parking in droves. The best domains have left. The most trafficked domains have left. And that has left Google holding the bag. Now domainers are not without blame, they allowed themselves to take less and less because we were spoiled by the easy money.


It was a great model for us back then. But when the dollars started drying up on payouts even tho Google kept charging the end user more and more, it was only a matter of time before resourceful domainers looked for other options. And so we did and so the BEST traffic has left Google for greener pastures. For bigger opportunities. For bigger payouts.


In 2007 nearly 100% of my revenue was through Google/Yahoo and parking. By the end of last year I was down to 50% and by the end of this year it will be 33% and declining. When you own the land, you get to build what you want and how you want. Each time a domain leaves the confines of parking, quality of Google traffic suffers and that traffic can NEVER be replaced. NEVER!


Let me be clear. Type in traffic is THE most potent traffic on the Internet and I will be DAMNED if I will change my view on that because the evidence is there. Now of course there are only a few hundred domainers that have this golden traffic and we are up against legions of MILLIONS of SEO and others that will feverishly argue against that. What else would you expect from them? They must protect their turf or we will all find out it is a bunch of smoke and mirrors.


See where I come from, one SALE has more value that 1 MILLION visitors and many will argue for the 1 million. Matter of fact, most will. 1 Million visitors have COSTS associated with it. One type in visitor that turns into a sale has virtually no cost in comparison. Those that ignore sales will be looking for a new profession in time. No company can exist without some form of sales.


For 17 YEARS I have argued with techies. Guess what? They lose and NOW it will soon be recognized. It takes 20 YEARS to bust a myth this big and wide that so many have bought into. But rest assured that myth will and IS being busted. The end user is not an idiot. He KNOWS it is all about sales.


Google messed up by letting PURE domain traffic out of the cage. Google messed up by overpaying for SHIT for so many years. Google put folks into business because they bought WORTHLESS traffic and mixed the shit with gold and then lost track of which was the shit and which was the gold. They paid for trademarked traffic they had no business paying for. They paid for invented traffic of mini sites that would use SEO to gain the system. They outsmarted themselves and I am here to tell you there are long term ramifications for short term gains and that is what we are seeing.


They once owned all the gold and now they don't. Type in traffic is Destination Traffic. Folks that have been failed by search looking for a direct alternative. Type in traffic has no equal. It's a fact few recognize but a FACT it is. Just like water runs down hill, PURE and specific type in traffic turns into sales more than any other traffic. It is not a debatable subject for me. You are free to disagree but I am also free to reject it as I have for so many years. Point is, I will soon be recognized as being right all these years and THAT is a problem many will have to deal with.


The traffic from the best domains in the world no longer go to Google. Instead they let the birdie out of the cage and they will never have an opportunity to get that traffic back. Of course some of those domains are now full fledged businesses that might or might not use Google. As time goes on we are seeing more and more options and Google just may be the last on the list for us. We are shit bums to Google and as such have been treated like we are toe jam.


Somebody at Google fucked up and they fucked up bad and fucked up long term. They can NEVER get this traffic back again. Arrogance has a cost. When an end user pays Google $5 and we get 1/2 a penny that is getting fucked because they can. No other reason. Now there are alternatives and in the coming year we are going to see more and more BLOOD spilled by Google.


Just as a refresher.....when the market crashed in 2007-2008 Google was at a high of $750/share. Now they finally got back to par while other stocks have doubled and tripled in value. $750/share? Not any more. Apple at the time was under $200 a share. Amazon under $100. Sirius Radio was pennies. That makes Google one of the worst performing stocks over this time and it may not be that rosey from here.


And in the next 5 years some think Google will lose the reign....Read this. I don't know if that will happen but there are indications of very strong headwinds ahead. So far Google has survived by buying the threats. That was why I was happy Groupon said 'No'. I don't care about Groupon. I care about competition. And while Groupon may not be a huge threat, Apple most certainly is.


Nobody has to believe me or agree with me. But on the same token, NOBODY can make me change how I see things unfolding. NOBODY can derail my 20 year plan. NOBODY can force me to abandon a plan I have stayed staedfast to for all these years. During that time theroy has turned into fact and I have used those facts to build on and to illustrate what I see, why I see it and how it all unfolds from here on out. I just ask a simple question. Is my vision today closer or further from reality then it was in 1995? Nobody has to get it 100% right. But certainly many along the way got it 100% wrong.


Have a GREAT Day!

Rick Schwartz


Las Vegas Show Hours. Early or Late?

Morning Folks!!


Not a fun week but I am about 50% back. Reminds me of why I (we) am so lucky to make a living online. I make money even when I am sick and stuck in bed. Instead of having zero productivity, I can still function a few minutes here and there and try to keep up with life and emails etc. I have to pick and choose. Thinking is still cloudy. Last night I could not even remember what I had for lunch yesterday. Actually was not even sure I had lunch. So 'Foggy' would be a good word.


But in the fog we were able to launch for Las Vegas yesterday. 3 dozen of you already signed up after my morning email blast at $995 in addition to those that signed up at the show. So looks like Las Vegas show is going to be BIG!


In the past folks have complained that we start too early in Vegas. So I am going to ask for some feedback. 9AM is when we usually start our activities. But in Vegas 9AM is very early for some. Others are early birds and since they know there is not a lot of time, they want to take advantage of every minute.


So what time to we start Vegas? 9AM? 10AM? 11AM? Noon? Do we skip breakfast and do a big lunch?


Our normal show days have about 9 hours of business each day. 9AM-6PM.


If we start at 11AM for example then we would still have to stop things at 6PM because folks want to go to shows or dinner or whatever. So do we have 7 hour show days? 6 hours?


What are your thoughts?


As a side note. The rooms at the Bellagio are $159/night. However on Friday Night that rate increases to $269 and if you want to stay longer on that Saturday night it is $269. So just a clarification to my email blast yesterday.


Thanks!


Have a GREAT Day!

Rick Schwartz


Sicker Than a Dog.

Afternoon Folks!!


Since Friday afternoon I have been sicker than a dog. So I am late answering emails and if there is something I actually have to 'Think' about......I just can't right now. Hope to be back in the coming days. This is the first time in over 10 years that I have had a fever, cold and been this messed up. Over and out.


Rick Schwartz


TRAFFIC 2nd Bite….Round 2 Starts NOW!

Morning Folks!!


The fat lady sang and is still singing. Saws.com sold on Friday for $60,000. Making it the single largest sale of the WHOLESALE DOMAINERS AUCTION and well on the way to closing OVER 50% of all lots in the auction. You can see the history of this domain here. Wednesday we will begin round 3













The domains below now
have lower reserves. Send your bids to Domain king at gmail.com. This part of the auction closes at 5PM Tuesday.


SolarBusiness.com at
$5K


BulletproofVest.com
$10K reserve


MobilePaymentApps.com
with $100 reserve


DonateCash.com $1500


OnlineWallet.com REDUCED
Now $15,000 Reserve


JiffyRental.com -
JiffyRentals.com $1500


VisitBogota.co No Reserve



StartInvesting.com
$5000 reserve



24HourRental.Com No
Reserve






















CloudStockIndex.com



CloudStocksIndex.com



CloudInvestorNews.com



CloudInvestorsNews.com



CloudBugle.com



$350 Reserve



BrownNose.com $5000
reserve



LetsFixLunch.Com and LetsFixBreakfast.Com (Stouffers owns LetsFixDinner.com)




Saws.com Sells for $60,000 from T.R.A.F.F.I.C. 2nd Bite Program

Morning Folks!!


It ain't over until it is over and the fat lady is still singing. Several more domains have sold in our 2nd Bite Program that ended yesterday. Saws.com went for $60,000 and AnsweringMachines.com went for $1400. Congratulations to the buyers and the sellers.


There are still several other negotiations going on and a few more may be closed today. There are now 49 lots closed out of 103 total....so far! 3 Lots were 'Guaranteed Placement'


On Monday or before we will list the next round of the 2nd Bite Program that is sure to add a few more sales and then we will repeat again on Wednesday with the domains that had bids and were close to selling.


If you are a seller and DON'T want to participate, please email me so I won't include your domain name.


And for those that forget quickly....this is what I stated in August:


'My job is to sell 100% of all the domains that are in the auction. 100%. Aim for the sky. That is what I am aiming for. We all know anything over 50% is really a good outcome, but I am still aiming for 100% and I am pretty confident, given what has already been submitted, that this is doable. Now of course I can only control the “Guaranteed Placements” to some degree. But even those must have some chance of actually selling.'


Have a GREAT Day!

Rick Schwartz

-----

T.R.A.F.F.I.C. AUCTION NEWS! Second Bite. Lower Reserves!

























Morning Folks!!



We don't give up easy at TRAFFIC. A number of sellers have lowered their reserves or will entertain lower offers. The group below can be bid on by email only until 5PM tomorrow EDT. Domain King at gmail .com

We will release others next week. We offer financing via Zenscrow.com.


It ain't over until the FAT LADY sings!! I will be UPDATING this
page as bids come in. BIDS NOW CLOSED. CHECK BACK MONDAY FOR THE SECOND SET.


Saws.com and MiterSaws.com $65,000 reserve or possibly BEST OFFER
with TRAFFIC and INCOME!! CURRENT BID $60,000 SOLD!!


AdultGaming.com Now $3000


AmusementPark.com $100,000 Reserve


FixedAPR.com Worth a second look Current Bid $20,000


Plugin.com now $50,000 reserve (was $100k Reserve at Live Auction)


CheapLaptops.com (No Longer for sale)


AnsweringMachines.com No ReserveCurrent Bid TODAY $500, $750,$800, $1200, $1400 SOLD!!


MondayNightBaseball.Com No Reserve


GlamourJewelry.com


EuropeanAutos.com


CashBusiness.com


CheckBuy.com


4 domain lot. $10,000 Current Bid $2000


ch9.tv, rude.tv, pals.tv, investmentproperty.tv 4 Domains. No Reserve Current Bid $100


joanna.tv, tammy.tv, kirsty.tv No Reserve Current Bid $100


JustSamples.com $500 Reserve Current Bid $100


24HourRental.com (No Reserve) Current Bid $50


BedKing.com $3000 Reserve Current Bid $500


EatMe.com $60,000 reserve


Socials.com $10,000 Reserve


Happy Bidding!
Rick Schwartz







T.R.A.F.F.I.C. #23 In The Record Books and now on to Las Vegas

Afternoon Folks!!


It's always interesting to see editorials about books that a book reviewer never even read. So I really like the Domain Gang post from yesterday. He says things I can't.


So everyone has an opinion on the sidelines and that is their right. I value the ones from the attendees the most. TRAFFIC is about keeping the NOISE out and the BUSINESS in and I think 100% of ATTENDEES now realize why we do that and appreciate it. Everyone at TRAFFIC has a positive outlook and viewpoint on things and that is the common bond. Once you leave the confines of the TRAFFIC environment, you realize why we do it, why people come back and just how special our shows are.


Our seminars were some of the best attended seminars in all the years we have done TRAFFIC. Why? As Mike Berkens put it, 'People are looking for answers' and answers were exactly what they got. Whether it was what they see or don't see in gTLD's or Adam Dickers extraordinary seminar that gave attendees DOZENS of new ideas and new ways to make money and do real business and BUILD real businesses. I am sure in the days ahead you will hear from multiple people about their own experiences.


Declan Dunn was incredible too. He explained the FLAW in how domainers operate. We focus on a few pennies for the first sale but it is the repeat sales that have the real value and domainers don't get squat for that. We need to change how and why we do business.


I can't even tell you how many people came over to me feeling bad for those domainers that won't or can't step up to the plate because they look at it as an 'Expense' and not an 'Opportunity' or investment in themselves. It's just sad!


Just remember that 80% of folks give up in life when they don't achieve what they want when they want. Our attendees, past and present, don't give up until they either perfect what they are looking to achieve or realize it won't work and go back to refine and rethink.


Now on to the auction. Obviously we did not achieve our desired result and of course the grave dances can't wait to come out. But the grave is one we all share whether you understand that or not. So jump in.


I can only choose domains that folks want to sell and look at it through the eyes of a domainer. Fanclub.com could not get past $37,500. Is that because the domain is not worth more than that? Or is because domainers just don't have the funds or maybe they are content with their portfolios? GoldBullion.com only had a $20,000 bid.


So what domain genius wants to tell me that FanClub.com should be priced at $37,500? It's a great domain name deserving of a much higher bid than $37,500 but domainers are not buying at that level right now and that was the highest bid receiveded for that domain name. That's a real barometer whether we like it or not. Whether we agree with ot or not. That is the most a domainer will ay at this moment in time.


The market is a snapshot of things and the picture it took was not very good. While many attendees are doing well, the average domainer is not.


One again, the reason there is no online bidding is because the hotel connection is not dependable. We have NEVER been to a hotel with a dependable connection. I can't fix that. I have to deal with it or I could just imagine what folks would be saying.


So phone bidding is the way we handle it and it works. It ran flawlessly and professional and props to Ray and Kim.


The online bidding platforms themselves work well. That has not been the issue. But no matter how good the platform is, if the connection from the hotel goes up and down, and it does, no platform will or can work. When you are in a controlled location that problem is not there. However at hotels, this IS the issue. Connectivity!


As it turned out, I did not know or approve the audio feed. I heard it sucked. That illustrates my point. I can guarantee there will not be video or audio for future auctions at TRAFFIC until it is perfect and even then I doubt it is worth the effort.


You win some, you lose some. I take full responsibility and if I had to do it over again there would not be much that would be in my power to change. The market is the market and the domain market is soft. Given the same 10,000 or more domains submitted, I would choose the same ones. Let me be BLUNT. The quality of domains that so many domainers have has NO VALUE and is a liability.


Example: There is a thing called a 'Court Order'. I own CourtOrder.com. Does not have a great value but it does have meaning. Now the guy that owns OrderCourt.com thinks I would have an interest in that name. That is what I deal with. Sorry friend, that domain has NO VALUE. It means nothing. If it was 'OrderInTheCourt.com it might have some limited value. But ordercourt.com means nothing. So I love folks like my new friend Roger who sits there and says to himself something like...'My domain is better than that but Rick did not pick it.'


To that I would say, your domain is likely not as good OR your pricing makes it unattractive. And that would be why I would pick one domain over another. I could care less who owns it. I owe no favors and am free to pick what I thought might have interest to some.


It is interesting to me to see who bought what. Seasoned veterans bought most of the domains that sold. There was plenty of gold and they were able to see through it all to pick up a number of bargains. Why?? Why do they buy while others diss?


Let's look who bought. Mike Berkens, Sean Sullivan, Morgan Linton, Darren Cleveland, Gregg, McNair, Russ Goodwin, Bill Sweetman, Brain Benko, Ammar Kubba, Rick Schwartz and other well known domainers. I think I read that Adam Strong won an auction on the phone. I am awaiting the final phone bid winners so will know soon.


Combined these domainers bought 75% of all lots that sold in the auction. What did these professional veterans see that so many less seasoned domainers did not? That is the question some should be asking instead of the nonsense they spew. Think about that. Why did so many miss the winners? Why focus on what you did not like? I discount what I don't like and focus on the domains I see that have the POTENTIAL for a big payday. I buy potential.


Now this is not over. In a few years we will hear that somebody sold a domain for $100k that they bought at the 2012 TRAFFIC for $500. Why do I say this, because we have a history that proves it.


I had all types of multi-million dollar domains offered to me. And exactly WHO in our audience at this point in time was going to pony up 7 figures? What's the upside for a domainer without a strong business plan? There is none. I can tell you confidentially that one of those above would not even entertain buying a $100k domain name today and for multiple reasons.


To have a $2MM domain in the auction to 'Feel Good' or to watch somebody bid $1.5MM to showboat is a WASTE of everyone's time. Unless an owner can bring multiple bidders that are end users, ain't gonna happen. I also don't do Pre-Arranged sales to save face when an auction falls apart.


So what domain genius wants to tell me that FanClub.com should be priced at $37,500? It's a great domain name deserving of a much higher bid but domainers are not buying at that level right now. That is as high as they were willing to bid and the seller would be INSANE to sell at that level. GoldBullion.com could not get a $20,000 bid. It's not because the domain is not worth more. It is because domainers have to buy low hanging fruit right now and that is the right way to do business during times like this.


The market is a snapshot of things and the picture it took was not very good. While many attendees are doing well, the average domainer is not. Their focus now is trying to make profitable businesses out of what they already own.


I liked that we were able to keep the action moving and the boredom somewhere else. That alone to me was a great achievement and it was recognized in this blog post by Andrew Allerman who then got accused of basically sucking up to us which I think Andrew answered clearly enough in the comment section.


There are still a few deals that are alive and may be closed where the bidder on the floor was very close to the reserve and now those sellers are willing to take the lower bid. So anyone with second thoughts, can still have a shot at some of these domains.


As folks begin to arrive home you will begin to hear things first hand and not through any filter or agenda. I am sorry so many are stuck on the sidelines in the cheap seats watching the future pass them by. The only way they can feel important or feel like they are participating is to take cheap shots. Amusing and sad at the same time.


T.R.A.F.F.I.C. attendees have a very special bond. Whether you go to each show or just once in a while, there is a bond that is very strong and getting stronger. It's a labor of love on our part and it is returned in more ways than I can count. Attendees really do appreciate all of our efforts and they let us know it. Howard and Barbara, Ray and Kim, Danny, Alina and myself. They know and we know and really, that's all that counts.


Rick Schwartz

-----

It’s Showtime at T.R.A.F.F.I.C. WELCOME to Fort Lauderdale!!

Morning Folks!!


It's Game Day here in Fort Lauderdale as hundreds of domainers converge for the 23rd running of T.R.A.F.F.I.C. It's a true labor of love. It is great to see so many energetic and forward thinking minds together. There is a lot going on and the informal 'Cabana Networking' is priceless. This year we have been blessed with 2 days of sunshine and today and tomorrow look great as well.


IMG_2300


IMG_2302
7:20AM Sunrise just minutes ago


At noon today registration opens on the 4th floor. Please make sure you have your badges at all times. Security is tighter this year and those badges are your passport to all functions. No tickee, no laundry. So if you don't want to be inconvenienced, make sure you have it and are wearing it.


I want to thank the City of Las Vegas for sending all types of goodies for your show bag to signify our return to Las Vegas after a 3 year absence. Tickets will be available starting this Tuesday for our late May 2013 show May 29th - June 1st with cabana marketing and a return of the TRAFFIC Road Rally on Tuesday the 28th. We have 50 tickets at $995 and they will be offered to 2012 attendees first.


The auction is going to tell us many things tomorrow at 3PM. But most of all it is going to be exciting and entertaining and everyone is going to have a good time. Except those that did not bid or did not bid high enough and then kick themselves for not getting in on the action. But regardless of the final numbers, our audience is going to witness one hell of an event. We have 52 phone bidders out of 103 lots. Stunning compared to last year's numbers.


That's all I can say. Now it will be for attendees to share the good, bad and ugly. We hope what we put together and how we go about it makes it conducive to make big deals and change your lives. We know the market is depressed but domainers here are anything but depressed. Give them lemons and they will figure out how to turn it into steak.


Have a GREAT Day!

Rick Schwartz



SameAsCash.com Leads in Registered Phone Bidders for TRAFFIC Auction

Morning Folks!!


Phone bid registrations are pouring in as the deadline closes in. SameAsCash.com leads in registrations as of last night. I think the final number will show 60% of the lots will have phone bidders. Of those most have multiple bidders registered. Last year 15% were phone bidders.


We will sort through the final numbers tonight and I think folks are going to be pleasantly surprised with the outcome on Monday afternoon. This auction will be a real test of the market no matter the outcome. Those that know me know that the market is smarter than I will ever be and I will always take the verdict of the market over all the chatter and noise. It's a barometer of where we are and that barometer has value in the future as well.


That's if for now. If I get any surprising numbers, I will advise!


Rick Schwartz


Phone Bidding HOTTER!! Closes at NOON Today!”Pre-Bids” Start Tomorrow.

Morning Folks!!


Good Morning from the Ritz Carlton! The first wave of attendees will come in town today and let the party of BUSINESS begin!


Phone bidding closes at NOON today. We now have at least one phone bidder for over 50% of each and every lot. Of those, more than 50% have multiple bidders. So we are about to see what a real auction looks like when you have meaningful domains up for grabs with no reserve or domainer level pricing and a TRUE CONTEST errupts.


The phone bidding page will be REMOVED from the site later today. So this is your LAST CALL. After today the only type bids we will take on any specific domain from a non-attendee is a 'Pre-Bid' with the highest amount you would be willing to pay for any particular lot. We will bid on your behalf until bidding exceeds your Pre-Bid. If the bid we place for you in your behalf is the highest bid without going over your ceiling, you win. If bidding goes over your highest price, you are out.


If you want more control, then register today. If not, that is the best we can do without disrupting things and getting prepared for Monday. The phone banks are going to be WILD!! So you have been advised!


I will be wall to wall today and from this point on. I may or may not be able to answer emails. So please understand.


The weather today is great. We may have a few showers during the show but there will not be a rain out and you will be able to enjoy your stay.


Again, please travel safely!

Rick Schwartz