Frager Factor

Saturday, January 15, 2011

A Tsunami of Bad Domain Name Drops is Coming- Avoid Buying Temptations and Mistakes With Knowledge

But before you dismiss and drop a domain that you think is pigeon shit, consider this story posted on RicksBlog in an excellent 2009 comment exchange about his post:
































One of the smartest brokers out there, Rob Sequin, tells his tale.


"Great questions but regarding crap, how do you really know what crap is.
"I had Latitude.mobi but let it drop figuring it was crap.

Then I read about Google's new latitude on google maps. I figure maybe the domain is still in my account and can be renewed.

Nope.

Owned by Dell now. Dell who makes Latitude computers! They are talking about coming out with a phone. I hope they don't call it the Latitude.

One man's crap is another man's treasure.

Can't win 'em all."
In this case the dotMobi extension IS crap. But if the domain has value or brand appeal in .com, it's likely a Fortune 500 buyer would want all of the other extensions for brand protection. The question is whether they'd buy it (like Groupon is doing in the interest of time) or sue for it. Given Dell's history and membership in CADNA, the ladder is more likely so Rob should feel as if he lost anything.

But this can and will happen all the time. Cisco just branded an alternative to Apple's Facetime product called CIUS (pictured above... a Frank Schilling name acquired long before Cisco even thought of it and one Estibot would dismiss as $0), and also the story of CNN and iReport is infamous. Even more famous is the $30 per iPhone charge Apple pays to Cisco to license the name iPhone that has made the name command $50 million to date. This is pocket change to this big software companies with 80% margins.

This discussion centers on Estibot which is search-centric based on the value of traffic and lead generation, but Estibot can't predict the value of branding. Brands don't care about traffic because they can generate it through advertising which provides a reason to want it and buy it therefore delivering prospects that are pre-disposed to buy. Yes Frank and Kevin have such names as one commenter pointed out. But they can afford to hold them and understand the brand value that eludes most domainers due to previous sales and experience negotiating with end users.

To find out how to separate the grain from the chaff, visit Morgan Linton's series "Is your Domain Portfolio Junk? 2011 Guide to Dropping your Domains – in 3 parts.




Share/Bookmark
About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

Contact Owen: Twitter | Google+ | Facebook | LinkedIn | Email