Frager Factor

Friday, November 30, 2012

What I Learn From Reading Accidental Domainer

I read few domain blogs these days and mostly am driven there by Facebook or other social promotion and Frank Schilling's news feed as well as my Google and Domain Tools alerts.

DNJournal, DomaSherpa, ArtofTheName and The Domains have the authority and are musts just for the education one needs to have to write their own domain blog.

I enjoy Hybrid Domainer and Accidental Domainer. Most others on Domaining, I'm not even sure who they are, so ironically for one in the business of names, most bloggers fail at making their own name memorable. I've never been a domain flipper and have long taken off the newbie dunce cap, so I have no reason to visit teaching blogs or blogs that hype their advertisers press releases.

One of the most useful series that any blogger has dared to do is Accidental Domainer's study of the highest DNJournal reported sales from years back. One would assume the domain has enough traction in use to exemplify the possibilities in domains and redefine domain value.


I'd love to interview Aaron about this series, get some deeper analysis of patterns one can observe over 10 years. 

I ran a series like thismyself and got very frustrated because the majority are insider sales to otherdomainers cloaked under privacy, so the prices and applications are really meaningless and offer no guidance to others with similar names. 

It wasn't until Frank Schilling started reporting his sales, did I find real people, real world applications and from these use/price examples one can understand how to position and sell our domains for maximum value. 

What's similar though from your articles and mine are that the most common reasons to buy a domain is to "rebrand" i.e. fix a liability one with one that's an asset. Many cases that via shortening or truncation or buying the dotCOM to redirect to whatever CCTLD they had launched with. Since we are a global economy, the dotCOM is now sought by European brands that find that .co.uk limits their prospects. 

You also see healthcare industry buying advocacy domains, the blue chips buying all the category keyword domains for their products even if they only keep them as assets for resale, so competitors don't use against them or like toothpaste.com if there is a recall they can launch an information site and campaign without tarnishing the brands they own. 

Traffic doesn't matter, but clear memorable radio test does so when used in ads or on packaging to generate traffic, the roi is higher when the call-to-action is cleared.

Some use EMD as a strategy to get top organic Google ranking. 

To spite what Google says, the sites with content and authority behind them, will be #1. 

A security firm, for example can buy InternetSecurity.com and put out white papers full of stats. Next thing you know WSJ is quoting "according to the experts at Internet Security dot com or they are on CNBC. The buy a brand and authority as experts instantly. When pricing that domain consider what ten years of a firm's efforts and services to reach the same result would cost. That's what makes the domain worth so much.

Take the million-dollar sale of Box.com to Box.net. Seems like a lot until you understand that BOX is a software application that works on a cloud as a service and this .com communicates that and is an integral part of the brand. Salesforce.com says they are online, instant CRM versus Oracle saying big in house installations and maintenance. 

Box is the 2013 replacement for SharePoint, from which Microsoft derives over$18 billion a year from licensing revenue from almost every Fortune 500. What's a million dollars for a domain that says what it is, among mountains of competitors whose names don't, and has an $18 billion annual revenue target with nothing to make or distribute?

I also see many first and last names being snapped up under $5,000 which is reasonable (and should be an expense every blogger should be able and committed to incur before blogging advice to others). I've seen new businesses start up with exact match names for less than Afternic or Sedo costs for a second alternative.

There are too many lessons I've gleamed from reporting end user sales to go into here but I say one needs to study real results because you can rethinks domains as brands and then it is a whole different
value proposition. 


btw< Congratulations to Frank Schilling on the near $50K sale of Tropicalia.com to end user The Cisneros Group— a global leader in media and entertainment, with an 80-year legacy of building successful business partnerships. We produce and distribute some of the world’s most popular Spanish-language programming for the media of today and tomorrow. Our portfolio encompasses television, digital, and interactive programming, as well as live entertainment.

Only Frank would understand the value of this name and this kind of prospect would be ripe for it.



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

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