Frager Factor

Sunday, March 02, 2014

==> It's The Castello Brothers and The Internet, Stupid

"You know what, we have a global market on Let me shoot up a couple of pages. There's a 40 year Laphroaig." He wanted $3,200 bucks for it. I said, "Let's put it up. Let's just put a page up. Let's do something like what a normal magazine would do. Just throw up a nice picture." It just took a second to throw up. Within 24 hours, somebody from Sweden wrote saying how much to ship it, how can I get it?"
Photo: Domaining III - 2010 Valencia (Spain) by

In honor of CCIN's $3.1 Million sale of, what follows is a blast from the past declassified  from Frager Factor VIP, December 2008 from which came the above quote. Just as it took time and patience for the world to catch up to the branding opportunity, so too is the world now embracing the promise of the Internet as the Castellos and I chatted about on Domain Success. You can also download and listen to one of the Castello's early interviews by clicking on the link below.

“Somewhere out there is a bullet with your company 's name on it. Somewhere out there is a competitor, unborn and unknown, that will render your business model obsolete… Competition today is not between products, it's between business models, and the hottest and most dangerous new business models out there are on the Web. Success and failure in the electronic age is binary; you are either one or a zero. Innovation determines who wins and who loses"  ~~ Gary Hamel and Jeff Sampler in the December 7, 1998 issue of Fortune

Good Morning Folks,

If you missed last night’s presentation featuring the Castello Brothers you missed everything you need to know about where the world is headed, why and where you can find the hope and the real opportunity to survive and thrive.

This was an incredible presentation – a home run. David and Michael Castello’s presentation was powerful, compelling, actionable and inspiring - especially for aspiring domainers out there.

So generously sharing their insights, tools, strategies and even, yes, the soft underbelly of how they work, only serves to help all of us achieve greater success.

Something David said struck a chord and triggered one of the acid flashbacks for me. The light bulb moment that triggered a memory.....

That the hidden cause behind these economic symptoms is the impact of the Internet and the globalization it offers.

When NBC cut programming today and balked at digital dimes accustomed to Super Bowl dollars, I knew the playing field was not only leveled, but the scales had tipped in the favor of the little guy with big dreams and a domain. They called this the “bullet with your name on it. The leaner, meaner, more passionate, disintermediated revolutionary that was about to eat your lunch online.”

I wrote a white paper about this in 1999 and also made a post to that got picked up by Business Week called “What Every CEO Must Know About The Internet”. I noted:

“But you've got to get your fingers on that keyboard every day. Surf the Web. Talk to the nerds in the systems department. You'll see what I mean. This is something you can't delegate.”
I took my own advice so seriously it resulted in carpel tunnel (20/7 surfing for ten years)

You can read the full article as I wrote it here.
The journalists who repurposed my post summed it up this way:

[ ] we read the following about what to do in the new economy:

1. Reengineer Your Company

Get ready for another round of reengineering. Brace yourself--this one's on steroids. The Internet lets us communicate instantly with every supplier, partner, and customer--and, in many cases, lets them communicate with each other.

2. Throw Out The Old Business Model

Ask yourself a very basic question: Just who are we in the Internet Age? As we face more global competition online and have to cut our prices, we need to reexamine our business model. Maybe we should take a cue from MicroAge Inc. , the PC distributor. Realizing the Net would make it easier for resellers to bypass distributors, it started transforming itself in 1995 into a service company, helping corporations with installation and training. Get this--now it even offers data on rival distributors' inventory in case MicroAge's fulfillment arm is out of stock on something--a way to earn customers' loyalty. Nothing's too strange to consider.

3. The Buyer Always Wins

Understand that the buyer runs the show on the Net. Up to now, buyers faced big obstacles to getting the best prices and service--limited time and data to compare vendors' products and the cost of dealing with far-flung suppliers. No more. The anytime-anywhere Net knocks down those barriers. It's spawning middlemen galore to give buyers more information.

4. Hold Your Customer's Hand

Roll out the red carpet--or whatever the cyber-quivalent is. Have you bought a book at Amazon. com? Try it--they've reinvented customer service. Don't be surprised if our rivals start copying Amazon's methods.

5. Go Ahead, Farm Out Those Jobs

Cancel that vacation--we've got to move fast! None of our usual round of studies and meetings. And we have no time to do everything ourselves--nor any need to. The instant communications power of the Net shatters the physical-world need to do product development, manufacturing, distribution, marketing, and customer management all in-house.

6. No Web Site Is An Island

We should not treat cyberspace as a separate universe. Look at Charles Schwab. By leveraging its brand name online and using its offices as a place to introduce clients to Web access, it has managed to stay far ahead of upstarts like E*Trade Group. Likewise, Day-Timers recently launched a free Web calendar to compete with a raft of online upstarts while also promoting its traditional paper and software schedulers. As we go online, our brand name and purchasing power can work to our advantage.

7. Create An Online Sense Of Community

Think global. People all over the world are congregating into virtual communities on the Web, and we want to be part of that. as these communities embrace E-biz, we need to help our retailers [customers] plug into them--perhaps by offering them bundles of services such as chat and free E-mail.

8. Follow The Money 

Now that the Silicon Valley venture capitalists are scouring the country for new industries to wire up. Had we subscribed to one of the services that track venture-capital investments, .

9. A Web Of Nerds? Don't Believe It

We need to persuade everyone at Mid-America Paper that the Web is not Nerdville anymore. It's becoming part of everyday life. By 2003, International Data estimates 510 million people will be online worldwide. (By the way, why on earth do only half our employees have browser access? No wonder we're behind. Some 159 million people worldwide are now online!)

10. Log On, Boss

Get wired--or we'll get whacked. you've got to get closer to the Net than reading the E-mail your secretary prints out. You're not alone if only 25% of CEOs in a recent PricewaterhouseCoopers survey regularly log on to the Net. But you've got to get your fingers on that keyboard every day. Surf the Web. Talk to the nerds in the systems department. You'll see what I mean. This is something you can't delegate.

In 1999 and for many years after, my clients and friends just didn’t want to listen. But I bet we;’ve got everyone’s attention now.

Have a GREAT day,

Relive my threads about this:

“We don't want to miss this one the way we did when
we said Google AdWords has nothing to do with us.”

~~ Steve Hayden, vice chairman- Ogilvy & Mather

Notable recent visitors: LUCAS FILM; Paramount Pictures; QVC; HSN; 20th Century Fox; HBO; CBS; BBC; NBC Universal; BET; Viacom International; National Public Radio; Movicom; WGBH; Turner; Disney

Publicis; Crispin Porter Bogusky; Goodby Silverstein Partners; Kirshenbaum and Bond; OMNICOM GROUP; EDELMAN PR; Ketchum Communications;  Duke Interactive Agency;; Martin Agency; Chiat/Day; Publicis Groupe; D'arcy Masius Benton & Bowles; Grey Advertising; Websense; Goodby Silverstein and Partners; Carat MBS; Fleishman Hillard; Publicis;; WPP Group USA; Ogilvy; Leo Burnett; YR; Edelman PR;Double Click; J Walter Thompson; Porter Novelli; McCann-Erickson; digitas; Tinsley Advertising and Marketing;; Foote, Cone & Belding; Poppy Tyson; Landor Associates; TBWA; Crispin Porter; Tiempo BBDO; OMNICOM:; Magic; SHAKER ADVERTISING AGENCY; McCann-Erickson; NameMedia;  Lord Abbott & Co; Landor; DDB CHICAGO;

The New York Times; FT INTERACTIVE DATA; The  Dow Jones-Telerat; Macmillan/McGraw-Hill School Publishing Company; The Columbus Dispatch; R.R. Donnelley & Sons; PATRIOT MEDIA AND COMMUNICATIONS; OXFORD UNIVERSITY PRESS; Time Inc, Tribune Company; Random House

Ernst Young;  Accenture; UBS; JP Morgan Chase Bank One; Paine Webber; Citicorp Global; Banque Nationale de Paris; Morgan Stanley Group; Bank One; Oak Hill Capital; HBK Investments; Accenture; Salomon; Ameritrade; Dun & Bradstreet; Deutsche Bank; Waterhouse Securities; Boz Allen & Hamilton; Reserve Bank of Australia; Lehman; Washington Mutual; Bear Stearns Security Corporation; Alliance Capital Management; Pengana Capital; Putnam Funds; Federal Reserve Bank; WELLS FARGO BANK:

Motorola; IBM, Cisco System; GE; Citrix; idealab; HEWLETT-PACKARD COMPANY; Research in Motion; Microsoft; Apple Computer; Sony; ULTRONICS Inc.; LUCENT TECHNOLOGIES; Pillar Data Systems; Dell Computer Corporation; Symbol Technologies; Xerox Palo Alto Research Center;  Verio, Inc.; Google; AMAZON.COM; Yahoo!; VersiSign; Computer Associates; Alcatel; Saudi Telecom; ITT; Oce; Ricoh; Go Daddy Software; Marchex; Oversee; iReit; Name Media; Buy Domains Holdings; Dark Blue Sea; Digital Persona; Dataphone Sweden AB;  nVision Software; SoftBank BB; Geoperceptions, Inc; Science Applications International; Ideal Technology Solutions; Game Brains; Far East Internet Co., Ltd.; Cumberland Technologies International; Hughes Network Systems; Northrop Grumman Corp; Lear Corporation; Intel;; looksmart;; Mobilenetics Corporation; NetVision-Israel; Eastman Chemical Company; Research in Motion; Cumberland Technologies International; Raytheon (Chairman’s Office); FedEX; Toshiba; Garmin International

Hilton Hotel Corporation; Sears Direct Response; J. C. Penney Company;; Ticketmaster; Southwest Airlines; HILTON HOTEL CORPORATION; Community Residential Mortgage; Shoebuy; BIDWELL HOLDINGS LLC DBA MARKETS;-Solvenia; Hostway Corporation; Only lamps; FONES WEST DIGITAL SYSTEMS;

Ford Motor Company; Nissan; Toyota; Chrysler; Hyundai Motor Corporation; Shell; GMAC/RFC; Alaska Air; UAL; DHL; GM; Boeing; GNA Corporation; ExxonMobile; Volkswagen of America

Pfizer; Clorox; The Procter and Gamble Company; Miller Brewing Company;  Tyco; Skadden Arps; Wilson Sonsini Goodrich & Rosati;  The Home Depot; Virgin Management Ltd; United Healthcare; Toll Brothers; Kaiser Permanente, State Farm;   AIG; CHANEL; OWENS-ILLINOIS;   DACOM Corp.; AMERICAN GENERAL CORP; Southern California Edison, PROGRESSIVE INSURANCE; Kimberly-Clark; Reebok; Allstate; State Farm; Kimberly-Clark; Philip Morris USA; J. C. Penney Company; DACOM Corp.; ALLTEL Corporation

UNICEF; United Nations; American Red Cross: American Museum of Natural History; National Aeronautics and Space Association; National Institute of Environmental Health Science; Fulbright; Smithsonian Museum; U.S. Patent and Trademark Office;

Harvard University; Stamford U; Princeton University; Carnegie Mellon University; California State Polytechnic University; Vanderbilt University; University of California, Office of the President Ithaca City School District; University of Southern California; Furman University; Joan and Sanford I. Weill Medical School at Columbia; University of Vermont; University of Sydney; UNY Institute of Technology at Utica/Rome; Duke University;  Universidad de Valparaiso;  Mount Sinai School of Medicine, New York University; Ivanovo State Power University (Russia);  Texas A&M University; University of Utah; ; AJOU UNIVERSITY COMPUTING CENTER;  University of Waterloo;  Georgia Institute of Technology; Franklin and Marshall College;  Stevens Institute of Technology; University of Texas; Westminster School (UK);  University of California San Francisco Medical Center; The Johns Hopkins Medical Institutions; Clark County School District; Goldey-Beacom College; Seoul National University; Ocean State Higher Education and Administration; Sacramento County Office of Education; Medical College of Wisconsin; University of Michigan; Baruch College;  Nova U: Cleveland Municipal School District;

The State Insurance Fund of New York; Clifford Chance Rogers & Wells; Kabas & Sproule; Baker and Hostetler LLP; Department of Veterans Affairs; H.I.G. Ventures; McLeod USA Incorporated; LIFECARE.COM; Strato Rechenzentrum; Leicester City Council; Visiting Nurse Service of New York; NCTC; Mackay Shields; Advocate Health Care; Goodfellow AFB; Iowa Telecom; THE ALTMAN GROUP; Hubbell inc; SAC Affaires VL; ARCH CAPITAL SERVICES; Ameritech Electronic Commerce; Eastman Chemical Company; USLEC Corp;

Naval Research Laboratory; GENERAL SERVICES ADMINISTRATION; City of Phoenix; Federal Aviation Administration; Cold Spring Harbor Laboratory; National Iranian Oil Company;  Emirate Telecommunications and Michael Jackson mid cap; City of Mount Vernon; Department of the Interior; Ontario Clean Water Agency;  Forestry Canada - Maritimes Region; State of Georgia (DOAS-CSD); New York State; Department of Fisheries and Oceans; The Western Pennsylvania Hospital; City of Baltimore; State DEPARTMENT; 

This communication is declassified from Frager Factor VIP, December 2008.

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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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