Frager Factor

Saturday, June 27, 2015

==> Frank Schilling Gems: "We Are Living Through Epic And Most-Interesting Times."

I was searching from my own articles on Google remembering that I wrote about Frank having the BEST Marriage Equality domain (SameSexMarriage.com see separate post), when I came across this gem from my private, VIP newsletter from May 2012. (My newsletter used to be very good, I need to revive that!). Now declassified, enjoy.

May 16, 2012 
Good Morning Folks,

  
Brand Visionary, Frank Schilling, took a brief moment out of blogging hibernation today writing, "all of us who have the pleasure and privilege of participating in the evolution of the naming system have to concede that we are living through epic and most-interesting times."

For the last twelve years, Frank's team has slowly and methodically built one of the largest and most valuable privately owned collections of domain names on the Internet. The domain names in Frank's catalog represent an irreplaceable life's work.

How did a simple guy like him beat the world's biggest brands to a precious collection of 200,000 of the most premium domain names on the planet; those under appreciated branding assets that he owns that will be at the core of 21st Century business success? He blames it or credits it to "the boulevard of broken dreams" writing:
"On any given day, a random slice of the name-space expires for non-payment. 15,000, 20,000, 25000 names expire each day.  I have watched these expiring name lists every day, for the better part of a decade.  These lists are a virtual "boulevard of broken dreams" ..  names which people bought with great hope, only to allow them to slip away after they had some emotional change of heart or after they forgot to renew them. 90-95% of these expiring names are complete and total crap.  You could make-up better names in the unregistered available pool.

The remaining 5-10% are names which could have some traffic or some value to more than one person.  Names which could be called meaningful, powerful or generic. That's 5-10 million domain names globally.  It doesn't take a mathematician to determine that there are just not enough great names to go around.  It's not possible for every person or company to have even one "good" registration.  That shortage of supply and global demand keeps prices high...  and will for years to come.  In fact if the examples above show anything, it's that great domain names are "still" cheap."
  
In preparation for a world of SIRI where your name is spoken, not typed, and graphically expressed on an iPhone app symbol that can universally be understood around the world as simply as a road sign or airline safety card, a new report suggests that 50% of existing brand names are fundamentally flawed and these expensive branding mistakes must be fixed while the limited supply of available corrective options still exists.  

While fixing broken brands will drive an unprecedented demand for domain names, there are still few available domain names that can pass the SIRI test. 

In other words Which is why I thought about Frank's scarcity is REAL while Seth Godin suggest anyone can play the "invented scarcity" card to their advantage. Here's how:

 ==>Scarcity  BY Seth Godin 

One day, you may be lucky enough to have a scarcity problem. A product or a service or even a job that's in such high demand that people are clamoring for more than you can make.

We can learn a lot from the abysmal performance of Apple this weekend. They took a hot product and totally botched the launch because of a misunderstanding of the benefits and uses of scarcity.
  
First, understand that scarcity is a choice. If you raise your price, scarcity goes away. If your product is going to be scarce, it's either because you benefit from that or because your organization is forbidden to use price as a demand-adjustment tool. I'm going to assume the former. (But I riff a bit on the latter toward the end)
  
Why be scarce?
  • Scarcity creates fashion. People want something that others can't have.
  • Lines create demand. People want something that others want.
  • Scarcity also creates word of mouth, because people talk about lines and shortages and hot products.
  • And finally, scarcity drives your product to the true believers, the ones most likely to spread the word and ignite the ideavirus. Because they expended effort to acquire your product or service, they're not only more likely to talk about it, but they've self-selected as the sort of person likely to talk about it.
The danger is that you can kill long-term loyalty. You can annoy your best customers. You can spread negative word of mouth. You can train people to hate your scarcity strategy (Apple did all four this weekend).
Take a look at the guy in the photo. 
  
That's the goal. He feels great. He's a hero, at least for a moment, all because he stood in line all night. He gets to talk about it and others (not everyone, but enough) aspire to be him next time. You reward the tribe and you build the tribe at the same time.

The problem is that our kneejerk way of dealing with scarcity is to treat everyone the same and to have people 'pay' by spending time to indicate their desire.
  
Waiting in line is a very old-school way of dealing with scarcity. And treating new customers like old customers, treating unknown customers the same as high-value customers is painful and unnecessary.

==>Principle 1: Use the internet to form a queue. 
If you have a scarce product, you almost certainly know it's scarce in advance. Instead of taxing customers by wasting their time, reward the early shoppers by taking orders online. A month before sale date, for example, tell them it's coming. If you sell out before ship date, that's great, because next time people will be even quicker to order when they hear about what you've got. (And you can do this in the real world, too--postcards with numbers or even playing cards work just fine.)

A hot band that regularly sells out on the road, for example, could put a VIP serial number inside every CD or t-shirt they sell. Use that to pre-order your tix.

==>Principle 2: Give the early adopters a reward
In the case of Apple, I would have made the first 100,000 phones a different color. Then, instead of the buyer being a hero for ten seconds, he gets to be a hero for a year.

==>Principle 3: Treat different customers differently. 
Apple, for example, knows how to contact every single existing customer. Why not offer VIP status to big spenders? Or to those that make a lot of calls? Let them cut the line. It's not fair? What's fair mean? I can't think of anything more fair than treating the people who treat you well, better.

==>Principle 4: When things happen in real time, you're way more likely to screw up. 
One of the giant advantages of the Net is that you can fix things before the whole world notices. Try to do your rollout in small sections, so you can fix mistakes before you hurt the very people you're trying to embrace.

==>Principle 5: Give your early adopters a forum to celebrate. 
A place to brag or demonstrate or show off or share insights and ideas. Amplify the heroes, which is far better than amplifying the pain of standing in line.

Imagine what the Apple and AT&T stores would have been like this weekend if they were filled with happy customers who had pre-paid, pre-registered and were just dropping in for three minutes to pick up their (very coveted) phones, walking up the VIP line, past all the others just waiting for a chance to buy one...

Hot restaurants in New York violate all five of these principles on a regular basis. So do sports teams and stores that have lines out front in the middle of winter. What a waste.

Even colleges do it. They pretend they've got a meritocracy, but in practice, it's a high-pressure lottery with enormous financial and stress overhead involved.

Yes, there are times when scarcity is mandated (the TSA at airports, for example, or food rations at an emergency site). I know that there are plenty of ways to deal with this scarcity as well. Ways to treat your customers (and yes, they are customers) with more respect, to communicate the situation more clearly and to architect the environment so that people are grateful, not stressed out.

Smart marketers understand that scarcity (intentional or not) is a tool, one that can be used to enhance the story, not detract from it.

Uber-smart domain investor Rick Schwartz agrees, "I realized early on that there was great value to having straightforward, easy-to-remember, easy to spell, meaningful, domain names for a standalone sites. I felt that it was best to try to acquire these names sooner rather than later because the demand for simple names would only increase and the demand would drive up prices later."
  
Adds Schilling, "Even if you back-up and cast as wide a net as possible, our decade of experience reveals perhaps 5 - 7 million words, numbers and phrases which ultimately have practical utility as a domain name. When you consider the hundreds of millions of companies and individuals which want to control their own destiny and enhance the location of their website, there simply are not enough "good" names to go around."
  

Have  GREAT day!


Owen

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"Go as far as you can see. When you get there, 
you'll be able to see farther." -J.P Morgan . 
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frager creative inc.
Faster starts for startups

"You can't start a fire without a spark... this guns for hire so CALL!"

Learn about why Brands are rushing to Frank Schilling's Domain Name Sales with a new sense of urgency to rebrand a broken brand or to launch a new brand with a name destined for success versus named "dead on arrival." 

Do you know the difference? 

I spent a lot of time investigating both success and failure stories and writing about them so anyone can help themselves or their employer- for the type-in killing speak-in named SIRI is upon us and will take down 50% of existing brands as her prisoners.



==>  Basic Primer 
==>  AFWonline.com Pays $125K To TRUNCATE to AFW.com
==> Appraise This/Truncate That: DNS Mid Five-Figure Sale Removes Two Dashes   
==>  A new report reveals that 50% of the brands out there are fundamentally flawed and not able to adapt to emerging needs.
==> Frank Schilling's Domain Names 101  Print and read on weekend but every end user MUST read



May Guest Log:

Oracle; Hewlett-Packard Company; Dell; Sears Direct Response; Kaiser Permanente; Novant Health; United Layer;  Astra Zeneca; Bayer Corporation;       RITZ CARLTON; Harris Corporation; Viacom; Publicis Group; VMWARE; CITRIX SYSTEMS; Alcatel; Northrop Grumman Corp.; Stanford U; Cornell, Tufts; Albert Einstein College of Medicine;  WPP Group USA;  DDB Worldwide; OGILVY; MindShare; Chiat Day; Bloomberg; Dow Jones; Accenture; Goldman Sachs; Morgan Stanley Group;  WELLS FARGO BANK; Salomon; Bank One;  Willaim Blair; The Advisory Board; Standard Chartered Bank; Bank of America;  HR Block;  eBay; Apple; SUN MICROSYSTEMS; Cisco; Xerox; Federal Express Corporation; Google; Microsoft; Kaiser Permanente Medical Care Program; Columbia U; Depaul University; Norwegian Cruise Lines; Farmers Mutual; FORD MOTOR COMPANY; American Airlines; Boehringer Ingelheim Pharmaceuticals; STARBUCKS COFFEE COMPANY; Baylor Healthcare Systems; State Farm; GNA Corporation; 


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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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