Frager Factor

Tuesday, May 01, 2007

And That Three Letter Domain is....

Yes the three letter domain with 600,000 PAYING sub-domain tenants is dotMAC. And it makes $1 billion a year in recurring revenue with the ONLY mySpace model that’s ever been profitable on the web! PLUS every one of them has broadcasting software and web development tools built in. It's what Hollywood uses itself. Try watching a movie or television program and seeing any device other than an Apple Computer! This is not left winged BS, it's a marketing strategy and it's WORKING! (Was Al Gore's movie just about climate or a big Apple commercial from a key board member?). And if you still have questions, you might wonder why Microsoft holds a recent $1 billion investment itself.

Apple stock was recommended here on September 26, and one reader writes to thank us for a $50K profit, thus far, on not only the AAPL stock, but on all the component stocks impacted by it (Apple users only have to remove three screws to discover the bulk of them).

So what other stocks can one make money on? Consider that in 2006, 10 companies collected 99% of online advertising revenues. Some of these companies are heavily influenced by domain names.

US Online Ad Market Analysis /Company Gross Market Share

1. Google $6 Bil 36.1%
2. Yahoo $4.6 Bil 27.7%
3. AOL $1.9 Bil 11.6%
4. MSN $1.5 Bil 9.2%
5. IAC $500 Mil 3.2%
6. CNET $400 Mil 2.6%
7. Fox $400 Mil 2.6%
8. Viacom $400 Mil 2.6%
9. Disney $300 Mil 2.0%
10. NY Times $300 Mil 2.0%

Notice CNET is right there behind IAC on that list. CNET has sites and domains they haven't even fully launched/promoted yet alogn with fantastic content sites:,,,,,,,,, etc... I mean think about the example and wonder how many billions in subleases can be made from rather then TV after the dot.

stock quotes:
IACI = 38.78 / MarketCap: 11B+
CNET = 8.75 / MarketCap: 1B+

It’s only a matter of time before someone buys out CNET; most likely IAC. Also, keep in mind, IACI spun off their travel division into EXPEDIA: which owns,, etc...

EXPE: $28+ MktCap: $7B

There is one more company out there with a healthy domain portfolio: aka,,,,,,,,

stock quote:
CMNN 1.08 mktcap: 19M+
looks like they aim to be true domain developers.

I wonder why someone doesn't just buy them out or a healthy equity stake, just for the domain portfolio?

(NOTE: none of the above is financial advice, you decide what you want to do, just basic research you can find on the internet and connect the dots yourself.)

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

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