Frager Factor

Sunday, May 06, 2012

Did Barry Diller Convince Frank Schilling to Part With Aereos.COM (His OwnPlane's Name)? | | Citysearch | CollegeHumor | The Daily Beast | Daily Burn | | Dictionary Boss | Electus | Hatch Labs | iWon | |
Notional | OkCupid | OurTime | Popular Screensavers | | | ServiceMagic | | | Smiley Central | Smiley Creator | Urbanspoon | Vimeo | 

Meet Barry Diller: One of the World's Most Valuable 
Domain Name Portfolio Owners Who Still Buys Every Day From Rick Schwartz (, Frank Schilling ( and a lot more we can't talk about due to NDA

In many ways finding the right domain name for his business is a process just like the one his customers use in one of those domains he picked as his own:

Click on those linked brand names above the photo of the guy and gal, and look at the bottom of the THOSE pages to see all of the OTHER stealth IAC domain acquisitions that have been hidden from plain view.

One name not on that list is; IAC Chairman Diller's latest cloud start-up nor the reverse typo of same that was just acquired from Frank Schilling.

As I've said the best cloud names don't have the word cloud in them. I blogged a list of domain investors that hold them. For Frank this is one that I got right. is another you'll hear about soon.

Regarding IAC's move to the cloud, it completes the agenda for Diller, the powerful television executive who transferred from Hollywood online with a vision of the two mediums merging ten years down the road. That time is now.

Consequently IAC is a roll: Revenue and Operating Income Before Amortization reflect strong double digit growth for the 9th consecutive quarter. Match Core1 revenue alone increased 17% to $108.9 million driven by a 12% increase in subscribers.

That's doable when you consider these stats:

  • 56 million first emails sent per year 
  • 132 million winks sent per year 
  • 12 couples got married or engaged today thanks to 
  • Users go on 6 million dates each year. 
  • 1 in 1369 dates leads to marriage on (6 million / (12*365) 
  • makes 1 Million dollars a day from subscription revenues. 
  • That is $83,000 in subscription revenue for every marriage that comes out of the site. 
Eharmony also has public stats.

  • 118 couples a day get married or engaged. 
  • eHarmony obtains 12-15K new users every day full audience turnover every 6.5 months! 
Yet according to the NY Times, canned robotic dating appraisals fall as show as domain appraisals:

But can a mathematical formula really identify pairs of singles who are especially likely to have a successful romantic relationship? 
We believe the answer is no. It’s hard to be certain, since the sites have not disclosed their algorithms. But — as we and our co-authors argue in an article to be published this month in the journal Psychological Science in the Public Interest — the past 80 years of scientific research about what makes people romantically compatible suggests that such sites are unlikely to do what they claim to do. 
One major problem is that these sites fail to collect a lot of crucial information. Because they gather data from singles who have never met, the sites have no way of knowing how two people will interact once they have been matched. Yet our review of the literature reveals that aspects of relationships that emerge only after two people meet and get to know each other — things like communication patterns, problem-solving tendencies and sexual compatibility — are crucial for predicting the success or failure of relationships. For example, study after study has shown that the way that couples discuss and attempt to resolve disagreements predicts their future satisfaction and whether or not the relationship is likely to dissolve. 
Likewise, dating sites don’t take into account the environment surrounding the relationship: factors like job loss, financial strain, infertility and illness. But research indicates that when couples encounter such stresses or unexpected demands on their energy, their satisfaction with their relationship declines and their risk for breaking up increases. To give just one example: in a 2004 study by the psychologist Lisa Neff, wives who experienced relatively high levels of stress outside of their marriage tended to evaluate their marriage increasingly negatively over time. 
Another major problem with the algorithms of dating sites is that the information that they do collect — about individual characteristics — accounts for only a tiny slice of what makes two people suited for a long-term relationship. Certainly, some characteristics predict relationship well-being. For example, decades of research confirms that people tend to have troubled romantic relationships if they are emotionally volatile, were mistreated as children or abuse drugs or alcohol. Eliminating people from the dating pool who are likely to have relationship problems, as some sites may do by declining customers based on their answers to questions about things like emotional stability, can be a useful service (as long as you’re one of the lucky singles who make the cut). 
Of course, dating sites promise much more than access to a somewhat improved pool of potential mates; they promise to identify specific pairs of strangers who are likely to mesh well together in a romantic relationship. In particular, almost all of the sites claim that partners who are more similar to each other in certain ways will experience greater relationship satisfaction and stability relative to partners who are less similar

The domain alone does not make Match's success. Nor does this algorithm.  It has a lot to do with the TV ads and prospects showing up predisposed to act, and to act with THIS brand versus the thousands of others that are just a click away.

According to TechCrunchBarry Diller always enjoys riling the media industry from which he sprang. A few minutes ago at a press conference at IAC headquarters in New York City, Diller introduced a new startup IAC is backing called Aereo that is building a DVR in the cloud that broadcasts live TV to your iPad, computer, or TV.  Diller has always believed that Internet TV would be a healthy counterweight to “media concentration” as media companies increasingly want “to protect that closed system.”

The problem with Internet TV so far, says Diller, is that “there wasn’t a lot to watch” other than “cats swinging from chandeliers.” And other hardware solutions presented the problem of more boxes in the living room. “Who wants another remote, box, wires?” asks Diller. “Everyone already has enough of all that stuff.”

But he sees Aereo as a way “to transform television and how you receive it.” The way it works is it actually sends live broadcast TV to your computer or iPad. Aereo builds boxes the size small refrigerators with arrays of tiny TV antennas inside. Each of those antennas can be programmed to deliver broadcast video over the Internet to viewers. (One video stream per viewer at a time). And this is how the company gets around legal barriers, it is just tuning into live TV. This is a similar approach in concept to what Slingbox did, but instead of tuning into your own TV, it tunes into a TV antenna in the cloud.
Many domainers have long believed that the value in their domain names lied in the traffic they bring to the table. That's good in many cases, but for a brand raw traffic is not very desirable. They'd rather have qualified traffic that meets the desire and ability to sometimes over pay for something based on the value seen to their loves. Why else would someone buy a $125 pair of jeans at the mall when the same jeans are $20 in Target. The difference is branding.

And those consumer preferences get established via advertising. As Web morphs to a full video medium, I would expect IAC Chairman Barry Diller too use his QVC experience to transform IAC brands into sales machines unlike any other retailers online with more expenses and knowledge gaps needed by competitors to even come close. 

So I look at IAC not as it is, but as what it can become when the web comnes of age.

Domains have served IAC well in the print revolution but they will be huge competitive advantages come the broadcast revolution.

The best use of domains and advertising on the web take the form of "direct response TV" and IAC has led the pack on that. IAC choses to buy companies once others have roughly assembled them, then lets TV work it's magic along with the simplification and improved response they get from a clear memorable domain., IAC has no traffic problem now after years of acquiring companies and domains. "IAC is a leading internet company with more than 50 fast-growing, highly-related brands serving loyal consumer audiences... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. Ranked by Fortune magazine's annual standing of the world's most admired companies in the Internet Services; Retailing sector for many years, IAC's network of sites has over 1.2 billion total monthly visits. With more than 269.3 million unique visitors across more than 30 countries, IAC's network of sites would rank as the 9th largest in the world."

At IAC's helm is Barry Diller and you'd be surprised how he's leveraged his background to get further ahead under the radar "Barry Diller is the Chairman and Senior Executive of IAC, the Chairman and Senior Executive of Expedia, Inc., and the Chairman and Senior Executive of TripAdvisor, Inc. IAC is a leading internet company with more than 50 fast-growing, highly-related brands serving loyal consumer audiences… our mission is to harness the power of interactivity to make daily life easier and more productive for all people all over the world.

Some of IAC’s businesses include,, Citysearch, Electus and Vimeo." Expedia, Inc. is one of the world's leading travel services companies. With its portfolio of leading travel brands, Expedia, Inc. empowers business and leisure travelers with the tools and information they need to easily research, plan, book and experience travel. The company also provides wholesale travel to offline retail travel agents. Expedia, Inc.'s main websites include:®,™, Hotwire®, Expedia® Corporate Travel, Trip Advisor™ and Classic Custom Vacations®. Expedia, Inc. also operates international sites in Canada, United Kingdom, Germany, France, Italy, Netherlands and China through its investment in eLong™.

 From 1995 to late 2010, Mr. Diller served as the Chairman and the Chief Executive Officer of IAC. Since December 1992, beginning with QVC, Mr. Diller has served as chief executive for a number of predecessor companies engaged in media and interactivity prior to the formation of IAC.

 From October 1984 to April 1992, Mr. Diller served as Chairman and Chief Executive Officer of Fox, Inc. and was responsible for the creation of Fox Broadcasting Company in addition to Fox's motion picture operations.

 Before joining Fox, Mr. Diller served for ten years as the Chairman and Chief Executive of Paramount Pictures Corporation. In March 1983, in addition to Paramount, Mr. Diller became President of the conglomerate's newly formed Entertainment and Communications Group, which included Simon & Schuster, Inc., Madison Square Garden Corporation and SEGA Enterprises, Inc. Prior to joining Paramount, Mr. Diller served as Vice President of Prime Time Television for ABC Entertainment.

  • In 2012, IAC was ranked 4th in the Internet Services & Retailing category in Fortune magazine’s annual standing of the world’s most admired companies 
  • IAC’s network of sites has over 954 billion total monthly visits and 4.95 billion page views per month†
  • With over 307 million unique monthly users, IAC would rank as the 7th largest site network in the world†



  • Founded in 1996, acquired by IAC in July 2005 and headquartered in Oakland, CA, is a pioneer in internet search; it was introduced as Ask Jeeves in 1997 and then relaunched as in 2006; In July 2010, launched a newly - designed Q&A service which combines the power of search with the insight of a live user community.
  • has approximately 263.1 million unique monthly users globally*
  • In September 2001, acquired Teoma Technologies, Inc., a search technology that has become the core of the Ask search engine
  • In May 2008, acquired Lexico, owner of, and
  • In August 2008, launched the all-new Ask Kids search engine designed for children making a fun, safe search environment with a select core search index
  • International: France, Germany, Italia, Netherlands, Spain, UK


  • Launched in 2006 by IAC and headquartered in New York, NY, Pronto has quickly become the web’s most comprehensive comparison-shopping engine and was voted “Best Online Price Comparison Site” by Kiplinger’s
  • Pronto has over 9.5 million unique monthly users*
  • 70 million products from over 25,000 online merchants
  • The Pronto Network includes its flagship site and lifestyle verticals,,, and Pronto operates internationally with MegaDeal (Japan), (Germany), (France) and (UK).


  • Launched in July 2008 by IAC and headquartered in New York, NY, Life123 is a site where users can quickly find information on a wide range of topics delivering practical insights into things that can make a difference in everyday lives


  • Headquartered in White Plains, NY, Mindspark is home to some of the most popular and engaging brands on the web helping millions of people creatively express themselves online, enhance their communications, make new friends and smile a bit more - all by using virtual worlds, social network applications, contests, games, ecards and emoticons­. Mindspark businesses include:
  • Ask Partner Network APN, LLC (APN), is a leading provider of custom toolbar and search solutions for software and media companies.
  • APN works closely with its partners to design and develop highly-targeted applications that extend services into the browser and enhance end-user experiences across the web
  • IWON! is one of the fastest growing gaming destinations and a Top 20 game site (@plan January 2008) 
  • IWON has awarded more than 500,000 prizes totaling more than $70 million in value over the past 8 years
  • Webfetti, one of the fastest growing destinations for web personalization and self expression, offers over 396,000 free assets and has now reached approximately 400,000 impressions per day across various social networking sites, including MySpace and Facebook
  • MyFunCards offers unlimited access to over 2,000 free ecards
  • Cardboiled, Mindspark's online greeting card website, lets users choose from a library of animated and static eCards, custom photo cards and postcards
  • Zwinky, one of the largest virtual worlds on the web, has over 27.5 million registered users who average 64 minutes on the site each session
  • Zwinktopia, the Zwinky virtual community, has signed artists including 50 Cent, Kelly Rowland and Scott Ian of Anthrax and Hinder, who all perform in its virtual world
  • Launched in September 2008 and sister site of Zwinky, Zwinky Cuties is a fun and fanciful online virtual world where pre-teens can safely create customized avatars, play games, design their own room, adopt pets and share imaginative interactive relationships with their peers
  • Smiley Central is a smileys website that revolutionized the industry when it introduced flash-based “super” smiley
  • Launched in 2009, MyWebFace offers a host of fun features that allow visitors to create their own personalized avatars and apply dramatic effects to photos
  • Smiley Creator is the next generation of customizable content allowing users to design a unique Smiley from head to toe with an abundant menu of design elements, including hundreds of body parts, outrageous outfits and exciting extras
  • Daily Burn motivates both health seekers and fitness enthusiasts to achieve better fitness results in less time with detailed tracking and online accountability.


  • Launched in 1995, acquired in 1999 and headquartered in Dallas, TX, Match.comis a pioneer in online dating and personals and is credited with taking the category mainstream
  • With more than a decade of helping people find successful, rewarding relationships, has redefined the way people meet and fall in love
  • users have exchanged over one billion “winks,” a digital way for members to flirt and express initial interest in one another without a formal email introduction
  • has 10.5 million unique monthly users*
  • Websites in 8 different languages, serving 25 different countries
  • Chemistry, a product, launched in 2006, leverages biological anthropologist Dr. Helen Fisher’s years of research into human attraction and successful relationships
  • In January 2009, Dr. Fisher launched her second book titled Why Him? Why Her? How to Find a Keep Lasting Love where four personality types are determined and then readers are matched to complementary personalities
  • sets up more than 15,000 first dates each week 
  • Chemistry has over 654,000 paying subscribers
  • Chemistry has been recognized with numerous awards, including a prestigious Effie Award, a first for IAC (presented by American Marketing Association)
  • Acquired by in July 2009, People Media operates more than20 vertically focused online communities primarly geared towards dating including,,,, and
  • Delivers consumers unique value by specializing its websites based on critical relationship factors including race, religion and lifestyle
  • A leader in the online dating space since 1998, Singlesnet members can search for and communicate with thousands of singles across the United States.
  • Singlesnet has one of the most vibrant online communities, connecting singles through instant messengers, online forums, emails and chat rooms.
  • Since its launch in 2004, OkCupid has combined great features with an engaged community to become one of the fastest growing online dating sites in the advertising-based category
  • OKCupid also publishes the well-known social media blog, OkTrends, which is read by over one million people monthly.


  • Founded in 1999, acquired by IAC in 2004 and headquartered in Golden, CO, ServiceMagic is a leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals for simple home repairs and maintenance to complete home remodeling projects
  • ServiceMagic operates in the US, UK and France
  • Since 1999, ServiceMagic has made more than 23 million connections between homeowners and prescreened home service professionals
  • ServiceMagic has over 2.8 million unique monthly users*
  • More than 80,000 service professionals utilize ServiceMagic to find targeted leads for home building, remodeling, architectural services, roofing, fences, decks, painting, flooring, plumbing, landscaping and much more
  • Has collected more than 850,000 verified ratings and reviews on service professionals
  • Generated an estimated $2.3 billion in project revenue for member service professionals from 2010 - 2011
  • Named the 2010 "Technology Company of the Year" by the CSIA Apex Awards


  • CityGrid Media owns and manages the largest local content and advertising network on the web, CityGrid®, which aggregates more than 700K paying advertisers, and reaches over 140M unique users across more than 340 web and mobile partners
  • Operates leading local properties including, Insider Pages and Urbanspoon, as well has investments in leading provider of online search marketing services, OrangeSoda and the largest social network of local business owners, MerchantCircle CityGrid Media grew from the growth of the Citysearch, LLC business and was formed in June 2010. Led by Jay Herratti, CityGrid Media is headquartered in West Hollywood, California with approximately 400 employees nationwide


  • Founded in 1996, acquired by IAC in 1998 and headquartered in Los Angeles, CA, Citysearch is a leading local search and directory company that provides up-to-date information on U.S. businesses, from restaurants and retail, to travel and professional services
  • Approximately 18 million business listings nationwide; over 14.4 million unique monthly users*
  • Best of Citysearch polls give users the opportunity to provide up-to-date recommendations and reviews for restaurants, bars and nightlife
  • In March 2009, Citysearch was relaunched to combine social and mobile tools with geo-targeted search technology to take the site from an urban city guide to a local neighborhood community
  • With over 3.4 million user reviews, Citysearch has over 75,000 locales in its database


  • Urbanspoon is a leading online local restaurant guide, aggregating restaurant reviews from across the web including newspapers, professional food critics, bloggers and diners
  • Urbanspoon Rez allows diners to make restaurant reservations through its online booking service
  • Over 9 million iPhone apps installed
  • Available online or via iPhone, iPad, Blackberry or Android applications, Urbanspoon provides reviews for restaurants throughout the United States, Canada, the United Kingdom and Australia


  • BuzzLabs is a leading social media monitoring and analysis platform that helps local businesses manage and monitor their presence across the social web, including micro-blogs, social networks, forums and media sharing sites. 
  • BuzzLabs was founded in 2009 by former Microsoft employees Philip Lee and Dou Shen. 



  • CollegeHumor Media is a leading online entertainment company targeting a core audience of people ages 18-49 comprised of, and; the site features extremely popular original content in addition to today’s funniest and most offbeat content on the web
  •, founded by high school friends in 1999, has more than 10.4 million unique monthly users and over 15 million monthly page views *; generates more than 100 million video views per month; also has over 1.5 million registered users who are able to create school-based accounts and set up personal profiles
  • The CollegeHumor brand extends offline with the three books, The CollegeHumor Guide to College, Faking It: How to seem like a better person without actually improving yourself, and CollegeHumor: The Website. The Book, a television program on MTV, a live comedy show and a movie currently in development with Paramount Pictures
  • Weekly email newsletter reaches approximately 300,000 subscribers
  • Launched at the beginning of October, is a comedy hub that specializes in "The Best of Everything Funny."
  • Jest caters to a broad comedy audience ages 18-49 and features original videos, the funniest videos from around the web as well as new and classic full television episodes and is all created and curated by the staff
  • Recently launched by CollegeHumor Media, brings original articles, comics, user-submitted photos, viral videos and other comedic content to the gaming community.
  • is a sports humor, satire and parody site launched in 2001 by DJ Gallo. A SportsPickle book, "The View From The Upper Deck," was published by St. Martin's Press in 2007.
  • Launched in 2009, Notional is a New York based production company, creating video content for all distribution platforms.


  • Launched in late 2009, Electus is a next generation studio enabling premium content creators to engage with advertising and technology partners at the inception of the creative process and partner on the finished product across a global and multi-platform distribution model.
  • Electus partnerships include DumbDumb, CollegeHumor Media, DiGa, Electus/Engine Distribution, 5X5 Media, Abbot Reif Hameiri Production Company, Crossborders, and Yahoo
  • Hatch Labs is an entrepreneurial sandbox building advanced mobile products
  • With the investment and resources from IAC and Xtreme Labs, Hatch start-up teams rapidly prototype new applications and services to best serve the evolving world of mobile
  • Crowded Room is a location-based mobile service that connects users who frequent similar places, have shared interests and mutual friends by digitally identifying common bonds between people who go - or might go - to the same places


  • Founded in 1999, acquired by IAC in 2006 and headquartered in Boston, MA, is one of the largest online retailers of footwear and related apparel offering more than 1,150 brands and 1,000,000 products with $3.5 billion in inventory available for purchase
  • Recognized by BizRate six years in a row as one of the top U.S. online retailers for outstanding service
  • Rated by Hitwise as one of the internet’s top 10 most visited apparel and accessory shopping sites
  • Rated by Nielsen Net Ratings as one of the top 10 “stickiest” shopping sites with over a 15-minute average visit
  • Shoebuy also operates, which represents all categories of bags including handbags, backpacks, luggage, baby gear, briefcases and laptop bags
  • Since 1994, is the original online dealer of UGG® footwear and is dedicated, exclusively, to the UGG Australia brand.


  • Launched in 2004 and headquartered in New York, NY, is a vibrant, respectful community of users who showcase their creativity and individuality
  • First video sharing site to support HD upload and playback
  • Named one of Time Magazine's 2009 Top 50 Websites
  • Received the 2009 CNET Webware Award
  • Has over 10 million registered users 
  • Vimeo also has over 41.1 million monthly visitors*
  • Vimeo's iPhone application gives users the ability to upload, edit, and watch Vimeo videos on their phone 
  • In August 2011, Vimeo launched Vimeo Pro as an easy and affordable professional video hosting solution for small businesses

Joint Ventures


  • Announced in November 2010, The Newsweek/Daily Beast Company is a 50/50 joint venture headquartered in New York, NY and curates the best content offering fresh works from its own talented roster of contributors
  • #19 on New York Magazine’s Reasons to Love New York in 2008
  • 55% of visitors return to the site within 24 hours (Omniture SiteCatalyst, May 2009)
  • Has over 175,000 newsletter subscribers and 69 million monthly page views*

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

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