Frager Factor

Friday, December 27, 2019

What Did Frank Schilling Know and When Did He know It?

In 2011 most people would have laughed at the idea of buying an enormous, bulky item such as a matress on the internet. Except Frank Schilling. In a market that didn't exist then, he gave a jumpstart, and lifetime competitive advantage to a first mover in what has become a $29 billion battle to own how America sleeps.

He sold for $26,000, a name that Estibot valued at just $2600 based on PPC metrics.

Since Frank sold that name, 175 online mattress companies have emerged. That's 174 that couldn't benefit from the one name that articulates a benefit to the consumer, that is easy to spell, pronounce and remember after seeing so many competing brand ads on TV —and you can’t tell them apart.

Because all sales rely on direct response television ads, a name is also a call to action that can make or break

Competitors are named Purple, Parachute, Hyphen, Leesa, NectarSaatva, Amerisleep, Eight, Casper, and Tuft & Needle. Last year Serta Simmons launched Tomorrow Sleep, Mattress Firm launched Tulo, and Walmart launched Allswell.

Sooner or later—and if history’s any indication, it’s probably sooner—there’s going to be a massive shakeout in this category; the survivors will be the powerhouses that have built strategies and market positionings that can’t be matched by the smaller players.

And even though EasyRest is still a smaller player, the name will make it the biggest acquisition target. One startup just got $200 million in venture funding.

Sale after sale confirms that domainers may be sitting on $50k and up value names as brands, and be misled looking at Estibot/Valuate appraisals which would have blind sighted owner's perception of value at just $4500 for New York Plumbers, $14K for, $2600 for or appraisal of just $2600 for which DNS sold for almost 10x more and is now Bangalore's first comprehensive online grocery store. Look at the local Safeway and think someone's going to put all this online and the domain bots only value its worth at a couple thousand bucks?

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

Contact Owen: Twitter | Google+ | Facebook | LinkedIn | Email