Our Industry

 

Our industry is amazingly small in comparison to the global significance and opportunities that exist. It has been said there are somewhere between 1,500 – 2,500 individuals on a global scale who invest in domain names as a full-time profession or for supplemental income. On the other side of that fence are thousands of amateurs who buy, sell and monetize domain names as a hobby. With deeper investigation, you will find there are publicly-traded companies built solely on and around domain names themselves. At the end of the day, regardless of what you’ve read, EVERYTHING online starts with your domain name. Your domain name is your online identity, address, and brand – and your brand is EVERYTHING. 

“Internet traffic and domains are the prime real estate of the 21st century. This market has matured, and individuals, brands, investors and organizations who do not grasp their importance or value are missing out on numerous levels.” – Steve Forbes, CEO / Forbes 

The domain name industry has been notated as a $2 – $4 BILLION dollar international industry that still today, [surprisingly] is frequently misunderstood and often misrepresented. Although many aftermarket transactions do occur behind closed doors or carry a legal non-disclosure agreement, millions of dollars exchange hands each quarter and are publicly-documented.

Although there are more than 185 million domain names currently registered, only a very small percentage of those names have a cash-value. Anyone can “register” an “unregistered” domain name from a domain name Registrar. While each Registrar operates their own pricing schedules, typical pricing ranges from $6.99 – $34.99 per domain name. For ten plus years, thousands of savvy entrepreneurs and digital companies around the globe have been religiously researching and acquiring the best names on the planet for investment, and development.

The true “elite” and premium domain names are treated as a commodity, and simply can not be duplicated or replaced. They are typically short, generic, category-defining, popular words, phrases, products, and industries.

A very hot sector of the domain industry are “Geo-Domains“, which can be classified by a town, city, region, state, territory, or country. These “Geo-Domains” are very valuable and offer a surplus of development and monetization opportunities. Recorded sales are between four and seven figures, although a variety of variables exist in these valuations. [population, MSA, travel industry, lifestyle destination, cost of living, overall popularity, etc.,]

Another emerging force is the “Geo+Industry”, for example; “CincinnatiWineries.com”, or “SavannahRealEstate.com”, or “NorthernKentuckyApartments.com”. These “Geo-Longtails” are in high-demand and becoming increasingly more popular do to the fact the Internet is becoming more and more localized. As more local searches are performed, there are numerous benefits to owning such names such as mindshare and trust-values, direct-navigation traffic, and elevated organic search-engine listings. These “Geo-Longtails” typically range in value between four and five figures each.

“America’s 14.6 million small and medium-sized businesses were responsible for more than $6.7 billion in locally generated, locally targeted interactive advertising in 2008 – more than half of the U.S total, according to a recent released report from Borrell & Associates which predicts these numbers will grow significantly as activities continue to shift online.”

Today, many web entrepreneurs and small business owners are empowering themselves with LOCAL “generic digital ammunition” and are competing directly with traditional media outlets. [Print Magazines, Newspapers, Radio, etc.] With more than 80% of the population searching for anything and everything online, digital branding and development is much more than a trend, but the FUTURE. Local, generic, keyword and key-phrase domain names are rare, valuable, and appreciating international investments. It is important to comprehend that generic domains represent much more than a “name” or string of characters, but a “brand” and foundation of business. 

Do you have a competitive advantage…?

Domain Names are often referred to as “Digital Assets”, or Virtual Real Estate, Digital Real Estate, Internet Real Estate, or even Cyber Real Estate. Due to the nature of “first-come-first-serve” registration and ownership, generic domains continue to rise in popularity and value. Combining the rarity with the numerous advantages that generic domain ownership provide, many industry newbies, companies, and investors are making it a point to educate themselves on the growing opportunities that exist. The problem is, those entering the market today “blind” are about ten years late to the game. Now, you have to pay to play. Premium Domains that were once available for four or five figures are now being sold for six, seven, and even EIGHT figures. [Yes, $10,000,000.]

In many cases today it makes more sense to “hold-and-develop” these rare assets into “online businesses” versus selling. But of course, like in any situation of “buy-or-sell” many investors always have a “sell” price. However, it is very important to note many premium domains earn hundreds, thousands, or even tens of thousands of dollars without even being developed into actual websites through the monetization of pay-per-click ads [parking, domain parking, cash parking] which are distributed to the domain name via a search engine, like Google, Yahoo, or Bing. In other cases, domains are valuable on “potential revenues”, which in some industries, could reach hundreds of thousands, or millions of dollars per year through domain development.

Did you know that Google, Yahoo, AOL, Microsoft, Bank of America, Amazon, Forbes, Proctor and Gamble, Barnes and Nobles, Disney, Fidelity, Eli Lilly, GSK, Abbott Labs, Novartis, Pfizer, Harrah’s, Johnson and Johnson, Warren Buffett, Honda, Otis Worldwide, News Corp, GE, NBC, ABC, CBS, FOX, and dozens of other household names ALL invest in generic domain names?

THIS INDUSTRY IS REAL FOLKS. It’s time to embrace technology and educate yourselves, or get left behind. It’s really that simple.

What is the value of web-surfer that converts into a $100 hotel reservation? What is the value of web-surfer that converts into a $1,000 jewelry purchase? What is the value of a web-surfer that coverts into a $10,000 apartment lease? What is the value of web-surfer that converts into a $100,000 home sale? What is the value of a web-surfer that converts into a $1,000,000 yacht investment? In order to fully comprehend and appreciate “the digital age“, you have to understand the models. And the models are changing, fast. It’s not about a $50,000 dollar website, because without targeted-traffic, that $50,000 website is worth about 50 toothpicks. As more businesses begin to understand this fact, they will be forced to educate themselves on strategic Internet research, marketing, and generic domain name acquisition.

“A tremendous surge in annual growth of local search far outpaced the growth of overall web search, according to a study conducted by comScore, Inc. The study found that the practice of local search – the practice of using online tools to find local businesses, products, or services – grew 58% in 2008, reaching an annual total of 15.7 billion searches.” 

 As the “global” Internet continues its transition to the “local” Internet many things are changing and opportunities for investors and developers are unfolding right before our eyes. The stronghold that local traditional media once had is losing its strength and value. The once “invincible” newspapers, magazines, and tv-stations are all struggling to capture the mindshare of local advertisers and are searching for ways to reinvent themselves. Dozens of newspaper companies and hundreds of magazines have already closed their doors in the heat of competing with the Internet. You see, today it’s not about “who has the largest office building“, or “who has the most employees“. Today, the scale of “business” is shifted toward an equation consisting of; generic brands, targeted traffic, unique and compelling content, and affordable pricing. Brick-and-mortar companies are finally realizing the negative impact of the unnecessary overhead they are operating with. 

“For most newspapers in the United States, we would not buy them at ANY price, as they have the possibilities of going to unending losses.” – Warren Buffett, CEO / Bershire Hathaway [and owner of the "The Buffalo News"]

Advertising has changed, forever! The old “pressure tactics” once used by phonebook companies of “If you don’t list with us you won’t be found, everyone uses phonebooks!“, has done a complete 360. Does it truly make sense to keep investing $3,000+ per month to be in one-of-many phonebooks? [Our personal educated and experienced opinion is NO.] What about the hundreds of apartment communities that are spending $1,000+ per month to be listed in a small paper-back apartment booklet? We’re pretty sure those advertising prices are built around greed and non-sense, not value-added benefits, and results. If those businesses who signed those [inflated] advertising contracts understood the Internet, and how to strategically invest in themselves and their brand, the picture would be painted much differently. We believe in the future this will be much more evident. The key is to find local, affordable, and effective marketing platforms that make sense and show results. Ask a real estate agent when is the last time they sold a house from an ad they placed in a print magazine or newspaper. You may be surprised when they say, “never“. The majority of the time agents do this to please their seller, it’s that simple. Ask a plumber or architect how many contracts came from their “Impression-Based” ad campaign through a newspaper or tv-station website. We know the answer even before you ask the question. However, regardless of which industry or advertising platform we speak of, “business” is changing on a grand and global scale and NOW is the time to educate yourself and take pride in your business. 

Without question, the domain name and marketing industries can be very confusing, often tedious, and of course time-consuming. The research and experience required to make educated investment decisions does not happen over night. Many professionals have been actively researching and investing for more than a decade. Although there are a variety of variables as to why this incredible industry has not hit mainstream to date, one major factor is arrogance, combined with ignorance. A deadly combination. The “business as usual” syndrome has crippled many businesses and allowed other forward-thinking companies to enter the market and take market share from them. Some of the largest corporations on the planet are clueless, simply because they have not been properly educated on the metrics of value and strategy.  

“It is a very simple and well documented FACT that the majority of the world is oblivious to the opportunities within the [generic] domain name industry. This has created an ENORMOUS window of opportunity for thousands of forward-thinking independent entrepreneurs and privately-held companies to capitalize, and subsequently compete, simply by owning and developing [generic] Internet brands.” – Niko Younts, CEO / NorthernKentuckyMedia.com, LLC

Even today, as the industry is only a decade aged, it boasts a growing-laundry-list of “domain name millionaires”, publicly-traded domain name companies, traveling conferences and trade shows, international auctions, associations, print-magazine publications, as well as the obvious, numerous information sites, blogs, and forums. For years, industry pioneers and professionals stayed very quiet about their mastery, for obvious reasons. Why would they want to spread their secrets to the fortunes they were making? Today, although the core principles still apply, the domain game is changing. Although not “impossible”, it is becoming very [very] rare to “hand register” a valuable domain name in todays market. There are thousands of savvy domainers and forward-thinking companies that spend dozens of hours each week acquiring names of value, and potential Internet brands. Like any industry, with solid ambitions, education, and a healthy dosage of common-sense, you too have the ability to become a successful domain investor or developer. 

Please note: Professional council is highly suggested before registering or acquiring ANY domain names for personal or business use. There are legal consequences, repercussions, and potential fines of up to $100,000 USD [per domain] for registering, acquiring, and/or monetizing domain names related [or confusingly similar] to brand owners and trade mark holders. While there are in fact some individuals who participate exclusively in this activity, it is very important to note, “investing in generic domain names” is perfectly legal. There are terms of service, registrant agreements, and legal documentation to adhere to in this industry and it is very unfortunate the industry is often covered in negative and naive “blanket-statements”.

Proactive education is crucial to your success and safety. 

For your viewing pleasure, we have created three documents [.pdf] for your review.

Interested in learning the industry language? Click here. [coming soon]

Interested in reviewing major companies who own generic domains? Click here. [coming soon]

Interested in researching some movers and shakers in the industry? Click here. [coming soon]