I can't believe that it's another week already; the year seems to be going so fast! You may have heard of the term "spring cleaning" and I thought that it was time that I did a little myself for whizzbangsblog.

Domain Parking Survey
I would like to encourage everyone to please complete the domain parking survey. It was this survey last year that started the ball rolling and put the parking companies under the microscope when it came to the issue of transparency.

Archive
The Archive menu item contains an enormous number of articles that I've written on domaining. Topics such as Domaining 101 and Domain Optimisation are covered extensively. Only registered users (which is free) are able to read articles.

Advertising
If you would like to reach a lot of domain owners then please check out the rates for advertising by clicking here. It could be that you want to sell a number of domains or promote your own company and services.

Domain Wiki
Don't forget that all registered users can update their own entry and other entries on the domain wiki. I'm constantly referencing the wiki in articles so you may wish to edit or create your own entry.

Domain Forum
This is the place for you to ask the community of whizzbang domain owners questions and get help on lots of topics. You may also want to contribute answers and help others out.

RSS Feeds
I've noticed that a number of people have been accessing whizzbangsblog via the RSS feeds. Can I suggest that you set your RSS reader to poll my server twice per day. At the moment some readers are polling about every second which is not really necessary.

Mailing List
About every month I send an update via email on what's been happening in the world of domains for the past month. I've found that many of the emails are not getting through spam filters etc. so you may want to update your own filter and approve the domain "whizzbangsblog".

That's all the housekeeping for now. I hope that you have a great weekend. I'll see many of you in Orlando!

This is part 2 in the new series on what are the changes occuring in the domain industry and how Google in particular is controlling the landscape that we all work in. It continues directly on from part 1.

For example, the online games vertical may have a maximum profitable bid price for advertisers of $1 per click. If an advertiser purchases clicks for $1.10 they will eventually go out of business but at $0.90 it's a bargain. There may be slight variations on a day by day basis but they will tend to oscillate around the $1/click price.

As the auction market continues to mature greater numbers of advertisers become more sophisticated and adopt systems for getting the best price for their advertising dollar. This price will be the theoretical maximum bid price for each keyword associated with each market vertical.

This system of selling advertising means that the only way for Google to continue to increase revenues is to expand the market so that there are more possible clicks for advertisers. In other words they need to purchase traffic in greater and greater volumes. This is exactly what they are doing and it's squeezing everyone else out of the marketplace.

What's interesting is that there is an argument that Google should reduce its margins for purchasing traffic to 0% simply to lock competitors completely out of the marketplace. This would allow Google to also sample traffic to identify which is the highest converting for advertisers and then to mix it in with low converting traffic (eg. MySpace). This would further increase the volume of clicks while still keeping advertisers happy.

For example, let's imagine that a Google network publisher had 100% conversion rate for clicks that they supplied for games related traffic. If Google takes their average commission for network traffic of 11.9% (let's round it off to 10%) then they will pay the publisher $0.90 per click and retain $0.10 per click for themselves.  If an advertiser had a budget of $10 then Google needs to supply 10 clicks to the advertiser to consume their expenditure. Google could supply the ten clicks from the high quality publisher (pay them $9) and retain $1 in commission. The advertiser would be ecstatic with the results since every click converted! The problem is that this doesn't maximize Google's revenue line.

Let's now add another variable to the mix. To make the maths easy we'll imagine that Google also has 0% converting traffic. It would make more sense for Google to send one high converting click to each of  ten different advertisers and then follow up with nine "bad clicks". This would mean that ten advertisers would have a 10% click through rate and be paying $10 each to receive one conversion. Google would receive $100 for their efforts.

Google could pay the publishers on an equal footing and like before outlay 90% of the advertising revenue back to both the bad and good publishers. This would mean that Google would pay out $90 and retain $10. Like magic Google and turned the good converting traffic into ten times the revenue it had before. Not a bad revenue model but like a bad TV commercial, "but wait there's more!"

The next installment in the series will explore the impact of Google "Smart pricing" and why there was a strong economic imperative for Google to create it.

For the past few days I've been trawling my way through global Internet reports, advertising reports and through the last five years of Google annual reports. In fact, I think that I'm nearly reported out.

After reviewing the recent Google quarterly report it can clearly be derived that Google is continuing to adopt a very aggressive strategy of cutting off Internet traffic from competitors. Since the beginning of 2006 Google has been progressively reducing its network traffic margins from a high of 22.1% (Q1 ‘06) to low of 11.9% (Q1 '08).

During this same period Google has reduced the advertising margin on its own sites from 40.8% to 39%. Although 1.8% doesn't sound like much when you're dealing with a revenue line of $5.09 billion for last quarter then that 1.8% becomes $91.5 million which is more than the annual revenue line of most domain parking companies.

By constantly squeezing the competitors out of the traffic market Google is continuing to shore up traffic for the burgeoning online advertising boom. Presently the entire Internet advertising market in the U.S. represents just 7.7% of the entire advertising spend. Television (cable, network and local) is still taking 65.9% of the U.S. domestic advertising dollar. Traffic is eyeballs and it's clear that Google wants a slice of that television pie by securing greater and greater numbers of eyeballs for their advertisers.

So why has Google changed its strategy over the last couple of years and where is it getting its new traffic from? The reason for this is that the current Google model of auctioning advertising space is reaching a natural maximum price per click for market vertical after market vertical.

I can’t believe that it’s May already. This year seems to be flying by! Have you ever noticed that when you’re busy or just really enjoying life that time seems to move more quickly?
About 12 months ago I read an interesting article in Wired Magazine about how a young New Zealand physicist is redefining time not as seconds and minutes but as events and that as humans we have the capacity to compress or expand time depending upon our focus. The article really messed with my mind but it really was a thought provoking concept. I think that the researcher could have used the domain industry as a case study and highlighted a domainers ability to move from time event to time event as they chased down a deal!

Believe it or not this brings me to a portfolio of domains that I’m involved in. Like any good domain owners my partners and I have recently compressed time (ie. really focused therefore warping our reality) and conducted an audit of our domains. The result has been that we have about 500 domains that we have priced and now listed for sale.

Some of the highlights in the .com space include names such as:
Debtlife.com  $8000
Richesandglory.com  $2500
Acebargins.com  $7000

A few of the domains in the ccTLD space include:
Electricword.co.uk  $4500
Chartsingle.co.uk  $3000
Gamesnation.co.uk  $2500
Iknowthat.de  $5000
Taxcut.de  $3500

All offers will be considered and you can view the domain lists by clicking on the following links:
.com    .Info .net  .org  .us     .de      .co.uk   

In the meantime why don’t you compress some time yourself, look at the lists and make a few offers on some pretty inexpensive domains! We are accepting offers on a first-in-best-dressed basis, this is NOT and auction.

I'm really interested in hearing different people's reaction to domain name conferences. Each person has their own reasons for going, from partying to the small hours of the morning or just to hang, for me, I go to conduct business.

A classic example was the recent Domain Round Table conference. While I was there people were moaning about the fact that the number of delegates was really low compared to previous years. Yes, that may be the case but the bottom line is how much business did you do? I had one conversation that made the whole trip worthwhile followed up by another twenty or so that added cream to the top of the cake.

This brings me to TRAFFIC. One of the things that I like about TRAFFIC is that it's so expensive. It's $1995 for a ticket at the moment which in my book is a hefty price to pay. Why do I like this? Do I just want to put more money in Rick and Howard's pockets? I hate to dissapoint them but as much as I may like the two guys (and their wives) I'm more into increasing my own personal wealth.

I like it because it means that due to the price every person that attends the conference will typically be high quality, high net-worth individuals that are there to do business. Sure, just because they want to do business doesn't mean that they aren't also going to have a lot of fun! From personal experience, I've found that a lot of deals are conducted in the bar or over a friendly game of poker. :-)

So what's the difference between $1,000 and a $2,000 price tag for a conference that provide an increase in wealth by about $500K? The difference is NOT the price but IS the people that choose to attend. On the other hand if the quality people don't attend TRAFFIC then sadly I won't be there either. It's all about the business. Does this mean that we can theoretically have a conference priced at $50K? Yes, it does as long as I do $5m worth of business. It's return on investment.....as simple as that.

This brings me to what's on a TRAFFIC Orlando. Although no speakers have been announced as yet a number of the sessions seem to be really putting the parking companies in the gunsights. Topics such as "The Future of Parking", "How parking will change" and "Turning Fear into Opportunity" will really focus the mind on the bottom line.

A number of the other sessions include discussions on the "Snowe Bill", "Finding opporunities", "Developing domains" and "Tips from insiders on how to monetize domains".  Each of these will provide a lot of insight into the future of domaining.

The domain auction list looks outstanding and it will be interesting to see how much some of the domains sell for. Some of the names up for auction include: calcium.net, babyfood.com, oh.com and Israel.com.

This brings me to my final point. If you want to conduct some business then TRAFFIC is a great place to get things done and agreements moved forward. You'll learn from the sessions (which are improving and are no longer just sales pitches....thank goodness!) and from other quality domain owners. If you go with an attitude to that it's an investment then expect and look for a return. I know that I'll be there and I'll be wanting to conduct business, learn from others and have a good time.....heh, it's Disney....besides that a shuttle is lifting off a few days later at the Kennedy Space Center. :-)

Domain Wiki: Domain Round Table, TRAFFIC

I just received an email from Whypark founder, Craig Rowe outlining that he's just received an angel investor to spur WhyPark's growth. This is great news for any entrepreneur and Craig should be congratulated for securing the additional funding.

According the press release Whypark is currently managing over 41,000 domains, which is quite a number. Click here if you would like to read the full version of the press release.

Domain Wiki: Whypark, Craig Rowe 

While at Domain Round Table in San Francisco Ed Russell from NameDrive suggested in one of the sessions that I was moderating that rather being upbeat there was a feeling of fear entering the industry. Fear of the Microsoft takeover of Yahoo, fear of what Google has planned, fear of dropping earnings per click etc. All of these factors are concerning but is it really necessary to express it in a feeling of fear?

When I was in my mid-teens (a couple of years ago ;-)) I read the science fiction book authored by Frank Herbert, titled Dune. In the early chapters of the book the lead character had a litany about fear that went like this,

"I must not fear.
Fear is the mind-killer.
Fear is the little-death that brings total obliteration.
I will face my fear.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the fear has gone there will be nothing.
Only I will remain."

I believe that this is very poignant for the domain industry. We need to face our fears and address them rather than hiding away, hoping that we'll get through and ultimately be oblitereated by them. We need to address what is in our power to change rather and come to a realization of our true worth to the wider Internet community.

Here's a few thoughts that I have concerning fear and domains
1.  If you have all of your investments in domains then sell down about 30% of your portfolio NOW. Don't wait or hope for the big payout later on. Be realistic about the values of your domains and look after your personal interests and ensure that your family is secure. Keep the 70% of names left in your portfolio so that you can enjoy the wildest ride in your life.

2. Standards are an imperative for our industry. Standards bring a sense of security in the knowledge of what's a view, a click and why we get paid what we get paid. I also believe that standards will also accelerate the industry out of recession. Contact your domain parking company and ask them for their definitions of what a view, unique, click and RPM is, then send me an email with the answers. It should be an interesting read!

3. We have power. There is power in a domain name and the unique nature of a domain means that your saleable assets will ultimately increase in value, so hang in there. Let the fear wash over you in the sure knowledge that what you have can never be purchased again (assuming that you re-register it).

4. There are those in the domain industry that have various interests that they wish to push (me included) and you should always listen to each person with this in mind. For example, a person without trademarks will push for a trademark free industry while a person with trademarks will try and convince you of the opposite due to the great revenues they are generating. Be wise about who is pushing the fear bandwagon and know that there could be other motives behind what they are promoting.

5. Get together with other domain name owners. Attend the conferences (yes, some of them are expensive) and you'll find that there is an incredible array of opportunities and ideas that flow from one conversation to another that will allow you to massively increase the value of your domains. The average domain owner is on the extreme end of the entrepreneurial scale and the conferences end up being a hotbed of ideas! The next conference is TRAFFIC in Orlando - attend it and get energised for a great future in domains.

6. Get on skype. If you don't know what skype is then just Google for it. Skype will allow you to become part of the wider domain community with video conferencing and phone calls all at no cost. More and more domain owners are on skype (including yours truly). Talking with another domain owner is a great way to lift your spirits.

Remember that when all of the huge corporate maneuverings have been completed that only you and your domains will remain. You will be able to see where the fear is gone and that you are strong because you have what everyone else wants. A great domain name.

This is the second parking company survey that asks domain owners to rate different aspects of the parking company service that they predominantly use. There are 13 short multiple choice questions that only take a few minutes to answer.

The goal of the survey is to provide valuable data that can then be used in discussions with parking companies for the benefit of domain owners. For example the results of the survey were incorporated into a number of presentations that I made at the TRAFFIC conferences. The survey is treated very seriously by the parking companies and changes have been introduced as a direct result of it.

Once the survey is finished then I will collate the results and compare them to the previous survey conducted last October. In the meantime I would really appreciate everyone taking part to bring change to the domaining industry!

Click Here to begin the Domain Parking Survey
(You must be first logged in to do the survey)

The reason why you need to be first logged in is to stop some people from altering the results by answering the survey multiple times.