Why Are Companies Reluctant to Spend Money on a Good Domain?

Why Are Companies Reluctant to Spend Money on a Good Domain?

The last article on “Underpinning Domain Sales” sparked an interesting discussion on the domain forum, NamePros. One of the respondents asked the question, “Why are companies reluctant to spend money on a good domain?” In this article, I hope to answer that question.

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In my opinion, the dominant reason businesses don’t spend money on domain names is because of ignorance. On the whole the domain industry has not been able to mobilise itself and communicate cooperatively to businesses about the importance of domain names. I’d like to unpack this a little further.

The biggest problem has always been the question of whom should put up the PR/Marketing money to generate interest and understanding in domains. Some people point to the registries, others the registrars while others say the current domain owners should all chip in. These discussiona often degenerate into name-calling and a lot of inaction.

What domain investors need to appreciate is that once they have purchased a domain name the registries and the registrars have effectively done their job. There is NO incentive for them to try and market on behalf of existing owners to increase the demand for already registered domains so the price goes up. That’s an almost impossible job.

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Do the Domain Sales Numbers Stack Up?

Do the Domain Sales Numbers Stack Up?

I thought that I’d take a break from the series on “Building a Business” and examine what underpins the domain sales market. There are a huge number of domain investors that have bought into the market purely to sell their assets onwards…..so is this a sensible thing to do?

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In my investigation into the domain sales space I thought I’d first of all outline the two fundamental domain sales business models.

Domains as Stock Items

Stock item domains are those that sell for sub $2,500 and represent around 87% of domain sales by volume. The goal here is to move greater numbers of domains and NOT necessarily increase the sales price. The business focus is therefore to increase the stock-turn from 0.3% to say 0.6% of your domains per year….it’s all about speed and automation of transactions.

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Saturday Musings - What's Your Goal?

Saturday Musings - What's Your Goal?

My wife Roselyn and I have fallen in love with New Zealand and more specifically Queenstown which is situated in the mountains of the South Island. Looking around the incredible vistas is like stepping into The Misty mountains from “The Lord of the Rings” middle earth.....it's stunning.

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While walking around the township we discovered a hiking business that takes people on a five day walk from Queenstown, across the mountains and down into Milford Sound. For those of you unfamiliar with Milford Sound, it’s one of the most picturesque, unspoilt places on the Earth with waterfalls cascading thousands of feet into the ocean, wales, dolphins, and soaring mountain ranges. All good!

We’re pretty excited about going on the hike in just under two years’ time (we’re doing a lot of other already planned travel this year) but there’s one problem. We need to get a LOT fitter. To paraphrase Borimir from Lord of the Rings, “One simply does not walk into Milford Sound through the mountains. There’s ups, downs, river crossings and a host of other obstacles in the way.”

So we have a goal…..lose weight (which is a good thing) and get a lot fitter. Goals can be like New Year’s resolutions that are forgotten after the first week or you can choose to take them seriously.

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Part 3 – Building a Business – The Pitch

Part 3 – Building a Business – The Pitch

In Part 2 of this series you’ve expressed your passion to me about your new business idea. I’ve seen a prototype built out of bits of cardboard stuck together with glue and although it doesn’t do anything you’ve sold the vision. So what’s next?

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I love passion but passion combined with a plan leads to action. At this stage, I’m after a one page summary document. I want to see whether you have the wherewithal to be able to synthesize your entire business onto a single page.

Before you tell me that’s impossible, Rupert Murdoch, founder of billion-dollar global international company News Limited, receives a one page summary every day that summarises his businesses across the world. If Rupert can do it then I’m sure you can.

So what’s on this page?

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Saturday Musings - Attracting Flocks of Customers

Saturday Musings - Attracting Flocks of Customers

About a week ago, my wife and I decided to purchase a bird bath to attract the local birds outside my study window. The bath sits beautifully atop a pedestal and is replete with a turquoise glaze to make the water that much more enticing. I know if I was a bird I would be falling over myself to have a bit of a splash.

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I had visions of a Disney cartoon where birds would be so grateful for my benevolence that they would sit on a branch outside the window and sing me songs all day. After setting the bath up I waited and waited and waited for the birds to come flocking in to enjoy what I’d provided for them. …..boy was I wrong.

Scratching my head, I thought to myself, “Maybe I need to entice them just a little bit more.” So off I went to the kitchen and grabbed a slice of bread to spread crumbs all over the lawn to attract the birds to my yard. They loved the bread but none did anything with the bird bath. Hmmmm….not good.

You would think the stupid birds would realise that I’d setup the bath for their enjoyment! What more do I have to do to get them to use it? To this day, I’ve been trying to think up new ideas to attract my avian customers to the bird bath and not one has used it……sigh……

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