Domains For Sale - 3 and 4 character com/net/org

Domains For Sale - 3 and 4 character com/net/org

ParkLogic has a client that is doing a little house cleaning on their domain portfolio and is placing eighty-six three and four character COM/NET/ORG domains for sale. The domains have been priced to sell.

A few of the standout .com domains include: kdrz.com, mkgw.com, trkx.com and pppp.net All of the domains have been categorised as either 3 or 4 character, whether they contain “aeiouv” and also numbers.

Please contact me (mgilmour at parklogic dot com) if you would like to be sent the full list. Below is the offer process that will be conducted.

1.      All offers are to be submitted by the 16th Dec.

2.      If the Buy-It-Now price for the domain is reached then it will be immediately sold.

3.      From the 16th Dec we will continue discussions with the top 2 bidders for each domain and if the reserve is reached then the domains will be sold by the 21st Dec.

All transactions will be conducted through Escrow.com

Full disclosure - I have a personal stake in these domains.

Have a great weekend!

---------------------------------------------------

Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He was the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. He has also recently published his first science fiction book, Battleframe.

Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face. Due to demands on his time, Michael may be contacted by clicking here for limited consulting assignments.

  3930 Hits
  0 Comments
3930 Hits
0 Comments

How to Grow Your Domain Business

How to Grow Your Domain Business

I get asked, “Michael, how can I grow my business?” a lot. More often than not my reply often starts by saying, “You’re not going to like what I have to say….”

I’ve been in business for nearly 35 years and some things just don’t change. The first is that there is no such thing as a free lunch. In other words, if you want to eat then it’s going to take a lot of effort.

Escrow.com

So many of us get entranced by the mega-success stories that we never realise that behind the scenes there’s more often than not a person working 12+ hours per day. You go to a conference, hear from an inspirational business leader about their great success and wonder why you can’t be like them. What you haven’t considered is the fact that they have compacted 20 years of their life into a thirty minute presentation…..so everything seems so incredibly brilliant!

For example, my daughter announced to me the other day that she wanted to become a Youtube star (don’t we all). She’d found out about a Youtube star that is now earning millions of dollars in endorsements per year and thought that sounded like a great job.

Here’s the disconnect for her…..she doesn’t have anyone following her but the star has millions. To build my daughter’s business will take a LOT of hard work producing quality content and then climbing the social media ladder by swapping “likes” with other Youtubers. This will very like end up being a multi-year journey…..so a little disheartening for my daughter.

You really can’t get out of it, businesses take a lot of time, energy and effort to get going. In the domain industry, it’s not uncommon to have two year sales cycles to get a potential client to run a test for their traffic domains. This is even though it literally takes seconds to update a DNS....go figure?

Despite all the effort necessary to run a successful business is almost deceptively simple. All you have to do is add value for someone and then repeat, over and over again. The minute you stop adding value or repeating then your business will struggle.

Too many people spend too much time working on businesses that fundamentally don’t add any value. This is exactly the same in the domain sales industry. I’ve seen so many portfolios that the owner has faithfully renewed each year but never sells a single domain. The reason why is the domains aren’t adding value to any potential buyers.

Likewise, I’ve seen some domainers sell one or two domains per year and barely hang in there financially as they pray for a massive windfall to come and land on their head. It’s very likely it would be better to go and buy a lottery ticket and hope your numbers come up.

The reason why companies like Godaddy are successful is because they find buyers where they can add value and then they repeat the cycle time and time again.

Let’s compare this to the problems that Moniker encountered eighteen months or so ago. A lot of things went wrong with the company that caused both the add value and repeat aspects of the business to fall apart.

In comes new CEO Jothan Frakes and what does he focus on? Getting Moniker to once again add value and consistently repeating the value proposition for customers. Right now, Moniker is in the process of reinventing itself and I’ll be the first to say that I will not be surprised to see them become the domainer powerhouse registrar in the future. It will be a long journey but I’m confident the team will pull it off.

Another example of adding value and repeating would have to be Escrow.com. Their business is run entirely on trust and they have to repeatedly add value or their customers would leave in droves.

I was speaking with the new general manager, Jackson Elsegood, yesterday and he said since the recent acquisition of Escrow.com by Freelancer one of the first things they were working on was 24/7 support. He wanted to ensure Escrow’s global footprint would be serviced by global support. It was all a part of adding value to customers and being always available.

Likewise, as one of the founders of ParkLogic I provide every customer with my personal skype address. They can reach out to me at any time if they experience any difficulties. I wanted to be the first person to know if customers were having problems. In conversations with clients I’m always looking for how we can add value and then repeat it. At the moment ParkLogic repeatedly processes around 40 million pieces of traffic per day and we add significant value with each one.

So how do you develop a blog and make it successful? Write articles that readers find engaging and don’t just write the same thing as everyone else. Next, do this three to four times per week year in and year out…..Google will love all the new content!

About 8 years ago Whizzbangsblog started out as a big experiment. I wanted to see if I could develop a brand that was so “way out there” simply by consistently adding value. Many of the other blogs seemed to be repeating news (some do a great job btw) but I wanted to dig a little deeper and bring some business insight into what was happening.

So here I am, still enjoying writing and readership is consistent (thank you!). Within the space of around 30 minutes of publishing an article around 200 people have read it and overtime many of the articles have been read by thousands of people. I’m not trying to brag about the success but rather to use it as an example of how anyone can actually develop a domain into a business.

So how do you make your business successful? There are many parts of this which I will go through in future articles but start with adding value and repeat this for your own customers. It’s a simple formula that works!

---------------------------------------------------

Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He was the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. He has also recently published his first science fiction book, Battleframe.

Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face. Due to demands on his time, Michael may be contacted by clicking here for limited consulting assignments.

  3134 Hits
  0 Comments
3134 Hits
0 Comments

Saturday Musings - What Will You Be Remembered For?

Saturday Musings - What Will You Be Remembered For?

There’s nothing like a funeral to remind you about your own mortality and what’s really important in life. At 2pm today I will showing my support for a lady that lived her life, not for herself, but for others. She was an amazing person who showered those around her with love and compassion even though she herself was in great physical pain.

It’s so easy to get so caught in being busy that before you know it the years have slipped away and you stand at the precipice of the afterlife. When that moment finally comes, you can’t take all those toys and trappings that you’ve worked so hard for with you….they all just fall to the wayside.

Escrow.com

What we can do is decide how we will be remembered. A great partner? Fantastic father? A person of great ethics and moral fortitude? Although we cannot influence the afterlife we can have a dramatic impact on those we are leaving behind. How will they remember you?

I don’t know anyone that wants to leave a legacy such as, “He made lots of money or has 50 house investments.” Although those nothing wrong with those pursuits most people would rather be remembered for who they are, not just what they have accomplished.

Domain owners tend to spend an inordinate amount of time alone, staring at their computer screen and some have even drifted off into the next life without many people really knowing about it. I love domaining but I don’t want to be remembered for the fact that I owned gx.com.au or some three letter .com. I want to be remembered by colleagues and online friends for who I am.

I aspire to be like the lady whose funeral I will be going to today. While in hospital, she would spend time encouraging doctors, nurses and other patients who may have been going through tough time in their lives. She had a tremendous faith in God that she would be looked after in this life and the next. Whether you believe in a God or not, you have to admire and respect people who have such unshakable belief. They are an inspiration for us all to remember that people and our relationships are what’s really important.

So in this Saturday Musings of reflection…..what do you want to be remembered for?

Have a great weekend.

---------------------------------------------------

Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He was the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. He has also recently published his first science fiction book, Battleframe.

Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face. Due to demands on his time, Michael may be contacted by clicking here for limited consulting assignments.

  3096 Hits
  0 Comments
Tags:
3096 Hits
0 Comments

Analysis of .CLUB and the New gTLDs

Analysis of .CLUB and the New gTLDs

With the crossing over the 10 million mark for the total number of new gTLDs registered I thought that it would be worthwhile conducting an analysis of what is happening in this new market. As is typical of any new market, quite a number of new gTLDs are struggling but as registrations increase, time is on the side of those that have the cash to survive.

Escrow.com

The first chart shows the total number of new gTLDs that have been registered month on month since Feb 2014. As can be seen from the graph it’s basically been a linear growth rate until the last month, where it has taken a definite turn upwards. It will be interesting to see if this recent trend will continue moving forward.

new gtld growth in registrations

 

When we look at the growth rate per month chart there has been a rapid downward slide that has stabilised around the 10% per month mark. This is not unexpected as the initial numbers were small and any growth off a small base will be quite large.

 

What is interesting is the fact that the trend line is flattening out to just over 7% growth. According to a recent report the overall global domain growth is around 6.5% so trending down to just over 7% isn’t surprising. Once again, the uptick in Nov is a bit of an aberration so it will be interesting to see if the trend continues.

Now here’s the challenge for the new gTLDs. According to nTLDstats.com (where this data comes from) just over 8 million domains are parked (ie. 77%) or not being used in the “wild”. What this suggests is that the majority of the growth is coming from the domain investor community.

Why is this a problem? For a start, this means that the majority of domains are not being seen by the general public in more traditional forms of advertising. Hopefully this will change as some of the global brands that have their own extension will begin advertising with it.

Secondly, domain investors are after a return based upon the value of the domain sales that they achieve. Given the massive influx of domain supply this value is unlikely to be realised in the near term. This means that there won’t be as much money to reinvest into the new gTLDs from the domain investor community and it’s very likely that over the next couple of years a lot of the domains will be dropped.

Here’s the other issue. Other than November the number of domains registered per month is basically linear BUT the number of extensions available to register has been growing rapidly! This essentially means that there are more and more new gTLDs fighting over the same sized pie. What this suggests is the new gTLDs have been largely unsuccessful in enticing new money into the domain space and are totally reliant upon a finite domain investor pool of investment funds.

Now let’s take a look at .club as they are often regarded as the poster child of what to do right in this space. Since they were launched they have been growing month on month in a roughly linear fashion until July where growth essentially stopped and then resumed at a more modest rate until October and then skyrocketed in November.

.club domain registrations

Given the northern hemisphere summer period a slowdown in growth for July and August should be expected but the rapid surge into October and November is staggering. I would like to claim that the rapid increase was a direct result of readers seeing the .club banner advertisement on my blog but sadly, this is unlikely to be true…..although I cross my fingers.

Percentage growth in .club domains

I actually believe the team at .club have been really smart in laying the ground work to tap into the Chinese domain market. This became particularly focused since the beginning of September when they attended DomainFest Macau. It was clear that they were on a mission to evangelise .club to the Chinese marketplace.

The recent release of a slew of premium domain names into two auctions has created a huge amount of interest in the extension. This has clearly spilled over outside the auction domains into the wider .club inventory and has resulted in a rapid increase in registrations. It’s being smart about how to leverage these publicity events that has made .club a standout in the industry.

Given the recent surge in registrations, a back of the envelope calculation would immediately indicate that .club is a profitable extension. The entire industry should celebrate any extension getting over the line and this will hopefully spur those that are struggling onwards.

I would not be surprised if Colin and the team at .club are casting their eye over a few of these struggling extensions and considering an acquisition or two. With their proven marketing muscle this would almost be a no brainer. It will be interesting to see what happens in the months ahead.

In the meantime, I'm going to be keeping my eye on the industry as I believe there are a lot more acts to this play before the final curtain is raised.

---------------------------------------------------

Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He was the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. He has also recently published his first science fiction book, Battleframe.

Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face. Due to demands on his time, Michael may be contacted by clicking here for limited consulting assignments.

  4838 Hits
  8 Comments
Recent Comments
mgilmour
Sadly I don't have that information as it's privy to the domain owners. I have seen some new gTLD domains that are with ParkLogic ... Read More
04 December 2015
Mr. Dotdot
I was of the opinion that dot online would thrive but till date I am yet to hear of a single mention of its sale. Could it be that... Read More
04 December 2015
mgilmour
I personally try and go with extensions that make sense. Despite their numbers (sold or otherwise) I really don't understand .xyz ... Read More
05 December 2015
4838 Hits
8 Comments

How Domainers Get Into Financial Messes

How Domainers Get Into Financial Messes

So many business owners have an incredible desire for profit but so few actually understand why it’s so important or how to attain it. So I’m going to first ask a really dumb question, “So why is profit so important?”

At its core, profit is a measure of a business’s sustainability. If year after year a business is not profitable then it will ultimately fail. Yes, you can keep on raising capital but at some stage investors will stop investing and demand a return on their investment. This will either be in the form of a dividend or a capital increase.

Escrow.com

So in terms of a domain portfolio, unless you are earning a profit then your business will fail unless you (ie. the shareholder) keep on funding it through cash injections. This is very different from running short of cash to pay domain renewal fees….more on that later.

So the question needs to be asked, why do domain business often fail? I personally believe that there is a really simple answer to this question. Most domain businesses aren’t businesses at all. They have more of the characteristics of a hobby than a business where the owners are collectors rather than investors.

Just ask yourself the following questions:

1.      Do you have a cashflow?
2.      When was the last time you looked at your balance sheet and profit and loss statements?
3.      Do you have a clearly defined business model for each of your domains?
4.      When was the last time you cleared out non-performing assets?
5.      Does your accountant about how to treat domain names?
6.      Why is tracking both the purchase and the sales price so important for your business?
7.      What is the return on your investment and could you gain a better return elsewhere?
8.      How much do you value your time in your business plan?
9.      When was the last time you seriously considered outsourcing to free up your time?
10.  Do you understand the difference between cash and profit?

Let me tackle point number ten with a little story as it’s often really confusing for people to understand. It’s very easy to have a highly profitable business that doesn’t have any cash....let me show you how.

Imagine a domainer looks at their bank account and sees a whole lot of money has accumulated for the year from their domain parking earnings. They clap their hands with glee and go out and spend it all by purchasing a $30,000 premium domain that they've always wanted to own.

Sadly, even though they’ve spent the $30,000 in cash they actually can’t expense it. In most countries the accounting/tax rules insist that they take this sized item to the asset side of their balance sheet. Here’s the problem, let’s imagine they have $10,000 worth of expenses during the year. This means their profit is revenue less expenses or $30,000 less $10,000 = $20,000.

The government will put its hand out for their fare share of the profit. In the case of Australia, they want 30% or just under $7,000. But hang on! The domainer just spent the $30,000 and don’t have a spare $7,000 lying around.

I hope that this simple example illustrates the traps that many domain investors fall into. They completely confuse both cash and profit. This often compounds if they’re able to defer their taxes and can result in what seems like a double whammy if they continue to make the same mistakes.

So let’s imagine they managed to borrow some money from a friend to cover their taxes and this is secured against the $30,000 domain. If the friend is charging interest on the money then the domainer can expense it during the financial year that it was incurred BUT the capital payments will ultimately need to come out of the following year’s profit (not going to get involved with depreciation here). Yep, it’s starting to feel like a knotted ball of string already!

Suddenly, the ultimate business opportunity arises for their $30,000 domain. A major developer would like to partner with them to develop out the domain on a 50/50 basis. The developer is the ideal fit and they are absolutely convinced they’re going to make a killing. All they have to do is put their domain into the venture and the developer will match it with $30,000 of development.

Hang on a second……they’ve now essentially encumbered the domain twice. Their friend’s $7,000 is secured against the domain and if they default on the payments they won’t be too happy if the domainers gone into a partnership that involves the domain with someone else. At this point in time I’ve seen many domain owners say, "I just won’t default"….and try to slide the second transaction on through.

As time goes by, this scenario gets played out across more partnerships and more domains. Documentation of the transactions becomes scarce and before they know it, the wheels come off the cart and the domain owner is in a complete mess, defaulting on payments and trying to understand how they got into the mess they’re now in.

Fundamentally what it all comes down to is that the domain owner really doesn’t understand business but they love their hobby. They didn’t really know what profit is and how it’s different from cash. This level of naiveté is played out across all of their other business dealings.

Here’s a few sage words of advice, “Have a good account that you talk to regularly. Avoid all deals which involve forming equity partnerships…..they rarely, if ever work out.”

I’ll share more on business thoughts in future blog posts.

---------------------------------------------------

Michael Gilmour has been in business for over 32 years and has both a BSC in Electronics and Computer Science and an MBA. He was the former vice-chairman of the Internet Industry Association in Australia and is in demand as a speaker at Internet conferences the world over. He has also recently published his first science fiction book, Battleframe.

Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face. Due to demands on his time, Michael may be contacted by clicking here for limited consulting assignments.

  4535 Hits
  2 Comments
Recent Comments
letsbehonestaboutit
I'm like a crack addict but for domains but end up burning most of money but cannot help buying them, i get caught up in auction w... Read More
02 December 2015
DA
We are working on it http://domainersanonymous.org/ we aren't done with the site just opened in fact plan to have it up and runnin... Read More
29 January 2016
4535 Hits
2 Comments