End of Year Recap

End of Year Recap

A video reflecting on a number of projects, conferences and domain events in the last few months of the years. Topics covered include ICANN, managing domains and even the upcoming release of my new scifi novel!

I hope that you enjoy it and feel free to add your comments!

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Buying and Selling a Traffic Portfolio - Part 6

Buying and Selling a Traffic Portfolio - Part 6

In the previous five parts in this series I’ve covered a lot of ground on how to better buy and sell a domain traffic portfolio. In this article I’m going to expand upon the “Domain Risk Index” (DRI) which is a tool that helps you make better buying and selling decisions.

We developed the DRI as a domain and portfolio analysis tool a number of years ago for ParkLogic clients. In summary, the Domain Risk Index (DRI) mashes together about twenty different metrics to produce an index between 0 and 100. Zero represents HIGH risk investment and 100 is a NO risk investment.

Escrow.com

The various metrics are weighted according to their impact on an investment’s return. Investors are typically interested in stable returns and the index allows them to gauge the amount of risk that they would like to take on.

What we then did was take a large sample of domains that statistically represents the Domain Industry and graph the results on a chart over time (orange line above). The blue line represents the ParkLogic account owner’s performance on the scale.

Domain Risk Index

As can be seen from the sample chart there was a surge in stability at the beginning of October that has now tapered off into a time of instability. This needs to be viewed in light of the fact that the peaks and troughs are from 54 to 58 on the scale.

So what’s the point in all of this? Let’s image that you have a portfolio of domains that you are wanting to sell that is around 80 on the scale. This means that from an investment perspective it is MUCH less risky compared to the typical industry portfolio. This then logically translates into you being able to ask more money for your portfolio than the typical industry sale.

For example, if the industry is typically selling a portfolio for 2 years revenue then you now have a justification for why you should be asking 3-4 years revenue. It’s playing the capital value game with good solid independent metrics behind it that gives both the buyer and the seller that they are getting a good deal.

So what else can you view as a part of the DRI? We also provided some of the additional metrics that make up the DRI. For example, if you would like to see what is happening on EPC trends for the industry versus your account then it’s a button click away (see below).

For the trend graphs, anything above 50 means there is an upward trend anything below 50 means it’s trending downwards. The higher above 50 that greater the increases in the trend and reverse is true if the chart is well below 50.

EPC Trend

As can be seen from the EPC trend chart there was a surge in higher paying EPC rates at the end of October that is likely due to the rush up until Christmas. What’s interesting is that this sample portfolio did not experience the same impact (blue line).

What’s great news for domain owners is that the CTR trend also increased at the same time and as can be seen from the chart the domain owner experienced an uplift in CTR.

CTR Trend

 

By using some of these charts a buyer can purchase portfolios when the trend lines are down and sell when they are high. This is similar to what many of us do with our stocks. Buy low, sell high.

There’s a lot of information tied up with DRI and its charts. Further information on the definitions is available under the DRI Terms and Definitions link below the chart.

Over the years we’ve found that buyers and sellers that use tools like the DRI have an informational advantage over others in the market. This allows them to make smarter selling and purchasing decisions and take advantages of the fluctuations in pricing.

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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. Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face.
Click here to arrange time with Michael
Click here to advertising on whizzbangsblog.com

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Interview on Domain Name Wire

Interview on Domain Name Wire

I recently had the privilege of being interviewed by Andrew Allemann of Domain Name Wire and this Podcast is now available via the link below. I really enjoyed discussing the domain industry with Andrew as we explored a wide range of topics.

Some of the topics include:

  • The domain industry
  • Why Google is taking more
  • How to increase the earnings from your domain traffic
  • Doing something different with your domains
  • Why you will lose money by sending all of your traffic to a single parking company
  • The difference between parking companies

It was great being interviewed by Andrew as he asked some really inciteful question. He's been blogging and running Domain Name Wire for many, many years and has an incredible level of knowledge across the whole industry.

Click here to go and listen to the Podcast

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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. Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face.
Click here to arrange time with Michael
Click here to advertising on whizzbangsblog.com

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mgilmour
Good question Peter. I've been in a variety of businesses, everything from: - The music industry - Riding the Desktop Publishing r... Read More
02 December 2014
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Saturday Musings - Finding True Happiness

Saturday Musings - Finding True Happiness

So it’s been Thanksgiving this past week….for the people in North America anyway. We don’t have this holiday in the rest of the world but it shouldn’t stop us from being grateful for the good things in life.

A number of years ago I heard a message at church where the minister challenged the congregation to develop an “attitude of gratitude”. I completely agree with him. Particularly in western countries we have so much to be thankful for and yet for some reason we seem to be some of the unhappiest people on the planet.

Escrow.com

Research organisation Gallup Inc, created a “Happiest Countries” scale from a number of metrics and then published the results with the Australian Broadcasting Commission. What was interesting was that countries such as Mali in Africa was only 2 points behind the USA. Where is Mali you may ask? In the midst of suffering from Ebola in West Africa.

About 12 months ago there was a great Youtube video produced by nigahiga called “First World Problems”. The video’s has over ten million views but it really depicts many of the so called problems that we face in the west are plainly rediculous. Where some people are happy with getting a good meal we stress and worry about the size of our televisions.

So at this time of Thanksgiving I think that there are so many things to be grateful and happy about. Family and friends for a start. The incredible domain industry that many of us work in. How about having a roof over your head and food on the table….they seem pretty good to me.

So how do you really get happy? From my experience it’s not how “I” can get happy….it’s all about how “I” can make someone else happy. When we think of others something magical happens…..we ended up frinding true happiness ourselves. When we focus on trying to make ourselves happy then it all just seems so false.

So here’s my advice, if you want to be really happy. Think about doing something special for one person and be grateful for all the things that you have. Do these two things and you’ll be amazed at what you will discover about life.

Please leave comments about your own experiences here….I’d love to read about them!

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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. Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face.
Click here to arrange time with Michael
Click here to advertising on whizzbangsblog.com

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What's Next After You Have a Domain

What's Next After You Have a Domain

My recent foray into publishing my own novel has been a really educational experience. For those of you that are unaware for the past eighteen months my skunk works project has been writing a science fiction book. I’m still settling on a title but it looks like the series will be known as “The Mind War Saga” (it may change again)….all very auspicious.

I’m right at the end of the final edit, beta-readers have provided their feedback and I’m about to publish. What’s the next thought that goes through my mind? I need a domain!

Escrow.com

I searched Amazon to make sure that there aren’t any other series of books known as “The Mind War Saga” and I seem to have the space all to myself. I didn’t want any other series of books to be confused with my own or vice versa.

I’ve decided to move michaelgilmour.com to represent my authoring and I’ve just registered mindwarsaga.com to point to the same site. You can actually go there right now and see a few blogs on the site as well as a fan community (yes, I’m hopeful), a library (of one book), forum and also some cool stuff about me.

The website looks a little bland at the moment as it’s a work in progress and I’m waiting on the illustrator to complete the book cover. Once I have that in place I’ll be able to enhance the look and feel a LOT more.

So what’s next? Once I’ve finalised the title I need to register that domain and point it at my author blog. Here’s a few other things on the list for me to complete (it’s by no means exhaustive).

1.    Finalise book content (by mid-next week).
2.    Finalise cover design, typography and blurb for the back (end of following week).
3.    Get a photo done for the author’s biography.
4.    Complete the interior book design.
5.    Update website graphics and content.
6.    Publish the ebook and paperback via Createspace (an Amazon company)
7.    Update my author’s profile on Amazon.
8.    Establish a facebook and twitter account that are linked to my website.
9.    Update my website so that I can take sales via Amazon/Createspace
10.    Have a soft launch amongst friends. Encourage them to buy the book and leave comments on Amazon.
11.    Put together a package of material for other websites to review the book. This will need to include a copy of the book, synopsis, sample article, quotes, photos, artwork etc.
12.    Prepare a sequence of press releases to be released over a three month period.
13.    Approach media outlets for interviews – “Self-publishing author….scifi book etc.”
14.    Send out package to science fiction websites and reviewers.
15.    Engage community and detect who are real fans of the novel. Provide them with inside material, sneak previews etc.
16.    Brace myself for the feedback.
17.    Finalise marketing plan proper….including potential buying of advertising space.

I must admit that there are a lot more things that need to get on the list. One of which is finish book two in the saga! I’ll keep you up to date with how things are going.

Not surprisingly, what it all really hinges on is traffic, domain names and real sales. I understand a lot about those three items but it still doesn't necessarily mean that my publishing venture will be successful. Without a good product and plan I'm still sunk.

It’s going to be interesting to see if I can manage to make it as a part-time author. I love writing so I really hope that it’s a distinct possibility. Besides, my wife has been on my back to write a book on the domain industry…..so stay tuned for that one. Hopefully it will be more science fact rather than science fiction.

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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. Michael is passionate about working with online entrepreneurs to help them navigate their new ventures around the many pitfalls that all businesses face.
Click here to arrange time with Michael
Click here to advertising on whizzbangsblog.com

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mgilmour
Thanks for that!
27 November 2014
mgilmour
Whoops! A complete oversight on my part! themindwarsaga.com is not registered ... Read More
27 November 2014
mgilmour
Thanks for that Kassey. :-) It's been an incredible journey....nearly ready to launch!
27 November 2014
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