Saturday Musings - The Entitled Generation...

Saturday Musings - The Entitled Generation...

If I was to describe the current generation of late teens to twenties in one word it would have to be “entitled”. They believe that everything should be served up to them in a pretty box with a bow on top and heaven forbid they actually have to work for it.

Escrow.com

This blog is inspired from a recent experience I had speaking with a twenty-one year old that couldn’t understand why they should pay board to their parents. Without even talking to their parents they’d made a series of decisions which meant they would have a reduced (not zero) income. They believed it was their parents responsibility to continue to support their lifestyle. Go figure?

When I quizzed them about this they cried, “It’s just not fair!”

I immediately responded, “Fair to whom?”

The response was a grumbled, muted reply.

During the last ten years, my generation has largely pampered (there are exceptions) this current crop of young adults. We build idiot proof interfaces for apps, provide them with miraculous technology and ensure the little darlings ego is continuously stroked.

I’m not sure what it is like in other countries but in Australia the education system has tried to eliminate all competition because it may adversely impact a child’s development. I’m not a child psychologist but seriously? These same “children” that have been brought up in cotton wool protective environments are now hitting their twenties.

Like children, they throw a temper tantrum when they can’t immediately step into a senior management role. The shock they go through when everyone older looks at them as if they are some sort of bazaar creature doesn’t even register. Throwing a tantrum worked all through school but the real world doesn’t put up with that behaviour.

The same generation wants everything now and they don’t care how much credit they need to use to get it. They don’t have any sense of patience and saving…..why should they when in one person’s case the bank provided a massive credit card to spend up on.

So this blog is a little bit of a rant but here’s the challenge for my generation…..we provide goods and service to these “brats”. There is an opportunity but make sure you get the cash before anything.

Have a great weekend!

Greenberg and Lieberman

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2016 From the Rear View Mirror

2016 From the Rear View Mirror

At the beginning of every year I like to think about the previous year and did any articles touch upon some interesting concepts that required further investigation. After trawling through my blog I came up with the below list of articles that I believe were some of the highlights of 2016 for me.

Escrow.com

How To Conduct a Domain Traffic Test

Traffic TestsSo many domain owners get incredibly confused by all the different companies that want to monetise their traffic for them. Which one is best? How do I really know if they are better than another? What is the best way to run a test? All of these questions are vital if you wish to get the most out of your domain traffic.

How to Conduct a Domain Traffic Test – Part 1

How to Conduct a Domain Traffic Test – Part 2

Selling Domains

Selling DomainsI wrote a lot about how to sell domains in 2016 but there were a couple of stand-out articles that tried to analytically tackle the issue of pricing. The article endeavoured to relate supply/demand curve for keywords to pricing domain names. It was an interesting piece of work that I plan on following up in the future.

How Much Are Your Domains Really Worth? - Part 1

Challenges of Selling Domains – Part 2

Demand Based Domain Pricing Strategy – Part 3

Using Analytics To Price Domains – Part 4

Portfolio Optimisation

Portfolio OptimisationI wrote a massive twelve-part series on portfolio optimisation and how to get the most from your assets across the different domain business models of; stock items domains, high value domains, building a business and traffic. Here is the first article in the series to wet your appetite.

Part 1 – Why Domain Portfolio Optimisation Works.

A few other topics that were covered in 2016 include:

  • Using domain traffic to predict Google’s quarterly earnings report in advance.
  • A financial analysis of Rightside.
  • An analytical piece on the state of the Chinese economy.
  • A number of video interviews
  • And of course…..my regular Saturday Musings about life.

I hope you enjoyed the journey we’ve had together through 2016 and that you are as enthusiastic as I am about 2017. I think 2017 will be known as the year of innovation and when the domain industry finally breaks out with some really great new ideas! More on that in future articles.

I would like to thank everyone that provided their valuable feedback on the 2016 articles and please don’t be shy in commenting/email/skyping me with your thoughts in 2017.

Greenberg and Lieberman

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Merry Christmas!

Merry Christmas!

I would like to take this opportunity to wish all those readers of Whizzbangsblog a very Merry Christmas and a Happy New Year. I would also like to say thank you to all those companies that have sponsored my blog over the last twelve months. Your continued support has inspired me to keep on writing about domains and business on the Internet.

In particular, I would like to highlight:

It’s with a sense of sadness and loss in my heart that I approach Christmas this year. A few days ago, Pepper, my feline friend of 16 years, passed away. She was a great friend that was the subject of many Saturday Musings over the years.

When I was working late at night she would come and curl up on the carpet next to me. At some point she would nudge me with her nose, hoping for a scratch behind the ears and to let me know it was time to stop working.

Whenever I went away on business my wife told me Pepper would sit in my study and look out the window waiting for my return. When I finally arrived back home she would scold me in a very cat-like fashion until she allowed me to give her a bit of a pat again….after all, I didn’t get her permission to leave the house.

We normally wrap a present for Pepper and stick it under the tree….typically, it’s her turkey dinner. Sadly, this year we’re not going to be doing that. Although there is a sense of loss I know she is lazing away in the sun in cat heaven.

So in memory of Pepper I would like to highlight a number of past blogs where she featured:

What a CATastrophe

Saturday Musings – Why My Cat Is a Genius!

Saturday Musings – Why Cats Are Geniuses

Saturday Musings – Being Obedient To Our Masters

Saturday Musings – When Someone Spoils Your Week….

I hope you enjoy reading those articles as much as I did writing them.

Have a very Merry Christmas and a Happy New Year.

Michael Gilmour

PS. I will be taking until the new year off writing.....so see you in 2017.

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What Influences Domain Traffic

What Influences Domain Traffic

I was having a really interesting discussion with a domain investor recently about why domain traffic appears to be reducing for some domains. What we first need to understand is not all domain traffic is equal. In this article, I’m going to attempt to unpack some of the reasons why domains experience losses/gains in traffic.

Escrow.com

For a start, other than arbitrage traffic, there are two main types of traffic:

1.      Link traffic
2.      Direct navigation

Link Traffic

Link traffic is generated from one website linking to another. For instance, I may value a particular article on Domain Name Wire and link to it from here. As an aside, Andrew Allemann (owner of dnw.com) has been doing a fantastic job for many years reporting on domain news and I highly recommend his website (no, he didn’t request this shout-out).

I will continue to link to Domain Name Wire as long as the article remains in place. Let’s imagine that Andrew decides to stop writing news and instead parks his website. At some point in time I’m going to remove my link to his website and any traffic that was flowing from whizzbangsblog to DNW will cease.

The problem with link based traffic is that over time more and more of the links are moved away from pointing to parked domain names. Any domains that are reliant upon a single high traffic domain are very risky investments as that link may be shut off and the traffic suddenly vanishes.

Direct Navigation

Direct navigation was first coined many years ago by Dan Warner of Fabulous and this traffic is when a user types directly into the address bar to reach a domain.

Interestingly, there has been a real assault by the search engine companies, computer manufacturers and operating system developers to try and discourage users from typing directly into the address bar. To date, the will of the users has reigned preeminent and the address bar still stands in the same place it did twenty years ago…..although it is somewhat smarter.

High value domains such as beds.com will always attract users but the vast majority of traffic domains are typos of a root domain. For example, bds.com is likely to get quite a lot of traffic spilling over from beds.com. In addition, some people accidentally link to a typo domain rather than the core root domain the meant to.

Most domain investors are more than aware of both the ups and downs of linked and direct navigation traffic but what else can cause traffic to ebb and flow?

Traffic is really all about people trying to get somewhere. So the question has to be asked, what made them have this desire?

Seasonality

Some domains have traffic that flows with the seasons. For example, I would imagine that sales of surf boards in the northern hemisphere wouldn’t be very high right now in the middle of winter.

There are more than just the seasons to think about with seasonality. It could be national holidays. Thanksgivings domains rise in traffic in November…..but only in North America. Easter is a broader holiday that has a more international appeal while Father’s Day in Australia is celebrated in September.

Some domains also may have a unique seasonality. For example, I had a domain that only spiked on a couple of days a year. It related to the world-wide celebration of the mathematical symbol pi and within those days I made thousands of dollars. Yes, I couldn’t believe such an event existed either.

Advertising Campaigns

If the root domain has an advertising campaign, then more traffic will flow through to it and any typos of that domain. Marketing managers are always after eyeballs and as well as bidding up keyword values they will at times artificially inflate other domains traffic levels.

Since marketers aren’t stupid, a logical reaction to a competitors marketing campaign may to run one yourself. Therefore, there may be a sudden surge in traffic for an entire industry and any domains associated with it.

News Coverage

Never underestimate the power of news coverage to drive traffic to domains. Many domain owners make a good living by paying attention to the news, registering domains and quickly reaping the benefits of the traffic.

It really makes you wonder whether it’s worthwhile trying to generate some news for a group of domains that you may control….maybe issue a press release or two on a root domain you may own and reap the benefit off the typos.

 

A huge number of forces are constantly buffeting domain traffic and that’s what makes it so interesting to analyse. With Christmas almost upon us we can see marketers demanding more and more traffic to help them meet this quarters targets.

So is domain traffic reducing? I would like to answer this with a yes and a no. Not really as much of the decline in traffic from western nations is being replaced by third world countries.

The challenge here is many of these countries are dependent upon cash as a medium of exchange rather than credit cards. Why is this important? With credit cards, online marketers can complete the revenue cycle from buying advertising right through to a purchase on their website. Even still, nearly 50% of Google’s advertising income comes from international sources.

When you look at your own domains traffic rise and fall then consider you may want to dig into why this is occurring. It’s unlikely to have anything to do with a technical fault at a parking provider and more than likely its some other force at work. Rather that trying to dig into the whys and why nots my suggestion is to spend your time finding more domains with traffic.

Greenberg & Lieberman

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Interview with Jackson Elsegood - Escrow.com

Earlier today I had the pleasure of interviewing Jackson Elsegood from Escrow.com. Jackson shared very openly about some of the developments that Escrow.com has done this past year.

Jack will be attending NamesCon at Las Vegas in January and is looking forward to meeting domainers to discuss how Escrow can further develop their services.

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