Saturday Musings - Getting Out of Your Financial Mess

20170708_richestman

Do you ever feel like everyone seems to be putting their hands into your wallet and helping themselves? Bills and taxes keep on rising and living is more and more expensive each year while your pay continues to shrink in size. There seems to be less left over for you to enjoy life.

Escrow.com

Many years ago I read a fantastic book that I would highly recommend to anyone…..and no, it wasn’t my book, Battleframe (although it isn’t a bad read). The book was “The Richest Man in Babylon” and the author illustrates a number of principles about managing money through stories…..it’s really a compelling read.

The first point he raised was, “Pay Yourself First”. What this means is keep some of the money for yourself……not your bills but for you. If you need to negotiate with creditors and pay them over a period of time then do so but whatever you do pay yourself now. An amazing thing will happen, you will pay off your creditors and also manage your expense line appropriately.

Continue reading
782 Hits

What to do in the Coming Financial Earthquake

20170627_world

I’ve written a number of articles over the past year on the looming problem of the Chinese debt situation. It’s currently just shy of 300% of GDP and this doesn’t bode well for domain investors reliant on cheap Chinese capital to purchase their domains at hugely inflated prices. So should we really panic?

Escrow.com

I saw the following charts in a recent Bloomberg article that puts the Chinese debt problem into perspective. What’s interesting about this chart is that China’s flatter line shows that it’s not getting as big a GDP bang for its debt buck compared to some other nations. Also notice that Germany is retiring debt even while sharply increasing its GDP per capita.

GDP to Debt

The USA is continuing to increase debt while getting a lot of GDP per capita from it.....but the debt still continues to increase. At some stage the piper has to be paid and if the current trends continue it will be more when not if.

Continue reading
967 Hits

Video - Thoughts on Development

Video - Thoughts on Development

As a part of the 10 year anniversary celebrations I discuss my thoughts on development. I hope you enjoy this second video in the series.

Escrow.com

I have developed a lot of different websites over the years using a large variety of software platforms. From this experience the current suite of content management systems (eg. wordpress, Joomla etc.) lack a number of key components that domain investors require if they are to scale their development effectively.

In the video I discuss a number of the projects that I'm working on that endeavour to solve many of these problems.

986 Hits

Domain Traffic Predicts Google Result

Domain Traffic Predicts Google Result

I’ve been wanting to write this article for a while now but I’ve been flat out building a new ParkLogic system. Back on the 12th of October I wrote an article on the fact that I believed that domains could be used to predict a large chunk of Google’s quarterly results. Guess what! I was right!

Escrow.com

For those of you that would like to read the previous articles these can be found at:

The Percentage of Advertising Revenues Google Pays Domainsers

Predicting Google's Quarterly Domainer Payout

In my analysis, I predicted Google’s Traffic Acquisition Cost to Network Members (of which the domain channel is a part) would be flat for Q3. I even presented the following chart predicting this number.

Prediction of Google Results

After reviewing the results presented by the Google quarterly earnings report the actual Traffic Acquisition Cost moved from 21.1% to 21.3% (ie. almost flat). This number can be seen in the below chart from the Google quarterly earnings announcement.

Google Results

What this suggests is domain data can potentially be used as a predictor of a major part of Google’s earnings PRIOR to any announcements that they may make to the market.

A word of caution. Since Google’s results are in the billions and slight perturbations in some of the numbers used to calculate the result may result in a large swing in the prediction. With any luck, I can deal with most of these factors but more time is required to determine whether the prophetic nature of domain traffic can be consistently and accurately applied to Google’s earnings call prior to the call itself.

So don’t speed-dial your broker as yet and remember that this series of articles is as much about proving how valuable domain traffic is as about playing the stock market!

Lieberman and Greenberg

6061 Hits

Saturday Musings - Why Domains Are Like the “One Ring”

Saturday Musings - Why Domains Are Like the “One Ring”

Author, JRR Tolkien, suggested in “The Lord of the Rings”, that the one ring allowed wearers to rule but each time they put it on they tended to spiral down into deprivation and psychosis. The character of Frodo did his best to resist the rings temptations but sometimes he just couldn’t help it. I sometimes wonder whether domains are a lot like this.

Gollum - have you bought the .comRemember when you bought your first domain name? The nervousness of the purchase followed by the terror of what the heck are nameservers and EPP codes. But you were hooked. The desire to buy or sell just one more domain each day becomes an irresistible allure that you just can’t seem to deny. If you don’t believe me then consider the following….

What’ the first thing you do each day? Is it check your domain stats to see whether they are up or down? How about jump onto Afternic or Sedo to check out any domain offers?

What’s the last thing you do before you go to bed? My wife used to ask me whether I’d tucked my computer in as yet….which is a euphemism for have I checked my domain stats?

When you really consider it the last thing we needed was the monetisation providers, registrars and marketplaces to develop apps and responsive websites. This then meant we could feed our addiction to domains during the day while we were catching a train, in a staff meeting or having a coffee with our loved ones.

Of course we could disguise our domain addiction by mumbling something about checking up on an important client email, but between you and me, we know the truth. You’re a domain addict.

I bought a domainSo what is it that is so mesmerising about something you can’t touch, talk to and is full of technical mumbo jumbo? I think I have the answer to that question. Domains are all about power. We may be embarrassed to admit it, but any domain addict worth their salt loves the fact that they own and control something that can impact the world, is unique and, well, hmmmm…..precious.

So deep down inside we are all “Lord of the Rings” Gollum’s coveting our preciouses. Let’s look at the similarities. The one ring impacted the world, so do domains. Tick! There was only one “One ring” and there is only one of each domain. Another tick! The one ring was precious and so are domains. Let’s face it, most of our domains have little stories about how we acquired them and we recount other addicts all about them over drinks at conference bars.

I could carry the analogy further by saying that we, domain owners, stare at computer screens in the dark…..Gollum stared at silver fishes in the dark. He was addicted to the ring….we are to domains. The list goes on and on….which leads me to one conclusion…..the size of eyes of some NamesCon attendees seems to be getting larger each year……oh dear, they may be on their way to “Gollumhood”.

What’s also interesting about domains is the social structure they have developed. Consider for a second who has a more important social standing. The domain investor that owns download.com or joes-pizza-shop-around-the-corner-is-open-now.com?

The domain is locked precious!So like the “One ring” domains do imbue a kind of power! I’m either a somebody or a nobody because of my domains. So when you look at the flood of investors into the new gTLDs it’s all about their quest for controlling something that is powerful.

What many don’t realise is there’s “one .COM to rule them all and in the darkness bind them”. This is a fancy way of saying that you may own an amazing new gTLD but ultimately you will bend your knee to the .COM. It makes me wonder how long it will be until there is a rebellion……

I don’t know about you but right now I’m feeling an incredible urge to go an register just one more precious....I mean domain…..and then it will be mine! All MINE!

Have a great weekend.

1134 Hits