Blogs about the domain industry and the various players and companies within it.

How Do We Measure Greatness?

Earlier this week I posted an article which opened up the topic, “Who is the Greatest Domainer?” From feedback, it became evident that there was a problem around the whole definition of “Greatest” and over what period of time. I hope to outline my thoughts on this topic here.

Escrow.com

To define “greatest we need to first ask, “Greatest in what aspect of business?” When a domain investor buys a domain name they typically have one of four ways they plan to make money from the transaction:

BUSINESS MODEL

1.       Traffic – the domain has traffic that can be monetized.

2.       Stock item sale – where the goal is to sell a lot of low value domains each year.

3.       High value sale – typically sell a few high value domains each year.

4.       Development – building a real business on a domain(s).

When we look at “greatest” then we need to consider in what business models is the individual regarded as being great. For example, Rick Schwartz is amazing at selling high value domains but last time I checked he doesn’t do development and certainly doesn’t optimize his traffic. This doesn’t mean he isn’t great (I think he is) but it highlights what he is great at.

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Who is the Greatest Domainer of All Time?

I read an interesting article on The Domains asking the readers who they thought was the greatest domainer of all time. Why was it interesting? Because it didn’t ask the most important question, “By what measure?”

Escrow.com

For instance, are we measuring someone’s success by the amount of money they earn or amount of profit? Whether they have built a sustainable business or sold one off high value domains? How about whether they actually give anything back to the industry versus take, take and then take some more? Or, how about how they treat others that may not be as monetarily successful as they are?

Can a person be regarded as “the greatest” if their personal life is a complete mess? They may have even sold a lot of high value domains and yet not have much to show for it after multiple family failures.

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Wolftalker
Anyone who realizes that this is One World and is using their domain wealth ethically.
18 July 2017
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Unlocking Value Through BIG Data

In this article, I’m going to let you into a little secret. You may not have heard of anyone else approaching domains the way I’m about to outline but in my opinion, it’s the future. These ideas are what keep me so entranced by domains.

Escrow.com

If you are wanting to extract the maximum amount of value from your domain names then the answer is in the data. It really doesn’t make a difference whether you are a buyer, seller, developer or traffic monetizer, the key to generating additional revenue always comes back to the numbers.

As I’ve spoken at conferences or written different blogs I’ve been accused of many things but there has been one consistent accusation that I’m actually quite proud. “You’re always banging on about the numbers!” I love my numbers and more than that, I love trying to interpret what they are telling me.

Over the past 10 years, my ParkLogic business partner and I have continued to be fascinated by domain names because the data tells so many different stories. We’ve taken this to the extreme level by tracking around 250 different metrics for every domain on our platform each day. This leads to hundreds of millions of data points that can be algorithmically analyzed and trend curves plotted over time to see where the next seam of gold will come from.

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Wolftalker
Interesting as always Michael. Congratulations on a good piece.
06 July 2017
mgilmour
Thanks for that!
06 July 2017
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What to do in the Coming Financial Earthquake

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.

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HRMInc
Wow. I sure hope you're wrong Michael... but we are taking your comments very seriously and and planning accordingly.
01 July 2017
mgilmour
I hope I'm wrong as well.....
03 July 2017
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Global Online Trends

I’m a self-confessed data junky. I love my numbers and if they can be plotted on a graph so I can see a trend then so much the better! Domain investors live and die by their numbers. If you ignore looking at the stats then you can miss out on some significant opportunities and take bullets rather than dodging them.

Escrow.com

Beyond the numbers and charts is understanding how to interpret them and how they may impact your business decisions. From a very high level there are a number of charts that I like to pay attention to and in this article, I’ll step you through them.

World-wide Growth in Internet Users

Ultimately underpinning every e-commerce transaction is a person wanting to buy, watch, click or doing anything. If the number of Internet users suddenly began decreasing then I can guarantee that it’s going to have a big impact on your business.

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