Please click on the below link to view the first two parts of A History of RPM:
Part 1 - A History of RPM
Part 2 - A History of RPM

The volume of domains being dropped was so high that Verisign found it was being buffeted by the Google margin grab. During this time, you could track the impact a one cent PPC drop would have on Verisign’s revenue line.

I remember conducting an analysis that concluded it would be financially viable for Verisign to underpin the entire domain investment industry so domains weren’t dropped. From memory it showed that every domain dropped cost Verisign $73 of market capitalisation. By underpinning the PPC payouts by diverting marketing dollars directly into the monetisation companies Verisign could halt the tsunami of drops from marginally profitable domains.

Several years after the GFC Google had reached rock bottom with the margin grab. I can only surmise that if they kept on increasing their margin then the partner network would essentially collapse. This would not be a good thing to happen right in the middle of rumblings about monopolistic behaviour at the legislative levels.

What we shouldn't miss in this whole saga is that Google's behaviour has been completely economically rational. They have the interests of shareholders to consider and not the domain industry. Those domain investors that moaned about what Google was doing needed to make changes to their businesses and do something different.

This is the second in the series on "The History of RPM" and refers to the forumula discussed in Part 1.

Please click on the below link to view Part 1 of a History of RPM:
Part 1 - A History of RPM

A number of years ago, one domain parking company (Domain Sponsor) controlled a HUGE volume of traffic and ruled the industry. Using their market power, they began to dictate terms to Google. Although I wasn’t privy to internal discussions, I could view Google’s response from an external perspective.

Since a contract was in place Mg was VERY HIGH and Google was bound to pay a bonus for what they previously thought would be impossible high traffic levels. This created a virtuous spiral for Domain Sponsor. As payments increased, they sucked in more traffic, climbed the tiers and they then increased payments further etc…..well, you get the idea.

What did Google do? They shattered the market by issuing a whole lot of new contracts (eg. Parking Crew, Internet Traffic, Voodoo etc) and wrote contracts that provided sunrise clauses to new players, so the traffic was sucked out of Domain Sponsor and the tail was no longer wagging the dog. They then rewrote the contracts with shorter terms and different values for Mg.

For those of you that are familiar with Domain Sponsor you will also know that it no longer exists. This could be blamed on a whole variety of reasons from bad management and VC driven outcomes through to Google but the fact remains that the once king of the domain industry was dethroned and ground into the dust.

This is the second part of the series on "Dealing With Stress". The first can be view by clicking here.

I woke up on day two feeling much better and like a load was off my shoulders. My mind was in a position where I could begin thinking about how to better manage circumstances moving forward.
In all my pondering I had two words resonating in my head, “Be Deliberate.”

What do I mean by this? Be deliberate where I put my time, be deliberate which relationships to invest in, be deliberate about what opportunities to pursue, be deliberate about what tasks I pick up, be deliberate about everything in life.

It was like a lightbulb going off inside my head. If I could just be deliberate, then many of the issues that I was wrestling with would come into line.

Upon reflection, the vast majority of my stress was because I let other people push me into the passenger seat of my life’s car. I was jumping from one issue to another because someone demanded that I respond immediately…..in computer terminology this is called thrashing. Nothing is finished and everything half completed.

By being deliberate I had settled once again into the driver’s seat and it felt good. After another day’s contemplation I put some things into place that have transformed who I am and made my life so much better.

What I’m going to suggest may be obvious for some readers but for me it was revolutionary. The first thing I did when I returned home was apologise to the family for my “silent treatment”. Nothing like a good serving of humble pie to start you off in the right direction.

In this series of articles, I plan on sharing my insights into RPM and how this metric has impacted all our lives in the domain industry over the last decade. I hope you enjoy the articles as much as I have writing them.

For those of you that are unaware, RPM means Revenue Per Thousand Visitors. I find that very few people understand how this universally accepted measurement term is calculated and how it can vary from one provider to another. During the following articles I will be referring to how RPM has shaped the history of the domain industry….

Most people would be aware of the formula for a domain’s RPM looks like the one below:

This looks simple enough until you begin to dig into it. The reality is that a sustainable market RPM formula it looks something more akin to the following:

People often describe their hectic lives of racing around for other people, having too much to do in too short a time or dealing with difficult relationships as stressful. They would be exactly right. Earlier this year I found myself maxed out by stress and it wasn’t a good place to be.

I’ve experienced quite a number of stressful times in my life with varying levels of intensity. For example, many years ago, when I was told that a $1.5 million payment was not coming, I found myself under a lot of stress. What was really strange was the stress I recently experienced far exceeded that event and yet, it didn’t involve any money at all.

The crazy thing is that when you’re going through a lot of stress, you’ll convince yourself that your decision making is spot on and your behaviour towards others is perfect. Nothings changed right? Wrong!

What was I doing? I hadn’t been walking around the house in a rage, or yelling at the kids….I’d done something almost worse than that, I’d retreated into silence. I may as well not have been at the meal table each night as I silently ate dinner while my mind raced through all the myriad of things I was juggling. What I realise now is that it was terrible for the rest of the family to watch me as I closed off towards them.