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Understanding Domaining: Sarah's Thoughts

Understanding Domaining: Sarah's Thoughts

Today I have the privilege to be writing my very first article for Whizzbangs blog. Can I just say, that it’s a lot of pressure not only to be writing for a successful blog, but also to be writing on a topic I don’t know too much about.

escrow.com

I think from my perspective that’s where I struggle. I feel like there is a huge gap between knowing about domaining and understanding what its all really about. I mean, still today when someone asks me about my dad I struggle to explain what he does to a person my age. It normally starts off with “…well, he sits on the computer a lot” and for a lot of people that already generally enough to shut off.

As I watch their eyes glaze over, I fumble and try to explain in the simplest terms what domaining is about. Bottom line is nothing about domaining to me is simple. People my age are very tech savvy when it comes to social media, computers and video games, but as soon as something as technical as domaining comes up I can see my friends (as polite as they are) just shut down. I was once the same, until I realized how interesting business can be!

Now that I am working part time for Whizzbangs Blog I have already learnt so much! I’ve been actually excited to look at spreadsheets (unlike when I was at university) and its even better when all the numbers actually make sense a little bit. But my question to you all is how do you describe what your job is to someone who has never heard a thing about domaining?

I’d love to get know many of you in the domaining industry as I know my journey has only just begun! Please leave comments and feel free to reach out to me and share your own journey!

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Comments

whizzbang on 08 March 2016

Sarah, welcome to the Domaining world! , you have got a very good teacher.
"But my question to you all is how do you describe what your job is to someone who has never heard a thing about domaining?"
Maybe "Digital Asset Advisor"?
Enjoy your new job!

Sarah, welcome to the Domaining world! :D, you have got a very good teacher. "But my question to you all is how do you describe what your job is to someone who has never heard a thing about domaining?" Maybe "Digital Asset Advisor"? :) Enjoy your new job!
sarahgilmour on 09 March 2016

Thank you! I do have a great teacher! I'll be sure to use that line when I am next asked what my dad does. Or hopefully actually be able to explain it all properly as I learn more

Thank you! I do have a great teacher! I'll be sure to use that line when I am next asked what my dad does. Or hopefully actually be able to explain it all properly as I learn more :)
BradenP on 08 March 2016
Welcome to the wonderful world of domaining!

Hi Sarah
Dad sucked you in, huh? Well, he's a good mentor.
When explaining domain investing, I usually use the real estate analogy. The domain is an internet address, like the address for vacant land - while a website is like the structure on the land. The structure, like a website, can be a small house or a skyscraper. It needs to be built and maintained and can burn down and disappear. The land (just an address), however, will always be there. it can't go away - and requires little to maintain. Land typically appreciates in value over time - just like internet addresses. Investing in virtual real estate is no different from investing in actual real estate - except that it's easier.
I hope that helps!

Hi Sarah Dad sucked you in, huh? Well, he's a good mentor. When explaining domain investing, I usually use the real estate analogy. The domain is an internet address, like the address for vacant land - while a website is like the structure on the land. The structure, like a website, can be a small house or a skyscraper. It needs to be built and maintained and can burn down and disappear. The land (just an address), however, will always be there. it can't go away - and requires little to maintain. Land typically appreciates in value over time - just like internet addresses. Investing in virtual real estate is no different from investing in actual real estate - except that it's easier. I hope that helps!
sarahgilmour on 09 March 2016
RE:Welcome to the wonderful world of domaining!

Hi Braden!
Thanks so much for your comment! It makes a lot of sense when you put it that way! Especially because a lot of my friends are in the real estate industry! So they will be able to relate to that easily

Hi Braden! Thanks so much for your comment! It makes a lot of sense when you put it that way! Especially because a lot of my friends are in the real estate industry! So they will be able to relate to that easily :)
vanclute on 08 March 2016

Braden is right, real estate makes for a great analog. In particular, I like to use billboard advertising (like everyone sees on the side of the highway) as a simple analogy. For every person that "drives past" your billboard, you make money. The more billboards you own, the more money you can make. Of course it's not actually as simple as that (they usually have to click on something or perform some sort of action, etc.), but it's good enough that most people will probably get it, at least somewhat.

Personally, I tell very few people what I actually do, especially since domains have gone from being a small side project years ago, to 99% of my income. I generally just say I'm in software development (which since I develop systems and automation for managing my traffic and domain portfolio, is actually true) and that's enough for almost everyone to lose interest. Once in a while someone (usually a fellow internet marketer, but in a different area of that industry) will talk to me about it, and I can tell that they'll actually understand if I get into the details, and so I do. But that's quite rare.

You've definitely got the right mentor in your dad though, not to mention having a voice on his blog where you can interact with others in the industry. If it holds your interest, you've got yourself a great foothold into this industry!

Welcome aboard!

Jonathan

Braden is right, real estate makes for a great analog. In particular, I like to use billboard advertising (like everyone sees on the side of the highway) as a simple analogy. For every person that "drives past" your billboard, you make money. The more billboards you own, the more money you can make. Of course it's not actually as simple as that (they usually have to click on something or perform some sort of action, etc.), but it's good enough that most people will probably get it, at least somewhat. Personally, I tell very few people what I actually do, especially since domains have gone from being a small side project years ago, to 99% of my income. I generally just say I'm in software development (which since I develop systems and automation for managing my traffic and domain portfolio, is actually true) and that's enough for almost everyone to lose interest. Once in a while someone (usually a fellow internet marketer, but in a different area of that industry) will talk to me about it, and I can tell that they'll actually understand if I get into the details, and so I do. But that's quite rare. You've definitely got the right mentor in your dad though, not to mention having a voice on his blog where you can interact with others in the industry. If it holds your interest, you've got yourself a great foothold into this industry! :) Welcome aboard! Jonathan
sarahgilmour on 09 March 2016

Hey Jonathan!
I like the billboard analogy too! I'm so glad I've got a few more ways to explain to people what domaining is all about! But most people, like you said, struggle to be interested. But I think this is mainly based on a lack of understanding. The only way I can imagine people would want to learn about it is when you start talking about the dollar figures!

I find most young people are always looking at the big goal and the big bucks! Which is totally fine but they lack the motivation and curiosity to even make a step closer to their goal. Therefore they normally start with a huge amount of enthusiasm and vigour, but when they fail or dont see results quick enough the just give up!

I do have a fantastic mentor! And its awesome that he is so patient because I can see myself asking the same questions over and over again! But there is no such thing as a dumb question I have been told

Thanks again for your response!
Sarah

Hey Jonathan! I like the billboard analogy too! I'm so glad I've got a few more ways to explain to people what domaining is all about! But most people, like you said, struggle to be interested. But I think this is mainly based on a lack of understanding. The only way I can imagine people would want to learn about it is when you start talking about the dollar figures! I find most young people are always looking at the big goal and the big bucks! Which is totally fine but they lack the motivation and curiosity to even make a step closer to their goal. Therefore they normally start with a huge amount of enthusiasm and vigour, but when they fail or dont see results quick enough the just give up! I do have a fantastic mentor! And its awesome that he is so patient because I can see myself asking the same questions over and over again! But there is no such thing as a dumb question I have been told :) Thanks again for your response! Sarah
Guest - Nizam on 08 March 2016
Welcome.

Welcome to the wonderful world of domaining, Sarah..

I'm sure you'll learn the ropes pretty quickly with the caliber of a mentor you have..
Best Wishes..

Welcome to the wonderful world of domaining, Sarah.. I'm sure you'll learn the ropes pretty quickly with the caliber of a mentor you have.. Best Wishes..
sarahgilmour on 09 March 2016
RE:Welcome.

Thank you so much!
My mentor is fantastic, very much an expert! It great to have someone willing to teach me

Thank you so much! My mentor is fantastic, very much an expert! It great to have someone willing to teach me :)
Guest - Fred on 08 March 2016
Well done Sarah..

Congratulations on your first posting.

You will learn a lot about Domaining. You will also learn many things about investment, finance, business and human nature.

Take it all in, it will serve you well in the future in your personal and professional life.

Well Done.

Congratulations on your first posting. You will learn a lot about Domaining. You will also learn many things about investment, finance, business and human nature. Take it all in, it will serve you well in the future in your personal and professional life. Well Done.
sarahgilmour on 09 March 2016
RE:Well done Sarah..

Thanks Fred!
My eyes have been opened to a much bigger world of business I didnt even know was there!
I'm sure as I continue on I will learn more and more!

Thanks Fred! My eyes have been opened to a much bigger world of business I didnt even know was there! I'm sure as I continue on I will learn more and more! :)

You're obviously a young, bright, beautiful person with a brilliant world of opportunity ahead of you. So I post this because there is still hope...

Purge the term 'domaining' from from your brain. Do not ever look back. It is an evil time sink that devours your soul at every opportunity. Rumor is that Jeffrey Dahmer was a domainer...do you really want to follow in the footsteps of someone like him?

Become a doctor instead.

You're obviously a young, bright, beautiful person with a brilliant world of opportunity ahead of you. So I post this because there is still hope... Purge the term 'domaining' from from your brain. Do not ever look back. It is an evil time sink that devours your soul at every opportunity. Rumor is that Jeffrey Dahmer was a domainer...do you really want to follow in the footsteps of someone like him? Become a doctor instead.
sarahgilmour on 09 March 2016

Thank you!
Maybe I could be the fresh young face that the business community needs!
I most definitely do not want to end up like him, but if I end up even half as great as my dad then I'll be pretty happy
As for being a doctor, I think I may leave that profession to my little sister!

Thank you! Maybe I could be the fresh young face that the business community needs! :p I most definitely do not want to end up like him, but if I end up even half as great as my dad then I'll be pretty happy :) As for being a doctor, I think I may leave that profession to my little sister!
Guest - Joe Styler on 09 March 2016
Welcome to the blog

The first paragraph shocked me into reading the article. I thought what is Michael talking about, writing his first article for the whizzbangsblog? Good article and I am sure you will pick things up fast with your dad around to help. Also if you are anything like your brother you will soon be more popular than your dad at the shows I still miss seeing him.

The first paragraph shocked me into reading the article. I thought what is Michael talking about, writing his first article for the whizzbangsblog? Good article and I am sure you will pick things up fast with your dad around to help. Also if you are anything like your brother you will soon be more popular than your dad at the shows :) I still miss seeing him.
sarahgilmour on 09 March 2016
RE:Welcome to the blog

Hi Joe!
Well I am glad the post caught your attention! Hopefully I will have many blogs to share! I would love to hear what you all would like me to write about, as I'm sure my perspective is quite different to some professionals! Though I hope they turn out refreshing and a bit of a laugh
Well I have no doubt that I will be more popular then both of them Its great to hear that, I'm sure Tim is having the time of his life working overseas

Hi Joe! Well I am glad the post caught your attention! Hopefully I will have many blogs to share! I would love to hear what you all would like me to write about, as I'm sure my perspective is quite different to some professionals! Though I hope they turn out refreshing and a bit of a laugh :) Well I have no doubt that I will be more popular then both of them :p Its great to hear that, I'm sure Tim is having the time of his life working overseas :)
Joseph Peterson on 10 March 2016

Yesterday I met a professional stunt man. He was dressed like a cowboy and spoke with a lean Arkansas drawl. Actually, he was practicing his lines for an audition today – a speaking role.

Suppose he told me that he falls off horses and lights himself on fire for a living. That'd get blank stares. Instead, he told me he's in the next Jeff Bridges film. He began by mentioning common ground – something I'd recognize and be familiar with.

Being a stunt man is a weird job, just like being a domain investor. But we all know about movies. So that's where understanding starts.

Similarly, we all know about websites and brand names. The idea of digital real estate can seem a bit abstract, disconnected from what ordinary people do. So instead I try to begin by talking about websites and brands people know, ask them where they'd expect to find a brand called Uber or Twitter online (usual answer: ".COM"), and ask what they'd ideally call some website idea of their own. Once they can relate to domain names the way they relate to movies (i.e. as something they use), then I explain that there's a market for buying and selling domains. Then it clicks.

Yesterday I met a professional stunt man. He was dressed like a cowboy and spoke with a lean Arkansas drawl. Actually, he was practicing his lines for an audition today – a speaking role. Suppose he told me that he falls off horses and lights himself on fire for a living. That'd get blank stares. Instead, he told me he's in the next Jeff Bridges film. He began by mentioning common ground – something I'd recognize and be familiar with. Being a stunt man is a weird job, just like being a domain investor. But we all know about movies. So that's where understanding starts. Similarly, we all know about websites and brand names. The idea of digital real estate can seem a bit abstract, disconnected from what ordinary people do. So instead I try to begin by talking about websites and brands people know, ask them where they'd expect to find a brand called Uber or Twitter online (usual answer: ".COM"), and ask what they'd ideally call some website idea of their own. Once they can relate to domain names the way they relate to movies (i.e. as something they use), then I explain that there's a market for buying and selling domains. Then it clicks.
sarahgilmour on 11 March 2016

Very interesting stuff Joseph! Another great way to explain it! I've already had to put it into practice recently and I feel like I'm making progress! The more I know the easier it becomes to explain it to someone else. Although I'm pretty good at talking my way through anything, it most definitely helps to know a thing or two about the topic

Very interesting stuff Joseph! Another great way to explain it! I've already had to put it into practice recently and I feel like I'm making progress! The more I know the easier it becomes to explain it to someone else. Although I'm pretty good at talking my way through anything, it most definitely helps to know a thing or two about the topic :)
Guest - Venu on 12 March 2016
Welcome to Domaining

Welcome to Domaining Sarah. I recently started and can tell you this is really amazing industry. All big Domainers are really humble and always ready to help us. I'd be interested to know what type of names are you focusing as a beginner?

As you know there are lots of types like keyword names, geo names, Chinese premium, etc. Looking forward to read your posts and get to know fellow beginner views.

Cheers
Venu

Welcome to Domaining Sarah. I recently started and can tell you this is really amazing industry. All big Domainers are really humble and always ready to help us. I'd be interested to know what type of names are you focusing as a beginner? As you know there are lots of types like keyword names, geo names, Chinese premium, etc. Looking forward to read your posts and get to know fellow beginner views. Cheers Venu
sarahgilmour on 17 March 2016
RE:Welcome to Domaining

Thanks Venu. It's been really great receiving all the feedback and comments. At the moment I'm focused only on writing blogs, but I've been interested in learning about all the new gTLD's. Eventually I would love to start buying some domains in the near future

Thanks Venu. It's been really great receiving all the feedback and comments. At the moment I'm focused only on writing blogs, but I've been interested in learning about all the new gTLD's. Eventually I would love to start buying some domains in the near future :)
Guest - Zac Zarev on 15 April 2016
Welcome to Digital Brokerage and Development

Welcome to the industry!

Domain names are used primarily for two services - Emails and Websites. I include emails first as you can't email an app! The namespace is also global, so unlike separate namespaces (Google, Apple, Microsoft Stores) you're not under the whim of just one company (ICANN consists of several members/groups) which all work to make sure things just work.

As far as describing what we do, Adam Dicker asked a similar question, the outcome was:
Domain (Name) Investor
Domain (Name) Agent
Domain (Name) Broker
Domain (Name) Developer
Digital Investor
Digital Agent
Digital Broker
Digital Developer

The fifth through eighth are for when say you also write apps or provide other value-add services. Flippa.com is a marketplace that sells websites with domains.

The main reasons for value for a domain name are:
Acronyms of Business Names (Nice and easy for email addresses and websites). For Example HA.com
Keywords (Products/Services) For Example Shoes.com
Geo (Geographical, sometimes combined with Keywords) For Example PerthGardening.com
Marketing (Say in a call-to-action to be userd on ads/billboards etc) For Example MakeMyDay.com
Brands For Example Nike.com
Type In Traffic (People typing in the domain name, likely after giving up on search engines; akin to people walking past your store o a busy street)
Authority (To position yourself as a leader in a field - people expect if you own the domain you must be authority on the keyword)
Identity and Ownership (Some services use identity of the domain - whois record - to prove you are who you say you are; whereas Ownership of a domain can be used as an alternative to bonds/cash/notes that can be traded - similar to how Bitcoin would be used) For the former a whois lookup on a .com.au will provide the Australian Business Number Associated with a Domain Name; for the latter Godaddy I believe may be developing such a service.

Generally the Value of a Great* Domain used for sale (rather than development only) is:
Two Letter: $1M+
One Word: $500K+
Two Word: $100K+
Though most are valued substantially lower.

If you drop to a regional domain name space (say Australia - .COM.AU), those numbers go down an order of magnitude or so.

The price of great domains varies on the value delivered to the buyer and their ability and willingness to pay. More specifically, the best prices are achieved when selling to a buyer that can use the domain for the domain's best possible use (BPU), and they have the funds to pay for it; or are willing to lease the domain; or enter into a lease to own arrangement. Best possible use for Shoes.com is someone selling shoes, rather than say someone selling thongs, as though they're bost shoes, there will be people going to that domain expecting to get more than just thongs.

Welcome to the industry! Domain names are used primarily for two services - Emails and Websites. I include emails first as you can't email an app! The namespace is also global, so unlike separate namespaces (Google, Apple, Microsoft Stores) you're not under the whim of just one company (ICANN consists of several members/groups) which all work to make sure things just work. As far as describing what we do, Adam Dicker asked a similar question, the outcome was: Domain (Name) Investor Domain (Name) Agent Domain (Name) Broker Domain (Name) Developer Digital Investor Digital Agent Digital Broker Digital Developer The fifth through eighth are for when say you also write apps or provide other value-add services. Flippa.com is a marketplace that sells websites with domains. The main reasons for value for a domain name are: Acronyms of Business Names (Nice and easy for email addresses and websites). For Example HA.com Keywords (Products/Services) For Example Shoes.com Geo (Geographical, sometimes combined with Keywords) For Example PerthGardening.com Marketing (Say in a call-to-action to be userd on ads/billboards etc) For Example MakeMyDay.com Brands For Example Nike.com Type In Traffic (People typing in the domain name, likely after giving up on search engines; akin to people walking past your store o a busy street) Authority (To position yourself as a leader in a field - people expect if you own the domain you must be authority on the keyword) Identity and Ownership (Some services use identity of the domain - whois record - to prove you are who you say you are; whereas Ownership of a domain can be used as an alternative to bonds/cash/notes that can be traded - similar to how Bitcoin would be used) For the former a whois lookup on a .com.au will provide the Australian Business Number Associated with a Domain Name; for the latter Godaddy I believe may be developing such a service. Generally the Value of a Great* Domain used for sale (rather than development only) is: Two Letter: $1M+ One Word: $500K+ Two Word: $100K+ Though most are valued substantially lower. If you drop to a regional domain name space (say Australia - .COM.AU), those numbers go down an order of magnitude or so. The price of great domains varies on the value delivered to the buyer and their ability and willingness to pay. More specifically, the best prices are achieved when selling to a buyer that can use the domain for the domain's best possible use (BPU), and they have the funds to pay for it; or are willing to lease the domain; or enter into a lease to own arrangement. Best possible use for Shoes.com is someone selling shoes, rather than say someone selling thongs, as though they're bost shoes, there will be people going to that domain expecting to get more than just thongs.
mgilmour on 15 April 2016
RE:Welcome to Digital Brokerage and Development

Excellent advice and provides a level of detail as well....I hope that Sarah is listening :-)

Excellent advice and provides a level of detail as well....I hope that Sarah is listening :-)
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