Comments on: The Evolution of My Business http://www.elliotsblog.com/the-evolution-of-my-business Domain blog featuring domain investing strategy, domain valuation, and domain development commentary from Elliot Silver, founder of Top Notch Domains, LLC. Thu, 09 Feb 2012 18:19:53 +0000 hourly 1 By: Enrico S. http://www.elliotsblog.com/the-evolution-of-my-business#comment-3998 Enrico S. Mon, 14 Apr 2008 13:24:26 +0000 http://www.elliotsblog.com/index.php/2008/04/12/the-evolution-of-my-business/#comment-3998 Elliot: I always find it interesting that the issue of developing domains with great content generates such passionate commentary. Many domainers simply see the added cost of development and conclude it is an inferior model. The cost of domain development forces domainers to reduce their domain portfolio volume in order redirect limited funds into development. Fewer domains in the portfolio must be a bad thing, right? The 'high cost' of developing domains is the biggest hurdle, no doubt. But, rest assured, the hurdle of ‘cost’ is being worked on by some very smart people. The days of low value, copied or artificial content in order to gain page rank are almost over. Google knows what web pages deserve to be on page 1. Web sites which seek to 'trick' the algorithm have short lives in the top three pages of search results. The Google algorithm is where value on the web (understanding that the domain name is one small part of commercial success on the internet) will be greatest. Page 1 worthy Google level content, partnerships and vertical affinity communities will be a natural outgrowth of the domain monetization business model for many domainers. For many reasons, we think hedging your bets by parking some domains and developing others is a solid business decision. We believe that domainers who simply intend to ride direct navigation PPC revenues have a much higher 3-5 year business risk. If PPC dries up and generic and descriptive domains have not trademark potential, sustaining growth and value in the domain name market seems unlikely. PPC advertising pages without any other content is fine for those who own very large domain portfolios with lots of top domains. For many domainers, PPC fortunes are neither the past nor the future. Plus, PPC will never overcome its stigma and association with identically designed and implemented cybersquatting sites. The PPC market gets tougher all the time. PPC revenue is down. Google and Yahoo could change the rules at any time. UDRP and trademark risks continue to increase as trademark holders are just now realizing that their on-line property is worth protecting and extending. 2,200 UDRP arbitrations? Do we understand how small that number is compared to the number of domains which are pure unabashed PPC cybersquatting? The trademark world is waking up. The trademark dam will burst open in part because of the fact that domainers are taking their message of domain value into the mainstream. Companies won't be taking their internet presence for granted much longer. Most domainers think that trademarks are a huge threat to domainers, with no benefit. Extension of trademark rights are, from my point of view, inevitable and present market opportunities for domains with content (yes, domainers to can have trademark rights!). In the next 3 years, domainers will need to evolve in two critical ways. One, they will need to protect their most valuable domains from the trademark dangers of PPC advertising and other activity which creates a higher risk of transfer under the UDRP. Two, they will need to find ways to create lasting value by embracing their portfolio’s status as intangible property. Intangibles enhance value by creating IP rights. This inevitably means development. Elliot: I always find it interesting that the issue of developing domains with great content generates such passionate commentary. Many domainers simply see the added cost of development and conclude it is an inferior model. The cost of domain development forces domainers to reduce their domain portfolio volume in order redirect limited funds into development. Fewer domains in the portfolio must be a bad thing, right?
The ‘high cost’ of developing domains is the biggest hurdle, no doubt. But, rest assured, the hurdle of ‘cost’ is being worked on by some very smart people. The days of low value, copied or artificial content in order to gain page rank are almost over. Google knows what web pages deserve to be on page 1. Web sites which seek to ‘trick’ the algorithm have short lives in the top three pages of search results. The Google algorithm is where value on the web (understanding that the domain name is one small part of commercial success on the internet) will be greatest. Page 1 worthy Google level content, partnerships and vertical affinity communities will be a natural outgrowth of the domain monetization business model for many domainers.
For many reasons, we think hedging your bets by parking some domains and developing others is a solid business decision. We believe that domainers who simply intend to ride direct navigation PPC revenues have a much higher 3-5 year business risk. If PPC dries up and generic and descriptive domains have not trademark potential, sustaining growth and value in the domain name market seems unlikely.
PPC advertising pages without any other content is fine for those who own very large domain portfolios with lots of top domains. For many domainers, PPC fortunes are neither the past nor the future. Plus, PPC will never overcome its stigma and association with identically designed and implemented cybersquatting sites. The PPC market gets tougher all the time. PPC revenue is down. Google and Yahoo could change the rules at any time. UDRP and trademark risks continue to increase as trademark holders are just now realizing that their on-line property is worth protecting and extending. 2,200 UDRP arbitrations? Do we understand how small that number is compared to the number of domains which are pure unabashed PPC cybersquatting? The trademark world is waking up. The trademark dam will burst open in part because of the fact that domainers are taking their message of domain value into the mainstream. Companies won’t be taking their internet presence for granted much longer. Most domainers think that trademarks are a huge threat to domainers, with no benefit. Extension of trademark rights are, from my point of view, inevitable and present market opportunities for domains with content (yes, domainers to can have trademark rights!). In the next 3 years, domainers will need to evolve in two critical ways. One, they will need to protect their most valuable domains from the trademark dangers of PPC advertising and other activity which creates a higher risk of transfer under the UDRP. Two, they will need to find ways to create lasting value by embracing their portfolio’s status as intangible property. Intangibles enhance value by creating IP rights. This inevitably means development.

]]> By: damir http://www.elliotsblog.com/the-evolution-of-my-business#comment-3995 damir Mon, 14 Apr 2008 03:58:04 +0000 http://www.elliotsblog.com/index.php/2008/04/12/the-evolution-of-my-business/#comment-3995 You are doing a GREAT job by education people which read your posts. You spend a lot of time to educate the readers of your post. Keep up the GREAT work and do not worry what others speculate. Stand strong even if you stand alone because that is what makes you YOU as an individual. I wish you WELL You are doing a GREAT job by education people which read your posts.

You spend a lot of time to educate the readers of your post.

Keep up the GREAT work and do not worry what others speculate.

Stand strong even if you stand alone because that is what makes you YOU as an individual.

I wish you WELL

]]> By: Allan http://www.elliotsblog.com/the-evolution-of-my-business#comment-3992 Allan Mon, 14 Apr 2008 00:38:52 +0000 http://www.elliotsblog.com/index.php/2008/04/12/the-evolution-of-my-business/#comment-3992 Many domain discussions, such as this one, focus on the "PPC vs. development" question. When domainers refer to "PPC," are they referrring to simply parking a domain or more broadly to any type of developed information site that relies on AdSense clicks. I ask this question because developting an "information" site with Adsense clicks seems to be a significantly easier endeavor than "development" requiring sponsors and/or partnerships with merchants. Thanks for the clarification. Many domain discussions, such as this one, focus on the “PPC vs. development” question. When domainers refer to “PPC,” are they referrring to simply parking a domain or more broadly to any type of developed information site that relies on AdSense clicks. I ask this question because developting an “information” site with Adsense clicks seems to be a significantly easier endeavor than “development” requiring sponsors and/or partnerships with merchants. Thanks for the clarification.

]]> By: Conor Neu http://www.elliotsblog.com/the-evolution-of-my-business#comment-3991 Conor Neu Sun, 13 Apr 2008 23:49:30 +0000 http://www.elliotsblog.com/index.php/2008/04/12/the-evolution-of-my-business/#comment-3991 Ok, thank you, I appreciate the update. Ok, thank you, I appreciate the update.

]]> By: Conor Neu http://www.elliotsblog.com/the-evolution-of-my-business#comment-3990 Conor Neu Sun, 13 Apr 2008 22:55:41 +0000 http://www.elliotsblog.com/index.php/2008/04/12/the-evolution-of-my-business/#comment-3990 <p>Hi Elliot,</p> <p>If you are referring to my post here, http://www.greentaxi.com/?p=672, where I said,</p> <p>"Elliot has acknowledged an increase in pace for selling his domains as he finances larger ventures,"</p> <p>I am sorry for painting you into a corner. You did acknowledge that you had increased your pace of selling domain names to finance the deveopment of others, which was the point I was trying to make. I think we are seeing this throughout the industry and one of my main points is that domainers are refining their portfolios by selling off a larger quantity of lesser value domains to focus on the development of higher value domains. This is leading to an increase of domains for sale in the market, both high and low quality, depending on the quality of each portfolio. By no means was I saying that you were liquidating and only developing. Your Perfect Portfolio references that clearly showing that you wish to maintain a book of speculative names.</p> <p>In the end, development is key. I do not think you need to defend yourself about developing. Very few would argue any more that PPC is better than developing. I am entirely in favor of development and while I was pointing out that more domains are for sale these days, I think that is a good thing for the industry, not a bad thing.</p> <p>Apologies again if I offended you.</p> <p>Conor</p> <strong>***UPDATED BY ELLIOT***</strong> It wasn't your post. The post I was referring to said "Elliot is selling off his portfolio," but that has since been revised. I didn't want anyone to get the impression that I am selling my portfolio due to bearish feelings on the domain industry. In my post, I was trying to say that I am selling quicker than normal to help pay for Burbank.com and also selling names I am not developing. I thought the "selling off his portfolio" comment wasn't accurate and I didn't want anyone to get the wrong impression. Hi Elliot,

If you are referring to my post here, http://www.greentaxi.com/?p=672, where I said,

“Elliot has acknowledged an increase in pace for selling his domains as he finances larger ventures,”

I am sorry for painting you into a corner. You did acknowledge that you had increased your pace of selling domain names to finance the deveopment of others, which was the point I was trying to make. I think we are seeing this throughout the industry and one of my main points is that domainers are refining their portfolios by selling off a larger quantity of lesser value domains to focus on the development of higher value domains. This is leading to an increase of domains for sale in the market, both high and low quality, depending on the quality of each portfolio. By no means was I saying that you were liquidating and only developing. Your Perfect Portfolio references that clearly showing that you wish to maintain a book of speculative names.

In the end, development is key. I do not think you need to defend yourself about developing. Very few would argue any more that PPC is better than developing. I am entirely in favor of development and while I was pointing out that more domains are for sale these days, I think that is a good thing for the industry, not a bad thing.

Apologies again if I offended you.

Conor

***UPDATED BY ELLIOT***

It wasn’t your post. The post I was referring to said “Elliot is selling off his portfolio,” but that has since been revised. I didn’t want anyone to get the impression that I am selling my portfolio due to bearish feelings on the domain industry. In my post, I was trying to say that I am selling quicker than normal to help pay for Burbank.com and also selling names I am not developing. I thought the “selling off his portfolio” comment wasn’t accurate and I didn’t want anyone to get the wrong impression.

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