Newfound Names LLC » General Thoughts

New Becomes Old

Mon, 14 Apr 2008 21:25:12 +0000

About a year ago I looked up the first domain we ever sold. Strangely enough there were ads on the site … who would have thunk ….

What I found interesting was this name (which was hand registered by me in 1998 and sold in 2000) had a WHOIS record showing the domain was created in 2002.

Funny, I sold this name a couple years before it was officially created.

Using the domain history tool at DomainTools it was easy to find the creation date of 1998 but this is our business so we know how to find information. End users and buyers sometimes take the WHOIS information for face value and try to negotiate for a better price since the name is not that old. A good domain can be a day old or 10 years old - it really doesn’t matter. If mortgage.com was registered yesterday we (and most of you) would still pay a suitcase full of cash for that name today.

If you have development plans then its wiser to spend time researching how a domain fits in your overall business plan than focus on minor details such as age.

A good domain is a good domain.

What is new becomes old.

It’s as simple as that.

Exit Strategy - Do you Have One?

Tue, 08 Apr 2008 19:09:36 +0000

At some point every business owner (not just domainers) look to sell or “exit” the business. In this industry it seems many people are building and building portfolios so someday they will “exit” by selling the entire portfolio to a buyer.

Is this really a valid exit strategy?

It certainly sounds great but it’s also the elusive dream for many domain owners as portfolio buyers are few and far between – at least those that want to pay a fair price.

Keep your head out of the clouds (visit every now and then) and spend time developing a real exit strategy – one which is deeper than simply finding the right buyer. Remember, if you can’t find someone to pay $100,000 for your portfolio today what makes you think you have a better chance of selling a bigger portfolio for $2,000,000 (using the same logic) down the road. Sure, it’s possible but money gets harder to find the higher you go.

Develop an exit plan that contains multiple exit points. Build a smaller portfolio with some great names, have some developed sites, create a brand within a specific sector. So many options but each one will be an exit point in your overall exit plan.

All kinds of exit strategies exist but the question is – do you have one?

We or I - When to Change Back…

Wed, 02 Apr 2008 21:18:38 +0000

You have to love this business. Where else can you make money in your underwear? It doesn’t matter what you wear to work because a computer is your connection to the world – not a physical office.

Warning: It’s a scary vision to imagine all domainers in their underwear so I will assume you all look like Kate Beckinsale for the moment.

Many of us are lucky enough to earn a living in this business so when dealing with other companies (raising investment capital, offering services, negotiating a deal, applying for a loan, etc..) how many of you use the royal “we” – the one meaning your company. ”We” certainly sounds better and helps portray your company as a real business rather than a one man show. However when can using the word “we’ become a bad thing?

Most small business (one man shows) will use “we” every time they connect with a bank, apply for credit or talk to a potential customer - such as ”we” can provide this or “we” are doing that. All is fair in using the word “we” but at some point you must revert back to “I”.

If you have built a truly successful business and looking to raise investment capital it’s important to lay all your cards on the table. In this case it means coming full circle back to “I”. After all, it’s your success, your hard work and your company - No “we” involved. Investors should be convinced to invest in you and not some fictional “we” that will only lead to confusion.

Mark my words - after a 10 minute presentation using the word “we” instead of “i” a smart investor would look at you and say - who is we? I’m pretty sure you would rather answer questions about the business plan than explain how you just streched the truth (hmmm… thinks a potential investor… what else did he stretch?)

Using the word “we” is fine but when you can revert back to “I” then you know you did something right – in your underwear.

What Mamma Didn’t Tell You

Thu, 27 Mar 2008 16:41:33 +0000

Someone famous once said “If everybody is selling, it’s time to buy”.

This quote is true in so many way unless the investments are in a market which is going to end – and the internet is not ending. In fact, it’s still only beginning.

In recent months we have witnessed the introduction of the Snowe bill, an American economy whose ultimate direction is not entirely known and slower domain sales (for the larger names).

However, is this doom and gloom for domainers?

No.

It’s an opportunity the market has given you to purchase prime property at discounted prices for a limited time.

The Snowe bill is a potential threat but you have to wonder why many of the larger companies (ones we all pay money to) have not spoken more publicly to gain momentum against the bill. The same large companies who hold many of the generic names which could be subject to the Snowe bill in its present form. Additionally, VC firms are giving money away to this space like pigeon feed in leicester square.

I’m not saying we should ignore the bill but it certainly would be nice to see some more valid discussion on it - certainly from the ICA to the domaining community. Am I missing something - so quiet….

As for doom and gloom, we are far from this. I’m still waiting for the same person who claimed the domain industry is in this state to issue an orange alert for DMD (domains of mass destruction) – No republicans in this company….do not get me started….

Others mention why some people are selling their names for the first time – natural progression of business I say. If a few large portfolio holders had investments tied up in American real estate (which I know some of them did) then the loss is not from the domain industry – it’s simply a matter of diversifying (hence freeing up cash from the sale of domains) because of the substantial losses incurred from another venture. Real estate has always been king – one of the safest investments around. Not so any more in the good ole us of a. Best time to buy a house in our humble opinion – 2010.

So, where are we now…

All of us entered this industry to secure a little corner of the internet. Now that you have a corner why are you not developing more? Domain parking is a great source of “bonus” revenue – but it never has been a good retirement plan.

Domainers (in the pure sense of this word – I mean people who simply buy and sell domains with absolutely no real intention of development) will always be subject to market trends and general economic concerns the greatest.

Domainers who develop will be able to weather storms, take advantage of the opportunities presented when price corrections appear and continue to build their corners of the world into small countries.

With that said, it’s important to do what you believe is right to protect your assets (support the ICA could be one) but it’s equally important to understand who you are. Ask yourself…

Are you a pure domainer (just someone that flips)?
Do you have development plans?
Can you actually make these development plans happen?
Do you have an idea but no real talent (hire or partner with someone who does)?

The domain industry is no different than real estate (or any sales business). Most real estate people reside in one of two categories:

A) People who sell a few houses a year, happy to make 50k.
B) Those who develop a client book and can weather most storms

Guess who always gets hit hard first.

When the storm is over, guess who is stronger.

Mamma always said don’t put your eggs in one basket.

She was right.

What she didn’t tell you was you can still leave a lot of them in one basket – if you know how to cook.

Domainers Bucket List

Sun, 23 Mar 2008 17:36:05 +0000

Do you have one?

New Year resolutions are made to be broken and they generally get shorter as we get older but what about your bucket list. For most people (I will guess) this list gets longer with age. We become wrapped up with work, incur greater responsibilities as our families grow and plan on spending our golden ages doing the things we want to do. The fault with this logic is many of the things we want to do may not be possible when we reach our golden years (hoping you are still alive).

My advice is to put serious priority on those things you want to accomplish and try to do them as soon as you can. In the business of domaining that means mapping out a plan.

Start short - make a list for the next year. Don’t just hope you are going to sell a name (or two), develop a site when you get some time or pick up that name you always wanted next time around.

Develop a plan – a detailed plan where you can actually check things off. Some ideas could be:

Develop at least 1 site in the next 12 months
Allocate X amount and buy one premium name
Consolidate all your registry accounts into one
Buy the house next to Frank Schilling
Limit your purchases to a proven extension
Develop another website
Raise some money (even $1,000 from friends)
Beat Kevin Ham in an auction

Every domainer will have a different list - what’s important - is to have a list!

Remember, a bucket list can only really begin when one of the items is marked as done – otherwise its just another broken new years resolution.

P.S. Go see the movie….

Coming Out.

Mon, 17 Mar 2008 20:30:40 +0000

Coming Out…

One domain changed my life. It’s funny how things come together and how one minute you are fighting for a sales lead and then, within days, leads are coming to you. That’s what $35 did for me many years ago – and yes, I even had 30 days to pay (Network Solutions would send you an invoice – good times)

Many of you know me and probably more don’t – It doesn’t really matter since we are all in this together. There comes a point where all the information you need to be successful in any venture can be found online. That day has come for the domain industry so instead of being afraid to talk with people so (a) they may learn our secrets or (b) having to explain this industry I’m going to post every now and then.

First, I think some serious kudos should be awarded to anyone supporting the ICA – Every industry needs a voice in Washington and this industry is smaller than most of you think.

Secondly… no seconds here. I have plans to discuss a number of topics in separate posts so check back.