Business of Domains is Insane

Things to keep in mind when selling your domain name. The business of domains is insane. First, be sure that your domain is sellable and that you have marketed it correctly to potential purchasers. Then be very clear as to how you will want to conduct the transaction for selling it to a buyer. It would seem that the most straightforward way to sell the domain name is to invoice the prospective purchaser, after having agreed on a price. Upon receiving payment for same one should transfer the domain name. This seems logical and simple. But there are many potential complications.

Trust is a factor in business transactions. If the prospective buyer pays the invoice, what surety do they have that you will transfer the domain name? Should you be able to include additional fees that you will incur in transaction to the initial agreed upon price? How do you reply when the buyer insists that they want to involve a broker in the deal? A broker will impose a fee on the buyer for acting on his behalf. If you domain is at auction, then you will incur a fee, ranging from 10% and upwards, depending on the listed price of the domain name.

There are also potential issues for transferring the domain that the buyer should be made aware of, including up to seven days to process the transfer and a hold on the domain. The hold would prevent the domain name from being transferred to another registrar for up to sixty days or more, depending on when the domain name was initially purchased and according to the remaining days for the sixty hold.

Therefore, it would be the most logical process for the owner of the domain name to transfer it to the successful buyer, whereby the transfer would be instantaneous and many unnecessary additional fees could be avoided. Options for a transfer that could be employed for a smooth transition include the buyer paying the invoice through E-transfer to your bank account, whereupon you would receive payment via e-mail, and only telling you the key word or answer to the security question once you transfer the domain name to his account.

There are possibly many other options for sale of a domain name, but the main component for the transaction to be completed is trust. For without this key ingredient the business deal is not appealing. While the buyer will potentially obtain the item they want and the seller is paid the fee they requested, if there is not good feeling that each person is being treated fairly and with respect, then the transaction is not lucrative to either party.

Domain Name Craze is Crazy

The Domain Name Craze is Crazy! One can easily become overwhelmed when considering the purchase of a domain name for their business or for resale at auction. One could search for a key phrase that relates the products or services offered by their company and try to buy a relevant domain for approximately ten dollars. If one is making their purchase at an opportune time of day, when some registrars offer discounts, then one could possibly acquire a domain for as little as ninety-nine cents, or one dollar or six dollars, instead of the customary rate of between ten dollars and up.

For new domains with specialty extensions for various cities and special category extensions, the rate for a domain can range from forty to fifty dollars from a registry to up to two hundred dollars from the registry. Also, one could buy a domain from an online auction, hosted by a registry. The registry takes ten to thirty percent, depending on the set price of the domain, plus other administrative fees. A purchaser need not be concerned about these costs, as they are usually billed to the seller of the domain. A purchaser should inquire, before bidding on a domain,  with the seller and the registry, which is listing the domain for sale, to determine if there are any additional fees, in excess of domain’s listed price.

Some domains are quite expensive and are listed on unique auction websites, while others are available through brokers. It might seem strange to discover that domains are similar to real estate, as both industries seem to have brokers who represent the property in exchange for a commission. A domain name is an online address and hence is also property. With some domains having been sold for $35 million dollars, surely a domain name can be a very valuable property. As with any type of property purchase one would surely want the best agent who will endlessly promote one’s domain name at the highest possible price while expecting the lowest commission. More than this, one wants an agent / broker who has a vast network for advertising the domain to be listed. Also, the preferred agent will know about all of the fees involved in this type of transaction and most definitely know how to negotiate, which is surely a unique skill.

As a real property, a domain might only take a one line in the URL bar when searched online, the website connected to it can  range from five to fifty pages. This online property – executive website – can contain articles, images, videos and links to other websites. A website can be a portal to a series of websites in a specific industry. When a website refers visitors to other websites, the process involves linking to others or framing, whereby the other websites pop up within the initial site being viewed. Some domains are forwarded and done with masking, so the domain is not always connected to a website.  Instead, the domain might be forwarded to a blog or in other cases might be forwarded to other websites which pop up simultaneously.

Key to Success in the World of Domains

When buying products or services, being the recipient of great customer service, is the key to success for establishing a brand.  Especially in the arena of domain names, and website services, superior communication is the most valuable commodity. For any venture in the realm of technology, where complexities can seem overwhelming and jargon has its own specialized terminology, one should be sure to buy services and products from a company that cares and whose employees have great communication skills – above all others, the trait of patience.

Buying a domain name is a highly sophisticated process. Firstly, one must research key terms, and emerging trends, in the marketplace and then determine how a coined phrase can be generated, which  would nicely fit into a domain name. Secondly, one needs to try to register the name and to obtain a suitable and relevant extension (DOT WHATEVER) for it. Buying the domain at  the lowest possible price should be the prime directive, but one should be more focused on the registrar from whom one will purchase it. Support in forwarding the domain to your blog, or to a name server for hosting, can be a great exercise in learning for a novice to the world of internet technology. While for the seasoned web developer this would be a simple task. Either way, open communication with one’s registrar is important. Real customer service includes good communicators, who will be of great value to one’s sanity, in the seemingly complex process of buying and managing one’s new domain.

One should do thorough research before utilizing the services a so-called free website service and complimentary hosting. The terms of service need to be clearly defined at the onset to prevent any confusion later on. If you create a free website or receive free hosting, will you have access to the file manager where your website is hosted? Will you have permission to transfer your website to another host? What files will be exportable and which ones will be maintained with the hosted file? All of these questions should be asked before creating your website. Always read the terms of service and other related agreements from your service provider. There could be terms that would be of great value to use as the customer contained in the agreement for service. While these contracts are quite lengthy and perhaps intentionally so, one should spend the time to review them and know what one is actually to before just clicking the ok button.

Deciding whether one should pay an additional fee upon registration, for privacy on one’s ownership of their domain, is only one of many concerns, which one will want advice on, from a customer service representative. Whether one should forward their domain with a temporary or permanent status and whether one should have subdomain forwarding are among many tasks to ponder. Another query is if forwarding should be done with masking or not. One will want to talk over all of these matters and many others with a technical expert. Usually, one can edit their contact details in the domain control panel, but it seems that some valid contact information must be listed there –  as per the rules.

The rules do not seem, however, to dictate that one must forward their domain to a website, or blog that will be hosted, or to a free blogspot. Here, in this decision, one can feel content in one’s choice for redirecting their domain name. But one should be cautious as to how many domains one will direct to the same website, and be careful about syndicating the same post to many of one’s own blogs. While one will want to get the word out, some search engines will penalize such efforts; by not listing the posting, or by ranking it very low in the search results. These are only some of the many questions, over which one might ponder, when entering the world of domains. Most importantly, Customer Service is the Key to Success in the World of Domains.

High-Priced Domains

Before purchasing a domain name it is best to perform a trademark search, on a tag line, domain name, and / business name that you plan to use; since you do not want to infringe on the intellectual property of a company.  It might seem difficult to believe, but some businesses actually own the right to certain key words, terms, phrases, slogans and concepts. There are upwards of 250 domain extensions.[1]  Also, there is a vast list – ranging upwards, to 70 or more – of abbreviations for the domain name industry.[2]

Some currently listed high-priced domains, at auction, fetch upwards of $185K to more than $35 million dollars.

Some of the Highest-Priced Domains:

  • VacationRentals.com $35 million in 2007
  • Insure.com $16 million in 2009
  • Fund.com 2008 £9.99 million
  • Business.com for $7.5 million in1999
  • Diamond.com 2006 $7.5 million
  • Beer.com 2004 $7 million
  • Israel.com 2008 $5.88 million
  • GiftCard.com by CardLab for $4 million in 2012
  • Yp.com by YellowPages.com for $3.8 million in 2008
  • AltaVista.com for $3.3 million in 1998
  • Candy.com for $3.0 million in 2009
  • Loans.com by Bank of America for $3.0 million in 2000. [3]

Before buying a domain one can have its value appraised. Be cautious as to which domain appraisal website you use, as some are more accurate than others. While some evaluators utilize key word frequency and balance these against the number of searches on the phrase, others assessors are totally arbitrary and the valuation is unreliable.

Recently Registrars on the Internet began releasing the first batch of nearly two thousand new domain extensions; including everything from dot beer to dot health. Any combination of phrases and keywords is possible within the domain name and as combined with the extension.

The release of these domain extensions is due in part to hoarding of domain names and trademark infringement. Many domain entrepreneurs bought up many domain names that represent and express the brand of an existing business, with the intention to sell the same domain name to the business whose name is part of the domain name.

Many small, medium and large business owners and corporations complained about this seeming injustice, while being unwilling to pay the sought after price to acquire there a domain name that contains their own business brand. In the past businesses could complain to the United States Congress, which used to monitor and regulate the Internet. Now the Internet is managed by a consortium, known as the Madrid Conference, which is supposed to be organization operating as an independent entity and totally separate from any government jurisdiction, but which is seemingly accountable to the United Nations.

New domain extensions and new domains registered at same are now monitored and processed through a clearinghouse that accepts trademark registrations and holds or blocks potential domain registrations, which may infringe on said trademark.

Place to Be Online

Where is the place to be with the most fun activities to enjoy? Some people prefer the beach, while others like shopping. For those who prefer swimming and surfing, perhaps cities with prominent beaches are the most lucrative. Such cities might in include L.A. For the savvy shopper, however, a city such as New York City would be the place to be.

Where is the place to be online? Now that New York City has received its own domain extension, it will certainly have a lot of online traffic. While the domain extension for L.A. have been all the hype online, it is not clear, as yet, if the City has officially accepted the domain extension. Whereas, in New York the mayor, has been a proud supporter of a domain expansion for his city. Perhaps that is why New York City is really the City that does not sleep.

There is always exponential growth in this city. From having the best stores at which to shop for the latest fashions to having a thriving and highly diverse real estate industry. Where else can you get the best pizza at any hour of the day or night and eat-in on site at the restaurant? It just seems like there is a constant pulsating rhythm to this place that exudes excitement and joy.

Perhaps that is why even before the release of the domain augmentation for New York City there is not just not hype, but a great amount of sincere interest in acquiring domain names for this central hub of commerce. From a mild perusal on the internet one can see the vast amount of domain registrar’s who are already accepting requests for advanced registration of much desired domain names. At last count,  one such registry has more than 35,000 requests,  so far, for domain names that are not yet officially for sale.

Initially to qualify for registration of the new domain extension for New York City one had to be a resident of New York City or own a business in New York. Now that many of the popular domain names at this extension have filled up the domain extension is available to anyone that wants to register a domain name at a dot NYC (New York City). You can promote your business with style as though you were a New Yorker, even if you do not live in New York City. Be known as being a member of the city that never sleeps, even if you live somewhere else.

 

Domain Name Game

Who would ever have thought that combinations of letter and varied arrangements of words would have such a high value? The initial cost to purchase an online presence – in the way of a domain name game – could range from buck to fifty dollars, depending on the registrar and the domain extension.

Now there are plans for new domain extensions, to be specific to various cities. These so-called new extensions are really recycled country domains that have been relinquished and due to their stylish incorporation for certain cities are being so applied to them. There are also plans for industry specific extensions to be released soon.

Is there really a good reason to pay up to fifty dollars for a city specific extension for your domain name when the mainstay names are still around? Perhaps the massive expansion of domain extensions – which will seemingly appear to be specific to a various cities – provide all of the more value to extension that are demonstrative of a company / business.

These extensions usually range from a dollar to ten, or perhaps less, depending on the time of day when a discount is available. Usually, from midnight onwards the great offers are listed on the registrar’s main page. Even if you manage to obtain a great deal on your initial discounted domain from a special offer, it is unlikely the computer system will permit additional markdowns for further purchases. There are various online special offer codes for various registrars, which can be found if you do a basic online search.

When buying your dream domain name be sure to read all of the accompanying contracts and terms of service. Some registrars offer a return policy within a certain number of days after purchase. If purchasing from a domain registry outside of your country of residence you might incur a currency conversion fee on our credit card. Therefore, maintaining store credit – that might have been obtained from a refund or otherwise – could be a good idea to avoid paying this fee for a future purchase.

Now that the system of purchasing domains has been partially highlighted, a question arises. How do you know that your domain name is a good one? Is it easy to remember and is it catchy? Is it concise? Is it sellable? What is its resale value? There are various online resources that evaluate the value or worth a of domain name, partially according the frequency of occurrence of the terms contained therein and partly due to the number of searches for this specific phrase. Also, some websites offer tools for evaluation of word usage and compare and contrast the frequency of words in a term.

Be sure that you choose a reliable registry, which offers great customer service. This is perhaps the most important component of being a savvy player in the domain name game. Since you might be buying more than one domain name, you want to know that the representatives with whom you will be speaking are trained to be friendly and helpful in offering discounts and notifying you of useful promotions that would benefit you. If you choose to play the domain name game, be sure you understand the rules and seek as much professional assistance as possible.

Slanted Business Agreements

There are many ways to get paid for work and likewise numerous ways to pay a worker. Be wary of slanted business agreements. These payment methods include the installment plan, whereby the worker is paid at each stage of a project; with an initial retainer being paid at the onset of the assignment. Commission only payments, based on a percentage of the sale of a good (real estate), or to be paid upon the recovery of either a debt, or a payment made in bad faith require detailed contractual terms.

In each of the above-noted payment structures there is the potential for a lopsided balance of power by the employer over the worker. To avoid working and not being fairly compensated or paid what will be owed for accomplished work a well written contract for service should be created and signed by both parties to the agreement. Therefore, all of the terms of the employment relationship will be clearly spelled out.

In this type of an agreement, each party should have equally contributed their input as to how the work will be done, objectives to be achieved and the compensation to be awarded, as well as the timelines for payment. Other factors are extremely important and should be considered and included in the employment agreement. Employer expectations for sales, work performance, expansion of customer or client base and brand development and or marketing of company image are important components of a contract for employment. If staff know exactly what is expected of them, they can strive to meet the employer’s expectations and possibly exceed them. When entering into a contract it is always advisable to seek the advice and assistance of a competent and qualified legal practitioner, such as a lawyer or paralegal.

Oftentimes when friends or acquaintances enter into a working relationship there is a likely possibility for misunderstandings of actual intentions or meanings of what is said during business communication. To avoid such potentially unpleasant dialogues, a written agreement should be accompanied with a direct and professional discussion that outlines the specific parameters for the work affiliation. In all cases the agreement should be drafted and reviewed by a qualified legal practitioner.

Wherever possible, friends should strive to not work together in business matters. One relationship will be adversely affected by the change in association. Either the business relationship might fail, or the value of friendship might depreciate.