Driving Leads Through Smart Domain Development Monte Cahn Affilicon Israel June 2009


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Driving Leads Through Smart Domain Development Monte Cahn Affilicon Israel June 2009

  1. 1. Driving Leads Through Smart Domain Development Monte Cahn Founder and President Moniker.com, SnapNames.com, and DomainSponsor.com Members of Oversee.net’s Domain Services Division
  2. 2. Moniker Overview <ul><li>Moniker : Pioneer in the domain industry since its founding in 1995 </li></ul><ul><ul><li>Registrar </li></ul></ul><ul><ul><ul><li>3rd largest ICANN accredited registrar Group – 117 Registrars under management </li></ul></ul></ul><ul><ul><ul><li>With 3M domains across 157 Top Level Domains (i.e. .com) under management, Moniker is larger in size / number of domains than Register.com </li></ul></ul></ul><ul><ul><ul><li>Only registrar that offers bulk tools and Domain Asset Management Services to domain investors </li></ul></ul></ul><ul><ul><ul><li>Over 75% of world’s top domain investors are customers </li></ul></ul></ul><ul><ul><ul><li>First to offer portfolio and domain-level security against unauthorized transfers and theft prevention/protection </li></ul></ul></ul><ul><ul><li>Aftermarket </li></ul></ul><ul><ul><ul><li>First to offer brokered domain name sales, Whois privacy, stealth acquisitions, escrow, and appraisal services </li></ul></ul></ul><ul><ul><ul><li>Sold the first-ever $1 million domain – WallStreet.com in 1999, Candy.com - $3M, Porn.com - $9.5M, Forex.com……..can’t say the price </li></ul></ul></ul><ul><ul><ul><li>In 2005, launched the first live event domain auction and has been the clear leader in this space ever since </li></ul></ul></ul><ul><ul><ul><li>Attracts sellers of premium domains due to high asp of $9,000 versus industry average of $1,600 </li></ul></ul></ul><ul><ul><ul><li>Attracts buyers due to quality of inventory </li></ul></ul></ul><ul><ul><li>Domain Asset Management </li></ul></ul><ul><ul><li>Clients include – Major League Baseball, NHL, Lions Gate Films, Incisivemedia/Jupitermedia, Marchex, and Yahoo! </li></ul></ul><ul><ul><li>Host of Domain Masters , every Wednesday at 7 pm EST/4 pm PST –WebmasterRadio.fm </li></ul></ul>Page
  3. 3. SnapNames Overview <ul><li>SnapNames : Pioneered the commercial market for expiring/deleting domains </li></ul><ul><ul><li>Patented technology </li></ul></ul><ul><ul><li>Sell 1000 domains per day on Snapnames.com </li></ul></ul><ul><ul><li>Highest efficacy in the industry – 85% catch rate </li></ul></ul><ul><ul><li>Largest seller of auctioned domain names at over 200k per year </li></ul></ul><ul><ul><li>Over 150k registered buyers and sellers worldwide </li></ul></ul><ul><ul><li>Over 1.5 million domains listed for Auction or Buy-it-now </li></ul></ul><ul><ul><li>Advanced search tools and automated saved search notifications </li></ul></ul><ul><ul><li>Now offering self-listing service </li></ul></ul><ul><ul><li>Themed Auctions and Store Fronts coming! </li></ul></ul><ul><ul><li>DomainSponsor : Is the largest domain monetization and parking company in the world </li></ul></ul><ul><ul><li>Top 5 Google partner / Largest Domain Channel for Google </li></ul></ul><ul><ul><li>Established in 1999 as a domain traffic monetization company </li></ul></ul><ul><ul><li>Custom domestic, international, and linguistically driven landers </li></ul></ul><ul><ul><li>More than 4 million domains monetized on the platform </li></ul></ul><ul><ul><li>DO NOT LET DOMAINS SIT AROUND…..MONETIZE THEM! </li></ul></ul>Page
  4. 4. Why domains matter <ul><li>Domain registrations continue to grow </li></ul><ul><ul><li>2008 had 16% growth rate to 177 million total domains registered worldwide </li></ul></ul><ul><ul><li>2008 ccTLDs had 22% growth rate to 71 million total registrations </li></ul></ul><ul><ul><li>Ranked by size: .com, .cn, .de, .net, .org, .uk, .info, .nl, .eu, and .biz </li></ul></ul><ul><li>At the same time, aftermarket sales values have been increasing by approximately 20% year-over-year </li></ul><ul><li>Upward trends in registrations and aftermarket sales continue despite economic turmoil </li></ul><ul><li>Why? </li></ul><ul><ul><li>Domains are assets that appreciate in value and can be used to produce revenue in many ways </li></ul></ul><ul><ul><li>Each and every domain is unique </li></ul></ul><ul><ul><li>Every business needs a domain name…..as will most individuals </li></ul></ul><ul><ul><li>It’s all about (Virtual) location-location-location for attracting and retaining traffic </li></ul></ul><ul><ul><li>The internet is expanding by 2M new users every 3-4 weeks – vertical and horizontal growth </li></ul></ul><ul><ul><li>Peripherals are cheaper and portable – PDA’s = 4X that of desktops </li></ul></ul><ul><ul><li>High-speed and broadband available in most 3 rd world countries now – Cheap or free! </li></ul></ul><ul><ul><li>Social Networking and unique identity / free expression </li></ul></ul><ul><ul><li>Customer acquisition </li></ul></ul>Page
  5. 5. How domain names can help attract traffic and drive leads <ul><li>Domain names are equal parts pathway and destination </li></ul><ul><ul><li>As a pathway, the domain name represents the address that users see, get intrigued by, use, and remember </li></ul></ul><ul><ul><li>As a destination, the domain name conveys and represents the brand and the value propositions that distinguish you from competitors </li></ul></ul><ul><li>Choosing the right domain name can improve search engine optimization and search engine marketing results </li></ul><ul><li>Many domain names offer instant direct navigation “type-in” traffic </li></ul>Page
  6. 6. Choosing a domain name <ul><li>Defensive strategy </li></ul><ul><ul><li>Lock in traffic and protect your brands by registering typos, nicknames, country code TLDs, etc. </li></ul></ul><ul><li>Offensive strategy </li></ul><ul><ul><li>What are the most popular keyword searches associated with your product/service? </li></ul></ul><ul><ul><li>What are the “category killer” keywords? </li></ul></ul><ul><ul><li>Acquire these popular and descriptive domains before your competitors </li></ul></ul><ul><li>Examples: </li></ul><ul><ul><li>ToddlerToys.com = </li></ul></ul><ul><ul><li>CreamCheese.com = </li></ul></ul><ul><ul><li>Underwear.com = </li></ul></ul><ul><ul><li>Microsft.com (missing 2nd “o”) = </li></ul></ul>Page
  7. 7. Choosing a domain name <ul><li>SEO impact </li></ul><ul><ul><li>All things being equal, the domain you use could be the tie breaker to get your site ranked higher </li></ul></ul><ul><ul><li>Example: TropicalBirds.com </li></ul></ul><ul><ul><ul><li>#1 in Google ranking for “tropical birds” keyword search </li></ul></ul></ul><ul><ul><ul><li>Forces competitors to spend ad dollars for a paid listing in order to appear on Google results page 1 </li></ul></ul></ul><ul><ul><li>Inbound link relevancy </li></ul></ul><ul><ul><ul><li>Which of these domain links would have greater relevancy to search engines for the term “spices”? </li></ul></ul></ul><ul><ul><ul><ul><li>“ Visit Penzeys.com for the best prices” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Visit TheSpiceHouse.com for the best prices” </li></ul></ul></ul></ul><ul><ul><li>Consider buying an “old” domain on the aftermarket that offers instant advantages </li></ul></ul><ul><ul><ul><li>Strong/relevant keywords </li></ul></ul></ul><ul><ul><ul><li>Page ranking/existing traffic </li></ul></ul></ul><ul><ul><ul><li>Back links </li></ul></ul></ul><ul><ul><ul><li>Use these old domains to build out your business, or to redirect traffic to your existing site </li></ul></ul></ul><ul><ul><ul><li>Do your homework before buying </li></ul></ul></ul>Page
  8. 8. Choosing a domain name <ul><li>SEM impact </li></ul><ul><ul><li>All things being equal, the domain you use could be the tie breaker to get your ad clicked first </li></ul></ul><ul><ul><li>Example: If you are a cosmetic surgery doctor, which domain name will get you the most clicks? </li></ul></ul><ul><ul><ul><li>BeckerMD.com </li></ul></ul></ul><ul><ul><ul><li>LookYounger.com </li></ul></ul></ul><ul><ul><li>Can use “long-tail” domains to increase relevancy related to specific search terms </li></ul></ul><ul><ul><li>Easy to test which of your domain names can get the most clicks </li></ul></ul><ul><ul><li>Google compliance: Will need unique content if selected domain is not the main website </li></ul></ul>Page
  9. 9. Choosing a domain name <ul><li>Consider new or existing/aftermarket names with “free” direct navigation “type-in” traffic </li></ul><ul><ul><li>Over 70% of internet users type-in keywords into their browser address bar to go directly to destination offering specific content/products/services </li></ul></ul><ul><ul><li>Direct navigation users are highly motivated and convert at twice the normal rate </li></ul></ul><ul><ul><li>After initial investment, only cost is renewal fee </li></ul></ul><ul><ul><li>Three ways to use domains that offer direct navigation traffic: </li></ul></ul><ul><ul><ul><li>Simple redirects to main site: </li></ul></ul></ul><ul><ul><ul><ul><li>Books.com = BarnsAndNobel.com </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gift.com = JCPenny.com </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TennisShoes.com = KSwiss.com </li></ul></ul></ul></ul><ul><ul><ul><li>Information portals supporting brand goals </li></ul></ul></ul><ul><ul><ul><ul><li>Baby.com = Johnson & Johnson </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Asthma.com = GlaxoSmithKlein </li></ul></ul></ul></ul><ul><ul><ul><ul><li>NoFleas.com = Bayer </li></ul></ul></ul></ul><ul><ul><ul><li>Re-brand entire company/site </li></ul></ul></ul><ul><ul><ul><ul><li>OberonGames.com = iPlay.com </li></ul></ul></ul></ul><ul><ul><ul><ul><li>WBZL.com = SouthFlorida.com </li></ul></ul></ul></ul>Page
  10. 10. Making your site “sticky” <ul><li>Incorporate social networking </li></ul><ul><ul><li>Example: Skateboards.com </li></ul></ul><ul><ul><li>User generated content is free, fresh, and helps with SEO </li></ul></ul><ul><ul><ul><li>Videos, photos, stories </li></ul></ul></ul><ul><ul><ul><li>Forums and chat rooms </li></ul></ul></ul><ul><ul><li>Profitable without an advertising costs thanks to direct navigation, SEO, and “word-of-mouth” traffic </li></ul></ul><ul><li>Create a highly relevant information portal to position your brand as the “expert” </li></ul><ul><ul><li>Example: Baby.com (Johnson & Johnson) </li></ul></ul><ul><ul><li>Requires investment in time and money to maintain/update content </li></ul></ul><ul><ul><li>Pay-off in brand equity, goodwill, loyalty, and word-of-mouth can be substantial </li></ul></ul><ul><li>Use fun, humor, and interactivity on a Microsite to generate “free” viral traffic </li></ul><ul><ul><li>Example: MyTalkingStain.com (promoting Tide-to-go stain remover) </li></ul></ul><ul><ul><li>Example: McCafeSnowflakes.com (promoting McDonald’s new gourmet coffee) </li></ul></ul><ul><ul><li>Example: SubserviantChicken.com (promoting Burger King chicken sandwiches) </li></ul></ul><ul><ul><li>Engage visitors: free memberships, free downloads, email sign-ups, forward to friend, etc. </li></ul></ul><ul><ul><li>Links to your main website </li></ul></ul>Page
  11. 11. Calculating the value of a domain name <ul><li>Example: Stock.com </li></ul><ul><ul><li>CPC ad savings from direct navigation traffic </li></ul></ul><ul><ul><ul><li>Monthly direct navigation traffic = 10,000 visitors/mo </li></ul></ul></ul><ul><ul><ul><li>CPC rate on keyword = as much as $4.08 (from Spyfu.com) </li></ul></ul></ul><ul><ul><ul><li>Annual CPC ad savings = $40,800 x 12 = $489,600 </li></ul></ul></ul><ul><ul><li>Net Profit from direct navigation traffic </li></ul></ul><ul><ul><ul><li>Assume 2% conversion rate </li></ul></ul></ul><ul><ul><ul><li>Assume $250 net profit per conversion per year </li></ul></ul></ul><ul><ul><ul><li>Annual Net Profit = $600,000 </li></ul></ul></ul><ul><ul><li>Assuming 5x multiplier, this domain could be worth $3,000,000 </li></ul></ul><ul><ul><ul><li>If you used a domain having no direct navigation and had to buy traffic, then the Net Profit would only be $600,000 - $477,600 = $110,400/yr and at 5x the domain could be worth $552,000 </li></ul></ul></ul><ul><ul><li>Other factors impacting value of a domain name </li></ul></ul><ul><ul><ul><li>Importance to brand strategy </li></ul></ul></ul><ul><ul><ul><li>Existing trademarks </li></ul></ul></ul><ul><ul><ul><li>Existing website, inventory, etc. </li></ul></ul></ul><ul><ul><ul><li>“ Free” SEO traffic </li></ul></ul></ul><ul><ul><ul><li>Seller’s minimum acceptable price </li></ul></ul></ul>Page
  12. 12. How to acquire a domain name <ul><li>New registration </li></ul><ul><ul><li>Most premium one and two word .com and .net domains are taken </li></ul></ul><ul><li>Aftermarket has become a critical source for domain names </li></ul><ul><ul><li>Live Domain Auctions </li></ul></ul><ul><ul><li>Online Auctions </li></ul></ul><ul><ul><li>Online Listing services </li></ul></ul><ul><ul><li>Expired and Deleting domain services </li></ul></ul><ul><ul><li>Private brokerage and stealth acquisitions </li></ul></ul><ul><li>REMEMBER to cover your brands when ever and where ever possible </li></ul><ul><ul><li>Misspells </li></ul></ul><ul><ul><li>Word and Phrase variations </li></ul></ul><ul><ul><li>ccTLD’s, IDN’s </li></ul></ul><ul><ul><li>Singular / Plural </li></ul></ul><ul><ul><li>Foreign Languages </li></ul></ul><ul><ul><li>Dashes / Hyphens = “-” for search relevance </li></ul></ul><ul><ul><li>Monetize the domains you are not using – www.DomainSponsor.com </li></ul></ul><ul><li>ISRAEL.COM – is for sale – what do you think it is worth to the Government of Israel or the Department of Tourism? </li></ul>Page
  13. 13. Questions? Page
  14. 14. Driving Leads Through Smart Domain Development Monte Cahn Founder and President Moniker.com, SnapNames.com, and DomainSponsor.com Members of Oversee.net’s Domain Services Division