Domain Incubation: Outsourced Domain Improvement
Domain incubation is a new strategy in which domain owners "outsource" their site management to a third-party service that provides content and link-building support. Internet domain incubation differs from parking in that it doesn't generate revenue, but can improve a domain's resale value by improving its Google rank and the number of incoming links.
DomainIncubation.com is a free service from Coast Internet Solutions, Inc. of Edgewater, NJ. Participants point their names at the nameservers for the service, which develops a web site to improve the value of the domain. DomainIncubation.com keeps the revenue from ads that are placed on the site, while the domain owner gets the benefit of improved PageRank and backlinks, which in turn can improve the name's resale value or establish enough traffic to begin monetizing the site through a domain parking service. The service says the designs won't be "first-class" but won't be scraper sites either, providing an example at Security-guard.org. The sample links are managed by blog software or a script that pulls directory content from the Open Directory Project (dmoz.og).
"This offer is intended for those with poor quality domains," notes the intro to the concept at the Domain Incubation web site. "You will sell a domain with some PR and backlinks for more than you will without them. We do all of the work and take the risk that you could remove your domain at anytime, that's why we keep any and all money from advertising. If you think your domain is hot and will generate money from type-in traffic, you should use a domain parking service that will pay you part of the income."
Posted by RichM 
July 9, 2006 | Permalink | Newsletter
June 7, 2006
Brangelina Domains Spur 'Fame Capitalization'
Why did Angelina Jolie and her lawyers move so quickly to register shilohjoliepitt.com? Maybe because of services like LoveTheName.com, which issued a press release today to tout the value of registering domain names associated with celebrity babies:
To accommodate this new trend, LoveTheName.com has added a new 'Fame Capitalization' section that includes domains like ChildrenofJoliePitt.com for those who want to earn a fast buck or for fans who want fair market value or wish to protect Brangelina from greedy cybersquatters.
The folks at LoveThe Name.com are so conflicted! Earn a fast buck? Or protect Brangelina from greedy cybersquatters? It sounds like their conscience is wrestling with their business plan. And losing, as it turns out.
"Famous celebrities and the Wealthy have the means to buy domains from people smart enough to own them," the press release continues. "The people smart enough to own these domain names are experiencing a sudden financial impact unlike any other investment. The wealthy are motivated in owning control over what is published and exposed worldwide at those domain sites, therefore, creating dialog for win-win agreements."
Posted by RichM June 7, 2006 | Permalink | Newsletter
June 2, 2006
Cat Loses Domain Name Dispute
The huge brokerage Morgan Stanley has prevailed in a domain name dispute with a cat. Yes, a defendant in a cybersquatting case claimed that the registrant of record for the domain mymorganstanleyplatinum.com was actually "Meow ("Respondent"), Baroness Penelope Cat of Nash DCB, Ashbed Barn, Boraston Track, Tenbury Wells, Worcestershire WR15 8LQ, GB." It was a novel strategy, but the domain panel wasn't buying, and responded in the spirit of the defense:
Respondent maintains that it is a cat, that is, a well-known carnivorous quadruped which has long been domesticated. However, it is equally well-known that the common cat, whose scientific name is Felis domesticus, cannot speak or read or write. Thus, a common cat could not have submitted the Response (or even have registered the disputed domain name). Therefore, either Respondent is a different species of cat, such as the one that stars in the motion picture �Cat From Outer Space,� or Respondent�s assertion regarding its being a cat is incorrect.
The full ruling is available online.
Posted by RichM June 2, 2006 | Permalink | Newsletter
August 15, 2005
Domain-based 'Mutual Fund' Announced
Domain Mart is offering a domain name investment service, modeled loosely on mutual funds that invest in stocks and bonds. Domain Mart's Alex Tajirian is offering to manage investments in domains and "domain-name based assets" (i.e. backorders) on behalf of clients with at least $50,000 to invest.
Until recently, domain name investing has been a specialized market in which the major players were industry veterans who practiced hands-on management. Lucrative deals for portfolios and individual domains have generated interest from venture capitalists and other outside investors, some of whom have staked Internet REIT to build a $250 million-plus portfolio. DomainMart's initiative offers a quick way into the market for investors who have substantial resources but limited experience buying and monetizing domain names.
That management service isn't free, however. Investors pay a 2% up-front "load fee" ($1,000 on a $50,000 account) plus a fee of $150 an hour for investment analysis (capped at $500 per investment). DomainMart also gets 5 percent of monthly revenue from the account. The domain names and assets are registered in the name of the account holder. See the prospectus (PDF) for additional details.
"Accounts are managed by experts in the field and each is tailored to the risk tolerance of the Account owner," says Tajirian, DomainMart President and CEO, who calls the service "a venue for high net-worth investors who wish to participate in the generous returns that domain name investments offer."
Posted by RichM August 15, 2005 | Permalink | Newsletter
July 8, 2005
Defensive Plays May Drive .xxx Signups
The introduction of the .xxx top-level domain creates a reputation management challenge for tens of thousands of corporations and celebrities intent on protecting use of their brands on the Internet. As a result, these "reputable" purchasers will likely be lined up alongside porn mavens and cybersquatters to get their .xxx domains. The issue is summed up in an article in E-Commerce Times:
"Let the unseemly cybersquatting begin," said Karen Whitehouse, an ICANN-watcher and author of the Weekend Geek blog. "What I envision is people paying $60 a year just to keep beaarthur.xxx out of circulation."I think a lot of people might pay to never have to see that site.
Posted by RichM July 8, 2005 | Permalink | Newsletter
July 5, 2005
Ostrovsky Sees .info as Investment Play
Will .info domains become sought after and appreciate in value? One believer is Marc Ostrovsky of Internet REIT L.P., who tees .info eventually becoming one of the most desired top-level domains (TLDs).
"I love .info, and I think .info is the next big play," Ostrovsky recently told host Monte Cahn on the Domain Masters podcast on WebmasterRadio.fm. "I have a large investment in .info. What do people go to the Internet for? I think people go to the Internet for information."
Posted by RichM July 5, 2005 | Permalink | Newsletter
Cuban Investment A Boost for Domain Industry
Mark Cuban has been one of the most successful investors of the Internet era, with a reputation for recognizing trends early and selling at opportune moments (especially with Broadcast.com, which he co-founded and sold to Yahoo for $6 billion in 1999, prior to the dot-com collapse). While venture capitalists have been sizing up the domain name game for months, Cuban's investment in Register.com makes him perhaps the best-known investor putting money to work in the domain sector.
Since April 21, Cuban has invested approximately $18.3 million in shares of Register.com, according to SEC filings. Here's a breakdown of his purchases and the results thus far, based on today's closing price for RCOM of $7.83 a share:
Not counting transaction fees, Cuban is ahead about $923K on that $18.3 million investment - a gain of 5.05 percent in just over two months - and it's a fair bet that the price of Register.com will rise further as Cuban and Barington Companies vie for board seats. The attention to Cuban's investment is likely to focus additional attention on investment in the domain name market, which can only be good news for domain owners and portfolio owners.
Posted by RichM July 5, 2005 | Permalink | Newsletter
Mark Cuban Increases Stake in Register.com
Billionaire Internet entrepreneur Mark Cuban has raised his stake in Register.com to 13.7 percent, according to SEC filings, which indicated that Cuban is likely to be among nine people nominated for the Register.com board of directors by Barington Companies Equity Partners, LP. An excerpt from the filing:
On June 30, 2005, Barington delivered to the Secretary of the Company a letter notifying the Company of Barington's intention to nominate nine persons, including Mr. Cuban, for election to the Board of Directors of the Company at the 2005 Annual Meeting of Stockholders of the Company. Mr. Cuban intends to serve as a director of the Company, if elected.Barington is an affiliate of RCM Acquisition Co. LLC, which recently attempted to purchase Register.com for $7.10 per share, but was rebuffed by management. Cuban's investment and alignment with Barington would appear to increase the likelihood that changes lie ahead for the Net's second-oldest registrar.
Posted by RichM July 5, 2005 | Permalink | Newsletter
May 25, 2005
Why Domains Are 'Rented' and Renewed
Steven Forrest asks a "dumb question" that's not dumb at all:
Why are domain names rented instead of sold? Why can't a brand-name company own its domain name rather than just rent it year to year? ... why is there an artificial limit on the number of years - 10 - that a domain name user can register a domain name for? Why not 15 years? Or 50? Or 100?Actually, you can register a domain for 100 years, but the larger question about the need for annual renewals is a fair one, and Forrest isn't alone in questioning current practice. "The idea that domain names must be rented is nothing more than an arbitrary and capricious business rule imposed by ICANN," says the CaveBear Blog.
I'm sure many domain owners would agree, and prefer not to renew every year. It'd sure make my life easier. But name owners aren't the only constituents in the domain system. The reason for the current system can probably be summarized in a single word: registrars. Someone has to manage domain registrations, and it's a large and complex enough job that registrars need an economic incentive to invest the resources and staff to do it right. Annual renewals provide the hope of recurring revenue to sustain the registrars' business. It also keeps the cost of entry low enough ($5 to $35 for the first year) that anyone who wants a domain can likely afford one. That's certainly not true of the $999 fee to lock down a name for 100 years at Network Solutions, if not the $69.50 for 10 years at Go Daddy.
Posted by RichM May 25, 2005 | Permalink | Newsletter