domaining and address bar driven traffic
DESCRIPTION
How domain owners, web developers and businesses can increase revenue by owning a portfolio of domain names. This program examines the various strategies for domain traffic monetization.TRANSCRIPT
Domaining and Domaining and Address Bar-Driven Address Bar-Driven
TrafficTraffic
Monte CahnMonte CahnFounder / CEOFounder / CEO
[email protected]@moniker.com
Toll Free: 1-800-688-6311Toll Free: 1-800-688-6311
Monte CahnMonte CahnFounder and CEO Founder and CEO Moniker.comMoniker.com
TrafficClub.com, Marketplace, Live Domain Auctions, Silent AuctionsTrafficClub.com, Marketplace, Live Domain Auctions, Silent Auctions
Host of Domain Masters, every Wednesday at 7 pm EST –Host of Domain Masters, every Wednesday at 7 pm EST –WebmasterRadio.fmWebmasterRadio.fm
* Domain Experience Since 1995* Domain Experience Since 1995
* Moniker.com - more than 1.9M Domains under management – 9* Moniker.com - more than 1.9M Domains under management – 9thth largest largest
RegistrarRegistrar
* 12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal, Traffic * 12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal, Traffic
MonetizationMonetization
* First to sell a domain for more than $1M and $2M (Wallstreet.com, * First to sell a domain for more than $1M and $2M (Wallstreet.com,
Autos.com)Autos.com)
* Stealth Acquisition specialist* Stealth Acquisition specialist
* Invented the Domain Appraisal - 460K appraisals to date, IRS Accepted, * Invented the Domain Appraisal - 460K appraisals to date, IRS Accepted,
used for lending and donationused for lending and donation
* One of the first to monetize domain traffic in 2000* One of the first to monetize domain traffic in 2000
* Focus is on Domain Asset Management – Average Client owns 100+ domains* Focus is on Domain Asset Management – Average Client owns 100+ domains
* Clients include – Major League Baseball, NHL, Lions Gate Films, * Clients include – Major League Baseball, NHL, Lions Gate Films,
Incisivemedia/Jupitermedia, Marchex, and Yahoo!Incisivemedia/Jupitermedia, Marchex, and Yahoo!
Professional Domain Professional Domain PortfoliosPortfolios
ICANN regulates the domain industryICANN regulates the domain industry
Empowered by the US Department of CommerceEmpowered by the US Department of Commerce
Following regulations –innovative entrepreneurs Following regulations –innovative entrepreneurs investedinvested
Many risked $100,000+ per year with unknown Many risked $100,000+ per year with unknown futurefuture
Domain Marketing Domain Marketing Became Extremely Became Extremely ProfitableProfitable Domain revenue sources were not originally knownDomain revenue sources were not originally known
Revenue = Search revenue, PPC, CPA programs, affiliate Revenue = Search revenue, PPC, CPA programs, affiliate sites, and Selling Domainssites, and Selling Domains
$850 million in annual advertising revenue and domain sales$850 million in annual advertising revenue and domain sales
Potential to reach $2 billion by 2010Potential to reach $2 billion by 2010
Domains contribute 15% of Google/Yahoo Search revenueDomains contribute 15% of Google/Yahoo Search revenue
Market includes approximately 6 - 8 million domains out of Market includes approximately 6 - 8 million domains out of 112M registered and growing112M registered and growing
Revenue drove Domain Revenue drove Domain Portfolio CreationPortfolio Creation
BuyDomains.com has 660,000 investment domains
Domains Owned 2004 2006
>100,000 8 15
10,000—100,000 15 60
1,000—10,000 76 200
A record 112 million domain names are now A record 112 million domain names are now registered, a 30% increase in the past year registered, a 30% increase in the past year
9.4 million new domains were registered during 9.4 million new domains were registered during Q3 of 2006, the third highest number of Q3 of 2006, the third highest number of registrations ever in a single quarterregistrations ever in a single quarter
86% are live, 77% are renewed, 40M are ccTLD’s86% are live, 77% are renewed, 40M are ccTLD’s In the past year, aftermarket sales have In the past year, aftermarket sales have
increased by an estimated 58%, with total increased by an estimated 58%, with total private and public transactions reaching more private and public transactions reaching more than $300 million. than $300 million.
At least 57 domains sold twice between 2004 At least 57 domains sold twice between 2004 and 2005. The value of these domains increased and 2005. The value of these domains increased an average of 288% over just 230 days.an average of 288% over just 230 days.
The industry is healthyThe industry is healthy
What makes a good What makes a good domain?domain?
Natural Generic Brand (search volume = mindshare)Natural Generic Brand (search volume = mindshare) Easy to Remember (radio test)Easy to Remember (radio test) Clear, Concise and Descriptive (what does it say to the user)Clear, Concise and Descriptive (what does it say to the user) Commercially Oriented (existing search bids)Commercially Oriented (existing search bids) Industry Segment (is the industry hot/cold, new/old)Industry Segment (is the industry hot/cold, new/old) Visually Pleasing (what will it look like on a business card?)Visually Pleasing (what will it look like on a business card?) Existing Type-In Traffic (marketing benefit)Existing Type-In Traffic (marketing benefit) Back links, Page rank, Alexa Rank, etc.Back links, Page rank, Alexa Rank, etc. Mistypes? (generics vs. trademark)Mistypes? (generics vs. trademark)
How Do Domains How Do Domains Generate Revenue? Generate Revenue? Domain Traffic (direct navigation) – ad revenue from CPC, Domain Traffic (direct navigation) – ad revenue from CPC,
CPA, CPM, Selling Traffic directly to companies or advertisersCPA, CPM, Selling Traffic directly to companies or advertisers Domain Sales – sale of domain names directly or portalsDomain Sales – sale of domain names directly or portals Domain Development – individually or in partnership domain Domain Development – individually or in partnership domain
owners add content, diversify advertising and build web owners add content, diversify advertising and build web networksnetworks
Vertical Dominance – to monopolize groups of domain Vertical Dominance – to monopolize groups of domain names in category verticals. Dominance means more power names in category verticals. Dominance means more power and revenue.and revenue.
Other Sources of $$$ - leveraged value for financing/loans, Other Sources of $$$ - leveraged value for financing/loans, charitable donations/tax deductionscharitable donations/tax deductions
Domain Traffic – Recent Articles, Domain Traffic – Recent Articles, Studies, FactsStudies, Facts
GROWING MARKET - 70 percent of Internet surfers use direct GROWING MARKET - 70 percent of Internet surfers use direct navigation, up 53% from four years ago (WebSideStory). Rest use navigation, up 53% from four years ago (WebSideStory). Rest use search engines.search engines.
Direct Navigation a $1 billion business by 2007, on track to surpass Direct Navigation a $1 billion business by 2007, on track to surpass $1.2B (Susquehanna Financial)$1.2B (Susquehanna Financial)
Direct Navigation comprises 8-10% of the U.S. and U.K. search Direct Navigation comprises 8-10% of the U.S. and U.K. search advertising markets - roughly $600-$800 million this year.advertising markets - roughly $600-$800 million this year.
VeriSign indicates approximately 10% (30,000 per week) of its new VeriSign indicates approximately 10% (30,000 per week) of its new domain registrations are likely related to pay-per-click advertising. domain registrations are likely related to pay-per-click advertising. 24% parked24% parked
Domain values have increased 20% on average over the last 3 years Domain values have increased 20% on average over the last 3 years due to direct navigation revenue generation. due to direct navigation revenue generation.
Public companies such as Marchex, Livedoor, and ValueClick own Public companies such as Marchex, Livedoor, and ValueClick own portfolios of Direct Navigation websites, as do numerous private portfolios of Direct Navigation websites, as do numerous private equity backed companies such as iREIT, Demand Media, and equity backed companies such as iREIT, Demand Media, and NameMedia – all planning IPO this in 2007.NameMedia – all planning IPO this in 2007.
PPC advertising is only the beginning/foundation for the Direct PPC advertising is only the beginning/foundation for the Direct Navigation industry as new ways to monetize visitors to Direct Navigation industry as new ways to monetize visitors to Direct Navigation websites evolve.Navigation websites evolve.
Domain Traffic – CPC page (2 Click Domain Traffic – CPC page (2 Click Revenue)Revenue)TrafficClub.com – PPC MonetizationTrafficClub.com – PPC Monetization
Domain Traffic – CPC page (2 Click Domain Traffic – CPC page (2 Click Revenue)Revenue)
The company does NOT get paid for this click
Domain Traffic – “2 Click” Second Domain Traffic – “2 Click” Second
PagePage
The domain owner gets paid when a visitor clicks one of these links
Domain Domain
owner gets owner gets
paid when paid when
users click on users click on
the second the second
page. First page. First
page clicks page clicks
are strictly are strictly
navigational navigational
links.links.
Generic DomainsGeneric DomainsSearch Volume vs. Type-In Unique Search Volume vs. Type-In Unique VisitorsVisitors
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Search Volume
Annual Uniques
There is a direct relationship between domain phrase search There is a direct relationship between domain phrase search volume and domain traffic volumevolume and domain traffic volume
Domain Sales – Live Auctions Domain Sales – Live Auctions catching oncatching on Sales at Moniker’s Live Domain Auction at TRAFFIC East Sales at Moniker’s Live Domain Auction at TRAFFIC East
topped $5.4 million in gross salestopped $5.4 million in gross sales More than $10 million sold at auction by Moniker since More than $10 million sold at auction by Moniker since
Jan. 2006 Jan. 2006 Market interest warrants expansion into vertical niche Market interest warrants expansion into vertical niche
auctions: First-ever live “adult” auction in January at auctions: First-ever live “adult” auction in January at Internext - $1.9MInternext - $1.9M
Premium domains generate industry buzz AND revenue: Premium domains generate industry buzz AND revenue: Cameras.com ($1.5 million), Sex.net ($454,000), Cameras.com ($1.5 million), Sex.net ($454,000), Flowers.mobi ($200,000), Shemales.com ($520,000)Flowers.mobi ($200,000), Shemales.com ($520,000)
Fosters expansion into satellite services, such as Fosters expansion into satellite services, such as monetization, domain financing, appraisals and escrow, monetization, domain financing, appraisals and escrow, and moreand more
Creating Your Own PortfolioCreating Your Own Portfolio Who?Who?
– Anyone with moderate capital, intelligence, patience and timeAnyone with moderate capital, intelligence, patience and time Where?Where?
– Aftermarket domain web sites, WhoIs, search databases, trademark Aftermarket domain web sites, WhoIs, search databases, trademark exclusion tools, search bidding tools, creative thinking, exclusion tools, search bidding tools, creative thinking, expired/drop expired/drop namesnames
When?When?– Today, you are a little late but not dead!Today, you are a little late but not dead!
Why?Why?– Growth is incredible, high return on capital employed, advertising Growth is incredible, high return on capital employed, advertising
revenues are escalating, capture your marketrevenues are escalating, capture your market How?How?
– Find the search phrases that define your market segmentFind the search phrases that define your market segment– Identify domains that are Identify domains that are commercial, rare and valuablecommercial, rare and valuable– Register domains that are still availableRegister domains that are still available– Use Expired name and Drop ServicesUse Expired name and Drop Services– Contact those who own the rest or Stealth Acquire themContact those who own the rest or Stealth Acquire them– Define your strategy, budget, and time frameDefine your strategy, budget, and time frame– Execute Immediately!Execute Immediately!
Domains – Brand Identity of the Domains – Brand Identity of the InternetInternet
Choosing the proper domain names is crucial to success.Choosing the proper domain names is crucial to success. The winners will see an increased market share among a generation that The winners will see an increased market share among a generation that
spends their lives online.spends their lives online. Losers will cling to decreasing audiences, especially among the youth Losers will cling to decreasing audiences, especially among the youth
demographic.demographic.
$3.5$5.3
$7.3$9.5
$11.9$14.3
$16.5
$19.5
3.0% 3.9% 4.9% 5.9% 6.7% 7.5%9.80%
2.0%
$0
$5
$10
$15
$20
$25
1999 2000 2001 2002 2003 2004 2005 *2006
US
$ B
illio
ns
0%
5%
10%
15%
20%
25%
Total OnlineAd Spending
% of OverallAd Market
Case Study – The US Healthcare Case Study – The US Healthcare Industry (Corporate market is Industry (Corporate market is catching on)catching on) The US Healthcare Industry – The US Healthcare Industry – $1.7 Trillion$1.7 Trillion dollars dollars
per yearper year The Players: The Players: Pharmaceutical Companies, Physicians, Pharmaceutical Companies, Physicians,
Hospitals & Specialty Clinics, Insurance Companies, Hospitals & Specialty Clinics, Insurance Companies, medical related advertisers such as health supplementsmedical related advertisers such as health supplements
What changes has the Internet brought:What changes has the Internet brought:1.1. GenX and younger distrust doctors and traditional GenX and younger distrust doctors and traditional
media turn to Internet for informationmedia turn to Internet for information
2.2. Internet enables easier comparison shoppingInternet enables easier comparison shopping
3.3. ““Direct Navigation” provides targeted traffic to Direct Navigation” provides targeted traffic to generic .com’s creating potential for new brand namesgeneric .com’s creating potential for new brand names
Pharmaceutical Companies – Pharmaceutical Companies – “Buy” the disease“Buy” the disease
Asthma is an $11Billion Asthma is an $11Billion dollar industry – 60% going dollar industry – 60% going to prescription drugs.to prescription drugs.
GlaxoSmithKline (“GSK”) GlaxoSmithKline (“GSK”) created a ‘soft branded’ created a ‘soft branded’ portal.portal.
Able to control what visitors Able to control what visitors learn about asthma.learn about asthma.
Information about where Information about where visitors are coming from (IP visitors are coming from (IP tracking), and going to tracking), and going to (cookies).(cookies).
Appeals to GenX patients Appeals to GenX patients who are more likely to who are more likely to research an ailment online.research an ailment online.
GSK’s competitors will be GSK’s competitors will be forced to constantly spend forced to constantly spend money on search engines money on search engines and portals to reach and portals to reach potential customers online – potential customers online – expensive for a disease that expensive for a disease that grew by 35% since 1997.grew by 35% since 1997.
Physicians – What Domains Physicians – What Domains work? work?
Heart Disease cost $68 Heart Disease cost $68 Billion per year in the US.Billion per year in the US.
Medicine is an increasingly Medicine is an increasingly competitive industry – yet competitive industry – yet traditional advertising traditional advertising methods are expensive and methods are expensive and ineffectiveineffective
Texasheartsurgeon.comTexasheartsurgeon.com is is easy to remember and tells easy to remember and tells a potential patient a potential patient everything they need to everything they need to know.know.
Dr. Ott does not need to Dr. Ott does not need to worry if referrals will forget worry if referrals will forget or misspell his name, lost his or misspell his name, lost his card, or use an old phone card, or use an old phone number – number – an $8 investment an $8 investment per year prevents this.per year prevents this.
Dr. Ott also owns Dr. Ott also owns Houstonheartsurgeon.comHoustonheartsurgeon.com
Miamiheartsurgeon.com was Miamiheartsurgeon.com was only registered in July 2006only registered in July 2006
Hospitals & Specialty Clinics Hospitals & Specialty Clinics ––Attracting Lucrative Attracting Lucrative ProceduresProcedures
Gastric Bypass is a $50,000 Gastric Bypass is a $50,000 procedure largely uncovered procedure largely uncovered by insuranceby insurance
This clinic gains new patients This clinic gains new patients from this domain, and from this domain, and generates revenue by generates revenue by referring out of state queries referring out of state queries to other clinicsto other clinics
Gastricbypass.comGastricbypass.com is easy to is easy to remember and tells a remember and tells a potential patient everything potential patient everything they need to know.they need to know.
Gastricbypass.com ranks high Gastricbypass.com ranks high in Google and Yahoo search in Google and Yahoo search rankings.rankings.
Competitors have bought Competitors have bought domains like domains like thinnertimes.com and thinnertimes.com and stopobesityforlife.comstopobesityforlife.com
Dr. Oliak, a gastric bypass Dr. Oliak, a gastric bypass innovator is now buying traffic innovator is now buying traffic on Google for doliak.com – a on Google for doliak.com – a bad domain choicebad domain choice
Insurance Companies –Insurance Companies –The Lead Generation PortalThe Lead Generation Portal
With a With a domain name and a domain name and a web developerweb developer this this company partnered with company partnered with an offline insurance broker an offline insurance broker to become one of the to become one of the largest independent health largest independent health insurance brokers in the insurance brokers in the US.US.
Insurance companies Insurance companies spend money on spend money on advertising to create an advertising to create an image that distinguishes image that distinguishes themselves from the themselves from the competition competition
Insurance companies now Insurance companies now face having their offerings face having their offerings compared against compared against competitors on competitors on functionality alone.functionality alone.
Hispanic Americans are the Hispanic Americans are the largest, youngest and fastest largest, youngest and fastest growing minority group in the growing minority group in the country – they also have the country – they also have the largest purchasing power of largest purchasing power of any minority group in the any minority group in the country.country.
A younger generation raised A younger generation raised on the Internet as well recent on the Internet as well recent immigrants will not have immigrants will not have brand allegiance to brand allegiance to established US diet established US diet companies companies
WeightWatchers or Jenny WeightWatchers or Jenny Craig spend $5 – $10 for each Craig spend $5 – $10 for each new customer sign-up they new customer sign-up they get from affiliate networks – get from affiliate networks – can they afford to pass on a can they afford to pass on a domain receiving 200,000 domain receiving 200,000 unique Hispanic Americans unique Hispanic Americans per month?per month?
Health Industry Advertisers –Health Industry Advertisers –How to Lose Your BrandHow to Lose Your Brand
Domain Purchase Domain Purchase Potholes Potholes TrademarkTrademark Search Search
Consider having a valuation done for high value Consider having a valuation done for high value domainsdomains
Use a domain Use a domain escrowescrow service service
Financing is NOW availableFinancing is NOW available
Domain Statistics – Are they Domain Statistics – Are they artificially inflatedartificially inflated??
You may have to Stealth Acquire to avoid artificial You may have to Stealth Acquire to avoid artificial inflationinflation
What other information can you get?What other information can you get?
Phrase Data – Phrase Data – WordTracker.com, KeywordDiscovery.comWordTracker.com, KeywordDiscovery.com Bid Price Data – Yahoo Search Marketing Bid Tool Bid Price Data – Yahoo Search Marketing Bid Tool
searchmarketing.yahoo.com/rc/srchsearchmarketing.yahoo.com/rc/srch// Ownership WhoIS Lookup – Ownership WhoIS Lookup – DomainTools.com, WebHosting.infoDomainTools.com, WebHosting.info Aftermarket Domain Sales and services: Aftermarket Domain Sales and services: Moniker.comMoniker.com, ,
BuyDomains.com, Sedo.com, BuyDomains.com, Sedo.com, Expired Name/Drop ServicesExpired Name/Drop Services – Snapnames.com, Pool.com, – Snapnames.com, Pool.com,
ClubDrop.comClubDrop.com Trademark ToolsTrademark Tools
– United States Patent & Trademark Office United States Patent & Trademark Office www.uspto.govwww.uspto.gov
– Microsoft Research Microsoft Research research.microsoft.com/URLTracer/research.microsoft.com/URLTracer/
– WIPO WIPO arbiter.wipo.int/domains/arbiter.wipo.int/domains/
Domain Masters, Wednesday’s at 4 PM PST – Domain Masters, Wednesday’s at 4 PM PST – www.WebmasterRadio.fmwww.WebmasterRadio.fm
Forums and news – Forums and news – dnforum.com, domainstate.com, dnforum.com, domainstate.com, namepros.com, dnjournal.comnamepros.com, dnjournal.com
Conferences – Conferences – TRAFFIC (targetedtraffic.com – live domain auction), TRAFFIC (targetedtraffic.com – live domain auction), DomainRoundTable.com, WebmasterWorld.com, SESDomainRoundTable.com, WebmasterWorld.com, SES
Useful LinksUseful Links
Monte CahnMonte CahnFounder and CEO Founder and CEO Moniker.comMoniker.comTrafficClub.comTrafficClub.comHost – Domain Masters, Wednesday’s at 4 PM PST – WebmastersRadio.fmHost – Domain Masters, Wednesday’s at 4 PM PST – [email protected]@Moniker.com
Experience Since 1995Experience Since 1995 Moniker.com - more than 1.9M Domains under management – 10Moniker.com - more than 1.9M Domains under management – 10thth
largest Registrarlargest Registrar 12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal, 12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal,
Traffic MonetizationTraffic Monetization First to sell a domain for more than $1M and $2M (Wallstreet.com, First to sell a domain for more than $1M and $2M (Wallstreet.com,
Autos.com)Autos.com) Stealth Acquisition specialistStealth Acquisition specialist Invented the Domain Appraisal - 460K appraisals to date, IRS Invented the Domain Appraisal - 460K appraisals to date, IRS
Accepted, used for lendingAccepted, used for lending One of the first to monetize domain traffic in 2000One of the first to monetize domain traffic in 2000 Focus is on Domain Asset Management – Average Client owns Focus is on Domain Asset Management – Average Client owns
100+ domains100+ domains Clients include – Major League Baseball, NHL, Lions Gate Films, Clients include – Major League Baseball, NHL, Lions Gate Films,
Incisivemedia/Jupitermedia, Marchex, and Yahoo!Incisivemedia/Jupitermedia, Marchex, and Yahoo!