Major Bear Market Expected for Geo Domains

Starting next year unlimited numbers of new domain extensions are scheduled to be sold and some will be up and running. We always assumed major brands such as .sears .apple .microsoft .hp .godaddy .ibm and many others would want to own their own extension, not necessarily to sell domains but for their own product, use and branding.

Now I am hearing many reports about large U.S. and international cities including the cities of .tokyo .sydney .london .newyork .sandiego .la .vegas and others planning to also buy their very domain extension. At an initial cost of $185k it may seem high to you or me but to a large corporation or big city it is not too significant a cost.

Having heard about many major cities with plans to buy their own extensions it would seem logical the end-effect will be to greatly devalue the domainer or investor owned geo dot com’s, including mid-size city dot-coms. The smaller or mid-size cities may not want to invest now or be able to budget $185k but they will likely do so as the ICANN price drops (and I am sure the fee will decline rather quickly and dramatically within a few years).

At that time I believe you will also see many mid-size cities such as Palm Springs, Bethesda, Burbank and Scottsdale for example, getting their own extensions. It’s also possible they may not wait for lower costs and instead apply soon, agreeing to pay the 185k ICANN fee.

Think about this scenario; A visitor (or resident) in Scottsdale Arizona knows many cities now own their own domain so would he be more inclined to typein to a search box or the browser window “Scottsdale.com” or the word “Scottsdale” without an extension? In our opinion there is little doubt as time goes by the word Scottsdale will prevail as the most popular choice, relegating Scottsdale.com to 2nd tier status, which dot-com decline would be ongoing and the scottsdale.com down-trend be more pronounced as time goes by.

In our opinion, this news marks the beginning of a very significant and long term bear market (a likely permanent major drop in geo domain values), impacting mid to large city Geo domains in particular. I would expect a number of them to go on the auction block soon before they decline more in value.

Google Antitrust Hearing Invitations

Senate wants top Google executives CEO Larry Page and/or Executive Chairman Eric Schmidt to testify and are invited to participate in the upcoming antitrust hearings.

Some Domain Industry Players are Not Doing Well

Well known and veteran domainer Sahar Sarid’s Conceptualist.com website looks like it’s gone. The Conceptualist.com website owned by “Sahar Sarid” for a long tme recently became a simple DomainSponsor.com parking page but as of today it no longer resolves at all. That’s not too surprising overall since there seems to be a somewhat significant down-sizing or shakeout taking place in the industry.

Various industry firms, forums, domain meeting venues, auctions and individual domainers have left the business, are not doing well, or have domain-name related websites which are less successful and active vs a few years ago.

It’s probably mostly the result of large declines in pay-per-click advertising revenues, reduced market liquidity, the economy, combined with market saturation and too many participants (including lots of new players) competing and trying to grab their own piece of the pie.

Here is a link to an interesting 2007 article about Sahar Sarid, a DNJurnal.com Cover-Story.

Overstock.com is rebranding itself as O.CO

Found this on the Overstock.com website this morning. It’s also Super Bowl Sunday, so perhaps not just a coincidence since the .CO extension domain names will be strongly marketed in today’s Super Bowl commercials, making Overstock.com’s announcement real good timing in that regard.

“Shopping at Overstock.com internationally is about to get easier with the O.co domain. Since the company acquired the O.co domain name in July 2010, Overstock.com has been simpler to access by mobile Internet users. Now, to minimize confusion and hassle while translating the word “Overstock” into other languages, Overstock.com is rebranding internationally and will be known as O.co as of Jan. 2011. This guide will address any concerns you may have about Overstock.com’s new domain.

Q. Why will Overstock.com be known as O.co internationally?

A. In July 2010, .co domain names became available for general purchase, and Overstock.com acquired the O.co domain name in order to reinforce the “O” of the Overstock brand and capture customers’ attention with a short, memorable web address. The short .co domain will also solve translation issues and allow Overstock.com to create a universal logo, brand and web domain name that will be recognizable internationally…”

Click the Overtstock.com® woman on the couch picture below to visit the new O.co® website:

Example of a Cleverly Disguised Hijacking Attempt

Watch out for all the very well done cleverly disguised attempts to get your login name and password to various websites such as PayPal, Amazon.com, your Bank accounts, Facebook, plus email providers such as Gmail, and other sites.

For example, reprinted below is one of the more clever ones making the rounds today, which I am sure could work very well for the hijacker of your account:

“Gmail technology team has recently launched Google web software to protect and secure all Gmail Accounts. This system also enhanced efficient networking and fully supported browser. You need to upgrade to a fully supported browser by filling out the details below for validation purpose and to confirm your details on the new webmaster Central system.

ID:
PASSWORD:
LOCATION:

Note: Your account will be disabled permanently if you failed to provide the details required above within 72hours. Gmail will not be held responsible for your negligence. The Google web Service.”

Phone Calls can be an Affiliate Program Negative

For some odd reason the potential phone call which in all likelihood can end-up losing your affiliate referral revenue has rarely been talked about in the past. Not sure why since it’s believed to be a big negative.

I believe a good percentage of potential buyers will pick up the phone and call the sellers toll-free number for more information and when they do that your chance of getting credit for the sale becomes very low. That is especially true with higher priced products and services, where the prospective buyer is much more inclined to call before spending significant money.

He or she may be wondering if it’s a legitimate business and curious to see if a live person answers the phone. Your potential buyer may also be thinking they can get a better deal by calling, and there are other reasons they are likely to pick up the phone instead of using the online contact form or order form (which contains a cookie and tracking ID), such as a desire to authenticate the company, product or service, including frequently wanting to ask questions about the product or offer before ordering it.

When potential buyers call the sellers number, orders are often taken right away over the phone. Or a little later the buyer may be sent an email with an ordering link (not related to you as the publisher), so credit to you as the referral source can easily be lost, thus preventing you from getting credit for the sale.

As a side note, some years ago we believed we had far more referrals than our reports indicated. Therefore, we called seller ourselves and asked how they handled phone calls as far as credit to us as the referral source is concerned. We were told “don’t worry, we always ask how they got our number – so you get credited for the sale.”

Not surprisingly, that turned-out to be false since the next day we called the 800 number on the sellers website and said we wanted to place an order. We actually placed the phone order and at no time during the entire process did anyone ask how we got the number, so receiving credit was impossible.

In fact, the phone call issue is a major reason we have always been somewhat negative about joining affiliate programs. Unless someone can figure out a way to get around this negative issue we will stay negative on affiliate programs (at least regarding higher priced products). I see no good way to avoid this issue beyond getting your own assigned phone number but seriously doubt the product/service provider will agree to assign a special phone number to a new affiliate to better track the referrals.

Product Authentication

Negativity by Paying Domain Broker Upfront Money

Sometimes domain name and website owners may wish to hire a domain brokerage to sell their names or websites. I can give you some good advice (gained via my personal hands-on experience) about that, including a warning about paying any upfront fees to the broker.

Keep in mind, once the domain-broker has your money a good degree of the incentive to work hard and sell your domain or website may be lost since the broker already has his/her money, regardless of the name selling or not selling.

One more potential negative occurrence is the once friendly relationship you had with the broker may quicky go away if there are any business or personal issues involved. That can easily happen as a result of the broker already having your paid in advance monies so he may decline to issue a refund if you are later unhappy with his work and perfomance.

More information about why you should never even think about paying a fee in advance to a broker (which we published over a year ago) as part of a post about the category defining premium domain names LiveApp.com plus LiveApps.com both being available for purchase, located here: About Domain Broker and Live App domains for sale .

A good article about domain brokers was recently published in Elliotsblog.com in which Elliot lists domain name brokers. I know several of the same domainers/brokers and can suggest the following domain brokers, which Elliot listed in his post:

• BigTicketDomains.com – Kevin Leto
• DifferentInvestments.com – Justin Godfrey
• DomainBroker.com – Rob Sequin
• DomainsForMedia.com – Eric Rice
• MediaOptions.com – Andrew Roesner
• NameConnect.com – John Daly

By the way, Webtrading also offers a domain brokerage service (mosty for our own websites but the brokerage service can also be used to buy domains belonging to other parties), which you can learn more about by clicking-on the image below. In addition, any comments you may have about selling domains and websites, or regarding domain brokers will be appreciated.

Wal-Mart CEO vs. Worker Comparison

The CEO of Wal-Mart earns more in one day than the average Walmart worker makes in two-years!

Data courtesy of the Washington Post