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BIZ ALERT – FORGET TM DOMAINS, WORRY ABOUT GENERICS

images-1.jpgThe story on Money CNN blares out a warning to businesses regarding their company names and trademarks being stolen by nefarious domainers. Ahem. This is old news. Any company who has some decent value will already know about how to protect their trademarks online by preventing or fighting to recapture domain names that describe their trademarks. It’s a no-brainer. An ICANN UDRP can be filed for about $1,500, which is an inexpensive way to gain control rightfully of a domain. However, many large corporations with mammoth legal teams see the tactical advantage of just suing a domainer and burying them in legal bills.

Think about it. You have a domain that a large online company can claim infringes on their trademark. The sad thing is that words and phrases that incorporate a multitude of different meanings can be attacked by company law dogs and stolen from innocent domain owners. Take the domain “ROSEBAY.COM.” It’s a community in Florida. Ebay can claim that the owners of the domain “rosebay.com” are infringing on their trademark. This can be very problematic to anyone trying to buy a domain WITHOUT the intent of infringing on eBay’s trademark. Anyway, this isn’t the main thrust of my post here.

The real fright for business is if they lose the domain name that generically describes their product or service. I thought the CNN article was going to focus on that. Stupid me. It’s just a rehash of old fears about bad domainers sucking income off of TM domains. The article, predictably, had nothing to do with pointing out to businesses that if your competitor buys the generic keyword descriptive domains of your products and services, your company is screwed online. How can you compete if you sell “galvanized steel tubing” and one of your competitors owns that descriptive domain? http://www.galvanizedsteeltubing.com then points to their website, and anyone who decides to type that phrase into their browser search bar comes to your competitor’s website. Don’t laugh, because over 20% of internet users look for “legitimate websites” by typing in the domain phrase of the search subject they’re interested in.

The big worry for businesses isn’t really rogue domainers registering similar or typo domains that might infringe on their trademarks. Those can usually be easily resolved at ICANN with a cheap UDRP filing. However, losing to a competitor a domain name that describes your product or service, that’s something your company can never recover from, and it permanently places your company at a disadvantage online.

If your marketing director doesn’t realize this by now, fire him and hire someone who does. Every day your company doesn’t own the generic domains of your products and services is a day your company could find itself “face down in a dumpster” online, so to speak. Ouch.

http://money.cnn.com/2008/02/11/smbusiness/copyright_URL.fsb/

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ARE DOMAIN VALUES LIKE PROVING LIFE ON MARS?

man-on-mars-screen.jpg The Christian Science Monitor just published an article by Chris Gaylord that is touting the increasing investment value of domain names. It’s a nice article, fairly simplified, but covering some key points from the big players in our industry. Although the article explained adequately the process of “direct navigation” (or what I prefer to call “browser surfing”), and other aspects of buying and selling domains, it didn’t approach the real reason why the article was important in the first place: Why businesses should buy domain names

It’s been a goal of mine and others in the domain industry for over two years to try and reach the business sector to educate them on the value of owning the keyword generic descriptive domains of their products and services. I was talking to one of my clients yesterday, and the topic of selling domains to companies that really should OWN the domains came up. My client described to me the frustration he felt trying to sell domains that fit an occupational niche, but those professionals in that occupation didn’t “get it”. They were more concerned with branding their company’s name, and the idea of having a generic description of what their company offered to their market in the form of a domain name didn’t pop up any lightbulbs over their densely muddled heads.

If the domain auction sites and other domain aftermarket companies started investing in reaching out to Fortune 1000 companies and beyond, then collectively the “domain message” would get out, and probably start an avalanche of worried marketing VP’s who suddenly realize that not owning the domain names that describe their own products would be a disaster, especially if their COMPETITORS owned these domains. I’ve said it a hundred times before, so here’s the 101st time: “Nothing makes a company more worried than finding out their competitor owns the generic descriptive domains of the products/services they provide.”

Want to see a good example of marketing smarts? Type in “Books.com”. Hey! You’re now at Barnes & Noble! Nice job! Good marketing call by B&N! Now type in the singular, “Book.com”. It’s amazing, isn’t it? B&N owns that domain too! Imagine the tens of thousands of people who arrive at their site by direct navigation each month. Those domains have paid for themselves 1000 times over.

Now for the pathetic segment of my online marketing example. Borders and Books, a B&N competitor, seemed to be swallowed up by online book sales giant, Amazon a few years back. Borders Group now has announced that they’re breaking free of Amazon.com and doing some marketing through Ripple and Ancestry.com and a variety of other websites in some digital marketing kiosk mumbo-jumbo. Back to the subject — Borders.com still points to Amazon.com. Their exciting new domain name to begin to take over the online bookbuying consumer is…. “VISITBORDERS.COM”.

That’s right. Not “newbooks.com” or “buybooks.com” or something vaguely generic to help describe their company’s products online in an advertising campaign worth watching, but just a “hey, come visit Borders” type domain name.

Somebody in the Borders Group marketing department should stand up at their next meeting and shout “Hey, lameheads! Wake up! Get us some power domains to promote this company online!” Then they can try to convince the lameheads that domain values are real.

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MARCHEX GOT GAME? DEY GOT SUPERPAGES!

images-3.jpg Marchex and Idearc Media Announce Local Advertising Agreement

Looks like Marchex is beginning to hit the targets they’re looking for and those targets are going to spill big cash. They just inked a deal with Idearc Media for placing ads from Superpages on their 200k+ websites. Big for Superpages, big for Marchex.

In other news before the inking deal with Idearc, some pundits were talking about several options for the hard-to-pin-down-and-analyze Marchex (at least for the Wall Street crowd). There’s been talk of two options wavering like a lonely ghost in front of the Marchex investment future:

Management Lead Private Equity Buyout – The company big boys could be offering something in the $15+ per share range to take the company private. This wouldn’t make the stockholders happy, since that price was trading last year. However, rumors that management at Marchex were so frustrated that they wanted it all for themselves and were going to pick it off.

BUT, then others insinuations popped up that —hmmmm….

Third Party buyout of Marchex – Bop-A-Weasel!! Good grief, there are rumors that News Corp. (NWS) wants to buy an ad network to inject super adjuice into MySpace, WSJ.com and the many online website properties they’ve horded together, and Rupert the Super “Not American” News Mogul isn’t happy about certain relationships between his current ad company and other “entities”.

I don’t profess to be a Wall Street Guru, but I can say that the first part of this story is going to make Marchex the New Media white horse of glory in the year 2008. Anyone want to come along as I back it up with stock buys? I will if you will!

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HOW TO SPOT A NAUGHTY REGISTRAR

naughty-registrars-jackolantern.jpgMany of us domainers take registrars for granted most of the time. That’s very strange, because it’s like putting our life in the hands of a brain surgeon who has to remove a small benign tumor. The tumor won’t kill us, but the surgeon and his team could. That’s a registrar.

Registrars are the most important link between a domainer’s success and his destruction. A registrar can make you lose a domain, charge you more for a domain, make you spend hours trying to manage your domains that shouldn’t take more than a few minutes (your time is money, so this sucks), and basically trick you into forfeiting your domain so they can resell it at an expiring domain auction service. Scary, huh!

There are at least five trustworthy registrars I would recommend here. I wish I could get a piece of that action, but I doubt I will. However, first I’ll tell you what to look out for if you’re signing up for a registrar. So here is my “SPOTTING NAUGHTY REGISTRARS LIST”.

I’d say any registrar that does the following could possibly be a “bad” or “needing some upgrades fast” registrar if they:

1. Charge you more than $12 a year for domain registration in the top three TLD’s. (.com, .net, .org). A better price for those domainers who buy more than 100 domains should be in the $7 – $9 range. If you’re in the thousands of purchases, definitely do NOT pay more than $7.50 per domain. If you want to get connected to a great registrar at this price level, contact me.

2. Don’t return your email support request within 24 hours, nor calls you back, nor answers their phones. Domainers need instant help. Avoid registrars with weak customer service.

3. Have a website that looks like it was created in 2001 and hasn’t been upgraded since. No matter what sucker low price they try to pull you in at, their customer service when you really need it will be non-existent, and their website will be like a drunken sailor trying to find his way back to a USS Destroyer through a Newport Beach Yacht Sales Yard.

4. Try to get you to buy in for really, really cheap. You know, they put an “asterisk” (*) by the price they list of the domain. Remember, the word “asterisk” kinda sounds like “your ass is kicked”. Any registrar charging less than $7.00 US for a .com is questionable unless they know you have purchased hundreds or thousands of domains through them at wholesale. Beware of the cheap sale. It isn’t cheap later on when you need to manage that domain.

5. Says “powered by >>>>>” or that seems to be a reseller. This isn’t always the case, but it’s something to be on the lookout for. Some of the worst cases of domain name abuse for the owner comes from resellers.

6. If it’s not Moniker.com, Rebel.com, Fabulous.com, Godaddy.com (ehhh… I got issues with them but they have serious customer service), Enom.com, and several others, then they could be suspect. You can get a good idea of registrars that are growing fast and other info at http://webhosting.info/. However, fast growth doesn’t always mean “great registrar”.

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THE AFTERMARKET IS YOUR FIRST MARKET

Published on January 24, 2008 by in Aftermarket

dee-photo_market-2007_1.jpgJust what “is” the domain “aftermarket”? You’d be surprised how many businesses don’t know, or have a wrong opinion of this very important part of successfully creating their business online.

The aftermarket domain industry is made up of domain buyers who already own a domain that could be extremely valuable for your online company. In many cases, the owner of a domain you want may sell you that domain for a reasonable price, depending on the domain name’s generic keyword quality and recognition. You may be taken aback to hear a price for a domain of this type, but don’t be fooled by thinking “why should I pay this much money for a simple domain name?”

Here’s why: It would be more valuable for a business to buy a relevant descriptive “aftermarket” domain for $3,000, than to settle for a lesser descriptive or weaker domain extension (anything that’s not a .com) for the registration price or a few hundred dollars. In the long run, and maybe the short run, investing $3,000 in a domain that perfectly defines your business, products or services is better than taking out a half page ad in your local newspaper. That newspaper ad is only good for a few days at the most. A good descriptive domain name, even at $3,000 or $300,000, will work for you daily, 24/7/365. It never stops. My term for a good domain name is an “appreciable marketing asset”. You may hear this term a lot.

What is an “appreciable marketing asset”? It’s a marketing service or product a company buys that continues to make money for the company, represents the company in a public medium, and at the same time appreciates in value while the availability of similar products or services diminish. For domain names, there are only a certain amount of domains describing something a company offers, and when your competitors buy those domains up, you’re out of luck. Period. There’s nothing worse than having your competitor own the generic descriptive domain name of the products and services your company offers. You sell “little brown solar lights” but so does your competitor. And they own “littlebrownsolarlights.com”.

Not only discussing the “direct navigation” or “browser surfing” benefits and market that “littlebrownsolarlights.com” create that no other company can participate in, but when they market their product online, and go up against you in placing google or yahoo ad links, they can bid lower on their ad link bids because their link immediately describes the search terms that everyone just bid on! If you were a customer and looked at the google search result page after searching up “little brown solar lights”, you would see on the right side all the relevant ads for that search term. However, would you go to the top, and click someone’s link that said “xyzsolarstuffinc.com”, or would your eyes be directed to your search term as a domain name, “littlebrownsolarlights.com”. It seems logical that this would happen. So an advertiser can spend less in ad link bids because the power of their domain name trumps the higher paying ad link buyer.

I have over 3500 domains that represent generic descriptive products and services of businesses of every type. I get the traffic from their customers on my landing pages because people like to just type in a search phrase as a .com domain and see which smart company owns the domain representing the product/service they’re searching for. My landing page then shows a list of companies that have already paid for ad links to appear on my page. It always amuses me when “electricwheelchair.net” (.net isn’t the best domain extension, but people still look for sites with it) gets about 25 people a month searching for electric wheelchairs, come to my website, and then click on my adlinks. Wheelchair companies pay a lot of money for their ad links, because one sale can mean $5,000. A wheelchair or scooter company might pay as much as $4.00 a click for ads that appear on my electricwheelchair.net landing page. So I’ve been making money from providing the adlink for several different companies that sell electric wheelchairs, when if any of these companies had a smart marketing company, they’d buy this domain name for $5,000, and forever control the traffic that comes to that domain. None of their competitors would ever again be able to take advantage of the domain. The company that owned “electricwheelchair.net” would get all the traffic, and convert the sales directly through their own website.

Many marketing companies and business owners don’t understand that owning a domain name that describes their products/services doesn’t mean they have to change their company name. All the company has to do after they buy the domain is to point that domain to their homepage or to the product page of what the domain describes. It’s a simple process, takes a few minutes, and brings the company the most pinpointed, targeted traffic and customers possible.

NOTE THIS CLAIM THAT NO OTHER ADVERTISING VEHICLE CAN MAKE:

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