Wednesday, June 25, 2008

Part 3 of 4: Extra Insights From The Author Of "The Domain Game"

In Part 3 of Fractional Domaining Blog's 4-part interview with David Kesmodel, author of "The Domain Game", we continue with discussions about opportunities for profiting from domain names; how much the comparison of domain names to real estate has impacted the success of domainers; observations and thoughts about Fractional Domaining; and the emergence of new business models like domain exchanges...

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Neal R. Voron, of Fractional Domaining Blog:

Q12: What opportunities remain for individuals and businesses interested in profiting from domain names?

David Kesmodel:

A12: I tackle this in my last chapter, so I hope folks will read that for details on my thoughts on this. But I think there are some great opportunities in "local search" getting domains related to local business information, such as littlerockplumbers.com ­ and names related to emerging industries or technology. You could even try to get a name of a small suburb that you think is going to eventually be a big community. Keep up with the news and be curious when you meet people at parties or on airplanes. You never know where you might get a great idea and find the relevant domain(s) has either never been registered, is for sale at a good price, or is in the hands of someone who would be a willing seller (and you can try to contact them via their information in the name's Whois).

Lots of domains expire all the time, so getting into the expired domain market is important­ and my book has lots of details on how this market evolved and works. In general, profiting from domains may now involve a lot more of the skills of being a trader. That means finding names at the lowest price you can find and then selling to the highest bidder you can find­ and that can take patience. You probably need to have a long-term outlook. Trading, of course, takes a strong stomach for risk. Still, good salesmanship and savvy investigation of cheap properties could pay off. There are domain traders that are doing well right now.

Neal R. Voron, of Fractional Domaining Blog:

Q13: How much has the comparison of domain names to real estate impacted the success of the domainers mentioned in "The Domain Game"? Does "virtual real estate" seem to be a good way to view domains?

David Kesmodel:

A13: It's a reasonably good comparison, and I do think the analogy benefited some of the most successful domain investors. One point of caution, though, which I highlight in the book, is that the domain market is not nearly as liquid, generally speaking, as the real estate market. It can take a long time to find buyers for certain domains­ especially at a desirable price for the seller. Then again, the American real estate market has its own problems right now and isn't as liquid as it usually is!

Neal R. Voron, of Fractional Domaining Blog:

Q14: Based upon your research for your book, what role has Fractional Domaining (buying or selling of fractional interests in domains) played in "The Domain Game" to date? Have you noticed any trends involving Fractional Domain Ownership?

David Kesmodel:

A14: I think this is a pretty new area, although you can even go back to the 1990s and find some people jointly owning domains. It seems that the three sellers of wallstreet.com, one of the first million-dollar domain transactions, were essentially fractional owners. I think fractional ownership is going to become more common as the prices of high-caliber names rise. It is definitely getting a lot more expensive to own high-trafficked generic domains.

Neal R. Voron, of Fractional Domaining Blog:

Q15: Fusu.com bills itself as the world's first "Domains Stock Exchange", facilitating transactions involving the selling and buying of fractional interests in domain names. How prominently do you think this "stock" model might stand in a sequel to "The Domain Game"?

David Kesmodel:

A15: I think there's the potential for some more books on this industry as these new business models take shape and more and more people get involved in the market. As the market becomes more liquid through such domain exchanges, you could see some new domain-investing superstars emerge. That will make for good copy for writers. You'll also see more how-to books on the market.

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Don't miss Part 4 of our interview on Thursday when Fractional Domaining Blog and David Kesmodel, author of "The Domain Game", discuss additional topics, including: notable trends in domaining since the book manuscript was written; additional resources Kesmodel plans to offer; feedback the author has received so far and whether another book is planned; whether writing this important book about the domain industry and many of its key players was worth Kesmodel's time investment and why; and additional thoughts from the author.

Join me all week as Fractional Domaining Blog continues with Part 4 of our interview, followed by my personal review of "The Domain Game"!

Thanks!
-- Neal

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