"The Domain Game" Has The Potential To Influence And Ignite The Next Generation Of Leaders...

Following-up on Fractional Domaining Blog's 4-part interview this week with David Kesmodel, author of "The Domain Game", here is my personal review of this important book that I believe has the potential to influence and ignite the next generation of Internet and business leaders...

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Many of us have a valid excuse why we missed an early wave of opportunity to invest – or invest more heavily – in Internet domain names. We may have had no idea what was happening and what we were missing out on, or we may have had a clue but could not quite grasp how to get a handle on it. With David Kesmodel’s “The Domain Game” now available, though, there are few excuses to sit on the sidelines anymore!

Some books focus on one industry but are really about so much more. They are about people, about business, about life. They are about how one’s perspective, creative thinking, actions, and persistence can make a difference in his or her success. “The Domain Game” is one such book, and I highly recommend it both as an insightful view into the world of domaining and as an interesting and enlightening story that is worth reading whether you know what a domain name is or not.

Kesmodel, a staff reporter for the Wall Street Journal’s Chicago bureau who formerly worked as technology reporter for the Journal’s online edition, expertly weaves Internet domain name industry facts and history into the context of events, sharing the true stories of successful domainers. He tells how individuals of varied educational and work backgrounds found success through foresight, smart thinking, and/or aggressive pursuit of domain names that they acquired for prices as low as under $10 to many thousands of dollars.

But Kesmodel doesn’t stop there – he offers insights into opportunities that exist in domaining today, and he introduces readers to many key players and domain industry resources.

Readers who know nothing about Internet domain names beforehand will sooner or later realize that they could have hand-registered a couple of “.com” domain names for the price of the book... and know that buying the book first was a good investment because it can help them make smarter decisions.

That is not to say that you cannot have success in the world of domaining without reading Kesmodel’s insightful historical look at the evolution of the domain name industry – far from it, because readers will see that many successful domainers over the past 15 years or so have done phenomenally well without Kesmodel’s near 20-20 hindsight.

With over 500 Internet domain names in my own “portfolio”, I am by no means a newbie to the world of Internet domain names and have had some modest successes as a domain buyer, developer, and seller... From personal experience, I can attest to the fact that names purchased for tens or hundreds of dollars can sell for thousands if you find the right buyer... I am aware enough about the domain industry to have become a geo domainer, a domain developer, a domain name reseller, the author of a blog about Fractional Domaining, and an active participant in domain industry social networks. Looking back, though, I sure wish I had the knowledge contained within “The Domain Game” years ago when I and so many others were learning on our own and guessing what we should do when opportunities were great and the very best ways to success were not always as clear as they could have been.

The good news is opportunities in domaining still abound, and Kesmodel provides insight, perspective, and direction that can benefit newbies through experienced domainers.

The knowledge you will gain from “The Domain Game” will be invaluable in framing your approach and mindset about domain names and domain name investing. Warning: You may catch yourself beginning to think of concepts, places, and things in terms of domain names! (But that could be a good thing!)

If reading “The Domain Game” generates one idea for you or gets you thinking differently about how you approach things or what you are currently doing, then its value far exceeds the price of the book.

Also, because of the relatively low price of domain names, it is easy to apply the knowledge gained from “The Domain Game” in your personal life. And while it may be possible, you do not have to achieve the astronomical successes of some of the individuals mentioned in “The Domain Game” to have success as a domain name investor yourself.

Are there risks involved with investing in domain names? Absolutely! And to his credit, in Chapter Nine when Kesmodel talks about “The Future”, he is upfront about what some of those risks are. He is also clear in stating that the domain market has changed over the years and some opportunities are different now than they were previously.

“The Domain Game” has the potential to influence and ignite the next generation of Internet and business leaders. Every self-learner and every business school should make “The Domain Game” required reading because it chronicles one of the most important business evolutions of our time and tells how readers can get involved.

The sequel to “The Domain Game” will be played out in real life whether Kesmodel pens its history or not (and I hope he does)... What will the topics be next time? Geo Domaining? Fractional Domaining? Cluster Domaining? Domain Exchanges? Something else?... Who will the main players be? Will YOU be one of the players? That’s a question only you can decide by your actions!

But that’s jumping ahead... Read this book, and enjoy the story!

My recommendation... Buy the book. You’ll want to keep “The Domain Game” handy as a reference that you can read and refer to again and again.

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I hope you find this book review to be helpful! Your comments are welcome!

-- Neal

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

Today we conclude Fractional Domaining Blog's 4-part interview with David Kesmodel, author of "The Domain Game", with discussions about 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.

Don't forget to join me at FractionalDomainingBlog.com tomorrow for my personal review of "The Domain Game"!

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Neal R. Voron, of Fractional Domaining Blog:

Q16: Are there any notable trends in domaining that you have observed since your manuscript was finalized that you think your readers may find of interest?

David Kesmodel:

A16: A big one is that it appears Google and other pay-per-click networks are changing their policies to make sure advertisers are getting high-quality traffic. And that appears to be making it tougher for domain investors with average or subpar domains to generate revenue from pay-per-click ads displayed on their site. So domain investors need to do more work to produce cash flow. It looks like cost-per-action (CPA) models could become increasingly important to domainers, and they should be doing some homework on opportunities in this popular branch of affiliate marketing.

Neal R. Voron, of Fractional Domaining Blog:

Q17: You have a "Resources" page at your book's web site. Are you planning to offer any other resources or interactive features of your own for your readers?

David Kesmodel:

A17: I am. I eventually plan to provide some information on how the domain market evolved, so that someone new to the space who wants to do some quick research to understand what happened in the past can do that. Understanding history in this market is important to understanding the future, I believe. I am also thinking of offering a tool to allow people to give me feedback about the book.

Neal R. Voron, of Fractional Domaining Blog:

Q18: Since May 2007, you have been a staff reporter in the Wall Street Journal's Chicago bureau, where you cover the beer and grocery industries... Do you currently have plans for any additional books about domaining?

David Kesmodel:

A18: Not at the present time. But I will continue to keep an eye on the market.

Neal R. Voron, of Fractional Domaining Blog:

Q19: What has the feedback been about "The Domain Game" so far? (Positives and Negatives)

David Kesmodel:

A19: So far, it has been mostly positive. Frankly, though, I don't think a lot of people have yet had a chance to read it. There were some glitches with Xlibris.com, though now they've been resolved. The book soon will be available to international readers through a service in London, so that will get the book in more folks' hands. But the few who've read it and commented say they've enjoyed the book, especially how stories about people who took risks are woven into the narrative about the domain market's history. Even my 61-year-old mother, who doesn't use computers at all, is reading the book and says she's fascinating by the stories of fearless domainers. Sure, I admit she's biased, but I just expected her to skim the darn thing. Maybe she'll soon be on SnapNames going for drops.

Neal R. Voron, of Fractional Domaining Blog:

Q20: Was writing "The Domain Game" worth your time investment? Why?

David Kesmodel:

A20: Absolutely. I had a blast facing up to the challenge of quickly researching and writing a book on the domain market. I was given only six months to turn out the original manuscript, so I had to work feverishly to get it done. I enjoyed meeting that challenge. I also had a great time getting to know a number of domain investors. These are really interesting people, and we had provocative conversations that went outside domaining. My interviews with top domain investors and the time I spent alone in my office, writing and rewriting and rewriting again, will always evoke special memories for me. It was a tough time for my wife, but she is starting to forget the hard parts. I also remain confident that the book will be a modest financial success, which will make all that hard work even more worthwhile.

Neal R. Voron, of Fractional Domaining Blog:

Q21: Any additional thoughts you might wish to share?

David Kesmodel:

A21: I would just urge people to give the book a shot. It's only 209 pages. I truly believe people can learn things from this book, even if you have no intention of going into domain investing. There are some good Horatio Alger-type tales in there that anyone interested in business could learn from.

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I hope you enjoyed our interview... Many thanks to David Kesmodel for sharing his insights with us!

See you tomorrow with my personal review of "The Domain Game"!

-- Neal

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

Part 2 of 4: Extra Insights From The Author Of "The Domain Game"

In Part 2 of Fractional Domaining Blog's 4-part interview with David Kesmodel, author of "The Domain Game", Kesmodel discusses a wide range of topics, including: how he researched his book and how forthcoming domainers were; what surprised him as he learned more about the domain industry; who a 'typical domainer' is; how media coverage of the domain name industry has evolved; how important Geo Domains have been to the growth of the industry; and whether it's too late and all the great opportunities are gone...

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Neal R. Voron, of Fractional Domaining Blog:

Q6: How did you conduct research for "The Domain Game"? How cooperative and forthcoming were the domainers you contacted?

David Kesmodel:

A6: I interviewed as many people as I could, read a lot of old newspaper articles and books, and dug through UDRP cases, SEC filings, federal lawsuits and other public records. My abiding fear – really the fear of any non-fiction author doing his or her conscious best – was that I would screw something up and be the laughingstock of domainers and the publishing world. I didn’t want to be on Oprah for my big interview on domains and have her tear me apart for failing to understand that, you know, ICANN is based in Marina Del Rey, California, not Bakersfield. Some domainers were really cooperative. Others were, frankly, uncooperative. Others were in the middle. One problem is people are awfully busy these days, so they didn’t have a lot of time to gab with me. Another is, I think, people were terrified about what I would write.

Neal R. Voron, of Fractional Domaining Blog:

Q7: Was there anything that surprised you as you learned more about the domain industry? What and why?

David Kesmodel:

A7: Probably the biggest surprise for me was how critical “the drop” has been not just to people who got into domains in this decade, but for those who got into it in the mid-to-late nineties. It’s pretty amazing to think about how many of the world’s most successful domainers got domains pretty cheaply that someone else had owned and had let go on purpose or by accident. One person’s trash is another’s treasure, right? That’s what happened in this market in many cases. I just think that’s really fascinating and made the book a lot of fun to write. The other surprising thing was how some of these big companies in the space made some poor decisions about what domains to own. One example is iREIT, this powerhouse with financial backing from Perot Investments and Maveron LLC, that owned a bunch of names that resembled corporate trademarks of big companies. They have since cleaned things up, but it was shocking to me at the time.

Neal R. Voron, of Fractional Domaining Blog:

Q8: Based upon your research and experience, who is a typical domainer?

David Kesmodel:

A8: I like this question, because I tried to address it in the book. Domainers all have their own traits, of course. But they often share many of the same qualities. They tend to be independent-minded, have a tolerance for risk (some have an incredibly high level), are skeptical of the corporate world, like to work for themselves, have a strong drive to succeed so they don’t have to work for someone else, are incredibly curious, and – a big thread through my book – they are willing to sacrifice sleep and exist on stuff like very strong coffee. I think John Berryhill, the lawyer who represents many domainers, made a really poignant observation when he said the following. I quoted it in the introduction: “One of the reasons I love this crowd so much is these are all the wrong kind of people. These are not the people who went to the right schools, who had the right social connections.”

Neal R. Voron, of Fractional Domaining Blog:

Q9: David, it is mentioned on your web site that a news release about a $1 million domain sale in 2005 caught your attention. Was the business media unaware of what was happening in the domain name industry prior to then? Have you noticed any difference in the reporting of news about the domain name industry since that time?

David Kesmodel:

A9: Up until that point, few reporters in mainstream media had recognized that a new boom in domain names was under way. Many of us, and I include myself in this, were familiar with the big sales of the 1990s, like Marc Ostrofsky selling business.com for $7.5 million, so we understood that domains could be really lucrative investments. But we weren’t aware that, post-dot-com-bust, paid-search advertising had created this enormous new business opportunity for domain investors. Basically ever since Paul Sloan wrote his groundbreaking piece in Business 2.0 on the market, and I and a few others wrote articles here and there, there has been fairly extensive media coverage. A lot of tech and business reporters get what’s happening. Still, one of the things that drove me to write a book was that I felt many of the articles failed to cover the nuances of this market. Frankly, it’s hard to explain the complexity and intrigue behind this market in a 1,000-word article. And, sadly, you still have newspaper types who think domain investors are all cybersquatters.

Neal R. Voron, of Fractional Domaining Blog:

Q10: How important have Geo Domains been to the growth of the domain name industry?

David Kesmodel:

A10: I think they’ve been really important. Think of it this way: The biggest single financial move in this market that I’m aware of was when Marchex Inc. bought Yun Ye’s slate of about 100,000 names for $164 million. His list included some great geo domains like LasVegasVacations.com. And Marchex has invested in tens of thousands of other geo domains. That’s clearly fed the growth of the industry. Then there are companies like Castello Cities developing all sorts of city-oriented sites. And I argue in my book that locally oriented domains are an important new opportunity as people increasingly go online to find local services and travel information rather than flipping through those hefty phonebooks.

Neal R. Voron, of Fractional Domaining Blog:

Q11: Are all the great opportunities in Internet domain ownership gone? Is it too late for those individuals and businesses who are not in "The Domain Game" yet?

David Kesmodel:

A11: No, it’s not. I could go on and on about this. But here’s a key point. People often say well, aren’t all the good domain names taken? What they don’t realize is there’s a vibrant secondary market for domains, just like real estate and bonds and other securities are sold in secondary markets. So, yes, while you’re not going to go to Go Daddy and register shoes.com for $10, you just might be able to negotiate with the name's owner to purchase a domain you really desire. Or you can go on one of the many domain marketplaces and try to buy a name for what you think is a good price. You need to do your homework to make sure you are getting a good deal, but there are deals out there and an opportunity to either develop the name and reap substantial cash flow or flip it. Whenever a marketplace exists, where goods are bought and sold, there are opportunities for profit. Sure, there will be winners and losers in this, but that’s capitalism. One caveat – domains are not nearly as liquid as other investments. Another point: the World Wide Web is still pretty young – not 20 years old yet. And domain names have only been around since the early 1980s. So a lot of things are going to happen online in the coming years that will affect the value of domains.

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Don't miss Part 3 of our interview on Wednesday when Fractional Domaining Blog and David Kesmodel, author of "The Domain Game", discuss additional topics, including: 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.

Join me all week as Fractional Domaining Blog continues with Parts 3 and 4 of our interview, followed by my personal review of "The Domain Game"!

Thanks!
-- Neal

Part 1 of 4: Extra Insights From The Author Of "The Domain Game"

Fractional Domaining Blog was fortunate to glean extra insights about domaining from an individual whose perspective as a researcher and chronicler of domain name industry history gives him a unique view -- David Kesmodel, author of "The Domain Game".

In Part 1 of our 4-part interview, David explains who he wrote the book for and why; discusses what makes domain names such a compelling subject; tells who really "gets it" about domaining and who doesn't; and explains the main benefits of his book for readers...

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Neal R. Voron, of Fractional Domaining Blog:

Q1: In his Domain Tools Blog, Jay Westerdal has called your book, "The Domain Game", "hands down the best Tutorial/Introduction on the domain space I have seen"... David, that's quite a compliment! Is the book for newbies to domain names, or will experienced domainers find value in the book as well? Why?

David Kesmodel:

A1: It’s really for both. What I set out to do is tell the history of the domain market and explain who some top domain investors are and how they became successful. I believe experienced domainers will benefit from reading some never-before-reported information about individual domainers as well as big investors in the space. I believe newbies will benefit from understanding how this marketplace grew up and from reading about the strategies of some of the pros. And the last chapter is dedicated to providing tips and observations about the ways newbies should approach the market.

Neal R. Voron, of Fractional Domaining Blog:

Q2: Before you started writing the book, you were a technology reporter for the Wall Street Journal's online edition... What made you decide to write a book about Domaining?

David Kesmodel:

A2: I wrote a couple of articles about the domain market and how it was really booming again thanks to pay-per-click advertising. While interviewing domain investors for those stories, I became intrigued with these people. I felt like there were some really interesting characters in the domain market entrepreneurial types and other risk-taking types who would make for an interesting book. A phone call with Michael Berkens, a Florida domainer, prompted me to start writing a book proposal. We were talking and he was telling me about his life paying attention to the drop everyday, skipping vacations and such, and I was like, “Damn, someone needs to tell the story of these guys (and gals)”.

Neal R. Voron, of Fractional Domaining Blog:

Q3: What is it about domain names that makes them such a compelling subject?

David Kesmodel:

A3: I think it’s the fact that they are an investment opportunity with just an amazing range of prospects. I mean, you can buy a name that no one has heard of today, but perhaps an industry will emerge five years later that uses that name, and bam, you have struck gold. Or you might buy 100 names you think are pretty solid and, well, no one visits those sites and you’ve got a money-loser. Domain names are like other investments in some ways art, rare coins, real estate, of course – but they have their own unique set of properties that make them really fascinating. One, simply, is you can revamp a domain almost any hour if you wanted to. These things are so malleable that if something fails, you can try a new approach and you just might have a site that draws a lot of traffic. But overall, the most compelling thing to me is that anybody can do this – anybody can try it. You don’t need to have a computer science degree or an MBA. Many successful domain investors never finished college. Some didn’t even finish high school.

Neal R. Voron, of Fractional Domaining Blog:

Q4: Who really "gets it" (understands) about Domaining? Are there any groups that don't seem to "get it" yet? Why?

David Kesmodel:

A4: I think the only people that really understand domaining and by that, I mean the business of regularly investing in domains are those who do it, the ad networks, and people like me who are on the sidelines observing and remarking on this activity. I don’t think a lot of people in corporate America really get domaining, per se. They do understand the value of domain names, though. Maybe they don’t appreciate it as much as domainers would like, but in many ways that is to domainers’ advantage. I’ll add this: I don’t think the publishing world gets how interesting this space is. That’s a personal view from a guy whose publisher canceled his book contract because of concerns about sales potential.

Neal R. Voron, of Fractional Domaining Blog:

Q5: What are the main benefits readers will receive from reading "The Domain Game"?

David Kesmodel:

A5: My hope is that they will, first, enjoy the story behind this group of dreamers, wildcatters and misfits who’ve gotten wealthy from domaining. I really tried to write this book in a way that people would get hooked on the personal stories behind successful domain investors. Secondly, I hope they will understand how this market came to be. I don’t think many newbies would understand, for instance, how crucial the evolution of drop catching was to this market. And I doubt many have heard of companies like Oingo/Applied Semantics and GoTo.com, which were really important to how this crazy market grew up. Finally, I hope they will benefit from learning how people like Scott Day, Garry Chernoff, Frank Schilling and Rick Schwartz approached this market. If these guys struck gold, don’t you think their strategies might be worth paying attention to?

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Don't miss Part 2 of our interview on Tuesday when Fractional Domaining Blog and David Kesmodel, author of "The Domain Game", discuss a wide range of topics, including: how he researched his book and how forthcoming domainers were; what surprised him as he learned more about the domain industry; who a 'typical domainer' is; how media coverage of the domain name industry has evolved; how important Geo Domains have been to the growth of the industry; and whether it's too late and all the great opportunities are gone.

Join me all week as Fractional Domaining Blog continues with Parts 2, 3, and 4 of our interview, followed by my personal review of "The Domain Game"!

Thanks!
-- Neal

Opportunities To Discuss Fractional Domaining...

Domainers are invited to join in discussions about Fractional Domaining...

Topics posted at the Fractional Domaining Group at SynergyDomainClub.com include:

• Have You Sold Or Purchased A Fractional Interest In A Domain At Fusu.com Yet?
• FRACTIONAL SYNERGIES: 'Fractional Domaining' + 'Affiliate Programs'

Topics posted at the Fractional GeoDomaining Group at GeoDomainer.com include:

• What's Your Interest In Fractional GeoDomaining?
• What Would The Ideal Fractional GeoDomain Ownership Team Look Like?
• Would 'America.com' Make An Attractive Fractional GeoDomain?

Feel free to visit SynergyDomainClub.com and GeoDomainer.com! Your comments are welcome!