Deciding to buy or sell a domain name is a process. Many sellers provide a price tag as a general expectation of what they aim to receive for a domain. A “Buy It Now” (BIN) is a firm price like you might find shopping in a retail store. BIN prices make the purchasing process fairly quick & easy as negotiation is typically subtracted out of the process.

Alternatively, some sellers may adopt a pure negotiation format in which they don’t commit to an up front domain sale price. If a serious buyer interest is expressed, then the seller may quote a general range they are looking to sell in. The buyer may then reciprocate with an offer as a starting point for negotiation.

Sellers of premium domains usually prefer to keep their options open, and are commited to not underselling a potentially high dollar internet property. Domain values vary with economic cycles and industry trends, and may go through periods of rapid appreciation depending on many market variables. For this reason, commiting to a finite price in time doesn’t serve the seller’s long-term interest. There are many examples of domain names which were thought to be over-valued. And to the surprise of many, the domain name was sold at a premium to the right end-user buyer. Why? Because the domain was of very high quality and had few, if any, comparable alternatives.

Domain name price setting and negotiation style are a frequent subject of debate within domainer circles. It is accurate to say there is no single correct way to work through a negotiation. Premium domains will have an automatic, intrinsic worth of which both buyer and seller are aware. Sometimes the buyer’s need for the premium domain is not sufficient to meet the seller’s asking price. The buyer will either walk away for a cheaper alternative, or suspend negotiations such that both parties can think it over. So, an impasse in a domain negotiation may not be a dead deal, but a temporary “time out” which allows both parties to reassess their positions. Further negotiation may occur at a later date. This is always a good leave-the-door-open policy.

For this reason, it is important to keep emotion out of the negotiations. Patience, professionalism, and good diplomacy are excellent tools for keeping a negotiation alive. “Tactics” often backfire, and work only on naive or uneducated buyers/sellers. As a buyer and seller of domain names, I have dealt with a variety of personality types and negotiation styles. Listed below are several automatic buyer dont’s that will not only kill a deal, but may ruin any chance of future negotiations.

Buyer Don’ts

• Don’t make an initial low ball offer, and then aggressively debate the seller in an attempt to lower the seller’s price expectation. In most cases, you will be immediately perceived as a cheapskate and/or time waster. To establish yourself as a credible buyer, you should acknowledge the seller’s property has significant worth. Why else would you be calling if you didn’t want the domain in the first place? A lowball offer says “I want this, but I hope you are stupid enough to give it away cheap”.
• Don’t make an offer you aren’t prepared to fulfill. The seller may accept your offer, but you will lose all good will when you start tip-toe’ing around the fact you don’t have the funds to close the deal.
• Don’t make unreasonable demands or complicate the deal unnecessarily. Simplicity and clarity are always better for the deal. Prune expectations and steps down to as few as possible. That way the deal is about the domain … and the price, and not much else. Terms and conditions will certainly be a subject of discussion. But those can be specified (negotiated) in the purchase agreement and worked through amicably once an agreed upon sale price is reached.

Buyer Do’s

• Do listen, and approach the discussion with an open mind. The seller has his/her unique perspective (and reasoning) for being in a particular price range. Very often, buyers have not considered all of the important elements in a domain valuation. After reflecting on a seller’s perspective and input, a buyer may come to understand new things about the domain property that justify the premium pricing. Failure to listen will break down the communication.
• Do look for common ground. You, as buyer, obviously have something in common with the seller. The domain in question appealed to you both … due to the meaning contained in the words that comprise the domain. Yes, negotiations can be touchy and tenuous. But, they can be worked through to a successful conclusion. Both buyer and seller understand that the domain presents some benefit that is either already established, or that may be (as of yet) an unrealized potential.
• Do make an attention-getting initial offer. Owners of premium domains didn’t acquire them by accident. Most domainers that I know are well-educated, shrewd, and financially comfortable. They may not need to part with their premium property. Coming in low says absolutely nothing. Coming in with a substantial offer sets the proper tone and atmosphere for doing business.

Good luck, and have a great day!

Domain Sales, Internet Domains buy domain, domain negotiation, sell domain

Dubai is an opulent, luxurious city located in the United Arab Emirates. A resort paradise with beaches and high rise hotels, it is the most populated city in the UAE. The domain name, Dubai.info, was purchased in January 2009 for $35,000 through one of the online aftermarket sales sites.

In 2005, the gross domestic product of Dubai was $37 billion. While initially constructed using oil money, oil now accounts for less than 6% of total revenues since the local economy has become diversified … significantly funded through financial services, real estate, trade, and tourism.

At this point, we can only speculate as to how Dubai.info will be utilized. Information on tourism and travel booking would be logical options considering the Dubai International Airport served over 34 million passengers in 2007 alone. That’s an average of over 93,000 passengers per day.

A premium domain name like Dubai.info leaves the door wide open for development and monetization. Geodomain names are a beautiful fit for .info, the internet’s official information extension.

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I hate to say I told you so. Because good people work at America’s newspapers in every city across the country. And that’s the part that bothers my heart about the slow disintegration of the black and white.

The flip side is that some of the most ruthless, cutthroat competitors you’ll ever meet in the world of business work for these same newspapers. I consider myself a generous and fair individual by most standards. But often in the business world, generous and fair, will get you nothing but a bloody nose.

I’ve had my fair share of let downs and hurt feelings trying to work with my local newspaper. If nothing else, they fed me a dose of reality. If they want to shut you out, they’ll shut you out. And your journey of 10 miles becomes 50. Lesson learned. But times change, and tables turn. Perhaps there is a thing called karma after all.

Reality check: There is a steady decline occurring year after year in newspaper circulation and advertising revenue. The paper is a static, somewhat outdated rendering of news that occurred yesterday. No video or sound, no hi-definition picture, no reader comment or interactive component … at all.

Hello, internet technology! Just as the 8-track surrendered to the cassette tape, and the horse & buggy gave way to the automobile, such is the fate of the traditional newspaper company.

Now, it’s not like they didn’t have fair warning. In fact, some of the age-old papers secured their city’s geodomain. Take Boston.com (The Boston Globe) for example. Nearly 4 million visitors per month and a 52% increase in online viewership in the past year. That’s saying something. The shift is more like an earthquake and approaching tidal wave.

All of this leads to one conclusion –> geo domains. To have the city in .com is a literal gold mine of opportunity. No question about it. Now, it won’t be cheap either as city geodomains in .com are like owning the holy grail.  But, there are several excellent alternatives that will also feed the dream and perhaps still leave one above water financially speaking. My favorites for geodomain development are .biz (business), .US (United States), .info (information), and .TV (television/online media). Also for the mobile phone market is .mobi which provides standards for displaying the internet on mobile phones …  growing in popularity by the minute.

Some domainers have looked ahead, made the investment, and laid the proper groundwork for becoming the center of the universe in their corner of the domain world. Hard working domain investor & blogger, Elliot Silver, acquired Burbank.com recently and launched into development. He holds the keys to the city, as do brothers Michael & David Castello with PalmSprings.com, or Skip Hoagland with Atlanta.com. Let’s not forget state geodomains and even countries such as Spain.info. These geodomain websites are the future. They are connected to the entire world via the internet. And unless my dog eats through my internet cable, they’ll be receiving my patronage, my business, my revenue, and my recommendation. Will there still be a newspaper floating about in those cities 5 years from now? Perhaps, lining the parakeet cage.

Goodbye newspapers of the world. I no longer need you. I have my own media empire at my disposal. Strange irony.

Almost forgot to post the story that fueled tonight’s writing. It is the bankruptcy declaration of the Minneapolis Star Tribune who presently are claiming $661 million dollars in debt. Something about a “severe decline in advertising revenue”.

I read all about it … on the internet!

Humor, Internet Domains advertising, geodomain, newspaper

Within any given city or state jurisdiction, there is a community of local businesses from different biz categories. Popular examples include real estate, legal services, financial services, hotel & travel, restaurants, and retail stores. These various businesses serve residents and companies within the surrounding area … as well as those who live and work outside the immediate community.

Geo targeting pertains to narrowing one’s focus to a specific geographical region. This is not a new concept, but is a highly effective method (utilized by marketers and advertisers) for achieving maximum impact from advertising dollars. Geo targeting allows companies to address the needs of their local, and most relevant, audience of buyers. Traditionally, people and businesses advertised in their city’s newspaper as that used to offer the best opportunity for reaching the most relevant audience.

Fast forward to the internet age and we see that geo targeting is still highly effective, but being adapted in a new way. Newspapers are on the skids after having enjoyed many decades of a local monopoly. Today, ever increasing numbers of people are relying exclusively on the internet for business search, news, information, entertainment, education. While the mechanism has shifted from newspaper to internet, the basic need of the customer is exactly the same: to locate what they need quickly and easily.

Locating a service within a geographical area is achieved through two means: direct navigation, or a search engine (Google, Yahoo, MSN).

Both methods have their unique advantages. Direct navigation means typing what you are looking for directly into the address bar (as shown above). Appropriate domain extensions might be .com, .info, .biz, or .us. This is one form of geo targeting and is built on the logical City + Business concept. Such web addresses are commonly referred to as “geo targeted domain names”. The domain itself contains all of the necessary information that the online consumer is searching for.

Geo targeted domain names are high quality internet properties, and are often purchased by professionals who work and live in a particular city or state. These professionals realize that owning the geo targeted domain for their profession gives them a marketing advantage over their competitors. In short, the professional captures all of the direct navigation traffic while their competitor must promote their business with a lower quality domain name which must be supplemented by additional search engine advertising.

The other advantage of the geo targeted domain name is its superior clarity and descriptiveness. Geo targeted domains are easy to remember and to convey to customers … both in writing and in verbal communication.

If you are a business owner (or domain name investor), a geo targeted domain name may represent a logical acquisition for your company. A good tip for discovering the benefit of a particular domain is to enter the keyword combination (ex. Los Angeles Attorneys, or Miami Real Estate) into Google, and perform a search. Pay attention to the advertiser search results at the top of the results page and along the right side margin.

At the bottom of the right margin, is there a blue link that says “More Sponsored Links”? If so, then you know this is a highly relevant phrase, with multiple advertisers, and might be a fitting geo targeted domain acquisition for your business. For example, try typing in Los Angeles Attorneys into the Google search field and hit enter. You will find many pages of law firms and attorneys advertising under this phrase. This is because advertisers want to reach customers specifically in search of Los Angeles Attorneys.

Geo targeted domain names are frequently included in high profile auctions and listed on domain name sales sites. Sometimes, a geo targeted web address is used to display a list of local advertisers in the desired profession. At other times, the geo targeted domain will resolve to a fully functional website such as MiamiRealEstate.com, a nice example of geo targeting within the real estate industry.

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Rate.com is a pot of gold not yet discovered by corporate America. Just how big are the finance, lending, and credit sectors of American industry? Consider this. In 2007, U.S. single family mortgages were expected to be written in the amount of $2.33 trillion dollars. That was just mortgage lending …  not auto loans, not credit cards, not commercial or business loans.

At the core of this maelstrom of activity is internet advertising. The 2007 IAB Internet Advertising Revenue Report found that internet advertising for 2007 alone was $21.2 billion dollars. That’s an average of over $5 billion dollars (per quarter) that advertisers were spending to gain market share and generate business on the internet. I need to mention that 2007 was the fourth year in a row to set an internet ad spending record. See the trend?

When I first learned about Rate.com, I immediately thought about the numerous banking institutions in Corporate Amercia as well as online aggregator Bankrate.com. Bankrate.com are a successful online company having consolidated, and marketed, a myriad of financial rate information from banks and lenders in every conceivable category. Rest assured, rate information is a valuable product to American consumers and American business. If Bankrate.com’s annual revenue is any indication: $49 million in 2005, $79 million in 2006, and $95 million in 2007. See the trend?

Now, it could just be the domainer in me, but I would much prefer to type in Rate.com, than Bankrate.com. Come to think of it, I would also prefer to type in Nashville.com over something like VisitNashville.com. You get my point. Ironically, guess what Bankrate.com‘s ticker symbol is on the NASDAQ stock exchange? That’s right, it’s RATE.

Joking aside, Bankrate.com is only one of many, many finance & finance-related institutions in the United States. Stop to consider how many varied financial companies exist on a global scale. Any one of them, and only one, could gain a competitive new edge on the financial market … with Rate.com.

The internet is the battlefield where the next war will be won or lost. Question is: which major financial player will recognize the logic, and advantage, in acquiring Rate.com to capture new business … and customers?

What would a Rate.com user be looking for? Likely … the best mortgage rate, the best refi rate, a nice savings account interest rate, a high CD rate, or low auto loan interest rate, etc. Oh, and a better credit card rate for sure. Can’t help but to ponder how many thousands of community, regional, national, and international banks there are that could leap frog the competition with such a premium domain.

You may be wondering just who owns Rate.com. It’s brothers Michael and David Castello. Respectively, the CEO and COO of the Castello Cities Internet Network, Inc (CCIN.com).

The Castello Brother’s first made their mark developing Geodomains such as PalmSprings.com, Acapulco.com, LagunaBeach.com and Nashville.com. Recent projects include Bullion.com, Whisky.com, Banana.com, Daycare.com, Kennel.com, Cost.com, Manicure.com and Traveler.com. Names slated for development in 2009 include Rate.com, Driven.com, Bootleg.com and Sample.com. The Castello Brothers sit on the Board of Directors of Associated Cities and are members of ICANN’s Business Constituency. In 2008, the Castello Brothers were awarded the Domainer’s Choice Award for Domain Ambassadors at DOMAINfest and were inducted into the Geo Hall of Fame at the Geodomain Expo in Chicago.

In closing out this piece, I’d like to thank readers for visiting the PremiumDomains.biz blog, and to also encourage you to become an active member of the domain investment community. It’s an energized industry full of intelligent, creative people … many of whom get little sleep! That’s what happens when passion drives you.

Thank you, Michael Castello and David Castello, for agreeing to let me write about Rate.com. It’s a superb domain name with the kind of genuine industry relevance that will make the evening news.

.COM Domains .com, Castello, CCIN, finance, rate

It’s not hard to understand this strategic acquisition which occurred near the end of 2008. AT&T (American Telegraph & Telephone Co.) have been around for a long time, and are a true American icon and brand. But they are an older company determined to reinvent themselves and stay relevant in this rapidly changing world.

AT&T operate YellowPages.com which was reported to have been acquired for around $100 million some years ago. YP.com was purchased for $3,850,000, from LiveDeal, who had been providing the expected online yellow pages format that most people are familiar with. Acquiring YP.com will only strengthen AT&T’s online yellow pages dominance.

In this hyper-competitive global economy, grabbing market share requires planful decision-making, good timing and a constant vigilance for accretive opportunities. AT&T score high marks with this one.  

An investment-oriented, forward thinking approach would suggest that buying a premium domain name now … is preferable to purchasing it for multiples later on. Two letter domain names certainly qualify as exquisite properties.

.COM Domains, Domain Sales .com, AT&T, Domain Sales

The domain name, Miami.us, is currently available to the highest bidder at Sedo’s online auction. Miami is a hotspot, metropolitan destination with tons of big city cachet. At the moment, the reserve price of $15,000 has been met … and only 4 days left to go in the auction.

One thing is for certain, there are many wealthy residents, investors and Miami-area businesses that probably don’t even know Miami.us is on the auction block. The Miami Herald operate the corresponding .com site so one might assume they would have an interest in the outcome. Might some new online media network jump at the chance to give Miami’s millions another choice for online travel, news, entertainment, business, and social networking? We’ll see!

Speaking of Miami.us business uses, one could easily see the local real estate community gobble up this domain and launch one outstanding Miami real estate portal. Being a .US geo domain owner myself, I know the value of the .US namespace to foreign visitors who often assume that anything.us is the official web address here in the United States.

Hats off to Mr. Bruce Murray, listed as the official registrant of Miami.us in the Neustar whois registry. These are interesting times for premium domain enthusiasts. Can someone please get this auction on the 6:00 o’clock evening news? Deep pockets deserve to know.

Quick Update: Mr. Murray reports a pending Sedo sale for his CapeCod.info. He is also the owner of Anaheim.us, a great city & home of every child’s vacation dream … Disneyland.

Geo domains seem to be gathering steam these days. Dubai.info was recently sold via Great Domains for $35,000.

Final Update: Miami.us was purchased for $15,000. The new registrant is Site Method Media, LLC based in Minneapolis, Minnesota. An incredible acquisition for them.

.US Domain Names, Internet Domains .us, geo domain, miami, Neustar, Sedo

For the uninitiated, .US is the official country code domain of the United States. It was once reserved exclusively for the U.S. government, public schools and libraries, but finally became available for public registration in April 2002.

When .US availability was announced, scores of internet users and companies positioned themselves to acquire America’s top .US web address. The .US domain space garnered instant appeal. Savvy registrants considered the importance of American patriotism, the need for a .com alternative, and the fact that the U.S. economy was the # 1 business engine of all time. And so our story begins …

In the vast universe of domain name real estate, one occasionally comes across a very rare internet property. A brilliant star above the landscape which draws attention … and sparks imagination.

For me, it is a domain name registered to a man from Philadelphia, Pennsylvania. His name is Robert DeMartinis. Robert is the sole investor, registrant, and owner of …

One must restrain the hyperbole, and awe, that is often associated with discussing such a premium-quality internet property. The mind races with possibilities. I was actually introduced to the domain industry in 1999 while in bed one night listening to the 11:00 pm news. The TV news anchor announced with enthusiasm that the domain name, Business.com, had been sold for 7.5 million dollars. My mind froze for a second … and then the light bulb turned on. Years later, we now clearly understand the inherent value contained in a premium generic domain.

Business.com went on to be sold again in 2007 as a developed internet business. The purchase price was $345,000,000. It was acquired by telephone directory publisher, R.H. Donnelley, who outbid News Corp., Dow Jones & Company, The New York Times Company, and InterActiveCorp. No small corporate monikers there.

It’s relatively safe to say that Business.com is now permanently out of reach, and will be “occupied” for some time to come. Which leads us back to Mr. Robert DeMartinis and his jewel, Business.us. Make no mistake, Robert is an astute domain investor having acquired his gem through a series of strategic moves that required foresight, impeccable timing, and an odd dash of irony (an amusing story for another day). In case you’re curious, Robert holds other synergistic properties that compliment his portfolio quite well …

• Products.us
• Services.us
• Delaware.biz
• Housing.biz
• … among others.

Mr. DeMartinis, like many of us, is employed in another profession. Family, responsibilities, and the other callings of life often interfere with time needed to explore the next step for one’s portfolio. Sometimes, the next step is just a phone call away. Or, materializes as a unique and unexpected veer in the road ahead … a turn that is not yet seen, but which may arrive suddenly and with refreshing clarity. This mystery, and journey, are half the fun.

Possessing prime internet real estate is a uniquely rare opportunity. One in which impulsivity and haphazard decisions have no place. Mr. DeMartinis knows this, and he is in no hurry. I have no doubt that someday, as time allows, Mr. DeMartinis will fully ponder the paths available to him. For now, keeping one’s options open is a good play.

Until the eventual course of Business.us is one day revealed, I invite you to share your thoughts and speculations …

1. What enterprise, what exotic venture, might come to be launched via Business.us?

2. Is there an existing corporate entity who could elevate their US presence with Business.us?

3. Assuming a large corporate interest within the next 5 years, do you see this domain being acquired by a U.S. company, or a foreign investor? (assuming the foreign entity meets U.S. nexus requirements)

4. Which unique products, services, or business concepts could shape the future identity of Business.us?

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