Vision. Drive. Performance.

butterbeansarmManagement

Nov 18, 2013 (3 years and 7 months ago)

73 views

TE
X
T
TE
X
T
V
isio
n
. Drive.
P
e
r
formance.
Domain Asset Management

Domainer Meeting

June 19
-
20, 2008

Monte Cahn

Founder / President of Moniker.com & President of SnapNames.com


monte@moniker.com


Domain Experience Since 1995


Founded Moniker.com
-

more than 3M domains under management


7
th

largest Registrar


Now Head of OVERSEE’S Registrar and Aftermarket Services Division


Many ICANN accredited registrars, domain sales, auctions, escrow, appraisals


First to sell a domain for more than $1M, $2M (Wallstreet.com, Autos.com), Porn.com for $9.5M, ; more
than $100 million domains sold


private and auction


Stealth Acquisition specialist


Invented the Domain Escrow Process and Domain Appraisals
-

530K appraisals to date, IRS Accepted,
used for financing, lending and donation


One of the first to monetize domain traffic in 2000


Focus is on Domain Asset Management


Average Client owns 100+ domains, Average sale prices
exceed $16K per domain


highest in the industry


Clients include


Major League Baseball, NHL, Lions Gate Films, Incisivemedia/Jupitermedia, Marchex,
Casava / 888.com, Microsoft, and Yahoo!


Host of Domain Masters, every Wednesday at 7 pm EST/4 pm PST

WebmasterRadio.fm



Demand for domains is healthy worldwide


Primary Market


A record 162 million domain names are now registered, a 26%
increase year over year


14 million new domains were registered during Q1 of 2008, an
increase of 17% over Q4 of 2007


TLDs still growing … now a total of 84.4 million .com/.net domains, a
22% increase year over year


More than 310 ccTLD extensions globally


ccTLD registrations total more than 63 million, 33% growth rate year
over year at the end of Q1 2008


.cn now the largest, also saw double digit growth in Q1 from .pl, .es,
.ru, .fr

Demand for domains is healthy worldwide


Internet Usage exploding

WORLD INTERNET USAGE AND POPULATION

Region

Population % of
the world

Usage % of the
world

Usage Growth

2000
-
2008

Africa

14.3%

3.6%

1030.2 %

Asia

56.6%

37.6%

363.4%

Europe

12.0%

27.1%

263.5%

Middle East

3.0%

3.0%

1176.8%

North America

5.1%

17.5%

127.9%

Latin America/Caribbean

8.6%

9.8%

659.9%

Oceania / Australia

0.5%

1.4%

154.0%

WORLD TOTAL

100%

100%

290%

March 31, 2008

Source: Internet World Stats


Demand for domains is healthy worldwide


Secondary Market


Aftermarket sales continue to increase, with total private and public
transactions reaching more than $500 million annually.


At least 57 domains sold twice between 2004 and 2005. The value of these
domains increased an average of 288% over just 230 days. More than 300
domains sold twice between 2004 and 2007.


According to DN Journal, Q1 sales for 2008 ($38 million) increased 78% over
sales from Q1 2007 ($21 million). Sales for the quarter also topped the previous
quarter’s sales (Q4 2007) by 12% and the quarterly average ($30 million) for all
of 2007.


Moniker’s and SnapName’s experience has been similar: Average sale price at
live auctions has increased to more than $20,000/domain for TRAFFIC Orlando
from approximately $16,000/domain in 2007.





Demand for domains is healthy worldwide


Secondary Market



Noteworthy Sales in recent years:




Fund.com


9.9M USD (2008)



Porn.com


9.5M USD (2007)*



FreePorn.com


4.5M USD (2007)*



Bored.com


4.0M USD (2007)*



CreditCheck.com


3.0M USD (2007)*



Vodka.com


3.0M USD (2006)



Seniors.com


1.8M USD (2007)*



DataRecovery.com

1.7M USD (2008)



Tandberg.com


1.5M USD (2007)



Cameras.com


1.5M USD (2006)*



Vista.com


1.3M USD (2007)



Scores.com


1.2M USD (2007)*



Cruises.co.uk


1.1M USD (2008)



Investment.com


0.9M USD (2007)*

* Marks Moniker Sales



Internet economy remains strong





$3.5
$5.3
$7.3
$9.5
$11.9
$14.3
$16.5
$19.5
$21.60
$23.90
3.0%
3.9%
4.9%
5.9%
6.7%
7.5%
9.80%
12.30%
17%
2.0%
$0
$5
$10
$15
$20
$25
$30
1999
2000
2001
2002
2003
2004
2005
2006
2007
*2008
US$ Billions
1%
6%
11%
16%
21%
26%
Total Online

Ad Spending

% of Overall

Ad Market


According to a recent report from IDC, internet advertising revenue will double to more than
$51 billion in the next 5 years. By 2012, online ad revenue will exceed that of newspapers, TV
and all other forms of media, except direct marketing.


And the competition for eyeballs is only going to increase

"In the next 10 years, the whole world of media, communications and
advertising are going to be turned upside down. Here are the premises
I have. Number one, there will be no media consumption left in 10
years that is not delivered over an IP network. There will be no
newspapers, no magazines that are delivered in paper form.
Everything gets delivered in an electronic form."

Steve Ballmer

CEO, Microsoft


This places the domain industry in an advantageous position:

Domainers are in the business of

managing and controlling internet traffic.


Domain Asset Management enters the mainstream



Just like real estate, internet domains are an
ASSET



Considered
property

by most governments and ICANN



Can still get lucky with a new registration, but most valuable
properties require an
investment


You can now borrow money to buy and build out your domain based
on its value….just like Real
-
estate



Domainers already understand this. Anecdotal evidence suggest
fewer domainer
-
to
-
domainer sales at wholesale prices, more retail
(higher
-
ticket) sales to end users



Domain Asset Management can be defined as protecting, growing and
managing the value of your domains



Domain Asset Management enters the mainstream


Like investing, Domain Asset Management means different
things to different audiences


Individual investors: Typical investment considerations




What is your investment horizon?



What are your short term goals, long term goals?



Do you need cash flow, or are you following a buy
-
and
-
hold strategy?



What personal hobbies or other types of business are you involved in?



Are you interested in developing domains into businesses? Do you have
the support systems in place (programmers, SEO, etc.)



Three basic sides of the domain investing triangle



Domain Asset Management enters the mainstream


Individual investors: Typical investment considerations


Domains you’ll never sell

Your name, key business
holdings, etc.




Domains you’ll monetize

Parking, leasing,
developing




Domains you’ll sell for a
profit

Registered or purchased,
various profit models, but
all are buy low/sell high




Domain Asset Management enters the mainstream


Individual investors: Typical investment considerations




Define your objectives



Finding the right assets at the right price for your individual objectives



Research



Need options for acquisitions



Involves some risk



Offers great reward


Domain Asset Management enters the mainstream


Businesses: Other types of considerations




Direct impact on branding and marketing. Which domains do you need to
protect your brand? Which pull better in search ads?



Example: Grilling.com (Kingsford charcoal)



Which target important audiences better than your primary brand?



Example: Underwear.com (Calvin Klein)



Get IP or new product names before launching



Example: Lions Gate Films


Domain Asset Management enters the mainstream


Businesses: Other types of considerations




Defensive asset management: What is the competition doing? Are there
typos for your brand that get high traffic?




Which domains can offset a weakness? What should you own to prevent
the competition from owning or to control messaging?



Example: SplendaSucks.com



Are you a global company or do you hope to be?



Example: Disney.fr

Domain Asset Management enters the mainstream

For all investors, Domain Asset Management means:



Security and protection


Complete set of services to help accomplish these goals including:

-
Monetization

-
Appraisals

-
Escrow

-
Financing

-
Multiple aftermarket sales and acquisition platforms and options





Domain Asset Management

Q&A





Monte Cahn

Founder / President of Moniker.com & President of SnapNames.com

monte@moniker.com


Domain Experience Since 1995


Founded Moniker.com
-

more than 3M domains under management


7
th

largest Registrar


Now Head of OVERSEE’S Registrar and Aftermarket Services Division


Many ICANN accredited registrars, domain sales, auctions, escrow, appraisals


First to sell a domain for more than $1M, $2M (Wallstreet.com, Autos.com), Porn.com for $9.5M, ; more
than $100 million domains sold


private and auction


Stealth Acquisition specialist


Invented the Domain Escrow Process and Domain Appraisal
-

530K appraisals to date, IRS Accepted,
used for lending and donation


One of the first to monetize domain traffic in 2000


Focus is on Domain Asset Management


Average Client owns 100+ domains, Average sale prices
exceed $16K per domain


highest in the industry


Clients include


Major League Baseball, NHL, Lions Gate Films, Incisivemedia/Jupitermedia, Marchex,
Casava / 888.com, Microsoft, and Yahoo!


Host of Domain Masters, every Wednesday at 7 pm EST/4 pm PST

WebmasterRadio.fm



TE
X
T
TE
X
T
V
isio
n
. Drive.
P
e
r
formance.
Domain Asset Management

Domainer Meeting

June 19
-
20, 2008