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Wealth.com, New GTLD's, 8080.com and More.

Hey <<First Name>>,

How have you been? Hope your September has started in the right way! As the summer draws to to its end on this side of Europe, the days remain sunny here in Lisbon. At the end of every season here, there is a tradition that, for one week, the historical buildings of Praça do Comercio, the most central square of the city, turn into one giant movie screen, displaying a special "video mapping" with the history of the city. This is how the square looks like in the day: 




And this is how the Arch of Rua Augusta transforms at night, in the picture below and in video:




Going back to domain names, last weekend I wrote in this newsletter the similarities between domain investing and real estate and how investing exclusively in premium assets within premium extensions has been the strategy that consistently brought profits to skilled domain investors. But how about someone that is new to the game and is considering to buy new gtlds - which new gtlds should he/she invest in? Will they ever reach or even surpass the value of the .com? Is investing in new gtlds a profitable strategy at all?

One of the most valuable tips that I received when I started out in this industry, is that one of the most common way to lose money is to register a bunch of domains. Now, while there are exceptions and people that have been consistently successful by adopting this strategy (just think about Mike Mann), I would advise most people to refrain from using this strategy, and I can say this because I personally lost a lot of money doing this. What people do not realize is the amount of work and analysis that goes behind the process of registration that Mike does. You really need to be already at the top of the field with years in the industry to understand what is profitable to register. A much safer strategy is to buy at a discount a premium domain from a motivated seller and flip the domain to an end user.

Another great tip given to me by a friend is that investing in domains, just like any other investment vehicle, is a lot about mitigating risk. If you own a portfolio of at least 10,000 domains, then it might make sense to add a few low cost but high reward premium gtlds to increase the portfolio performance, but, if you are just starting out with $10k to invest, it is an extremely risky strategy to pursue and chances are that you are going to drop 95% of your newly acquired portfolio after one or two renewals cycles.To close the analogy with real estate, new gtlds are like the "raw land" of the domain industry: while there are properties that can appreciate in value in a very short time (just think about luxury.estate brokered by our own Michael McConville for $50,000), the vast majority of them will remain worthless.




Why is that? Well this is simply because there are not enough end users looking to brand under under a new gtld, and there are even less looking to pay a significant premium for it. How many times the board of a successful company decides to invest a substantial amount of capital into a new gtld? Very rarely. At the same time, using a .new gtld might be a decent option if you are just starting out. Let me give you two real life examples:

1. Couple of weeks ago, I loved this article by Andrew Allemann called One of the worst domain names. Ever. If you read the article, this Neighboorhoods app, might have scored much better by registering neighborhoods.appneighborhoodsapp.com or getneighborhoods.com as suggested in the comments section, rather than going for the terrible neighbrhds.com.

2. Last week I was speaking to a client looking to rebrand their financial consulting business with a new domain. Since they do not have a great budget and wanted to keep using their existing logo, I suggested them to consider registering abc.financial. The first concern they brought up was: but won't people get confused with the dot in the middle? And they were exactly right. The .com is deeply entrenched in user's behavior and it will take a while before internet will lose the habit of emailing in default hello@abc.com.



Branding your business under a new gtld can be a solution that makes sense if you are a bootstrapped startup. This is because when you are just starting out, worrying about anything that it is not building the product or finding your first clients is usually a waste of time and money. But, you need to be aware that, when your business grows, you will have to obtain the .com for quite a few reasons, including, as mentioned in this great article by Alan, brand protection and email security.

Let's take a look at some companies who actually succesfully rebranded under a new gtld. Startive Ventures used to go under the domain startive.com, and, if you digit the domain now, you can see that it points to startive.ventures. This is in my opinion a great way to show that you "get" domains while balancing the need of protecting your online identity. And this is not an islated case: Mark Burgarelli, had the excellent idea of searching through the top 1M Alexa rank to identify which websites are actually using a new gtld. And we found quite a few examples proving that new gtlds are slowly starting to claim their spot in the "developed" web.

Want to learn more about the new gtlds? Check these websites:

1. http://ntldstats.com/ (detailed insights about new gtlds registrations)

2. http://newgtlds.icann.org/en/ (official ICANN website)

3. http://calzone.org/ (new gtlds calendar)


 
INVESTOR'S BULLETIN

Price points that we have been seeing recently on the market (floor prices)

LL.com - FLOOR PRICE $310k  (if you target the Chinese market beware of: V, O, U)

LLL.com - FLOOR PRICE $7k  (if you target the Western market beware of: Z, W, Y)

LN.com & NL.com - FLOOR PRICE $34k (unless the domain contains "0" or "o")

NN.com - FLOOR PRICE $600k (if the domain contains a 4, otherwise higher)

NNN.com - FLOOR PRICE $50k (if the domain contains a 4, otherwise higher)


WEEKLY 8

Here are some exclusive assets that might peek your interest. Simply respond to this email and we will be happy to present your offer; in addition, if you have inventory that you feel is attractively priced and you wish to add it to our listings, please let us know.

1. OF.com - Ask me 
Two weeks ago we published a great report about the historical value and the ownership of LL.com. Here is another one in exclusive for DH . Just ask me for more information.

2. 8080.com, 2112.com, 3010.com - Ask Me 
Another 3 great numerics under exclusive. If you are not sure about market evaluation or meaning of numbers in China, check this article about the value of numeric domains. And remember, patterns like ABAB, AABB, ABBA greatly increase the value!

3. WEALTH.com - Ask me
This is simply one of the most premium domains available on the market. If domains had superpowers, wealth.com would make your business instantly credible and authoritative.

4. APP.org - $200,000
There were about 13 companies that applied for the new gtld .app, including Google and Amazon. Do you think this domain is a good investment? You bet it is!

5. iNews.com - ask me
If iReport.com sold for $750k, you might be amazed by the asking price of this domain. If you are looking to build a brand in this niche, this might be the domain for you

6. EVC.com, RVI.com, CJO.com - $25,000, $25,000, $28,000
These are just three of the many LLL.com that we have under exclusive. If you are looking to invest in this category, we definitely have you covered. Just ask me for a complete list.

7. WrestlingGames.com - $15,000
Games domains do not usually come cheap. And the #1 reason for this is number of searches. This is not an exception, with 61,875 global exact matches. Question is - can you monetize it?

8. Paris.estate, Rome.estate, Milan.estate - ask me 
Last, but not least, our first new gtld exclusives. Who would not love to own these domains? Contact us as soon as possible for more information.

Thank you in advance for your time and consideration. We are always looking for decent traffic portfolios for sale - typical multiples are 18-30x depending on stats and types of names.

Have a fantastic week - from Lisbon!
 


Giuseppe Graziano
Director of Business Development, Europe
Domain Holdings Group

How to Contact Me?
 
US  +1.561.819.8468
Portugal (+351) 961.150.279    
Skype: ggrgraziano
 
Quick Links to Domain Industry Stats:
 
Please note that all prices are subject to change and all brokerage deals are tentative, pending a signed Purchase & Sales Agreement by both parties involved 
in a transaction.
 
About Domain Holdings
 
Domain Holdings is a world-class service provider in domain life-cycle management, specializing in the buying, selling and monetizing of domain names. The company was co-founded by Chad Folkening, a longtime domain industry veteran, and John Ferber, co-founder of Advertising.com which was acquired by AOL for approximately $500 million in 2004, and whose collective online products and services have grossed more than $3 billion since 1996.
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