(image source: Initial Designs )
To those in the domain space, before being in the space have you realized the power of domain names? Before seeing in your own eyes the statistics on domains and the enormous power of which have type-in traffic, power that can be measured by quantity and quality, would you believe if one told you about it? Before seeing domains which make hundreds, and sometime thousands of dollars per day, all generated by type-in traffic (I understand most have not yet saw such a thing), would you believe if one told you of such domains, such a phenomena?
I believe when it comes to domain sales the domain name industry is doing well. Coverage from DNJournal , NameBio , Sedo , Moniker , and Name Media are all contributing factor when one needs to sell a domain name, however, what if one needs to educate the other about the value of domain traffic ?
Domainers realize for the most part Madison Avenue knows very little about the power of domain name traffic and domain name portfolio value, or otherwise they would have been highly invested in the space, as we are. When we talk to a an industry outsider, a friend or colleague, about one of our prized domains we sometime wonder how he or she does not “get it”, does not see what we see. What is wrong with “these blind people”? It is so obvious !! …or is it? If one approaches you with one of their prized domain name and tells you how great he thinks it is, would you be as excited? In the case of Madison Avenue and advertising agencies it is not just the domain, but the lack of education that is largely missing here. After being in the domain space for a while, just as any other space, the evaluation of a product/service/property, by professionals, is done on an auto-pilot mode, it is automatic, some call it “second nature”. We’ve learned it, we’ve used it, we’ve owned it, and we know it. But can Madison Avenue say the same thing about domain names? Have they ever owned a portfolio of prime domain names, traffic rich, like many of us do? Have they ever seen a portfolio like this? I’m sure you know of a Domainer or two that believe their domain portfolio is worth that much (not you of course!) to other domainers and maybe a little less (or more) to mainstream, but is this reality, or just a dream? Today, the likelihood of anyone in mainstream to understand what you have and the value of those domains without experiencing it on their own first-hand is extremely slim, it is why in most instances most of us cannot cross over, cannot “sell” what we have for what we believe it is worth to those who simply do not know, have not seen.
One of the most significant events this year was the release of Reinvent Index , an index of top 200 domain name properties to the wild. Elliot Silver on his blog, when interviewing Reinvent ’s Don Ham, says:
"The Reinvent Index is made up of 200 domain names in 20 industry verticals, allowing people to see and track revenue and traffic trends in particular niches. Verticals that are covered in the Reinvent Index include automotive, business, education, fashion, health, music, shopping, technology, and many others. The Index was created to bring transparency and knowledge to the domain space, and it will allow you to follow the performance of domain names, which is going to be very interesting given the current economic situation."
(image source: Reinvent Index )
I believe the true value of Reinvent’s index is far greater than what Reinvent or other domainers see in it. I believe the power of Reinvent’s index is the power to cross over, educate the uneducated about the power of domain names. If we want to achieve mainstream acceptance, we have to realize “seeing is believing”. Seeing one portfolio from one credible company is a start, but I would not say it is the end. We need more companies, more portfolio owners opening up, showing others, especially those outside the industry, their underlying data.
To discover is to see, to see is to believe.
Source: Posted on TheConceptualist by Sahar Sarid -- Reprinted with permission -- December 12, 2008