Domain Name Wire, Uncategorized

Jeff Kupietzky’s 5 Myths of the Domain Name Industry

Oversee.net CEO dispels five myths in the domain name industry.

Today at DOMAINfest in New York, Oversee.net CEO Jeff Kupietzky tried to dispel 5 myths about the domain name industry.

1. The PPC Market is Dead

-Oversee.net now has 1 million domain names.
-28% rise in visitors year-to-date on their portfolio
-15% increase in revenue per click

Kupietzky says the market is “maturing”, but not dead.

Opportunty: Buy traffic names and lower prices, partner with those investing in development and alternative monetization.

2. Mainstreet has Come and Gone

-CNBC dedicated 5 minutes to airtime in middle of day to an interview with Kupietzky about domains. “It’s really the beginning of mainstreet paying attention”.

-Major media organizations will have live television feed at auction this afternoon.

Opportunity: bring more information about our sales to the public. Bring more transparency on price and data to encourage more buyers.

3. There’s a trade-off between content and monetization

-Thinking is if I add content (develop my domains) I give up on my PPC revenue

-Example is Degrees.com, which Oversee.net owns

-Barrier to get good content has decreased substantially. Examples include AOL, Associated Content, DemandMedia, Epik

-Oversee.net progressing from one word category-killer .com domains, now moving to profitably developing domains with three words in other TLDs.

Opportunity: Invest in build-outs that provide value to end users and advertisers.

4. Mobile apps will kill domains space

People forget their are two main purposes of domain name: address locator, but also a brand. More focus on brand than address locator. Brand value is very important. Need to find a way to leverage the trend of move to apps.

LowFares.com has one million registered users. Oversee.net just launched a mobile application for LowFares.com.

Opportunity: Look for category-defining brands, invest in new medium

5. There are no good domains left

There are plenty of domains available in secondary market (aftermarket). Example BoardGames.com, which was bought for $450,000. Owning the brand name, which will be a hub for online and offline gaming, this domain was a bargain.

Still lots of domains being bought on one platform and then flipped for a lot more within a year.

Opportunity: Buy more, co-develop, partnerships for acquisition and development.

© DomainNameWire.com 2010.

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Related posts:

1. Kupietzky Calls for Domain Industry Transparency
2. Jeff Kupietzky Opening Remarks at DOMAINfest
3. DNW Radio: Jeff Kupietzky on DOMAINfest Global 2010