A "Manifesto" from Rick Schwartz

DomainMart · 02-15-2007, 10:09 AM

In an email to potential TRAFFIC participants, he says, "Some of the weaker PPC companies will begin to disappear. Surviving companies will increase payouts in an effort to compete and hold their base. The more progressive PPC companies are already employing more powerful pages that have more depth and much greater earning potential. They are the ones staying one step ahead and continue to improve and innovate. Many other things will happen that will shakeup the industry. Those factors convert to increasing domain values."

Any thoughts?

Spade · 02-15-2007, 10:46 AM

Its logical. As profits go down, people are going to jump to the best payouts and most features. A smarter company will take less profit to keep and gain new clients. Who's gonna blink first?

thinking1 · 02-15-2007, 11:00 AM

Rick is a very smart man, I believe this will hold true.

Smith · 02-15-2007, 11:14 AM

I suspect that he's just doing a bit of pre-promotion of his own service, or one that he is connected to in some way.

Aggro · 02-15-2007, 11:30 AM

It is a no-brainer that there will be a shakeout and that weaker parking providers will disappear - with all the parking progs hatched almost weekly all wanting a slice of the pie.
Already happened to ParkingSite,com (owner of DNF0rum.com).

However there is a limit to how increasing depth of pages (to look like 'real' sites, encourage repeat visits) will adversely affect CTR %.

That said, I believe Rick S will soon start a parking program...

Sam · 02-15-2007, 11:53 AM

Rick Schwartz is doing what mr rick does best, create a new buzz and then somehow profit off of it... is he going to make a new parking program? Perhaps so.

McDot · 02-15-2007, 12:31 PM

I think it is evident that the parking industry needs new ideas. The volume of parked domains and private / business sites using adsense and similar ist increasing drasticaly. At the same time, companies paying for this type of advertising are paying for a lot of fake and other not relevant clicks.

I think the main keyword in this industrie is RELEVANCE.

Different systems will go different ways, but the goal is one and the same.

Jeffrey · 02-15-2007, 12:33 PM

About ParkingSite.com, their software was not ready yet to perform a legitimate parking operation it had some bugs.

Rick Schwartz is partly correct, but there will always be small players that will stay especially the smarter ones.

The_Desertfox · 02-15-2007, 01:05 PM

Who are the TOP5 parking programs anyway?

yandig · 02-15-2007, 01:26 PM

Originally Posted by DomainMart

"Some of the weaker PPC companies will begin to disappear. Surviving companies will increase payouts in an effort to compete and hold their base. "

If PPC companies start to disappear, wouldn't the remaining companies be able to DECREASE their payouts because of less competition?

Keynes · 02-15-2007, 04:05 PM

Originally Posted by The_Desertfox

Who are the TOP5 parking programs anyway?

Hard to say, but up there are:
DomainSponsor
Parked.com
Fabulous
TrafficZ
SedoPro

jettabosko · 02-15-2007, 04:10 PM

Anyone try www.whypark.com ? they have a lil diferent take on parking, but costs $99 per 100 names.

Devil_Dog · 02-15-2007, 04:11 PM

Originally Posted by Smith

I suspect that he's just doing a bit of pre-promotion of his own service, or one that he is connected to in some way.

Exactly. Especially when you see the same exact thread title on every domain forum out there.
????: NamePros.com http://www.namepros.com/domain-name-discussion/294577-a-manifesto-from-rick-schwartz.html

Wonder how much he paid the threadstarters.

**Dave Zan** · 02-15-2007, 04:21 PM

Think of Rick as Bob Parsons of PPCing domain names.

Devil_Dog · 02-15-2007, 04:24 PM

Originally Posted by Dave Zan

Think of Rick as Bob Parsons of PPCing domain names.

So true.

maroulis · 02-15-2007, 05:22 PM

the analogy of fewer PPC companies higher = profits for domainers doesn't make sense to me either. I've not yet read the manifesto but if it's like John and Josh suggested well I'm lost...

As for the .mobi I agree that something doesn't click... On the other hand if he wanted to hype the .mobi or even got paid to buy it, wouldn't you think he'd have invested in LOTS more?

As for Rick's new venture, I know there's going to be some announcement @ Traffic - so hold on tight for a few weeks...

mjnels · 02-15-2007, 05:26 PM

Originally Posted by TheLegendaryJP

But hey as long as he makes money and naive newbs keep gobbling up .mobis and bigger sales are made from it for the registrar.

????: NamePros.com http://www.namepros.com/showthread.php?t=294577
yea, them darn naive newbs.

Luc · 02-15-2007, 06:09 PM

Originally Posted by DomainMart

In an email to potential TRAFFIC participants, he says, "Some of the weaker PPC companies will begin to disappear. Surviving companies will increase payouts in an effort to compete and hold their base. The more progressive PPC companies are already employing more powerful pages that have more depth and much greater earning potential. They are the ones staying one step ahead and continue to improve and innovate. Many other things will happen that will shakeup the industry. Those factors convert to increasing domain values."

Any thoughts?

that's like saying.. tomorrow the sun will rise... common knowledge.

cache · 02-15-2007, 09:40 PM

agree that fewer parking, but
how can you derive that "increase payouts " and "increasing domain values"?

DomainMart · 02-16-2007, 08:30 AM

I will analyze one sentence at a time:

(1) Some of the weaker PPC companies will begin to disappear.

It is also likely that some of the healthy ones will disappear due to mergers and acquisitions. Decreasing competition increases the market power of the remaining players, and thus, typically prices (payouts) go up (down), which is bad for the domain name owner. This is true whether the ad providers, such as Google or monetizers increase their market power (as correctly pointed out above by yandig, maroulis, and cache).

(2) Surviving companies will increase payouts in an effort to compete and hold their base.

The statement violates the cardinal rule of strategy; namely, do not compete on prices (payouts), as they lead to price wars, especially when there is no dominant player. Moreover, as noted above, payouts are reduced under market concentration.

(3) The more progressive PPC companies are already employing more powerful pages that have more depth and much greater earning potential.
????: NamePros.com http://www.namepros.com/showthread.php?t=294577

As a strategy, being progressive is at best vague. Moreover, if the more powerful pages have the potential of greater earnings, why aren’t they actually generating higher earnings?

(4) They are the ones staying one step ahead and continue to improve and innovate.

Innovation without financial discipline does not necessarily create shareholder value.

(5) Many other things will happen that will shakeup the industry. Those factors convert to increasing domain values.

To reach the value conclusion, while holding other things outside his statement equal, he must believe that it is highly unlikely that Google will dominate the ad provision market.

02-15-2007, 10:09 AM	THREAD STARTER #1 (permalink)
DomainMart NamePros Member Join Date: Oct 2005 Posts: 94	A "Manifesto" from Rick Schwartz In an email to potential TRAFFIC participants, he says, "Some of the weaker PPC companies will begin to disappear. Surviving companies will increase payouts in an effort to compete and hold their base. The more progressive PPC companies are already employing more powerful pages that have more depth and much greater earning potential. They are the ones staying one step ahead and continue to improve and innovate. Many other things will happen that will shakeup the industry. Those factors convert to increasing domain values." Any thoughts? __________________ *DomainMart*

02-15-2007, 10:46 AM	#2 (permalink)
Spade NameBio.com Founder Join Date: Sep 2006 Location: Carlsbad, CA Posts: 7,855	Its logical. As profits go down, people are going to jump to the best payouts and most features. A smarter company will take less profit to keep and gain new clients. Who's gonna blink first? __________________ Read my Blog! NameBio.com - Search The Domain Sales Index Buying LLLL.com's ending in "CA"

02-15-2007, 11:00 AM	#3 (permalink)
thinking1 Senior Member Join Date: Nov 2006 Posts: 1,081	Rick is a very smart man, I believe this will hold true. __________________ Power Metal Studio City

02-15-2007, 11:30 AM	#5 (permalink)
Aggro NamePros Regular Join Date: Nov 2005 Posts: 411	It is a no-brainer that there will be a shakeout and that weaker parking providers will disappear - with all the parking progs hatched almost weekly all wanting a slice of the pie. Already happened to ParkingSite,com (owner of DNF0rum.com). However there is a limit to how increasing depth of pages (to look like 'real' sites, encourage repeat visits) will adversely affect CTR %. That said, I believe Rick S will soon start a parking program... __________________ The truth hurts. Telling it like it is...

02-15-2007, 11:53 AM	#6 (permalink)
Sam Senior Member Join Date: Jun 2005 Posts: 3,435	Rick Schwartz is doing what mr rick does best, create a new buzz and then somehow profit off of it... is he going to make a new parking program? Perhaps so. __________________ SPECIAL: The World's BEST Single Letter Domain Sale! Lowest single letter price on the market! Starting at $799

02-15-2007, 11:14 AM	#4 (permalink)
Smith NamePros Regular Join Date: Oct 2003 Posts: 611	I suspect that he's just doing a bit of pre-promotion of his own service, or one that he is connected to in some way.

02-15-2007, 12:31 PM	#7 (permalink)
McDot NamePros Regular Join Date: Sep 2006 Location: Germany Posts: 393	I think it is evident that the parking industry needs new ideas. The volume of parked domains and private / business sites using adsense and similar ist increasing drasticaly. At the same time, companies paying for this type of advertising are paying for a lot of fake and other not relevant clicks. I think the main keyword in this industrie is RELEVANCE. Different systems will go different ways, but the goal is one and the same. __________________ My Domain Blog - German Webdesign Forum Spanish Domaincenter: Villa Dominio Domains for sale: SoSay.com - LayoutContest.com - NewDuties.com - Favorizer.com Spanish Domains: Aspiradoras.es - Tarantula.es - Chikas.es - Buey.es - Besitos.es

02-15-2007, 12:33 PM	#8 (permalink)
Jeffrey Senior Member Join Date: Aug 2003 Location: Cebu Posts: 1,430	About ParkingSite.com, their software was not ready yet to perform a legitimate parking operation it had some bugs. Rick Schwartz is partly correct, but there will always be small players that will stay especially the smarter ones. __________________ Professionally Designed VECTOR ICONS! \|Search 1 gigabyte mails here! \| Personal Blog \| Soccer Blog \| Manila Blog \| Blog Directory \| JQR.org - taking offers \| Free Cebu City Photos

02-15-2007, 01:05 PM	#9 (permalink)
The_Desertfox NamePros Member Join Date: Feb 2005 Posts: 51	Who are the TOP5 parking programs anyway?

02-15-2007, 04:10 PM	#12 (permalink)
jettabosko NamePros Regular Join Date: Mar 2006 Posts: 288	Anyone try www.whypark.com ? they have a lil diferent take on parking, but costs $99 per 100 names.

02-15-2007, 04:21 PM	#14 (permalink)
Dave Zan Electrifying Guy Join Date: Sep 2003 Posts: 4,749 Follow @DaveZan	Think of Rick as Bob Parsons of PPCing domain names. __________________ *Vidi, Vici, Veni!* Follow My Tweets \| Check My Blog

02-15-2007, 05:22 PM	#16 (permalink)
maroulis Senior Member Join Date: Dec 2005 Location: Dallas, TX Posts: 1,147	the analogy of fewer PPC companies higher = profits for domainers doesn't make sense to me either. I've not yet read the manifesto but if it's like John and Josh suggested well I'm lost... As for the .mobi I agree that something doesn't click... On the other hand if he wanted to hype the .mobi or even got paid to buy it, wouldn't you think he'd have invested in LOTS more? As for Rick's new venture, I know there's going to be some announcement @ Traffic - so hold on tight for a few weeks...

02-15-2007, 09:40 PM	#19 (permalink)
cache Senior Member Join Date: Sep 2005 Location: Goblin Wars Zone & California Posts: 4,451	agree that fewer parking, but how can you derive that "increase payouts " and "increasing domain values"? __________________ LaFrance Hods Raids Trik OXSI GoblinWars IQx yPortal Idel enlo Kitu Hytu Albums eMontage Cereal Tarf MDTalks Toch TV vald hosy Bagr Glem wolk corg ypen DiTV

02-16-2007, 08:30 AM	THREAD STARTER #20 (permalink)
DomainMart NamePros Member Join Date: Oct 2005 Posts: 94	I will analyze one sentence at a time: (1) Some of the weaker PPC companies will begin to disappear. It is also likely that some of the healthy ones will disappear due to mergers and acquisitions. Decreasing competition increases the market power of the remaining players, and thus, typically prices (payouts) go up (down), which is bad for the domain name owner. This is true whether the ad providers, such as Google or monetizers increase their market power (as correctly pointed out above by yandig, maroulis, and cache). (2) Surviving companies will increase payouts in an effort to compete and hold their base. The statement violates the cardinal rule of strategy; namely, do not compete on prices (payouts), as they lead to price wars, especially when there is no dominant player. Moreover, as noted above, payouts are reduced under market concentration. (3) The more progressive PPC companies are already employing more powerful pages that have more depth and much greater earning potential. ????: NamePros.com http://www.namepros.com/showthread.php?t=294577 As a strategy, being progressive is at best vague. Moreover, if the more powerful pages have the potential of greater earnings, why aren’t they actually generating higher earnings? (4) They are the ones staying one step ahead and continue to improve and innovate. Innovation without financial discipline does not necessarily create shareholder value. (5) Many other things will happen that will shakeup the industry. Those factors convert to increasing domain values. To reach the value conclusion, while holding other things outside his statement equal, he must believe that it is highly unlikely that Google will dominate the ad provision market.

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