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opinion Tragedy of the eCommons

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For those of you who are unfamiliar with it, there's a theory floating around called the Tragedy of the Commons. Hit the Wikipedia link, go read up. For those who want cliff notes, here's the basic premise.

In the 1960's, a man by the name of Garrett Hardin had a light bulb moment... He realized that a group of people who share a common resource- each utilizing this resource towards their own self-interest- may eventually destroy that shared, common resource in spite of the fact that it benefits no one to do so (ergo, the “Tragedy of the Commons”).

As best I can tell, this theory hits smack-dab in the heart of the domain world as it stands in the year 2009.

When we ask the fundamental question “What do people want when they go online?”, the answer is pretty clear. They want useful stuff. Maybe they want to read something for entertainment. Maybe they want news. Maybe they want to play a game. They might want to buy something, or figure out the interest rate on their mortgage. Perhaps they're curious about who pitched in game three of the 1978 World Series. They might want to look at porn. They might want to talk to a doctor, find old friends, book a hotel or research a charity. Whatever they're after, it all shares a single, common thread; for that place in time, they're seeking out something meaningful to them.

Meaningful (!).

Excluding those whose name portfolios are made up of unintelligible garbage, we as domain owners occupy a very unique place in history. We're at the absolute forefront of a globe-altering technology that will impact the way all human beings live their lives from this point forward. A person is hard-pressed to think of another time in human history when something more profound than “the internet” appeared out of the blue; perhaps television, but even then, not really. A few religions, maybe... This “internet” thing were involved in? It's bigger than most of us even understand and brother, we ain't seen nothing yet... We're the lucky ones. We're the ones who “got it” when the opportunity-window was open and grabbed our pieces of the pie while there was still grabbing to be done (some of us more than others :D)

A lot of us were drawn into large-scale, speculative domain ownership for the same reason. There isn't any other vehicle on earth where something so meaningful (!)- there's that word again, meaningful (!)- and with so much potential can be secured for so little money. Where a few bucks coupled with a good idea can translate into media that integrates itself in peoples lives, be it for a minute of any given day as they click their way through a shopping cart, or as a regular part of their morning routine. Your domain names are little, privately held pieces of this amazing collective phenomenon- fragmentary (and fundamental) building blocks that have the power to represent a meaningful (!) idea, notion, product, service, place or thing.

Whether we like it or not, search engines are an integral part of all this- arguably, the BIGGEST part. If the websites and content we create is the ultimate destination, search engines are the roads that lead to us; the conduit by which people locate the meaningful (!) content they're after. Obviously, as a simple function of self-interest, search engines have a very strong desire to provide their users with quality content. Meaningful (!) content. This isn't a game to see who can get the most surfers to click; it's a larger objective, where the goal is directing people to the relevant places they really want to see. Frankly, I am not entirely unsympathetic to G when they shitcan someones adwords account because their lame, five page “minisite” garnered one too many $15 Mesotheleoma clicks out of Kathmandu. The objective is meaningful (!) content- not "optimized" content built on desirable e-real estate- and the potential for such content exists in every good domain, but instead, entirely too many of us are squandering this amazingly powerful resource for something else. Something meaningless.

When you, as a domain owner, put your great names on parking or toss up a low-quality “minisite” to generate traffic, you're effectively becoming a retrograding force against the clear objective that every search engine has and every user wants- the delivery of meaningful (!) content. No matter how well 'optimized' your content may be, if it isn't delivering something meaningful, you can safely assume that eventually (if not already), search engines will roll up the welcome mat and kick your ass to the curb. In developing such meaningless content, you aren't achieving anything beyond 'gaming' the system, so don't cry when 'the system' games back. Can meaningless content be profitable? Thus far, yes. Is the strategy of creating meaningless-albeit-optimized content sustainable as we go forward? I do not believe so.

Given the place we occupy in history, domain owners are at a crossroads. We've locked up the best virtual real estate tight as a drum and collectively, have the ability to cement our stations as kings of new media, right at our fingertips. The thing is, we don't seem to want it. Instead, we're behaving like a bunch of lazy bastards meandering down a pathetic path of least resistance, benefiting no one but ourselves, which in turn forces the rest of the world to devise ways to make what we do less and less relevant. Let it be argued here and now that unproductive domaining is a severe drag to the overall progress of the internet-at-large and in time- be it from an ICANN strategy or something else- things will be forced to change... either the ways entities are identified on the web (see: unlimited TLD's as the first salvo in this), or the rules and costs associated with name ownership.

Thankfully, some people in the industry “get it”. The Castillo Brothers “get it”. Guys like Skip Hoagland seem to “get it”. Geo.com in general “gets it”. This isn't to lambaste people like Frank Schilling or Kevin Ham- god knows if I had a time machine, I would go back in time and do precisely what they did- but it is absolutely to say that unproductive use of a finite (and necessary) resource can have severe macro consequences.

If our community is to avoid this same 'common tragedy', we must figure out a way to ensure that meaningful domain names are enriched with equally meaningful content. There will be competition and like anything else, the best will rise to the top while the weak are culled, but if we keep going down the path we're presently on, “domainers” will find ourselves marginalized to the periphery of a productive internet world that finally figured out a way to work around us. If you aren't concerned with the bigger picture- go ahead and **** community altruism... consider the impact this behavior has on your own bottom line. The "game" you are playing is being run and managed by people who want meaningful (!) content. If you want to get paid, you had better be prepared (and able to) deliver it.

Feel free to laugh at/mock/deride/deny this post, today. Just make sure to copy it and read it some from now- and see who's laughing then.
 
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I thought you said you were going to give us the short end of the story xD But nice read bro - I agree with it, and we'll see how it plays out >=3
 
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Excellent points. Food for thought as they say. Great post.
 
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Best post I've read in quite some time. Thanks.
 
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And this one was a meaningful post Dongsman! This was a very good read, and I truly appreciate it.
 
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I don't have much time to respond at length right now, but I hardly agree at all with your sentiment.

Domain names are just mappings between character strings and a computer. In some cases those character strings are representations of objects and concepts that already possess meaning ("cat", "religion", "software", etc.), but domain names in of themselves do not create any new meaning whatsoever. They're just entry points, and entry points can take any of numerous other forms, including a bookmark, a desktop shortcut, or an IP address. The HTTP protocol is actually very limiting -- for example, it does not allow live two-way streaming of data between client/server -- and I imagine a more sophisticated protocol will replace it within the next 15 years, perhaps obviating the need for domains entirely.

You can access innovative and value-adding software products and services through domain names, but it's not the domain name clients are after -- it's the products and services which will make their lives easier. When you want to access a fast and sophisticated web-searching algorithm, do you browse to Search.com or Google.com? If you live in NYC an wish to view available apartments, do you go to Classifieds.com or Craigslists.org? If you want to register a domain name, do you go to Domain.com or GoDaddy.com?

These domaining evangelists really need to get a grip on life. The whole domaining industry goes gaga when we learn of a domain name selling for $1.7 Million, but dude, there are probably dozens of software companies that sell for $1.7 Million or more each day, and these are considered "tiny" acquisitions. I don't think people realize how small market-cap an industry domaining is and how little money there is to go around. The average starting salary of a software developer in the U.S. is about $50K-$60K, whereas any domainer earning that amount is probably considered to be in the top 0.1%. And that collection of well-to-do domainers is rapidly crashing as PPC incomes continue to fall through the floor. Why? Because as Google's algorithms and general Internet adeptness become more sophisticated, Google and Internet users are becoming better-trained to distinguish real value (a company website with research-backed products) from pseudo-value (mini sites designed solely to rank well on Google for a specific term), and I can assert with 99.9% certainty this pattern will continue indefinitely.

When you purchase a bottle of orange juice in the store, it's the juice you're after, not the container. Perhaps a company can artificially drive up the price of its juice for a while by encasing it in a hot, flashy container and advertising the juice with some super-catchy marketing slogan, but ultimately, it the juice inside tastes likes total crap and poses no ulterior value (e.g. provides extra energy, less sugar, etc.), consumers are eventually going to pick up on this and flee to a better-tasting brand.

I agree that a strong domain can indeed *augment* an established brand, but a domain name is simply one of thousands of marketing tools a company can employ -- nothing more. Bill Gates is the wealthiest man in the world yet he doesn't own BillGates.com; are you, worth probably less than 0.001% what he is, really in a position to say Mr. Gates doesn't "get it"?

Sorry to sound cynical here, but I think many domainers on this forum don't realize that the world is much, much, MUCH larger than domain names.
 
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You're spinning the argument a bit, Joshua.

No one is arguing against the power of branding, however, what a lot of web2 proponents fail to consider that keyword + .com is a brand in itself- a damn sight better "brand" than any abstract or loosely related term. Furthermore, no one is saying that domains are the end-all in content delivery, but I do believe that, barring a technological shift that renders them irrelevant, they are the modern day equivalent of an FCC license to broadcast information relevant to the keywords in the name. The better the name, the further the scope of that license.

I completely fail to see the relevance of how much the domain industry "makes" compared to other industries. Is agriculture an irrelevant business because it doesn't "make" as much as finance? That's an enormous red-herring.

Alot of what you're saying does find confluence with what I'm saying...

Google and Internet users are becoming better-trained to distinguish real value (a company website with research-backed products) from pseudo-value (mini sites designed solely to rank well on Google for a specific term), and I can assert with 99.9% certainty this pattern will continue indefinitely.

When you purchase a bottle of orange juice in the store, it's the juice you're after, not the container. Perhaps a company can artificially drive up the price of its juice for a while by encasing it in a hot, flashy container and advertising the juice with some super-catchy marketing slogan, but ultimately, it the juice inside tastes likes total crap and poses no ulterior value (e.g. provides extra energy, less sugar, etc.), consumers are eventually going to pick up on this and flee to a better-tasting brand.

... but I still think you're failing to consider the resonant power of a great product IN a great container. It isn't a one-or-the-other proposition for people who already own great names. It's simply a matter of it they want to do it, or not. As it goes, most of them are choosing "not" and there is a big consequence for that.

For come-lately's? The ones who transact in meaningless names, don't have the money to secure the meaningful ones and must devise plans to work around this? Sure, fall back on the power of "branding" and how your $8 piece of crap can "be whatever it wants to be"... Whatever helps you sleep better at night.

The world is certainly much larger than domain names; I don't know if you're struggling a bit with reading comprehension or making a totally tangential point, but nothing in my post suggested it wasn't. The point in my post is that, while the world is certainly bigger than the internet, the internet- as it stands in the here and now- is no bigger than (and is predicated entirely upon) domain names and the content they deliver. Taking the best names and using them to deliver meaningless content has a consequence.
 
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When you, as a domain owner, put your great names on parking or toss up a low-quality “minisite” to generate traffic, you're effectively becoming a retrograding force against the clear objective that every search engine has and every user wants- the delivery of meaningful (!) content. No matter how well 'optimized' your content may be, if it isn't delivering something meaningful, you can safely assume that eventually (if not already), search engines will roll up the welcome mat and kick your ass to the curb. In developing such meaningless content, you aren't achieving anything beyond 'gaming' the system, so don't cry when 'the system' games back.

Spot on - good post!
 
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To be honest I didn't read your article too thoroughly and my opinion regarding this industry is essentially pre-conceived, so my response was essentially a "gag reflex" to seeing the word domaining combined with meaningful. Consider my response retracted until I have time to peruse your article and think it through. Thanks.
 
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Interesting read, but it makes an assumption or two about how one defines content. If buywidgets dot whatever generates traffic, and all it has are links to all the different versions of widgets that one can buy on a merchant's site, then that content generates income for me via affiliate links. I do not need to throw articles on there about the history of widgets, my visitors don't care about that, their version of cointent is a buy now button, even if it has an affiliate link attached to it.

Content is defined by the surfer, not the website owner. A guy looking to buy that gets stuck on a site scrolling through irrelevant seo generating articles is going to get unhappy, fast.

As for the others, the ones that just want to read rather than clicking on a buy now button, I don't really care about, since they don't generate income for me; I get paid for generating sales, not non-converting traffic.
 
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Interesting read, but it makes an assumption or two about how one defines content. If buywidgets dot whatever generates traffic, and all it has are links to all the different versions of widgets that one can buy on a merchant's site, then that content generates income for me via affiliate links. I do not need to throw articles on there about the history of widgets, my visitors don't care about that, their version of cointent is a buy now button, even if it has an affiliate link attached to it.

Content is defined by the surfer, not the website owner. A guy looking to buy that gets stuck on a site scrolling through irrelevant seo generating articles is going to get unhappy, fast.

As for the others, the ones that just want to read rather than clicking on a buy now button, I don't really care about, since they don't generate income for me; I get paid for generating sales, not non-converting traffic.

I realize it was a lot to digest, but I'd suggest reading it again. No where in the article did I suggest that SE optimization content was "meaningful". Quite to the contrary, I said the exact opposite of that.

I had to leave a few things undefined in the post above for the sake of making it remotely succinct enough to read, but you did zoom in on one critical aspect that I now realize I was entirely too unclear about; what constitutes "meaningful" versus "meaningless". I'll write more about this a bit later, but the short of it is that it's the opinion of this random guy that making money as an intermediate between buyer and seller is soon about to vanish, or get cut down significantly, as far as search engines go.
 
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Yeah, that's where I was getting hung up, that the word "meaningful" is in the eye of the surfer. My apologies if I've misread your post.

The way I look at it, Google is into maximizing their revenue. Having millions of web sites in their search engine that makes use of their income generating adsense program earns them hundreds of millions of dollars every year. Perhaps billions, I dunno. They have agreements through multiple companies to provide ads in a revenue sharing agreement, that in essence guarantees their inclusion in the database. Removing said pages from their database reduces their income by a significant amount of money. Altruistically, in a profitless, commerce free environment, maybe search engines would cull 'thin' sites completely out of the mix. But, google seems to be increasing their revenue rather than reducing revenue streams.
 
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great article ..very well written and presented...really glad that I came across this fine write up..and had a read through
 
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Small mini-sites can still offer value and relevant information, entertainment or products. This is one of the bigger mistakes the SE's are making by dismissing small sites in favor of quantity.

Take for example a well made, fully ajaxed site that offers thousands of products delivered at lightening speed and is searchable by multiple criteria. This can be done with only a few pages, a true mini-site.

Take the same data, the same content but make thousands of pages, and make the user click through three levels to find what they are looking for.

The first one will get absolutely no respect from the SE's even though it offers a much better user experience and is much faster.

The second one will have no trouble ranking due to the huge number of pages and internal link juice.

Many many brick n mortar businesses do not need huge sites. They can easily advertise their products and services with a handful of pages. An average plumber in Albuquerque has no need to make a 50 page site, but unfortunately will be penalized in the serps for not doing so. The top spots will usually go to the bigger sites. If I need my leaky pipe fixed, I personally don't care how many articles or products a plumber has on his site, its irrelevant.

Despite all the talk of caring about 'user experience', the reality is, that the algo's have been and will continue to be gamed. Quality domains are just one aspect of this gaming.

Meaningful is not something that can be determined by an algorithm. Meaningful is determined by the observer. What is meaningful to one, will be meaningless to another.
 
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Really nice read. Reps Added.
 
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Brand new here, so pardon any of my faux paux as they come. Having just left seo.com as the top account manager there, I know how valuable domains are in branding, in perception, and in search engines eyes. It sure would be nice if micro sites were meaningless right now, but boy can you make some money off of those bad boys at the moment! and I think that's my point: no one knows how the internet is going to evolve, except that it will, and those who are always trying to be up to date will do well with it.
 
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I'm going to go out on a limb here and say that I think people like Schilling, Schwartz, and Ham are cancers to the industry for the very reason you mentioned. Sometimes a $1,000 domain is just a thousand dollar domain. They don't seem to get it.

When you try to squeeze blood from a turnip, all you'll get is a handful of pulp. These individuals have acquired wealth while retarding development. In the end, it's a world-mix of economic/social systems.

Communism: A "few" in power have collectivized domains by buying (or forcing) competitors to sell out.

Socialism: The detriment of retarded development is shared by everyone in the industry.

Capitalism: Often represented with the "Who cares as long as I profit?" outlook shared by far too many domainers.

Let's face it, TRAFFIC is a joke, DNJ is a joke, and most of these big "sales" to "anonymous" individuals are nothing more than propaganda designed to artificially inflate sales and egos. Look at most of the articles revolving around these clowns. The gross decadence of the self-proclaimed "upper echelon" domainers will eventually destroy the industry in much the same way that the decadence of Rome destroyed the Roman empire.
 
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This is one of the better articles I've read on this fine forum and I agree with it even though I'm a little light on the development side myself. I always find myself thinking 'what can I do to make this site meaningful to whoever visits it' and I often find myself floudering. Of course making money is an issue but I believe that if you do create something meaningful and more importantly, useful, that part will take care of itself.

When I get a site that I think I can make useful, I do with the limited resources that I posses. Parking to me seems more pointless the longer I'm involved with domains. This is probably why my portfolio has been nearly cut in half and will continue to shrink. I want to make something a little more meaningful. Even with little to no skill, using a psuedo development platform like Noomle, if the effort is put in, something useful can be created. I constantly look for ways to improve and enhance even in that limited capacity, to provide something that helps someone.
 
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"It's not a good thing, but you'd do it yourself if you could gain advantage?"
 
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Dongsman and Joshua, both make some very intelligent arguments. But, the onus shouldn't be on domainers. The burden of monitoring good content must solely rest on the gatekeepers of the web. Google, Bing, Yahoo will do little to filter garbage as we know it.

Nothing stops Google from delivering 20 optimum results per query. But, they will index pretty much anything that shows their clickable bread and butter alongside. Why blame domainers for participating? The big boys set the standards. The rest are mere fodder to their greed.
 
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