Today we sat down with Brad Mugford (bmugford) owner of DataCube.com for a one on one interview.
1. I noticed you had a rather large portfolio with mostly .com, .net, .org, .us, and a few .Mobi extensions. Which extension do you find yourself most attracted to investing into and why?
Like most domain investors I prefer .com. It is the gold standard of domains. It is just easier to sell .com than any other extension.
However, that does not always make .com the best investment. It is all about ROI. The popularity of .com can lead to high auction prices where it would be hard to turn a profit.
.net and .org are great options as well. They are part of my big 3 (.com, .net, and .org) and have broad awareness, usage, and credibility.
Many domainers have a negative view towards .net, seeing it as a secondary option to .com.
However, end users are far less dismissive of .net. Many times it can provide an affordable option that is out of reach in .com.
.org is also far more than an extension for just non-profits at this point. It has become a generic extension over the years and fits certain fields well: education, health, legal, etc.
As an investor I also buy .us, .info, and .biz for top tier keywords. While these extensions are far less popular than my big 3, I believe you are far more likely to sell a top keyword in a secondary extension than a marginal .com. Due to the low acquisition cost they can provide incredible returns.
2. As a .us investor, are you finding that the cctld still holds lots of value potential, even with all the skepticism talked about it?
I am probably one of the most active .us buyers and sellers out there.
I just see the extension as undervalued in general. It is the one and only ccTLD of the US. However, it is underused because .com is the de facto extension used in the United States.
I believe the extension has a lot of room for growth when compared to other ccTLD. I have also noticed a trend upwards in my inquires and sales in the last few years.
3. What is your daily domaining routine like from start to finish? What type of schedule do you stick to?
I don't really have much of a set routine. It is flexible, which is one of the things I like about doing this. Some of the things I do on a normal day are:
4. The new gtld's have been pushed back even further into mid 2013 and possibly 2014. Do you feel they will saturate the market driving values of other extensions down or do you feel current extensions will retain or increase in value, and if so why?
The program was not passed by popular demand, or for the greater good, it was passed to make money. I see the entire program as a solution to a problem that does not exist.
Some entities will make a lot of money: registries, registrars, consultants. There will only be confusion for the average person. When people are confused they go back to what is known.
There could be potentially thousands of extensions fighting for the same 10-15% of the total market. Most of the extensions will be a ghost town without end user development. Even an extension like .co that had every advantage has very limited awareness and usage with the general public despite a massive marketing campaign.
It is not like people will be able to hand register Chicago.Homes, Web.Site, Car.Insurance, etc. The registries exist to make money. Premium keywords will be reserved and sold for premium prices. At that point a potential buyer will have a choice between investing in an unknown or a known asset.
For that reason I don't believe the new extensions will lower the value of my big 3. If anything it might increase the value of .com.
5. You've been a member of NamePros since 2007. In that time, have you found it beneficial to your domaining business?
NamePros has a lot of quality members and it has certainly helped me in domaining in many ways.
The most successful people in the world are the ones who realize they don't know everything and are willing to learn. NamePros offers a wide spectrum of advice, opinions, and experiences from various perspectives. I certainly have learned a lot about the domain world and built connections that I did not have before I joined.
6. You seem to do fairly well at reselling your domains for a decent return on investment. What's your secret to securing those sales?
Since I primarily deal with end users, I target domains that would attract end users - mainly keywords and potential brands.The vast majority of my sales are passive where the end user initiates contact.
I think the key to this model is buying quality domains. Quality domains tend to sell themselves over time. I also have about 1/3 of my domains priced on venues like GoDaddy Premium, Sedo, and Afternic.
It might not make sense to price domains with high upside, but it is a great way to move lower upside targeted domains.
7. As a .mobi investor, do you feel that that the extension will bounce back from it's lull and start generating more popularity as the mobile apps markets expand?
I am not really an active .mobi investor. I only own a couple.
I think technology has advanced past a need for .mobi. It is not an extension I see a bright future for.
8. What was the biggest mistake you ever made to date in your domaining career?
This is a business where you have to make many decisions per day so mistakes can, and do happen. Most of my regrets come from domains I had a chance to acquire but passed on.
Before I was an active domain investor, in the late 1990's I had a chance to acquire a top tier single word .com for $5,000. At that point domains did not have the market they have today so I passed. Later on that domain was purchased by Kevin Ham for a lot of money.
Another mistake is letting several quality LLLL.com expire on accident. Since then I have kept detailed inventory. It is something I would suggest any serious investor does.
9. If you could reach out and help newer domainers get started on the right foot, what would your top-shelf advice be for them?
10. Is there anything else you would like to share?
Domaining is no longer about the easy money flipping domains like it was in the past. Now more than ever it takes skill and effort to be successful.
I know plenty of people who entered the industry in the last five years who are doing very well. If you work hard and are willing to learn, there are still plenty of opportunities out there.
1. I noticed you had a rather large portfolio with mostly .com, .net, .org, .us, and a few .Mobi extensions. Which extension do you find yourself most attracted to investing into and why?
Like most domain investors I prefer .com. It is the gold standard of domains. It is just easier to sell .com than any other extension.
However, that does not always make .com the best investment. It is all about ROI. The popularity of .com can lead to high auction prices where it would be hard to turn a profit.
.net and .org are great options as well. They are part of my big 3 (.com, .net, and .org) and have broad awareness, usage, and credibility.
Many domainers have a negative view towards .net, seeing it as a secondary option to .com.
However, end users are far less dismissive of .net. Many times it can provide an affordable option that is out of reach in .com.
.org is also far more than an extension for just non-profits at this point. It has become a generic extension over the years and fits certain fields well: education, health, legal, etc.
As an investor I also buy .us, .info, and .biz for top tier keywords. While these extensions are far less popular than my big 3, I believe you are far more likely to sell a top keyword in a secondary extension than a marginal .com. Due to the low acquisition cost they can provide incredible returns.
2. As a .us investor, are you finding that the cctld still holds lots of value potential, even with all the skepticism talked about it?
I am probably one of the most active .us buyers and sellers out there.
I just see the extension as undervalued in general. It is the one and only ccTLD of the US. However, it is underused because .com is the de facto extension used in the United States.
I believe the extension has a lot of room for growth when compared to other ccTLD. I have also noticed a trend upwards in my inquires and sales in the last few years.
3. What is your daily domaining routine like from start to finish? What type of schedule do you stick to?
I don't really have much of a set routine. It is flexible, which is one of the things I like about doing this. Some of the things I do on a normal day are:
- Respond to direct inquiries and offers on Sedo and other venues.
- Bid on auctions
- Scan Pending Deletes (sometimes a few days ahead)
- Scan NJ/Snap Pre-Release
- Update various inventory lists
- Read domain blogs and forums
4. The new gtld's have been pushed back even further into mid 2013 and possibly 2014. Do you feel they will saturate the market driving values of other extensions down or do you feel current extensions will retain or increase in value, and if so why?
The program was not passed by popular demand, or for the greater good, it was passed to make money. I see the entire program as a solution to a problem that does not exist.
Some entities will make a lot of money: registries, registrars, consultants. There will only be confusion for the average person. When people are confused they go back to what is known.
There could be potentially thousands of extensions fighting for the same 10-15% of the total market. Most of the extensions will be a ghost town without end user development. Even an extension like .co that had every advantage has very limited awareness and usage with the general public despite a massive marketing campaign.
It is not like people will be able to hand register Chicago.Homes, Web.Site, Car.Insurance, etc. The registries exist to make money. Premium keywords will be reserved and sold for premium prices. At that point a potential buyer will have a choice between investing in an unknown or a known asset.
For that reason I don't believe the new extensions will lower the value of my big 3. If anything it might increase the value of .com.
5. You've been a member of NamePros since 2007. In that time, have you found it beneficial to your domaining business?
NamePros has a lot of quality members and it has certainly helped me in domaining in many ways.
The most successful people in the world are the ones who realize they don't know everything and are willing to learn. NamePros offers a wide spectrum of advice, opinions, and experiences from various perspectives. I certainly have learned a lot about the domain world and built connections that I did not have before I joined.
6. You seem to do fairly well at reselling your domains for a decent return on investment. What's your secret to securing those sales?
Since I primarily deal with end users, I target domains that would attract end users - mainly keywords and potential brands.The vast majority of my sales are passive where the end user initiates contact.
I think the key to this model is buying quality domains. Quality domains tend to sell themselves over time. I also have about 1/3 of my domains priced on venues like GoDaddy Premium, Sedo, and Afternic.
It might not make sense to price domains with high upside, but it is a great way to move lower upside targeted domains.
7. As a .mobi investor, do you feel that that the extension will bounce back from it's lull and start generating more popularity as the mobile apps markets expand?
I am not really an active .mobi investor. I only own a couple.
I think technology has advanced past a need for .mobi. It is not an extension I see a bright future for.
8. What was the biggest mistake you ever made to date in your domaining career?
This is a business where you have to make many decisions per day so mistakes can, and do happen. Most of my regrets come from domains I had a chance to acquire but passed on.
Before I was an active domain investor, in the late 1990's I had a chance to acquire a top tier single word .com for $5,000. At that point domains did not have the market they have today so I passed. Later on that domain was purchased by Kevin Ham for a lot of money.
Another mistake is letting several quality LLLL.com expire on accident. Since then I have kept detailed inventory. It is something I would suggest any serious investor does.
9. If you could reach out and help newer domainers get started on the right foot, what would your top-shelf advice be for them?
- Read first and invest later. There are a lot of good resources out there on domain investing. Too many new domainers waste money before they have any idea what a quality domain is.
- Don't invest in obvious trademark domains. That is another thing many new investors start with. Buy domains that have a use. They are far more likely to find buyers.
- You are better off owning fewer good domains, than many average domains. With average domains renewal fees can turn an asset into a liability.
10. Is there anything else you would like to share?
Domaining is no longer about the easy money flipping domains like it was in the past. Now more than ever it takes skill and effort to be successful.
I know plenty of people who entered the industry in the last five years who are doing very well. If you work hard and are willing to learn, there are still plenty of opportunities out there.
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