Today we sat down with Kate (sdsinc) owner of NameNewsletter.com for a one on one interview.
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Eric - As an avid droplister, spending so much time each day compiling and providing droplists to domainers in various extensions, have you noticed any recent drop trends out of the norm?
Kate - Generally speaking, the pool of quality domains is drying out and it's difficult to find a drop with resale potential. More than ever, the quality domains are to be found on the aftermarket and the expired auctions. In ccTLDs the situation is different but there is competition for the good names too.
Eric - Scanning so multiple drop lists tends to give some people an eye strain headache. What kind of tips would you suggest to help others sort through so much data faster to spot gems?
Kate - The basic approach is to simply filter lists based on keywords of interest to you, also use prefixes that relate to the niche you're interested in or could add a touch of brandability. For example, for a hosting domain name I would try prefixes like host-, net- etc. Use suffixes too. Refine your search with additional filters: no hyphens, no digits, set a maximum length, .com extension etc. Use an online dictionary for synonyms (= more keywords to play with).
If you have coding skills you can improve the approach with more advanced features like regular expressions for example.
By the way, the big dropcatchers (Snapnames, Namejet, Pool, Godaddy) all allow you to create saved searches and you can also have E-mail alerts delivered to your mailbox every day. Take advantage of the free tools available.
I also like to look at domain age, older domains are more likely to be valuable, or have some residual traffic stemming from past development history.
Tens of thousands of domains expire every day, so if you want to make your time worthwhile you will find that there is more quality in the Namejet prerelease list, than in the pending-delete droplist for instance.
The droplists are a good source of inspiration. Rather than make up a name from scratch you can take advantage of other people's ideas. You can create variations of existing domains by replacing a keyword with another similar keyword that makes sense. With some effort you can even find better alternatives.
Eric - As a domainer and droplister, what is your typical daily routine like?
Kate - A typical day goes like this: after a few cups of coffee I log in to read my E-mail, review offers received, then I browse domain blogs and forums. I review the various lists compiled by my scripts, some are short, some are large so I have to prioritize them.
During the day, I attend to my IT consultancy job, I visit clients and work on development projects.
I am not a fulltime domainer but I spend at least a few hours on domains every day.
In the afternoon/evening I bid on closing auctions. And there is the more tedious and administrative side of domaining: taking care of renewals, transferring domains (consolidation), keeping the inventory up to date.
Eric - Do you have a favorite extension you invest in when you do buy, if so, what and why?
Kate - Judging by names currently held you would say .com as it still makes roughly 65% the portfolio. But my focus has been increasingly shifting toward ccTLDs. There is more demand for .com domains than other extensions, and more liquidity.
Eric - You've been a member at NamePros since 2005 and seem to be doing pretty good for yourself. Many of the members enjoy reading your posts and soak them up like a spung for knowledge. What would be your advice to a new domainer just starting today?
Kate - Domaining is addictive and if you don't restrain yourself it's very easy to accumulate tons of domains, but the costs quickly add up.
Don't be a domain collector, move inventory and keep the portfolio to sustainable levels.
Start making money today, even if it is a small profit.
Keep an inventory of all your domains along with expiration dates and expenses and any other relevant data like offers received. An Excel sheet will do. The aim is twofold:
1. Asset tracking
You need to have control of your inventory.
If you are actively buying domains, you will most likely have domains scattered across a dozen registrars or more, so you will save time by being organized.
2. Financial overview
By keeping track of expenses (acquisitions, renewals) and revenue (sales, parking revenue, revenue from developed sites etc) you have a clear overview of your financial situation so you can see how much you are making (or losing) and you can also measure progress as you sharpen your domaining skills...
Ignore automated appraisal tools. Domains don't sell because they have nice appraisals. They sell because somebody wants them. Don't be blindfolded by the metrics either: search volume, CPC etc are not the sole measure of domain value.
Finally, it takes money to make money. In the early days domainers were gold diggers, today they are investors. The 'mine' of available domains is more or less depleted as far as quality is concerned. In 2012 it would be very difficult to build a healthy portfolio with handregs so you need to consider other sources. Quality over quantity.
Eric - It's nice to see that you are still active at NamePros since you first signed up in 2005. Has NamePros helped you over the years, and if so, how?
Kate - NamePros is a very active community with many nice members from all walks of life, and helps me keep in touch with the latest news in the industry.
You can learn a lot not just from your mistakes but also from the mistakes of others. The legal section is especially useful for newcomers.
I also like to revisit old posts. I think historical perspective and the hindsight that comes with it is important in everything – without it you are groping around through life. There is no disconnect between the past and the future, that holds true for our industry too.
Eric - What was the biggest mistake you ever made in domaining so far that you still kick yourself for occasionally?
Kate - Like many I have wasted money on registrations that were not so great. The lesson here is, do not buy domains that you are not prepared to keep and develop. If you don't see the value in a name right now, it's unlikely that somebody else will.
Years ago I let a few valuable domains drop, because I didn't have an immediate use for them (later on I realized my mistake and I was able to buy almost all of them back).
A few times I have undersold domains too, but as long as you make a profit it's just a win-win deal for everyone involved - after all buyers also need to land a bargain from time to time I think the biggest mistake was not getting more involved in the early days. Even in 2000 there was a widespread feeling that it was already too late to succeed in the game. I missed on many opportunities.
The truth is that it's never too late, tomorrow we will be saying today was the good old days. But you have to realize the business is much more competitive today. On the other hand there is a wealth of information and education available today.
Eric - The new tld questions are everywhere and everyone seems to have different answers about the speculative outcome when they hit the market. What are your thoughts about the new tld launch, will they saturate and devalue the industry, or do you think the older tld's will just get stronger?
Kate - I don't think that new TLDs will have a significant impact on our industry.
The new TLD program is not backed by popular demand for more extensions, it is an opportunity for Icann and registries to make money. Just think of the amount of defensive registrations that will have to be made - the case of .xxx is very telling in this regard. But the lessons of the past are conveniently being ignored.
CorpTLDs (.hitachi, .amex, .aol etc) are going to keep marketing departments and media firms busy for a while but the ultimate benefits remain unclear. Most of the applicants are already branded on .com anyway. On paper they look like innovative differentiation tools but I don't see how they are going to bring you more credibility than .com. As the Overstock saga illustrates, creativity is not always rewarded.
GeoTLDs/community TLDs: they cater to niche markets.
Even if .paris or .berlin were to gain traction they will never be bigger than .fr or .de. Ditto for .nyc, I doubt it would even get as many registrations as .us which itself is in bad shape.
Generic strings like .music .free .art .blog etc - this is were the real battle will be fought.
I think a few might take off in niche markets with moderate success, like .tv or .me perhaps.
But it will be impossible for registrars to push hundreds, possibly thousands to the front window. So only a few will have meaningful exposure. Without critical mass they will remain irrelevant.
I expect to see registry failures and TLDs shutting down as a result of their lack of viability, this will bring unnecessary instability in the domain name system.
One fundamental trend hindering the development of new extensions is that ccTLDs have become increasingly dominant alongside the 'established' gTLDs (in practice that means .com/.net/.org).
The demand concentrates on a limited number of core extensions while new extensions attempt to cause dilution in the market.
In my opinion, new TLDs are mostly gadgets with very little upside.
For domaining purposes I think the opportunities will be limited, unless you are a registry operator, or an insider.
Eric - What are some of the top tools / services you use daily to assist you with maximizing your domain efforts?
Kate - I tend to use my own snake oil but occasionally I visit Namecatch.com to browse lists of generic domains.
Justdropped.com is a suitable tool to perform lookups against the droplists, Zfbot is also useful.
I use automated scripts to place bids at certain platforms, where proper timing can make a difference.
Alternatively you need an organizer or E-mail alerts to keep pace with all the auctions closing in at any time of the day (or the night). Try to be efficient and automate things as much as you can.
I have scripts for ccTLD dropcatching too. I always have dictionaries on my desk.
Eric - When it comes to selling domains, do have a procedure you follow to aid in sales that you've perfected over the years, if so what is it?
Kate - There are no secrets really, in order to resell domains you have to be extremely selective and choose wisely. No amount of 'promotion' will help if nobody wants your domains.
I list domains passively and take offers as they come.
If you want to sell domains, think like an end user (would you even buy your own domains at the price you are asking ?), follow the reported sales and see what kinds of names do sell. Domains should have an obvious commercial use.
I have found that brandability is an important factor in domain sales. A good domain should be good enough to be on a business card. It should have advertising potential, be easy to spell and remember and somewhat unique. When you think of it, many good brandable names are made up of 2-word combos.
There are still plenty of good candidates waiting to be snagged right now. Use your creativity and instinct !
Eric - Thank you for taking the time to do this interview with me, I know your time is valuable. Is there anything else you would like to share?
Kate - Thank you for having me. One last word, don't quit your day job. While I think domaining is among the best investment opportunities, the lack of liquidity is a concern. Domain sales are unpredictable but can be very pleasant when they happen.
-----------------------------------------------
Disclaimer - If you republish this interview in whole or in part you MUST include a backlink to NamePros.com crediting us as the source of the interview. In addition, this disclaimer MUST remain intact so viewers of your site wanting to republish also credit NamePros.com
-------------------------------------------------
Eric - As an avid droplister, spending so much time each day compiling and providing droplists to domainers in various extensions, have you noticed any recent drop trends out of the norm?
Kate - Generally speaking, the pool of quality domains is drying out and it's difficult to find a drop with resale potential. More than ever, the quality domains are to be found on the aftermarket and the expired auctions. In ccTLDs the situation is different but there is competition for the good names too.
Eric - Scanning so multiple drop lists tends to give some people an eye strain headache. What kind of tips would you suggest to help others sort through so much data faster to spot gems?
Kate - The basic approach is to simply filter lists based on keywords of interest to you, also use prefixes that relate to the niche you're interested in or could add a touch of brandability. For example, for a hosting domain name I would try prefixes like host-, net- etc. Use suffixes too. Refine your search with additional filters: no hyphens, no digits, set a maximum length, .com extension etc. Use an online dictionary for synonyms (= more keywords to play with).
If you have coding skills you can improve the approach with more advanced features like regular expressions for example.
By the way, the big dropcatchers (Snapnames, Namejet, Pool, Godaddy) all allow you to create saved searches and you can also have E-mail alerts delivered to your mailbox every day. Take advantage of the free tools available.
I also like to look at domain age, older domains are more likely to be valuable, or have some residual traffic stemming from past development history.
Tens of thousands of domains expire every day, so if you want to make your time worthwhile you will find that there is more quality in the Namejet prerelease list, than in the pending-delete droplist for instance.
The droplists are a good source of inspiration. Rather than make up a name from scratch you can take advantage of other people's ideas. You can create variations of existing domains by replacing a keyword with another similar keyword that makes sense. With some effort you can even find better alternatives.
Eric - As a domainer and droplister, what is your typical daily routine like?
Kate - A typical day goes like this: after a few cups of coffee I log in to read my E-mail, review offers received, then I browse domain blogs and forums. I review the various lists compiled by my scripts, some are short, some are large so I have to prioritize them.
During the day, I attend to my IT consultancy job, I visit clients and work on development projects.
I am not a fulltime domainer but I spend at least a few hours on domains every day.
In the afternoon/evening I bid on closing auctions. And there is the more tedious and administrative side of domaining: taking care of renewals, transferring domains (consolidation), keeping the inventory up to date.
Eric - Do you have a favorite extension you invest in when you do buy, if so, what and why?
Kate - Judging by names currently held you would say .com as it still makes roughly 65% the portfolio. But my focus has been increasingly shifting toward ccTLDs. There is more demand for .com domains than other extensions, and more liquidity.
Eric - You've been a member at NamePros since 2005 and seem to be doing pretty good for yourself. Many of the members enjoy reading your posts and soak them up like a spung for knowledge. What would be your advice to a new domainer just starting today?
Kate - Domaining is addictive and if you don't restrain yourself it's very easy to accumulate tons of domains, but the costs quickly add up.
Don't be a domain collector, move inventory and keep the portfolio to sustainable levels.
Start making money today, even if it is a small profit.
Keep an inventory of all your domains along with expiration dates and expenses and any other relevant data like offers received. An Excel sheet will do. The aim is twofold:
1. Asset tracking
You need to have control of your inventory.
If you are actively buying domains, you will most likely have domains scattered across a dozen registrars or more, so you will save time by being organized.
2. Financial overview
By keeping track of expenses (acquisitions, renewals) and revenue (sales, parking revenue, revenue from developed sites etc) you have a clear overview of your financial situation so you can see how much you are making (or losing) and you can also measure progress as you sharpen your domaining skills...
Ignore automated appraisal tools. Domains don't sell because they have nice appraisals. They sell because somebody wants them. Don't be blindfolded by the metrics either: search volume, CPC etc are not the sole measure of domain value.
Finally, it takes money to make money. In the early days domainers were gold diggers, today they are investors. The 'mine' of available domains is more or less depleted as far as quality is concerned. In 2012 it would be very difficult to build a healthy portfolio with handregs so you need to consider other sources. Quality over quantity.
Eric - It's nice to see that you are still active at NamePros since you first signed up in 2005. Has NamePros helped you over the years, and if so, how?
Kate - NamePros is a very active community with many nice members from all walks of life, and helps me keep in touch with the latest news in the industry.
You can learn a lot not just from your mistakes but also from the mistakes of others. The legal section is especially useful for newcomers.
I also like to revisit old posts. I think historical perspective and the hindsight that comes with it is important in everything – without it you are groping around through life. There is no disconnect between the past and the future, that holds true for our industry too.
Eric - What was the biggest mistake you ever made in domaining so far that you still kick yourself for occasionally?
Kate - Like many I have wasted money on registrations that were not so great. The lesson here is, do not buy domains that you are not prepared to keep and develop. If you don't see the value in a name right now, it's unlikely that somebody else will.
Years ago I let a few valuable domains drop, because I didn't have an immediate use for them (later on I realized my mistake and I was able to buy almost all of them back).
A few times I have undersold domains too, but as long as you make a profit it's just a win-win deal for everyone involved - after all buyers also need to land a bargain from time to time I think the biggest mistake was not getting more involved in the early days. Even in 2000 there was a widespread feeling that it was already too late to succeed in the game. I missed on many opportunities.
The truth is that it's never too late, tomorrow we will be saying today was the good old days. But you have to realize the business is much more competitive today. On the other hand there is a wealth of information and education available today.
Eric - The new tld questions are everywhere and everyone seems to have different answers about the speculative outcome when they hit the market. What are your thoughts about the new tld launch, will they saturate and devalue the industry, or do you think the older tld's will just get stronger?
Kate - I don't think that new TLDs will have a significant impact on our industry.
The new TLD program is not backed by popular demand for more extensions, it is an opportunity for Icann and registries to make money. Just think of the amount of defensive registrations that will have to be made - the case of .xxx is very telling in this regard. But the lessons of the past are conveniently being ignored.
CorpTLDs (.hitachi, .amex, .aol etc) are going to keep marketing departments and media firms busy for a while but the ultimate benefits remain unclear. Most of the applicants are already branded on .com anyway. On paper they look like innovative differentiation tools but I don't see how they are going to bring you more credibility than .com. As the Overstock saga illustrates, creativity is not always rewarded.
GeoTLDs/community TLDs: they cater to niche markets.
Even if .paris or .berlin were to gain traction they will never be bigger than .fr or .de. Ditto for .nyc, I doubt it would even get as many registrations as .us which itself is in bad shape.
Generic strings like .music .free .art .blog etc - this is were the real battle will be fought.
I think a few might take off in niche markets with moderate success, like .tv or .me perhaps.
But it will be impossible for registrars to push hundreds, possibly thousands to the front window. So only a few will have meaningful exposure. Without critical mass they will remain irrelevant.
I expect to see registry failures and TLDs shutting down as a result of their lack of viability, this will bring unnecessary instability in the domain name system.
One fundamental trend hindering the development of new extensions is that ccTLDs have become increasingly dominant alongside the 'established' gTLDs (in practice that means .com/.net/.org).
The demand concentrates on a limited number of core extensions while new extensions attempt to cause dilution in the market.
In my opinion, new TLDs are mostly gadgets with very little upside.
For domaining purposes I think the opportunities will be limited, unless you are a registry operator, or an insider.
Eric - What are some of the top tools / services you use daily to assist you with maximizing your domain efforts?
Kate - I tend to use my own snake oil but occasionally I visit Namecatch.com to browse lists of generic domains.
Justdropped.com is a suitable tool to perform lookups against the droplists, Zfbot is also useful.
I use automated scripts to place bids at certain platforms, where proper timing can make a difference.
Alternatively you need an organizer or E-mail alerts to keep pace with all the auctions closing in at any time of the day (or the night). Try to be efficient and automate things as much as you can.
I have scripts for ccTLD dropcatching too. I always have dictionaries on my desk.
Eric - When it comes to selling domains, do have a procedure you follow to aid in sales that you've perfected over the years, if so what is it?
Kate - There are no secrets really, in order to resell domains you have to be extremely selective and choose wisely. No amount of 'promotion' will help if nobody wants your domains.
I list domains passively and take offers as they come.
If you want to sell domains, think like an end user (would you even buy your own domains at the price you are asking ?), follow the reported sales and see what kinds of names do sell. Domains should have an obvious commercial use.
I have found that brandability is an important factor in domain sales. A good domain should be good enough to be on a business card. It should have advertising potential, be easy to spell and remember and somewhat unique. When you think of it, many good brandable names are made up of 2-word combos.
There are still plenty of good candidates waiting to be snagged right now. Use your creativity and instinct !
Eric - Thank you for taking the time to do this interview with me, I know your time is valuable. Is there anything else you would like to share?
Kate - Thank you for having me. One last word, don't quit your day job. While I think domaining is among the best investment opportunities, the lack of liquidity is a concern. Domain sales are unpredictable but can be very pleasant when they happen.
-----------------------------------------------
Disclaimer - If you republish this interview in whole or in part you MUST include a backlink to NamePros.com crediting us as the source of the interview. In addition, this disclaimer MUST remain intact so viewers of your site wanting to republish also credit NamePros.com
