I'm Brad Mugford, owner of DataCube.com. AMA

[bmugford]

I registered my first domain in the late 1990's, but have been an active domain investor for 15+ years now.

I am going to call this an Ask Me (Almost) Anything.
There might be some questions I am unwilling or unable to answer.

I would prefer to keep the questions related to domain investment, or business in general.

Feel free to ask general questions, or specific questions for instance regarding an appraisal of your domain.

About:
Twitter - https://twitter.com/datacubecom (I have not really used Twitter much, but plan to start using it more.)
LinkedIn - https://www.linkedin.com/in/bradmugford/

I am not sure how long I am going to leave this thread open. Let's see how it goes.

Brad

 

[satyadeep singh]

Hi, Sir
Based on your experience how can first saw the domain and select its a good domain, i mean which criteria is for good domain and bad domain?

 

[bmugford]

Hello Brad,
I am a great fan of yours, since recent days, I am continuously reading your very constructive messages on NamePros. Thank you for sharing your best experience. Today I have a few questions, please shed some lights:

Thanks for the kind words.

1. Which Nameservers return good Sales?

I generally use Afternic or Dan.com. On Afternic I have many non .COM and lower end .COM priced.
On Dan.com I have many of the same priced domains, but far more that are unpriced and available via offers.

2. Which is the best tool or website to see the LATEST Trending Keywords?

This is not really something I use much when evaluating domains. I know money can be made in trends, but that is not generally something I chase.

3. What are the sure shot tricks or strategies to secure a desired Pending Delete name?

Thank you very much.

Bring your wallet.

I wish I knew the secret, outside just paying more.

Brad

 

[bmugford]

Hi, Sir
Based on your experience how can first saw the domain and select its a good domain, i mean which criteria is for good domain and bad domain?

That is a very broad question.

It takes research, experience, and nuance to really evaluate the potential of a domain.

To me a "good" domain is one that is likely to get interest, and eventually sell over time.
The ones that are most likely to sell have a pool of existing end users.

I research potential end users before I buy a domain. I don't buy a domain, then look to see if any end users exist.

Brad

 

[karmaco]

Just like others, I have long respected you on this forum for your knowledge, humility and would say you are one (if not the most) level headed member of this forum.

How long do you hold a domain before considering dropping (if ever)?

Whats the lowest (ballpark) you would sell a domain for at this stage in your journey?

Do you regret selling something too cheap If not any other domaining regrets?

Thanks for your time and contributions to this forum.

 

[bmugford]

Just like others, I have long respected you on this forum for your knowledge, humility and would say you are one (if not the most) level headed member of this forum.

Thank you. It is appreciated.

How long do you hold a domain before considering dropping (if ever)?

That is generally not a major consideration when it comes to dropping a domain for me.
My primary consideration is what I consider current value to be, both reseller and end user.

I have domains that would sell for thousands, that have received limited end user interest.

One exception would be if it is a secondary extension or low upside domain like a GEO, and has received limited interest. If I am unsure about the reseller value, that is one I would consider dropping.

Whats the lowest (ballpark) you would sell a domain for at this stage in your journey?

I agreed to sell a marginal GEO the other day for $500.
I don't mind taking average prices for average domains.

Do you regret selling something too cheap If not any other domaining regrets?

I regret way more domains I didn't buy than domains I did buy.

If I had a time machine, there are some sales I wish I could go back and not make.

Brad

 

[Charybdis]

Let's say there is a two-word brandable .com domain name which might sell for $10,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

Same question:

Let's say there is a two-word brandable .com domain name which might sell for $20,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

 

[jhm]

Easily one of the people I respect the most in the forum. I certainly pay attention to people like Brad, very reasonable and thoughtful with his comments

I'm trying to think of something half interesting for you, but I'll throw this one. If you had a magic wand, what is the most meaningful thing that you'd like ICANN to change or do in the future, and could they be incentivized in some way to do it (if you've got more than one on your list, so be it)

 

[Haroon Basha]

Easily one of the people I respect the most in the forum. I certainly pay attention to people like Brad, very reasonable and thoughtful with his comments

I'm trying to think of something half interesting for you, but I'll throw this one. If you had a magic wand, what is the most meaningful thing that you'd like ICANN to change or do in the future, and could they be incentivized in some way to do it

My wish list with ICANN will be scrapping of compulsory 60-days Transfer Lock. Second, punish the Registrars who take more than 24 hours to Release a domain name which is transferred to another Registrar.

 

[Dane]

1.) When I first started out I was manually looking at lists of thousands of domains per day.

Me too! I think the lists I used might have come from Verisign. Not sure, it was a long time ago, like late 90's.

Question... what are you finding to be most successful these days?:

1. Buy now ONLY (with price displayed).
2. Buy now (with price) OR Make Offer.
3. Make Offer ONLY.
4. Request Price ONLY.

Also, do you allow installments (lease to own) on all names, or no?

Thanks!

 

[GeorgeK]

Great thread!

Question: What percentage of your sales proceeds do you invest in non-domain name activities? (i.e. for diversification) What kinds of investments are they? (e.g. stocks, bonds, real estate, or something else entirely...)

 

[strong]

Hey Brad.
Long time.
Do you have 1 domain story that keeps you up at night ? Maybe the one you most regret not buying because you thought it was too much money or you missed at an auction because the auction went on for 8 hours?

You've been doing this a long time. What's domainer retirement look like to you ?

 

[Mykal]

I registered my first domain in the late 1990's, but have been an active domain investor for 15+ years now.

I am going to call this an Ask Me (Almost) Anything.
There might be some questions I am unwilling or unable to answer.

I would prefer to keep the questions related to domain investment, or business in general.

Feel free to ask general questions, or specific questions for instance regarding an appraisal of your domain.

About:
Twitter - https://twitter.com/datacubecom (I have not really used Twitter much, but plan to start using it more.)
LinkedIn - https://www.linkedin.com/in/bradmugford/

I am not sure how long I am going to leave this thread open. Let's see how it goes.

Brad

Hi,
You might find this an odd question, so here goes anyway. How would you go about liquidating your portfolio if you decided to retire from domain investing? Would you try and sell it as a job lot or auction off all the names separately? Maybe, something else entirely!

 

[bmugford]

Let's say there is a two-word brandable .com domain name which might sell for $10,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

Same question:

Let's say there is a two-word brandable .com domain name which might sell for $20,000 to end-users (let's assume you have manually appraised this domain).

In this case what is the maximum amount you would pay for this domain in wholesale price?

Day 2. Here we go.

Well, a lot of domains might sell for $10,000 or $20,000. I try to figure out the likelihood of that happening.
This is really just an educated guess based on my experience in the field.

I will also factor in the reseller value. It is not just about upside, it is also about lack of downside.

If I can pay $1000 - $2000 for a domain, knowing that I can always sell it around the same price that really limits the risk. The more liquid a domain is, the higher ratio I will pay.

If you give me more precise examples, I don't mind letting you know what type of price range I would pay for them.

Brad

 

[bmugford]

Easily one of the people I respect the most in the forum. I certainly pay attention to people like Brad, very reasonable and thoughtful with his comments

Thanks for the comments.

I'm trying to think of something half interesting for you, but I'll throw this one. If you had a magic wand, what is the most meaningful thing that you'd like ICANN to change or do in the future, and could they be incentivized in some way to do it (if you've got more than one on your list, so be it)

The two things that come to mind are -

1.) No-bid Contracts

Get rid of no-bid contracts, like with .COM.
Technology is largely driving the cost of running a registry down, yet the cost of .COM keeps going up.

This is the result of a sweetheart no-bid contract between ICANN and Verisign. Verisign does not own the registry, they are just simply allowed to operate it under contract.

There are any number of companies and organizations that could technically operate the .COM registry, and likely for much lower prices.

ICANN is supposed to be a multi-stakeholder model. Deals like this are simply not in the interest of the majority of stakeholders.

2.) UDRP Reform -

To start with there needs to be certain standards, which leads to predictability.

It seems like in too many of these cases the panelist seems to comes to a decision, then cherry pick their way to justify it.

There are many precedents that show completely opposite things.

You have the vast majority of panelists following the rules and common sense, but some others have warped views.

Some of them have just decided that any renewal resets the registration date, or that it is not registered AND used in bad faith...but either. Some have decided to be appraisers, and use asking price alone as bad faith. Some conclude that lack of usage is bad faith.

The problem in my view is that fundamentally the entire system is tipped in favor of the complainant.

The complainant can spend a small amount of money and roll the dice when it comes to an asset worth potentially millions of dollars. Worst case they don't win.

There is no real penalty, even for RDNH. Best case, they just legally hijacked a valuable asset.

What is the upside for a respondent? They get to spend money and at best case keep their domain.

There is no penalty for bringing a meritless complaint, lying, intentionally mispresenting the panel, and any other number of nefarious actions.

There needs to be some type of appeals process without a doubt. It is not really feasible, outside the most valuable domains, to go to court to seek remedy for an egregious decision.

Also, for a respondent the timeline is too expedited.

A lot of people miss emails. Maybe they are on vacation, maybe it is caught in their spam folder, or any number of other reasons.

The vast majority of people who face a UDRP will have no idea where to even start. I imagine a lot of UDRP are not defended because of that alone. It can take some time to find a lawyer and present a reasonable defense.

Brad

 

[bmugford]

Me too! I think the lists I used might have come from Verisign. Not sure, it was a long time ago, like late 90's.

Question... what are you finding to be most successful these days?:

1. Buy now ONLY (with price displayed).
2. Buy now (with price) OR Make Offer.
3. Make Offer ONLY.
4. Request Price ONLY.

Also, do you allow installments (lease to own) on all names, or no?

Thanks!

I use a mix. I have most non .COM and low upside .COM priced and listed on venues like Afternic and Dan.
I sell a fair amount @ BIN.

Some lower upside ones I don't have priced, but that is not strategy, it is just laziness. When you have a large portfolio doing anything just takes a lot of time, and it can be hard to get motivated.

Most of the better domains I have, especially .COM, are unpriced and open for offers.

The STR on priced domains is much higher. I don't think anyone is going to dispute that.

However, when my domains are unpriced I am making the calculation that the total sales will be higher, as I think you can yield stronger results via negotiation.

Also, quality .COM tend to get more valuable over time. So, I don't mind selling average domains and holding on to better ones until the right offer comes along.

Brad

 

[jhm]

Thanks for the comments.


The two things that come to mind are -

1.) No-bid Contracts

Get rid of no-bid contracts, like with .COM.
Technology is largely driving the cost of running a registry down, yet the cost of .COM keeps going up.

This is the result of a sweetheart no-bid contract between ICANN and Verisign. Verisign does not own the registry, they are just simply allowed to operate it under contract.

There are any number of companies and organizations that could technically operate the .COM registry, and likely for much lower prices.

ICANN is supposed to be a multi-stakeholder model. Deals like this are simply not in the interest of the majority of stakeholders.

2.) UDRP Reform -

To start with there needs to be certain standards, which leads to predictability.

It seems like in too many of these cases the panelist seems to comes to a decision, then cherry pick their way to justify it.

There are many precedents that show completely opposite things.

You have the vast majority of panelists following the rules and common sense, but some others have warped views.

Some of them have just decided that any renewal resets the registration date, or that it is not registered AND used in bad faith...but either. Some have decided to be appraisers, and use asking price alone as bad faith. Some conclude that lack of usage is bad faith.

The problem in my view is that fundamentally the entire system is tipped in favor of the complainant.

The complainant can spend a small amount of money and roll the dice when it comes to an asset worth potentially millions of dollars. Worst case they don't win.

There is no real penalty, even for RDNH. Best case, they just legally hijacked a valuable asset.

What is the upside for a respondent? They get to spend money and at best case keep their domain.

There is no penalty for bringing a meritless complaint, lying, intentionally mispresenting the panel, and any other number of nefarious actions.

There needs to be some type of appeals process without a doubt. It is not really feasible, outside the most valuable domains, to go to court to seek remedy for an egregious decision.

Also, for a respondent the timeline is too expedited.

A lot of people miss emails. Maybe they are on vacation, maybe it is caught in their spam folder, or any number of other reasons.

The vast majority of people who face a UDRP will have no idea where to even start. I imagine a lot of UDRP are not defended because of that alone. It can take some time to find a lawyer and present a reasonable defense.

Brad

Appreciate you putting the effort into this post Brad. I agree with a lot of this, valid points

 

[bmugford]

Great thread!

Question: What percentage of your sales proceeds do you invest in non-domain name activities? (i.e. for diversification) What kinds of investments are they? (e.g. stocks, bonds, real estate, or something else entirely...)

There was a time that 100% of my domain sales went to re-invest in domains, for many years actually.

However, I don't really see the same opportunities today. They are there if you really go and dig, but not on public venues.

(NOT INVESTMENT ADVICE)

Stocks. They go up, they go down, but I have confidence that in the future quality companies that make steady profits will be much more valuable. In the meantime, I don't mind collecting dividends.

Bonds. A tough market at the moment, but my current favorite investment are I Bonds. In normal times, it might not be the greatest investment. During high inflationary times, the adjustable interest rate it is very appealing. If you buy these by the end of October, you lock in a 9.62% interest rate for the first (6) months. When it adjusts in November, the interest rate is still likely to be very high.

On the real estate front I have been looking at rental units. I created a LLC recently as a placeholder in case the right opportunity comes up. With high interest rates, and people in debt, I expect it to be a buyer's market sooner or later. (At least in the area I am looking)

I am also a collector of quality vintage sports cards, and other collectibles.
That is not just an investment though, it is a hobby also.

Brad

 

[bmugford]

Hey Brad.
Long time.
Do you have 1 domain story that keeps you up at night ? Maybe the one you most regret not buying because you thought it was too much money or you missed at an auction because the auction went on for 8 hours?

There are certainly domains I regret not buying. I remember seeing a list of domains for sale sometime in the mid to late 90's. It included domains like Caught.com, Bisbee.com, and Devil.com. The asking price listed was $5K each.

I wanted to purchase Devil.com, but at the time I was a broke kid in high school. I probably could have raised the funds if I really wanted to, but didn't go after it.

Then again, that price was probably just related to the time frame. I have no doubt $5,000 could have bought some spectacular domains then.

Something else that comes to mind was I had a chance to buy a NNN.com for $12,500 about 12 years ago.
This was not some random NNN.com, it was very high quality one. I should have bought it.

Another was a package of (20) NNNN.com for $10K. Almost immediately after I passed, they exploded in price.

You've been doing this a long time. What's domainer retirement look like to you ?

Probably not much different than what I doing now. You can basically do this from wherever, and it takes a limited portion of my time.

Brad

 

[bmugford]

Hi,
You might find this an odd question, so here goes anyway. How would you go about liquidating your portfolio if you decided to retire from domain investing? Would you try and sell it as a job lot or auction off all the names separately? Maybe, something else entirely!

That's a good question.

The lack of liquidity is certainly a problem when it comes to liquidating a domain portfolio.

I think it would be very hard to sell a large, mixed portfolio for a strong number. There are probably only a handful of buyers out there.

It would be a lot easier to sell off pieces of it to multiple buyers.

If I was liquidating, I would likely treat it like a RMD (required minimum distribution) in the investment world.
I would probably sell off a few domains every so often to keep cash flow going.

Brad

 

[biggie]

Hi Brad

don't have a question because i pretty much know, what you have brought to the tables.

don't need to ask how much you make or what your last sales were.
don't need to question how you methodize and strategize
or whether you're a fence walker, shit talker or the real deal who says what they really feel.

from reading your posts in the early 2000's on other forums and boards, as well as here on NP,
those "ump-teen" years of replies add up to a person that i have can have some admiration and appreciation for.

on so many positions it seems we are on the same page, particularly when "questionables" need questioning and another voice of reason and respect, is needed.

many times you've posed the same question in a more palatable way, than i might have done.
though i ain't changing what i want to say, sometimes i think... How would Brad put it".

so, for being who you are and not trying to be someone else, i thank you!

+ 1 on the thread


imo...

 

[Charybdis]

A few legal questions:

- Have you ever received a legal threat about your domains, for example a trademark conflict letter from a trademark owner? If so, how did you respond?

- Have you ever lost a domain name because of a legal issue, such as a trademark conflict?

- Besides checking the registered trademarks upfront before registering or acquiring a domain name, what steps do you take to legally protect your domain portfolio?

- Let's say you want to acquire CoolName.com (just a sample domain), you check the registered trademarks and you cannot find any conflicts, so you go ahead and acquire this domain. But then later, after acquiring this domain, someone else registers the CoolName trademark, then this trademark owner will contact you about this potential trademark conflict. Has this ever happened to you, and if so, how did you respond? Or how would you respond in this case? I am asking this because if you have such a large portfolio, then even if you check the trademarks upfront, someone might still register a conflicting trademark later, after the date of your domain name acquisition.

 

[bmugford]

Hi Brad

don't have a question because i pretty much know, what you have brought to the tables.

don't need to ask how much you make or what your last sales were.
don't need to question how you methodize and strategize
or whether you're a fence walker, shit talker or the real deal who says what they really feel.

from reading your posts in the early 2000's on other forums and boards, as well as here on NP,
those "ump-teen" years of replies add up to a person that i have can have some admiration and appreciation for.

on so many positions it seems we are on the same page, particularly when "questionables" need questioning and another voice of reason and respect, is needed.

many times you've posed the same question in a more palatable way, than i might have done.
though i ain't changing what i want to say, sometimes i think... How would Brad put it".

so, for being who you are and not trying to be someone else, i thank you!

+ 1 on the thread


imo...

Thanks @biggie. I appreciate the kind words.

I know you didn't ask a question, but I am going to ask one.

What is the most important trait for a domain investor to be successful?

I think having a good attitude and being willing to learn.
I have been in this field for ages, and learn something new daily.

Brad

 

[Charybdis]

Day 2. Here we go.

Well, a lot of domains might sell for $10,000 or $20,000. I try to figure out the likelihood of that happening.
This is really just an educated guess based on my experience in the field.

I will also factor in the reseller value. It is not just about upside, it is also about lack of downside.

If I can pay $1000 - $2000 for a domain, knowing that I can always sell it around the same price that really limits the risk. The more liquid a domain is, the higher ratio I will pay.

If you give me more precise examples, I don't mind letting you know what type of price range I would pay for them.

Brad

Ok so let's say there are brandable two-word .com domains where the expected STR will be 2-3% yearly (so like the average-level brandable domains on BrandBucket or Squadhelp), then what is the ratio you would pay for these domains in wholesale price, compared to the end-user price? Assuming that the domains are brandable .com domains with an end-user price of $2000 - $20,000 and with 2-3% expected STR.

 

[biggie]

What is the most important trait for a domain investor to be successful?

I think having a good attitude and being willing to learn.
I have been in this field for ages, and learn something new daily.

Hi Brad

besides what you mentioned,
nowadays, i'd say "common sense".

the game is a lot trickier; one needs that sense to help make good decisions along the way.

imo...

 

[bmugford]

A few legal questions:

- Have you ever received a legal threat about your domains, for example a trademark conflict letter from a trademark owner? If so, how did you respond?

Yes, many times.

I will give you one real world example. I owned the domain EdibleGarden.com.
I received a letter from some lawyer, representing a company with a brand new class B (intent to use) TM filing.

Their claims were nonsense. I told them that.

Then, around the same time period I was also contacted by Edible Arrangements regarding the same domain.

They somehow think they just have blanket ownership of the term "Edible". I pushed back on that nonsense as well, then CCed the other party and told them to figure out who owns "Edible" then get back to me. I never heard from either party again.

- Have you ever lost a domain name because of a legal issue, such as a trademark conflict?

No. Though, I have sold domains that start that way...when the party pays fair market value.

- Besides checking the registered trademarks upfront before registering or acquiring a domain name, what steps do you take to legally protect your domain portfolio?

I decided to move to for sale only landers. I believe PPC landers can sometimes cause potential TM issues that would not otherwise exist. For instance, the term can be largely generic but be feeding in ads related to one specific TM holder.

- Let's say you want to acquire CoolName.com (just a sample domain), you check the registered trademarks and you cannot find any conflicts, so you go ahead and acquire this domain. But then later, after acquiring this domain, someone else registers the CoolName trademark, then this trademark owner will contact you about this potential trademark conflict. Has this ever happened to you, and if so, how did you respond? Or how would you respond in this case? I am asking this because if you have such a large portfolio, then even if you check the trademarks upfront, someone might still register a conflicting trademark later, after the date of your domain name acquisition.

Yes, the Edible Garden case above is a good example of that.

I would evaluate it on a case by case basis.

If claims are BS, I am going to tell them they are BS.

A lot of these companies are looking for low hanging fruit, and when they receive pushback they just slink away.

Brad