My question to Godaddy's CEO at NamesCon: Domain Liquidity for the industry

[Rob Monster]

Earlier this morning, I wake up to seeing a lovely comment from Shane Cultra on his blog:

To my eyes, that comment from Shane is actually pretty crazy. Ironically, many people told me unsolicited, that my question was the highlight of the Q&A. This is not the first time that Shane has spoken out of school against me with trash-talk and it probably won't be the last since it shamelessly drives up his page views for his affiliate site. I don't know if anyone has a video of the Q&A section of Aman's keynote but if so, would be great if someone would upload the actual video clip. I believe anyone who objectively reviews my question will find it to be rather selfless. It was a question about domain liquidity. There were 2 parts, and I believe they were reasonable and sincere.

Part 1: Domain Liquidity via Loans

As some folks know, Epik provides interest-free loans secured by domains. This is popular but we cannot lend to everyone in the amounts that everyone might like. Compared to Godaddy, we are a relatively small company without access to the vast pool of capital that Godaddy has access to. I asked if Godaddy would consider extending domain loans to its customers. The lending model is proven. Godaddy has the ability to scale it to a much greater degree. Rather than forcing Godaddy customers to abandon domains to their expiry stream, why not allow Godaddy customers with liquid names to borrow against their portfolio? It seems reasonable to me.


Part 2: Working with US Congress to make domain names a bankable asset.

I have also been a long-time believer in the potential for domain names to be a respected asset class. The challenge there is that the banking industry does not recognize domains as a bankable asset class. People can donate domains to non-profits and can get a write-down for their investment basis, but if you go to a bank and ask to borrow against a 3N.com, they have no idea what you are talking about. The House subcommittee on banking could engage here but we would need some lobbying power to make that happen.

For anyone who has ever studied the history of the housing market, the correlation between the availability of borrowing capacity and the prices of the associated asset is indisputable. When credit is available, asset prices go up. If domain owners could more methodically borrow against their domains at conventional banking rates rather than only from hard money pawnshops that dominate the landscape today, it would be a game-changer for making the pie bigger for everyone.

I will be interested to hear what folks have to say on this very reasonable topic about domain liquidity that can greatly impact the future of the industry.

 

[Rob Monster]

You are very capable to illustrate any point verbally, so there is no need to use promotional banner of Epik in General Discussion thread, imho.

I was not in Namescon - I hope it will be moved to some european city one day, so also domain investors from EU can easily attend and enjoy this event

Just FYI, the Indian domainers were there in absolute force. They are definitely road warriors though. Other than Sedo which was there in a big way, there were not a ton of Europeans present. I think they are holding out for Budapest in August. Perhaps we see you there. Nice time of year to be in Buda.

 

[Rob Monster]

If I’m not mistaken the Epik loan program will seize the domain after one year if the loan is not returned in that time. Comparing this to the housing market as you did, mortgage borrowers get 15-30 years to repay with many steps before a home is officially seized. Mortgage lenders also require some sort of proof of financial holdings before giving out loans, because they want more security than just the home as collateral knowing how long it can take to sell a house. Knowing that most high dollar domains will take more than a year to sell, how is this loan program fair for domain owners? Being interest free isn’t much of a sell for a loan only one year long. It seems to me like a long game for Epik to acquire valuable domains for less than wholesale value from domainers who are tight on money.

Well, the reality is that we have not foreclosed on a domain loan.

At the end of the loan term, we may take over DNS for parked domains, and help the borrower to realize enough value to pay off the loan. The program has a lot of success stories.

At any given time, we could foreclose on many thousands of domains. We don't do that. We work with the domain owner to get it settled. It is a success formula for us but sometimes it is work.

 

[Internet.Domains]

All digital assets are becoming collateral for loans. Crypto and Non-fungible tokens are leading examples. The market is exploding with opportunities everywhere. Domains, as a digital asset, should follow the lead in this space.

 

[Casey L]

Well, the reality is that we have not foreclosed on a domain loan.

At the end of the loan term, we may take over DNS for parked domains, and help the borrower to realize enough value to pay off the loan. The program has a lot of success stories.

At any given time, we could foreclose on many thousands of domains. We don't do that. We work with the domain owner to get it settled. It is a success formula for us but sometimes it is work.

Do you have any information in regards to the average loan size or payback rates that you could make public? Also, when you say you take over DNS to realize value, does that mean you are selling the domain on behalf of the domainer?

 

[namekart]

I will be interested to hear what folks have to say on this very reasonable topic about domain liquidity that can greatly impact the future of the industry.

I was in the room, and I think the question definitely touched an important issue.

Domain Investors often have their lifetime of savings and investments tied in domains, and it would be great for the industry if there was a way to make them 'bankable', or secure credit from financial institutions against your domains.

For people arguing that GoDaddy wouldn't touch this issue, I tend to disagree. GoDaddy has already entered the "credit" space with "Kabbage", and I think it's only logical for them to consider extending credit products to domain investors, one of their biggest customers base.

-Prakhar Bindal

 

[Lox]

...would be great if someone would upload the actual video clip.

intro (more clips @ kickstartcommerce youtube)

 

[BrandEntrance.com]

@Brands.International

Dude, why can't we all just agree that self promotion is half of the reason being in here. You even awarded yourself a guru hat and try to bathe in you own greatness more than anyone in here. So what if Epic has a banner. See my avatar. Your nic.

Did you ALL flunk Marketing Studies, Psychology and People and Communications.

 

[Rob Monster]

I was in the room, and I think the question definitely touched an important issue.

Domain Investors often have their lifetime of savings and investments tied in domains, and it would be great for the industry if there was a way to make them 'bankable', or secure credit from financial institutions against your domains.

For people arguing that GoDaddy wouldn't touch this issue, I tend to disagree. GoDaddy has already entered the "credit" space with "Kabbage", and I think it's only logical for them to consider extending credit products to domain investors, one of their biggest customers base.

-Prakhar Bindal

Good point about GD featuring Kabbage -- see their promo emails:

The thing about Kabbage is that it is some really brutal "Loan to Own" lending with typical cost of capital backing into like 30% per annum. This is HARD money lending.

Domainers should not be forced into that category of capital when Godaddy can borrow at an average of 5.47% according to their Weighted Average Cost of Capital.

The goal should be empowerment not enslavement.

 

[BrandEntrance.com]

Promotional banner of Epik is again in General Discussion thread.

But it isn't an entire thread of self promotion is it?

I have eyes like many people in here.

 

[.X.]

A couple of things, Godaddy knows that without that aftermarket place they have, they would damn near be out of the domain name business, their inventory is loaded with quality names, on the flip side, their name appraisal tool is a bit deceptive, not to the experienced domainer, but to new domainers and a person that may be just registering a name for fun or business. I believe it can give people a very false sense of accomplishment and value of a name therefore making them want to purchase more names,

why does this affect anyone?? Because these types of programs and tools can influence even end users as to what they think they should or should not offer for a domain name, before you know it , It becomes the status quo guide for domain name value to the complete domain name industry. Domainers and end users buyers.

To my knowledge, it appears the algorithm uses “similar sales” of domain names as its core for valuation. The Godaddy appraisal is useful for seeing what similar names have sold for, I do not see any metrics of SERP stats, global searches vs exact searches and ect to help aid in its valuation process.

I have always liked Godaddy, I don’t dislike GD now, I am a bit disappointed in lack of acknowledgement to the domainer and the domain name industry, as well as lack of sufficient transparency in the aftermarket place, but most of all, the lack of customer relations as that used to be their strong point IMO

 

[NickB]

Good point about GD featuring Kabbage -- see their promo emails:

Show attachment 143764

The thing about Kabbage is that it is some really brutal "Loan to Own" lending with typical cost of capital backing into like 30% per annum. This is HARD money lending.

Domainers should not be forced into that category of capital when Godaddy can borrow at an average of 5.47% according to their Weighted Average Cost of Capital.

The goal should be empowerment not enslavement.

They are multinational company with nearly 10,000 employees and have shareholders to report to...they need to make a large a profit as possible - It's not enslavement, it's capitalism....

Maybe in time once they see model works the costs to domainers will come down or that it is working so well at 30% they just decide to keep rolling with it.....

 

[Brands.International]

But it isn't an entire thread of self promotion is it?

I have eyes like many people in here.

Sure, I agree: you have eyes like many people in here. Regarding whether entire thread is not about self promotion, I will leave it to your personal judgment, I do not care.

What I wrote : Promotional banner of Epik is again in General Discussion thread.

And that is a true fact, as it is simply there, in post no.13, it is looking at you directly

 

[BrandEntrance.com]

Sure, I agree: you have eyes like many people in here. Regarding whether entire thread is not about self promotion, I will leave it to your personal judgment, I do not care.

What I wrote : Promotional banner of Epik is again in General Discussion thread.

And that is a true fact, as it is simply there, in post no.13, it is looking at you directly

Says Rainbow Man... I see nothing wrong with any of it but the loudest complainers are... hypocrites.

 

[Brands.International]

Says Rainbow Man... I see nothing wrong with any of it but the loudest complainers are... hypocrites.

Show attachment 143765

What you point into with the yellow arrow in your picture is called "signature". Every account can use it here, in line with forum rules.

What I am referring to is a BIG PROMOTIONAL BANNER in post no. 13 of this thread, which does not belong to General Discussion thread

 

[Internet.Domains]

What you point into with the yellow arrow in your picture is called "signature". Every account can use it here, in line with forum rules.

What I am referring to is a BIG PROMOTIONAL BANNER in post no. 13 of this thread, which does not belong to General Discussion thread

First, You should take your issues up in a separate thread.

Namepros monetizes by paid advertising. If you don't like the paid advertisements you should consider buying up the ad spots yourself.

 

[.X.]

As CEO of a top-50 registrar that sees an expiry stream before you do, I will tell you that you are wrong.

this makes me revert back to my thoughts of years past , how does GD keep such high quality domain names in their aftermarket platform, Day after day, year after year.

 

[BrandEntrance.com]

What you point into with the yellow arrow in your picture is called "signature". Every account can use it here, in line with forum rules.

What I am referring to is a BIG PROMOTIONAL BANNER in post no. 13 of this thread, which does not belong to General Discussion thread

READ THE YELLOW TEXT!

Context... and strategy.

 

[Rob Monster]

Try tpo stay on topic folks or the Mods will start doing their slice and dice thing in this thread. We can avoid that by staying a bit more on topic:

1. Domain financing - can Godaddy help?

2. Domains as bankable assets -- can Godaddy plow the road with some lobbying of Congress?

Those are 2 meaty topics. @Paul Nicks knows about this thread and has yet to engage but I am guessing he can find out how the GD management team is thinking about these issues.

If Godaddy believes in empowerment than liquidity for the masses is a logical pillar of the strategic plan, and it would lift all boats including theirs.

 

[bmugford]

First, You should take your issues up in a separate thread.

Namepros monetizes by paid advertising. If you don't like the paid advertisements you should consider buying up the ad spots yourself.

Again. That is not an ad spot.

It is a manually posted advertising banner in a general discussion. I am not sure what you are not getting about that.

If Rob doesn't want push back he can just as easily quit posting self promotion in the general discussion forum.

Brad

 

[DanSanchez]

Liquidity as a topic, service, and solution will drive the next decade of winners into the stratosphere. I see it becoming an issue during the next economic recessive period in a major way. It's one of the many reasons I chose to join Epik permanently.

Rob gets it. I am part of the group of domainers that utilized this service successfully before joining Epik. It works and I can confirm Epik did not seize any of my inventory to demand payments. Instead, Rob worked to increase my sales success rate by removing my emotional involvement in the process. I learned to add value by being the user of the service.

Godaddy should encourage portfolio liquidity. The benefits we have experienced as a company have outperformed any marketing campaign or forum ad ever. I won't hold my breath though. I have been a Godaddy critic since the beginning of my career and their policies have only fallen further away from justice. It is not capitalism, it is controlled mercantilism.


Finally, having to evaluate hundreds of portfolios has helped me see the big picture. We need help closing sales, tracking inquiries, and maintaining a system of follow up that rivals the best industries today. We can experience profit margins higher than almost any industry, we need to organize and conquer our sales inquiries. Domainers need to stop buying, renewing, and slinging garbage. There are so many great opportunities daily, yet I see so many portfolios with "personal" acquisitions that boggle down profit margins into negative integers

Cheers!

 

[alcy]

Liquidity as a topic, service, and solution will drive the next decade of winners into the stratosphere. I see it becoming am issue during the next economic recessive period in a major way. It's one of the many reasons I chose to join Epik permanently.

Rob gets it. I am part of the group of domainers that utilized this service successfully before joining Epik. It works and I can confirm Epik did not seize any of my inventory to demand payments. Instead, Rob worked to increase my sales success rate by removing my emotional involvement in the process. I learned to add value by being the user of the service.

Godaddy should encourage portfolio liquidity. The benefits we have experienced as a company have outperformed any marketing campaign or forum ad ever. I won't hold my breath though. I have been a Godaddy critic since the beginning of my career and their policies have only fallen further away from justice. It is not capitalism, it is controlled mercantilism.


Finally, having to evaluate hundreds of portfolios has helped me see the big picture. We need help closing sales, tracking inquiries, and maintaining a system of follow up that rivals the best industries today. We can experience profit margins higher than almost any industry, we need to organize and conquer our sales inquiries. Domainers need to stop buying, renewing, and slinging garbage. There are so many great opportunities daily, yet I see so many portfolios with "personal" acquisitions that boggle down profit margins into negative integers

Cheers!

i think we al wish gd would do it.. while we all also know that they will not.

can u elaborate on this plz:

"Rob worked to increase my sales success rate by removing my emotional involvement in the process"

how did you use this process? what was involved and how did Epik/Rob succeed in increasing your sales? im sure this is very interesting to most domainers.

 

[JB Lions]

Here we go again.

Jan 2 - month restriction

Feb 5 - this thread

Don't confuse engagement with promotion. Don't confuse domain conversation with promotion. Don't confuse transparency with promotion.

Yesterday, you hop into an Escrow.com thread promoting Epik escrow. Today, you don't see the big banner inserted into the post. Not talking about all the paid ads, the banner manually inserted into the post.

This loan stuff reminds me of some Pawn Shop, the big winner being some Pawn Shop. If you're at a place where you're getting loans on your domains, you're not doing something right, probably just getting in deeper.

Rob, seriously:

Though it was not his intent, the modus operandi of Godaddy was exposed, which is to get people to register and renew vast amounts of unsellable crap year after year.

It's like when you went at GoDaddy when they enforced their TOS, when you know you do the same thing. Same thing here. You literally started hyphen and .org threads. Had spreadsheets of random 4 letter .orgs for people to register. You make money if people register unsellable crap year after year. All registrars do.

So I read this thread a little differently. It looks like we had a new CEO that didn't take the bait, seems professional, smart. Looks like some good things ahead for GoDaddy.

 

[DanSanchez]

i think we al wish gd would do it.. while we all also know that they will not.

can u elaborate on this plz:

"Rob worked to increase my sales success rate by removing my emotional involvement in the process"

how did you use this process? what was involved and how did Epik/Rob succeed in increasing your sales? im sure this is very interesting to most domainers.

First, Epik parking is a dominant service. The indexing power can work wonders if your inquiries are low. I was using Bodis and my inquiries would vary greatly from 1 to 5 weekly. Epik turned that into 1 to 5 daily by simply focusing only on serving the page needed to collect an offer. I did most of the optimizing on the landing pages so they would display a relevant picture, text, and set higher minimum offers.

Rob knew I was under a lot of pressure with my daughter coming and I was bombing every inquiry with sarcasm. It was very difficult for me to be told I was sucking at my job. But I took it and shifted to let Rob handle some of the inquiries to help close sales quickly. Keep in mind I'm carrying 5000+ domains. My capital requirements are high. I was headed for serious trouble.

Rob introduced some mentality shifts that helped me relax, hunker down, and outperform my stress. It continues to work. In fact it has played into my strengths and I am at a height that I wasn't expecting to get to in such short period of time.

Rob has built the systems, anyone can use them to improve. You just have to be willing to take critique and apply it quickly.

I have since become dedicated to projects that will further help domainers like NameLiquidate and NameBrokers to name a few.

 

[johnn]

- An CEO of a registrar bad mouth about another Registrar in a public forum to gain attention from the public.
- The only CEO get ban in a public forum because Spamming
- The only CEO who will not follow the rules and take every opportunity and ignore the members, the mods to promote his company every way he can.

Something is wrong with the picture.

 

[Rob Monster]

So I read this thread a little differently. It looks like we had a new CEO that didn't take the bait, seems professional, smart. Looks like some good things ahead for GoDaddy.

JB - The only reason why I asked the question was because I see potential for Godaddy to help make the pie bigger. I was a little disappointed that the Q&A moderator would have happily cut me off as being the last question of the session but the crowd wanted my question and I asked it. All that said, I do appreciate that Godaddy did let Epik have the back cover of the program guide but they opted not to list the Christian Domainers Breakfast on Friday morning in the official NamesCon program. So, on balance, I still view Godaddy as a force for good even though there are times when they do drive me crazy.