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]

So are you guys fighting on the fact that it was GD keynote and Epik stormed it?

It would be an overstatement to say that we stormed it. However, now that this thread is going to the most popular thread on NamePros for the next few weeks, it is safe to say that this thread will be more memorable than the Keynote itself. And Godaddy can thank Shane for that.

 

[oldtimer]

@Rob Monster , you mentioned earlier in the thread that you haven't been put in a situation that you had to foreclose on any domains, how many active loans are there right now if you don't mind saying, because that is a very good track record that shows that people want to do good on their loans and that domainers know that it's in their best interest to leave a good record so that they can apply for more loans in the future when needed.

All and all I believe that this is a good program that helps domainers overcome some stressful situations and for that reason most who have taken a loan are going to be grateful enough as to not to intentionally take advantage of this program.

added: and just to make it clear that I am talking about domain loans in the context of empowerment which I believe was part of this discussion.

IMO

 

[Domain Shane]

Mods. Close this thing down. Now we're talking about loans and domain foreclosure and random Epik stuff AGAIN. If we can't talk about me being a douche and saying Rob Monster was rude to a speaker and stepped all over his speech with his me me me question then lets shut her up and move on.

 

[Rob Monster]

Mods. Close this thing down. Now we're talking about loans and domain foreclosure and random Epik stuff AGAIN. If we can't talk about me being a douche and saying Rob Monster was rude to a speaker and stepped all over his speech with his me me me question then lets shut her up and move on.

Sorry Shane, but since you thought it wise to run your mouth spreading nonsense about what happened in that session you now get to deal with the consequence of your fake news.

The reality is that the question was completely appropriate and was stated in a respectful tone. The fact that a few hardened skeptics parrot a counter-narrative without evidence is regrettable.

The good news is that you have successfully drawn attention to a really meaty topic that Godaddy probably should be thinking about more and perhaps will be discussing formally.

Thanks again.

 

[ExploitOdds]

@Ategy

Two scenarios to consider:

1. Shoot the moon but with a a safety net

Imagine you are a typical domainer: domain rich but cash poor, i..e you have a tremendous amount of your wealth in domains.

Now imagine you have some bills due and you get a good offer on one of those domains. You now have to decide whether to accept the offer or shoot the moon.

If you have no plan B, then you may be forced to take the weak offer. However, if there is an option for stand-by liquidity, the decision to shoot the moon does not have to be ruinous to the portfolio.


2. Lifeboat

Let's say you have a typical "pig in the python" portfolio where you have a bunch of domains that were registered on one day. Renewal day comes up and you have to make a decision to play lifeboat with your portfolio. The registrars that monetize their expiry stream will happily have you drop names. However, you might have reason to believe that many of those names are worth more than zero. So, you have a couple of options now: (1) you can liquidate the non-renew names and (2) you can borrow against the portfolio. If buyers know the registrant is in distress with a finite renewal window, the prices will be terrible. However, if the registrant can at least cover the renewal fees, they are negotiating from a position of relative strength.


So, yes, retail buyers might not pay any more than before, but wholesale sellers with access to lifeline capital should be a lot less vulnerable to being forced into a firesale. However, if there is an abundance of inventory that is held by weak hands who must sell, it adds downward pressure on pricing of all supply.

Bottom line:

The challenge is to extend the runway on worthy names long enough to get retail sales. As such, if registrars can help domainers to extend their runways with non-Draconian debt, that is a good thing.

It is funny @Rob Monster because you are employing principles of profitable businesses right now!

When I read your original post this is the vision that I had:


Rob is the school's psychology teacher, naturally! Today the high school auditorium is PACKED. There is standing room only. In fact it is so packed that not even a baker's dozen more people could fit inside without drawing the ire of the Fire Marshall. It is a big day a Epik High School The Senator @Bob Hawkes is in attendance! Bob is making the rounds these days, and Epik HS is so lucky to have such an awesome guy walk the halls of their school.

What you didn't know was Rob challenged his psychology students the day before to ask Senator Bob one question! "Should high school students be required to pass a drug test in order to graduate from high school?" That seems like an innocent enough question, right? Senator Bob is way too smart to fall for that one . . .


Should high school students be required to pass a drug test in order to graduate from high school?

 

[frank-germany]

Id imagine their evaluation/appraisal tool would be adjusted if they were loaning or being a guaranty for those loan values . . .

LOL

 

[frank-germany]

If you want to go there:

A good man sheweth favour, and lendeth: he will guide his affairs with discretion. - Psalm 112:5

Give to him that asketh thee, and from him that would borrow of thee turn not thou away. - Matthew 5:42

I'm lost now...

who is the good man here ?

and who is Mathew?
I thought it's about Shane....

It would be an overstatement to say that we stormed it. However, now that this thread is going to the most popular thread on NamePros for the next few weeks, it is safe to say that this thread will be more memorable than the Keynote itself. And Godaddy can thank Shane for that.

I think you are cynical, @Rob Monster

thought you were a bible-citing Christian
isn't that thought of as a being a sin????

 

[DanSanchez]

lets shut her up.

Why ask for censorship, Shane? NP is the perfect place to have this discussion and the silent majority clearly agree. You hold a big control over the industry narrative with a syndicated blog, media appearances, and content which you used to disseminate your opinion on the matter. Now you want to pull rank to silence the response...

Click here to unwatch the thread. It is the personally responsible thing to do.

 

[frank-germany]

NP is the perfect place to have this discussion and the silent majority clearly agree.

the silent majority agree????

how did you come to know what people who do not participate agree on?

 

[DanSanchez]

the silent majority agree????

how did you come to know what people who do not participate agree on?

See the poll results above? Majority voted to have the conversation. They may not comment (silent) but they do vote. Also add the number of likes by folks who did not comment. You will find more than 40 people support the conversation vs the few who can't fathom anyone have a discussion outside the scope of your approval.

 

[frank-germany]

See the poll results above? Majority voted to have the conversation. They may not comment (silent) but they do vote. Also add the number of likes by folks who did not comment. You will find more than 40 people support the conversation vs the few who can't fathom anyone have a discussion outside the scope of your approval.

in Germany "silent majority" refers to those who don't react at all
just reading/watching/listening to stuff

 

[Bob Hawkes]

What you didn't know was Rob challenged his psychology students the day before to ask Senator Bob one question! "Should high school students be required to pass a drug test in order to graduate from high school?" That seems like an innocent enough question, right? Senator Bob is way too smart to fall for that one . . .

How did I get into this thread I was avoiding?

I mainly have this to say:

"As far as possible, without surrender, be on good terms with all persons. " - Desiderata​

I hope in many places on NamePros, including here, we can turn down the flames that erupt now and then. I respect all of those involved.

At most conferences I attend, many speakers get asked questions that really have some agenda behind them. Some with an apparent agenda may not deliberately do that, but they are asking questions from their worldview on topics they feel passionate about. Most people in leadership get good at deflecting questions they do not wish to handle. It's not a big thing as long as everyone is polite.

I personally feel that most in domain investing should follow the mantra invest only what you can afford to lose. As such, I see some danger in domain loans, but if done at all, they should be within a business framework, such as the theoretical models @Ategy cites above as a bridge financing. Since models like that show losing money at first, even with a portfolio that will be eventually very successful, the case for domain leveraged short to medium term loans makes sense.

I do see domain names as having values, even though precise valuation is challenging, and as such in principle the idea of domain loans is reasonable. The conditions that @Rob Monster mentions above re how they assess each loan seem sensible to me. The fact they have no foreclosure is impressive. I would never seek a domain loan because that is not how I invest in domains, but I can see having such a program is welcomed by some others.

No company has any obligation to follow the lead of any other company. Some offer payment plans, some do not. It is good we have variety in the industry.

High school students should not be required to pass a drug test to graduate. There should be a minimum number of barriers to education, and they should only be based on educationally justified means.

While being a senator here in Canada would give me lots of money to spend on domains, and seems much easier money than domaining , I actually favour Canada doing away with our Senate. So I am unlikely to ever be a senator.

I think I have commented on all aspects I want to, so I am out again. Keep in mind that I know nothing really about drug testing, domain loans, etc. and was not at NamesCon 2020 .

Bob (non-senator )

 

[frank-germany]

How did I get into this thread I was avoiding?

I mainly have this to say:

"As far as possible, without surrender, be on good terms with all persons. " - Desiderata​

I hope in many places on NamePros, including here, we can turn down the flames that erupt now and then. I respect all of those involved.

At most conferences I attend, many speakers get asked questions that really have some agenda behind them. Some with an apparent agenda may not deliberately do that, but they are asking questions from their worldview on topics they feel passionate about. Most people in leadership get good at deflecting questions they do not wish to handle. It's not a big thing as long as everyone is polite.

I personally feel that most in domain investing should follow the mantra invest only what you can afford to lose. As such, I see some danger in domain loans, but if done at all, they should be within a business framework, such as the theoretical models @Ategy cites above as a bridge financing. Since models like that show losing money at first, even with a portfolio that will be eventually very successful, the case for domain leveraged short to medium term loans makes sense.

I do see domain names as having values, even though precise valuation is challenging, and as such in principle the idea of domain loans is reasonable. The conditions that @Rob Monster mentions above re how they assess each loan seem sensible to me. The fact they have no foreclosure is impressive. I would never seek a domain loan because that is not how I invest in domains, but I can see having such a program is welcomed by some others.

No company has any obligation to follow the lead of any other company. Some offer payment plans, some do not. It is good we have variety in the industry.

No high school students should not be required to pass a drug test to graduate. There should be a minimum number of barriers to education, and they should only be based on educationally justified means.

While being a senator here in Canada would give me lots of money to spend on domains, and seems much easier money than domaining , I actually favour Canada doing away with our Senate. So I am unlikely to ever be a senator.

I think I have commented on all aspects I want to, so I am out again. Keep in mind that I know nothing really about drug testing, domain loans, etc. and was not at NamesCon 2020 .

Bob (non-senator )

you are definitely not a member of
"silent majority", @Bob Hawkes

 

[Internet.Domains]

in Germany "silent majority" refers to those who don't react at all
just reading/watching/listening to stuff

"The silent majority is an unspecified large group of people in a country or group who do not express their opinions publicly" - Wikipedia

Commenting and forming opinions publicly would not be the silent majority. However, those that vote (in poll) and do not express their opinions publicly would be the silent majority.

@DanSanchez was correct, by definition, with his use of words.

 

[NickB]

"The silent majority is an unspecified large group of people in a country or group who do not express their opinions publicly" - Wikipedia

Commenting and forming opinions publicly would not be the silent majority. However, those that vote (in poll) and do not express their opinions publicly would be the silent majority.

@DanSanchez was correct, by definition, with his use of words.

He was explaining that in his country it means something different, Wikipedia can spout off all it wants I would rather read an interpretation from someone from that country on their interpretation

 

[Internet.Domains]

He was explaining that in his country it means something different, Wikipedia can spout off all it wants I would rather read an interpretation from someone from that country on their interpretation

I am the last to defend Wikipedia. However, I find that definition to be similar in other sources.

 

[DanSanchez]

He was explaining that in his country it means something different, Wikipedia can spout off all it wants I would rather read an interpretation from someone from that country on their interpretation

No, he purposely misinterpreted the definition to issue fruitless attacks on my statement. The fact is, silent majority means they can be counted by some participation in the conversation but choose to remain literally silent in the specifics of their beliefs. Otherwise you would not be able to count them at all.

 

[Domain Shane]

Why ask for censorship, Shane? NP is the perfect place to have this discussion and the silent majority clearly agree. You hold a big control over the industry narrative with a syndicated blog, media appearances, and content which you used to disseminate your opinion on the matter. Now you want to pull rank to silence the response...

Click here to unwatch the thread. It is the personally responsible thing to do.

Dan,
I don't want to silence this. I want to get back on topic. The topic is "Was Rob Monster rude by doing an Epic commercial after the keynote?" Not domain loans, not foreclosure, not anything else related to the services of Epic. That was the problem in the first place. A discussion without company names. A simple question to be debated and its off the rails. I said what the room was thinking. I stand alone here because the successful domain investors don't come here anymore. But I feel comfortable saying it was uncomfortable that day.

I do have a voice. A voice earned though honesty. I say kind words about those that deserve it and am harsh on those that have an opportunity to improve. That's how things are supposed to work. I have blocked Rob here and have no interest in his rhetoric but I do care what you say Dan. I appreciate all you do.

And like others have said. Silent majority means unheard majority so what you really have is the Namepros majority. Which is like taking a poll of what is the best football team at a Raiders convention and having the Raiders win the poll.

 

[frank-germany]

The topic is "Was Rob Monster rude by doing an Epic commercial after the keynote?" Not domain loans, not foreclosure, not anything else related to the services of Epic.

@Rob Monster has acquired a habit in doing exactly that
at namepros the silent majority is well aware of it

so you don't stand alone
in disliking that behavior, @Domain Shane

"The silent majority is an unspecified large group of people in a country or group who do not express their opinions publicly" - Wikipedia.

people who quote
especially in a public forum
are not silent

but express their opinion
-in all countries

 

[BrandCollectors.com]

wait godaddys ceo is an Indian?! wheres bob parson?

 

[Rob Monster]

Want to hear something fascinating?

I took a phone call today from a manager at PayPal. They had been pitching Epik on a sizable loan through one of their business units. The conversation had abruptly stopped last week during NamesCon and I was curious to get some intelligence on why. Well, I got the answer this morning. The reason is because they know that some of the capital will be used to lend to others through domain loans. Somehow those dots had gotten connected, even though domain lending is not our core business.

Like it or not, the system is rigged. Empowerment is more than rhetoric. If Godaddy thinks that a Kabbage affiliate program is compatible with empowerment, then we are going to have very different definitions of empowerment. In fairness to Aman, I am going to guess that the Kabbage affiliate deal was already in motion even before Aman got there, so now is a good time for Godaddy to take inventory of the present reality of the industry and how it aligns with the rhetoric of empowerment.

The industry can do better and must do better. Godaddy has an opportunity to be a friend of the industry rather than preserving the long legacy of exploiting ignorance. For avoidance of doubt, my comments on the floor was absolutely not combative in any way. It was a genuine invitation to the new CEO to deliver on the rhetoric of empowerment. Otherwise, talk is cheap.

At the end of the day, helping Peter Askew (great guy) drop-ship 48,000 pounds of onions is cool but when it comes to empowerment, I think the impact of lifting folks up in emerging markets will be many orders of magnitude greater. We can start really small, e.g. $100 micro-loans to emerging market domain investors would be an insignificant amount of money but combined with education can lift up many.

Those who wish to sweep this topic under the rug by claiming nonsense about lack of decorum are a disservice to the industry. Let's not forget that the entire Keynote was an advertorial for Godaddy observed by a packed room of people who mostly paid to be there. The irony of this is pretty thick. So, let's thank Godaddy for inviting a conversation. That was the classiest part of the whole thing.

 

[Mister Funsky]

Dan,
I don't want to silence this. I want to get back on topic. The topic is "Was Rob Monster rude by doing an Epic commercial after the keynote?" Not domain loans, not foreclosure, not anything else related to the services of Epic. That was the problem in the first place. A discussion without company names. A simple question to be debated and its off the rails. I said what the room was thinking. I stand alone here because the successful domain investors don't come here anymore. But I feel comfortable saying it was uncomfortable that day.

I do have a voice. A voice earned though honesty. I say kind words about those that deserve it and am harsh on those that have an opportunity to improve. That's how things are supposed to work. I have blocked Rob here and have no interest in his rhetoric but I do care what you say Dan. I appreciate all you do.

And like others have said. Silent majority means unheard majority so what you really have is the Namepros majority. Which is like taking a poll of what is the best football team at a Raiders convention and having the Raiders win the poll.

Just wanted to save a copy of the post above...my favorite part is "I stand alone here because the successful domain investors don't come here anymore".

I imagine more than a few of us would disagree.

 

[Domain Shane]

Just wanted to save a copy of the post above...my favorite part is "I stand alone here because the successful domain investors don't come here anymore".

I imagine more than a few of us would disagree.

Bad wording. "many" not the. There are a lot of great people here. Of the top 10 escrow awards for most domain sales none of them participate here. That's more what I meant. You can save a copy but please save this one too. A ton of successful domain investors here

 

[Internet.Domains]

. I said what the room was thinking.

Can you explain how you know what others are thinking?

Certainly when people assume what others are thinking natural biases will be in play. Regardless, throughout history, nobody has been able to know what others are thinking, and that's a good thing.

 

[Rob Monster]

Great testimonial here just now:

https://www.namepros.com/threads/if...g-time-and-money.1119508/page-19#post-7622158

We helped this guy in Pakistan sell a website for $100,000. Nobody else would help him. This was a life-changing sale for him in a country where way too many people are being denied access to capital.

Think it is bad there? It is worse in places like Yemen, where the only way to get money into that country is with Western Union and where even Western Union often does not even have the cash on hand.

The system is rigged. Domains are part of the solution as portable wealth, and Godaddy can either help or not, but if the message is EMPOWERMENT, then let's get it done.

The implications are enormous. The consequences are cumulative. The rewards are eternal. So, choose wisely whether you want to lift up your fellow man or whether you like the status quo:

The decision to not stand for empowerment is not a vote for status quo. To the contrary, it is turning a blind eye until it happens to someone you love enough to help up. Why wait.

So, keep lifting people up and keep making the pie bigger.