Terms & Concepts for New Investors

[BrandPlease]

Hi All,

Wanted to put up a list of terms that are important to understand – especially if you want to participate in the “brandable” market and are new to Domain Investing.

Being a relative “Newbie” myself, hoping this info will help some others make a few less mistakes than I did, in the very beginning. *** I am not claiming to be an expert, please fix/adjust/add to this keyword list as needed and post back to all. This is about learning (for me) from the community as much as it is about sharing something that is (hopefully) helpful.

Understand the terms – the concepts behind the terms – and you will be in a much better position to make data driven purchases and sales.

Data Driven and methodical will keep you in business – what’s cool is your “lottery ticket”. Balance investing vs. gambling.

Data Driven can put you on an even playing field in a negotiation with the even best (fyi- industry experience is the X factor, careful, "The King" can defy data, you an I can not effectively - dont try... that is gambling not business). It's like math - you learn to add and subtract before it gets really confusing. Follow the rules, learn the equations, then you can play with the figures - when they all make sense.

· Brandability

· Brandable Generics

· Category

· Category Killer

· Competition/Competitive Saturation

· Considerations

· Developed Domain

· Domain Age

· End-User

· End-User Value

· Extension Value

· Extraordinary Assumption

· Factor Weight

· Generic-ness

· Geo-Domain

· Industry Metric

· Instant Market Share (IMS)

· Keyword Value

· Length

· Market Cycle

· Market Saturation

· Mindshare

· Organic Traffic

· Pay Per Click (PPC)

· Premium Generics

· Property

· Revenue Options

· Revenue Sources

· SEO Value

· SE Saturation

· Threat Level

· Valuation Grid

· Valuation Multiple

· Value

· Variables

· Work file

Be careful you don’t let your idea of what is “cool” override the market data. Oppieeeeepoooopeeee.com – well it’s fun, likely not valuable -but who knows hahaha.

Great Day All,
Brian

 

[Domains - Wanted]

Good idea. Except this would make more sense if you included brief definitions of the terms you've listed. Like what is "Mindshare" or "Threat Level" or "Extraordinary Assumption" as regards domains?

 

[BrandPlease]

Thanks Domains- Wanted,

Glad it got a read haha. I find if I post a message that just looks too big there is no way anyone will read it - and I hate typing - i own but have yet to use that dragon speech software- sorry back on topic. I didn't get any notification that anyone read it until tonight, great way to end the week. Thanks

I would be happy to provide additional detail, as much as I know. Hopefully others will add as well.

Bear with me, it's late, I'll start adding detail in the next day. Have a great night, Brian

 

[BrandPlease]

HI Again,

Sorry so late – Don’t know how the day gets away from me so quickly. Was hoping to have more time to go down the list, I’m just so tired. But didn’t want to leave the ones you mentioned specifically – just hanging.

So here it goes – and it’s interesting to note – you went right for the “concepts” that take an advanced knowledge of valuations and business principles in general – obviously Direct Industry experience is invaluable. MY guess is you already understand these and could likely better explain than me?

But will give it a shot:

Looking at those terms as a group – Mindshare, Threat Level, & Extraordinary Circumstances. It feels like it’s easy to understand and that is the trap – I think – domainers can get caught in.

When these macro concepts are applied to a micro sampling you get in trouble. Your experience with 1000 domains sales gives you little if any actionable data – the sample is too small and it cannot work. If it does its luck or gambling. We are talking purely data driven here.

MindShare: I’m going to try and explain this in the reverse, from a potential customer’s point of view and in relation to marketing in general.

This a quote from an article in INC. and its making the point that long term success comes with understanding mind-share not only gaining market share.

“Earning mind-share matters more than capturing market share when you are a small business because it offers you feedback that can help drive your business, rather than indicates how your business has performed after the fact. It gives you an instant read on your progress, and monitoring it helps you to identify possible problems while they are still small.”

This is the idea behind Mind-share, are you identifying and anticipating trends and customer needs (what will effect value)? A Crypto domain costs quite a bit different than 1 yr ago and we don’t know what they will be a year from now. How are you judging their value?

Watch what happens to Augmented Intelligence. Right now, Artificial Intelligence or maybe Virtual Reality has the Mindshare, but will soon to be “had” the MindShare – at least that’s what I see in my research.

That’s not a bad thing or going to make AI or VR lose value tomorrow or even in a year or ever – in fact they may keep going up (as they gain market share). But they will lose value in relation to another keyword or the next big thing as there is another shift in Mind-share.

Explain that to a customer who wants you to lower your price, hahaha.

(don’t quote me or use anything I put in this advice to buy anything please – these are thoughts only)

Mindshare is an advanced concept – tons to read online – and please let me know if my interpretation and attempt at explanation makes any sense.

I am used to public presentations and have a hard time communicating what I’m thinking in pure writing. So please forgive me – those who know me – know I don’t stop talking but do-little writing. Hahaha.

OK it’s getting late and now I’m not sure if I’m even making sense. Let me know what you think – and if does makes sense, I’ll get the other 2 tomorrow morning and hit as many on the list as there are questions about.

Any other terms of interest to anyone?

Night,

Brian

 

[Domains - Wanted]

...OK it’s getting late and now I’m not sure if I’m even making sense. Let me know what you think – and if does makes sense, I’ll get the other 2 tomorrow morning and hit as many on the list as there are questions about...

It's a new concept for me, personally. Makes sense, though.

Any other terms of interest to anyone?

Hmm... all of them? I mean, what's the point of listing them otherwise...?

 

[BrandPlease]

HAHAHA Point taken! Will get through as many as possible tomorrow. Good Night

 

[Hypersot]

....and have a hard time communicating what I’m thinking in pure writing.
Brian

personally, I'm totally ok reading thoughts in 'pure writing'

Thanks for sharing.

 

[BrandPlease]

OK,

Going down the list and trying to get caught up.

Threat Level: to make it easy – what are the risks or potential risks to a domain’s value? E.g. potential Trademark issue


Extraordinary Assumption: This is something that (imo) a domainer can better relate to if you put yourself in the shoes of an acquirer – investing in a valuable domain name. You took the seller’s word that there are no potential problems (e.g.UDRP) that would impact the value now or in the future. So, if you were valuing the domain and you are offering a value (or willing to pay) based on that – what if an issue came to light that would make a significant change to the value you would pay.

Keep in mind some of these terms are not necessarily check list items, they are concepts that all play factors in the bigger picture. Also, this is the type of language and terminology that would position you as an expert. Be cautioned; understand them before throwing them around. (learned my lesson long ago, with one simple question from a client… would you please explain that a bit more in depth? Yeah, no sale that day. Hahaha

Again, hope it makes sense – if anything needs to be clarified, please ask.

Back to work and will hopefully knock out some more this afternoon.

Thanks,

 

[BrandPlease]

The couple above these, on the list, are pretty straight forward will hit those last.

_________________________

Competition/Competitive Saturation:

• Think of it like keyword research for SEO, make sense?

Considerations:

• This is the higher-level look at the factors that are identified as key value factors. When they are applied and how is up to up you. The concept is you are not pulling it out of the air you have a defined set of (something/s) that are your guides and based on sound business practices

Developed Domains:

• Well you know – you sell them to folks who develop them. Consider developing one or two someday, you may like the results.

Back to work… Happy Friday… and will get more in ASAP,

Brian