The Rick Schwartz Domain and Traffic Blog RicksBlog.com...Home of the "Domain King"

Domain Industry Derailed by Scandal. An Inexcusable CRIME spills on Everyone.

Morning Folks!!

Okay, this is a barn burner of a post. As usual, I will say things others won't. Others can't. That is why they are so much smarter than me. Grab a cup of coffee and have a seat. The events of this week has and will affect your futures. Each time I go to post this, new news breaks.

The Sad Day in the Domain Industry continues. I think it takes time for all the ramifications to settle in. The entire industry needs to be paying attention and listening to the tales of woe. I see and hear anger growing not subsiding while the company tries to paint a happy face on this breech of trust.

First I got a phone call about the scandal. I knew it was big and had huge ramifications the moment I heard about it. One sentence was all it took. I knew it would takes hours and days to figure out. Next I receive an email in which the Snapnames Exec messed up and posted something not meant to be posted:

"Below the double line is the customer communication for use in proactive disclosure on industry message boards. A statement needs to be published on each of the boards copied in the attached e-mail from this morning. Disclosure time is 9:30 a.m. PT, concurrent with all other disclosures. 

 Please monitor the boards going forward and let me know what the feedback is like. If you need help on this, Corinne is available. 
 
My understanding is you will primarily speak for the company in these forums. To that end, let’s coordinate closely on what’s being said and how to reply. 
 
Let me know if you have questions from here. Thanks." 

Larry Fischer wrote some of his thoughts. "I commend Oversee for dealing with the issue, however their reputation is tarnished."  I can’t imagine what it must be like to know you may have overpaid by tens of thousands or hundreds of thousands, even millions. He could have put his kid through college a dozen times on his losses alone. Now multiply that. Franky,Kevin, iReit, just go right down the line. Each with losses that affected their businesses and lives. They could afford it you say? Ok, but how about the ones that can't? Much more of them and they are pretty pissed. Besides when you get scammed, it does not matter how much you have or don't have.  

The entire sales history of the industry has been skewered and voided because of how many times this happened. 50,000 is an incredible number and until everything is transparent, we would have to assume it is much more. The calls for publishing those back auctions has a lot of merit and I think that is a must as a first step. The fact that it even ever came off screams the wrong message and we all know it! Update: According to "Rob" with Oversee support, the info is coming back online) 

This scandal affected the entire futures of domainers that participated. Their destiny changed forever because maybe they did not have the $$$ to buy that next domain. That is the unknown and invisible damage that trumps all others.

This is just one of those things that as you read more and more blogs and comments on those blogs, that this is laced with unintended consequences far beyond the first look.  Lawsuits, class actions suits, and arrests. Yes, I think there will eventually be arrests. And to that end, maybe even give Nelson immunity so we can hear the entire unedited saga and how far reaching this is. I don't know that anyone wants to see him in jail, however I can't speak for those that might and either way, I am sure everyone wants the full details. Full and unvarnished. Problem with that? They can't. The liability of the truth and all the details would be devastating imo. Nelson the fall guy? Could be. We have yet to hear any comments from him. Was a deal made to protect others to keep from being charged with a criminal act? Fact is, I don't know. What I do know is it is the #1 question folks are asking. 

In an unrelated post a couple weeks back, I talk about how much business a company can lose before it collapses.

Morning folks!!

This is for businesses 3-5 years or older.

During a recession if you can manage to “Flat line” no growth……You are doing GREAT!

During a recession if you can manage to just lose 10% year over year.....You are doing GREAT!

During a recession if you can manage to just lose 15% year over year.....You are doing Pretty Good!

During a recession if you can manage to just lose 20% year over year.....You are doing about average!

During a recession if you lose 25% year over year.....You are under great stress!

During a recession if you lose 30% year over year.....You are under great stress and scrambling to stay alive and pay the bills.

During a recession if you lose 35%-40% year over year.....You are GREAT TROUBLE!

During a recession if you lose 50% year over year.....You are probably out of business!

It is all about numbers. So a poll was done yesterday on DNW

If I plug in the results of that poll and if I use my table as a baseline, you can readily see the peril.

At the time of this writing with over 227 votes, 34% say they will not do business with them again. 17% say that they just don’t know.  So I take 50% of the latter number to give me another 8.5%. Total 42.5% of customers lost on this one episode.

You would also have to factor in 2009 business. So if business were good, it would offset that number. If business took a hit in 2009 during the recession, you can add that to the above number.

That does not count any other fallout that may or may not happen throughout their empire. They may recover, it may get worse depending on the news to come and if we see missteps where they take data offline that was there before to try and further cover up things. Cover up? Well yes. They did take their time in going public. Yes, they are making folks sign a waiver for a “Credit”. Yes they did remove the historical data. Yes we are watching damage contol of something that is not controllable.

My numbers do not factor in the size of the domainers they lose. So when you just deal with the numbers and the lawsuits that are sure to come, I don't see them surviving. That is what the numbers say without knowing squat. Without knowing who. But their competitors should not be too gleeful, they too will pay a price. They too will be suspected. They too will have to answer some tough questions and do more investigating.

One question I notice popping up is whether domains are safe at Moniker? I believe they are. I still have my domains there. I have no plans to move them. Larry Fischer also addressed this.

It has really taken me a few days to get my head around this and I am still far from figuring out all the ramifications as I am sure many of you are. I don’t quite understand why Nelson is not be charged with this criminally unless there would be a lot more to come out. That is why I believe Nelson would be “Deep Throat” should that come to be and I expect this will be beyond the control of Oversee once domainers figure out the full impact of what was done to them, their businesses and their futures. I say that because we live in a business where we are dealing with “Unique opportunities in time”. So you also add into that equation a limited pocketbook. So  for guys spending small dollars or big dollars, it affected their NEXT purchase. So if you had $10,000 less or $100,000 less to work with, all those domains you could have bought, were not. No biggie? Are you kidding?? Multiply by your lifetime earnings and how much bigger your income could be today. Somebody will make that case. Many may make that case. SnapNames won’t survive that. I expect they have no better than a 1 in 3 chance to survive collapse and/or bankruptcy. When I started this post I figured just a 1 in 4 chance of them going under at all. 48 hours later, the bleeding is getting worse. After hearing about the class action I discuss below, I think it just went much lower. I think now the question becomes how much damage does it do to Oversee? I think Snapnames will fold. It is to the point that I don't know how they survive. The damages exceed the value of the company.

Now please, these are my personal opinions based on all the pitfalls and perils I see. I started working on this post on Thursday night. I let it sit and edit all day Friday and all morning today. This is a snake pit of problems and it will affect more than just SnapNames. There is major fallout coming here. For example, all reported sales involving “Halvarez” auctions need to be recalculated and we should get a REAL number of the total fraud that was committed. I feel and see anger building. No company can control the anger. They may be able to control some, but not all. How does anyone defend the indefensible without just painting a happy face?

Well that Happy Face just got 1000x harder to put on. The latest is the Class Action Website reported on by Adam Strong who had the funniest comment so far. "Too bad Edelson doesn’t have an affiliate program". This is game changer. There is blood in the water and everyone knows it. Do they go after just Snapnames who may or may not be in business in the days ahead or do they go right for Oversee?

Ever pick up a large rock that is melded into the dirt and when you don’t expect it, you dislodge it and thousands of ants come out and other things with lots of legs? That is what I see here. A weaker company would have already collapsed.

Shill bidding is one of the single oldest and worst problems in this industry. From the days of the infestation of the old Afternic to nearly a decade later. Only difference is the size, scope, magnitude and organized manner. Isolated? I doubt it. Will it end? Probably not but this will stem the tide. Will more come to light? Not a doubt in my mind. Do other companies do it? If discovered will they collapse instantly? Should they collapse? Sure. Why not. Somebody will always come to pick up the pieces. What makes this such a big story other than all the obvious things is that we are talking about an officer of the company. An executive. Not some low level schmuck. 

Like others, it is still sinking in. Great damage has been done to more than just a company. An entire industry painted by a broad brush and that makes me angry. As you have read in TechCrunch, this has been hoisted and blamed on ALL domainers and the entire industry. Domainers getting blamed for what domainers had no control over. That is where I fall off the deep end. That is where my anger grows. A great trust has been broken. It is a sad event. I think what the question is becoming: Should it and could it have been prevented? What was the largest deal that Halvarez bid in? Total dollars involved? The questions are just starting and the answers will tell the future. This industry is based on one word. TRUST! We have seen TRUST broken on a small level. We have NEVER seen it broken to this magnitide before we even find out  the entire story and entire history. Thousands of domainers each with their own story and own anger to deal with. Sorry, but this is bigger than just a company inside an industry even if it is the biggest in the space. Bigger because it is the biggest company in the space. This is akin to the Black Socks scandal in baseball. It affected the entire game. Unfortunate as it is, this affects the entire industry in ways you would probably rather me not articulate. Some will excuse and some will minimize but make no mistake of the fallout that has yet to happen. Like nothing we have seen to date. Already the second TechCrunch article has been released in just 3 days and expect more to come from even bigger media.

What we have seen so far is the part of the story that would be allowed out in an effort to cover everyone's ass. So you can either worry about helping to cover their asses or start to start covering your own. Each company and each domainer has a responsibility to be good stewards of the industry. How we handle this may determine our destiny. Lord, I hope this is just a bad dream. 

Rick Schwartz

UPDATE: For further Play by Play updates, TheDomains.com has been on top of this and also one of the largest victims to come forward so far with actual numbers of over 12,000 auctions that may have been affected. Plus a poll is there that suggests the bleeding is much worse than what I indicated above in an earlier poll I used. So anger is still growing and I don't think anybody knows where this train will end up. I feel bad for so many folks that are affected due to no fault of their own. Lawsuits are already flying and more are coming. This is a mess beyond anything that any one of us could have imagined just a few days ago. 

My 3 Favorite Men of History...Franklin, Twain and Einstein. Who are yours?

Morning Folks!!

This was supposed to be my Friday post but with all the happenings, I had to delay it. 

If you had a choice and could hook up with 3 men of history who would you choose? For me the answer is crystal clear. While I can name a dozen more, the 3 I would choose would be Ben Franklin, Mark Twain and Albert Einstein. Those 3 are already my guiding light. I look to them for answers all the time. Ben Franklin probably the most.  

Why these 3? I think for obvious reasons.  But together they make a very well rounded group of advisors. The inventor, the plain spoken and the genius. Add more? Sure. Let’s put Thomas Edison in there. Henry Ford. Andrew Carnegie and Hemingway to keep things fun and interesting.  

Of today? Let’s start with Tony Robins. Who was the one that started me on this journey  back in 1993.  Donald Trump who may be a lot of things, but he gets it right nearly every time.  Steve Forbes who understands the economy possibly better than anyone.  

So a tip of the hat to all these men of history and those to be!  Who are your people of history? Some may be the same. Many will be different. As soon as I post this I will think of many more that belong here. But there are the first that come to mind and these are the ones I look to the most for answers to complex questions.  

Have a GREAT Day!
Rick Schwartz

Sad day in the Domain Industry. Rocked to the Core. Will Deep Throat Speak?

Morning Folks!!

I feel the worst for those that were friends of Nelson and were betrayed. I knew many that had his back for many years. In the early days Nelson basically ran his entire business off my first domain board. He was popular and had a lot of friends. I can’t imagine how they feel. Adam Strong gave a taste of what that must be like. Betrayal is a bad place.

The story broke yesterday afternoon. I doubt the depth of this has been totally revealed. Damage Control for 10 days and it has been public only for hours. Nobody gets to “Control” where this may go. I would hope there would be an independent investigation as this obviously is something that cost many millions. Likely more than that with damages. It affected folks around the globe and their businesses and the cash they had to run those businesses.  

I was not a common bidder at Snap so yesterday was the very first time I heard of “Halveraz” the "Ghost". But also looks like there was plenty of smoke before the fire broke out from what I am reading. Some suggest that Nelson is just the “Fall guy.” Who knows, but it will all come out. This is a volcano. An unfortunate volcano. Now the question, who else, where else???? Will Nelson become “Deep Throat"? Today, THAT is the question. What does Nelson have to say if anything? Are there any other "Suspected Ghosts" at other venues? One thing is for sure, companies throughout the industry better clean up their act. A scandal can bring down the biggest.

I feel bad for Monte and the crew as another piece of bad luck has hit. I can't even imagine what they are going through at this point. Like I said in the title, this one is rocking the industry to the core. Like nothing any of us have seen to date.    

Rick Schwartz

Rick Schwartz wants to Sell the Domain Industry to Microsoft for $8 Billion. Part 2

Morning Folks!!

If my numbers are too low, just lmk. I just needed a starting basis. Want more, I’ll plug it in. Think I should have it a little less, I can do that as well. It’s numbers. Numbers. The rest is all bullshit. If I can’t get 60 minutes in front of Microsoft, not a problem. I have ETERNITY and the WORLD right here, right now! I no longer have to be there, I can be here and make a pitch. And so I have and so I will. It's also to the industry as well. I have watched billions pissed in black holes and blue sky's and they laugh at this. Huh? It is crazy to believe something based on numbers when you can do business with clowns and magicians that can make money disappear.

Monopoly?? I don’t think so. Just would own the most prime category killing domain name business in the universe. That is a foundation that does not get washed back to sea each day. It stands strong regardless. 

So here is how I see the pie split. Add your name and dollar amount. Minimum is $10 Million in TOTAL Value and included must be at least one domain with a high 6 or 7 figure value.

Note to Stephen Douglas. The seller is the ultimate appraiser as he is the only one that can pull the trigger to do a deal. It is his decision. Nobody can force him. Circumstance might, but even then, some go down with the ship. Stephen, that should answer the question you posed months ago. I have thought about it. But today the answer appeared and for me, this is it. You can't force the seller to sell. But a bargain price can force a buyer to buy. Make sense?

Again, If my numbers are too low, just lmk. I just needed a starting basis. I am not here to tell you what your number is or should be. Give me the one you would walk away and into the sunset. These are simply my guesses bases on assumptions I devised in my mind. Some are way off high or low. I just pulled the first names that came to mind so this is far from a complete list. Don't shoot me if I omitted you. I omitted almost everyone. lol

Kevin Ham $750,000,000
Franky $500,000,000
Scott Day $350,000,000
Lawrence Ng $350,000,000
National A1 $300,000,000
Larry and Ari $200,000,000
Rick Schwartz $150,000,000
Mike Berkens $150,000,000
Xedoc $150,000,000
Roland $200,000,000
Lonnie $100,000,000
Castello Brothers $150,000,000

BuyDomains.com
Marchex
NameMedia
Demand Media
Parked.com (Domain Inventory)

The joke will be when the domains are worth $80 Billion and that schmuck Schwartz was trying to sell us out for a paltry $8 Billion. 

Have a GREAT Day!
Rick Schwartz

BREAKING: Rick Schwartz wants to Sell the Domain Industry to Microsoft for $8 Billion. REALLY!

Morning Folks!

You may laugh, but this is no joke. I am serious. This is an idea that I have carried with me for well over 3 years. Ask around and see.

In 2006 we were in Silicon Valley when I first had this idea. I shared it the last night of the show with folks like Larry and Ari and Marc and others like Franky and Kevin and all that would listen. I explained it is easier to make a $5 billion sale than it is a $5 Million sale at this level because it is more meaningful. More impactful because of the instant marketshare. Who wants to negotiate 100,000 separate contracts? But bring the big group of domain investors to the table and that becomes a much easier job. A much easier sale. A much more attractive package.

Hey Microsoft, wanna buy the whole Domain Industry for $8 Billion?

Microsoft, Give me one hour of your time and I will show you mathematically how to grab the biggest piece of market share you can buy for the bucks and at the same time take the best most potent traffic away from the competition and secure the future. Why rent when you can own? Why pay out billions year after year after year leasing the traffic when you can own the asset and those mineral rights?

How much is 1% more of the market worth?? How much do you think you will spend to get that 1%? Then on to 2%, 3% etc. How many YEARS or DECADES will that take?

So Microsoft, let me sell you the domain Industry for $8 billion. Let me sell you the most prized collection of keywords on the planet. Let me organize the biggest domain sale in history. Let's change the dynamics.

Call me. Email me. Not one other thing that you can do to take so much of the market away overnight. Nothing. If there was, you would have done it. Not even 1.5% or you would have done it. Keep trying or secure that market forever. Bing is great but it needs a booster rocket and the domains can do that in such a way that boosts yourselves and hurts the competition with one stoke of the pen. It will take years and decades to do what you want to do. Maybe. Nothing to write home about so far and as my past posts suggest, I am a big fan. But with this deal, I can show you with numbers how you can turn the tide…..NOW….TODAY……GAME CHANGER.

It took a lot of years to get Microsoft to TRAFFIC. I sure am glad some of them ended in the limo with Mike. Your only risk is a great success beyond anything those meetings will be producing. Give me a few minutes and a spreadsheet. Business is tough, why not focus on the obvious? Numbers don’t lie. Even in a depressed market the numbers work.

Have a GREAT Day
Rick Schwartz

The End of an Era......The Start of an Era.....Part 2

Morning Folks!!

Every so often we hit a "Crossroads in life". A point where we make major changes and major decisions. For some change and decision are 2 of the hardest things. Those things do not come easy. Do not come without a lot of thought.

In January I will attend a domain show for the first time as an attendee. The first time I can go to TRAFFIC with my wife and have no other responsibility other than to make money and make deals. Something I seldom can do when running a show.

So for the first time I will come to TRAFFIC in Las Vegas and I look forward to a week of fun and enjoyment. I am excited to see what Rick Latona and his team will present.  Younger, hipper and in tune with the needs of 30 something’s. 

The Hard Rock is a great venue. Younger, hipper and in tune with the needs of 30 something’s. lol  But seriously, I look forward to seeing TRAFFIC from the other side. Another side.  

Many things will be different, but many things will remain the same. Either way, it will add a new dimension, a new signature.  Something fresh and different. And I am excited to see their vision as I know many of you are. You will have new faces that greet you when you register and a new experience based on a solid formula.

So with this post, I ride into the sunset for the first time since 2004. I am going to enjoy the year off.  No schedules to put together, no panels to assemble, no thinking all day and all night how we are going to make the next show the best show.

Lots goes on to put on a show. Do you think it is easy to pay $96/gallon for HOT WATER in New York?? It kills me, but we have little choice. Coffee is even more! The opening night cocktail party costs over $200 per person. Yup, you heard me right. $200 a pop. One person. Then add Breakfasts, lunches, brunches, open bars, snacks,  food at registration. It is astronomical. So we went to the Big Apple. We did what we needed to do 3 times. We paid the piper and have a series of accomplishments.

On to South Beach next October. Costs are huge there too but only $79/gallon for that hot water. Oh the save the day. So we are going to restructure the pricing for South Beach TRAFFIC.  Everyone benefits, everyone has to pay. That has always been the premise behind TRAFFIC. That’s why I am such a prick about it. You expect us to feed you and expect us to help your business move to the next level and we are supposed to pay your way to get in the door? I don’t think so.  Howard and I take great personal and financial risks to put on these shows.  Our risk is much higher as we have nothing to sell and we do everything First Class. At TRAFFIC, you gotta pay to play.  Those that think TRAFFIC costs too much will never know how much they lost by not coming and not investing in themselves. Not taking the risk to move up to the next level. And to be blunt, it is not our job to reach down and pull you up. We try, but the ultimate decision is yours.

So as I explained on stage at TRAFFIC in New York, we don’t look to attract domainers that make $1000 a month. Sorry, these folks are “Extras” from central casting. They don’t make you money, they COST you money by wasting YOUR time with folks that can’t do a damn thing for you. Now I don’t mean to insult or put down those that are on the ladder and make that $1000/month. Keep going. I just believe it is not up to us to lower prices so you can attend. Quite the contrary. I believe you need to raise your game and take the risk. Step up to the plate. With our tiered pricing, everyone can afford to come to TRAFFIC, you just need to take advantage of the early bird specials we offer and plan ahead. That is the secret formula..

So as the Latona crew takes us to Las Vegas in January and then around the world for the rest of 2010, I am hopeful that we are on the doorstep of a great year with great things. Challenging as it may be, I think 2010 will be the “Year of the Deal maker” As I stated early in 2009, make just ONE great deal that you can look back to.  In 2010, you need to make DOZENS of deals because the deals will be out there.

So I am coming to Las Vegas TRAFFIC with an agenda! An agenda of deal making because for the first time ever, I won’t have the responsibility to make sure the train runs and runs smooth and on time. My “Conductors hat” gets passed to the Latona guys.

The bottom line, after 5 years…….we accomplished a lot. We brought an industry together. We had too many “Firsts” to list. We made a difference in the lives of a lot of people. That is a satisfying feeling. That is something I will be proud of until the day I die. Our “Baby” is all grown up and going out to see the world. Truth be told, that was a dream of mine a decade ago.

I wish Latona and the crew all the best. Take good care of our “Baby”. I can’t tell you the amount of hours we put in over the years. But it was a labor of love 24/7 and I did it with my best pal Howard and that made all the difference in the world.

A big thanks to Howard and Barbara and Ray and of course my wife Alina for always going the extra mile to make sure that TRAFFIC was more than a trade show. It was and is and will remain a “Family show” No rules. No corporate BS. No meetings to figure out the obvious. Just a motto that if you do it right, it will come out right. Take no short cuts. Do everything first class. Never be cheap. The best ingredients = the best result. Pretty simple stuff when your focus of life is not about losing your job.  When the focus is actually accomplishing something and not afraid to fail. Fail in front of everyone in the industry. Fail and then rise to achieve.

So thanks for a great 5 years! I sincerely hope that we have made a difference for you and your family. That is how we measure success.

Have a GREAT Day!
Rick Schwartz

The End of an Era......The Start of an Era.

Morning Folks!

Oh, so goooood to be home!

Yesterday closed a chapter in history that  has consumed the last 5 years of my life in a way few will ever know. When I think back to the winters before as I prepared for the inevitable. As I have shared many times at the show, the last time I was on a stage and spoke I was 13 at my Bar Mitzvah.  40 years later just the thought of that would make me shudder. The thought of doing it again and going on stage and speaking in front of folks?? Well truth be told, that took 5 years leading up to these 5 years. I knew I had a mission I had to fulfill and I knew I had to overcome my single biggest fear in life. I had no idea how I was going to do that. I just knew it had to be done or it would hold me back from things I needed to accomplish. 

My lucky break was partnering up with Howard Neu who was a Mayor, a TV talk host, an attorney. He was my exact opposite. So over the 5 years I learned from him. I also learned from Larry Fischer who like myself was a basket case on stage. He came to speak several shows into TRAFFIC. But his nervousness showed me that I had somewhat conquered mine. Not 100%, but 40%. Then a few years pass and I think it was Silicon Valley earlier this year and Larry got on stage. WOW! What a difference. He too had conquered his. The biggest factor perhaps with both of us is confidence in what we know. Confidence in the value of what we have to say. Such a deep belief in something that it just drives you and propels you to do things you would have never done.

I am still not entirely comfortable on stage. Far from it.  But it is also no longer a fear. It is a lot of things. Fear is still one of them, but the other things override that one part and now it is propelling me again. I want to speak at retail conventions.  I want to speak to diversified audiences of business people. Large groups. We need to get the message out. I want to engage Main Street! Explain to them what they may be missing to transform their businesses from one on the corner of their town to one on the corner of the world and explain why it has not worked well for them so far and how to turn that around.

The folks that saw the seminar “Inside the Candy.com deal” were treated to one of the coolest seminars we have ever had. Why? Well for one thing I never ever met them until we all got on stage at TRAFFIC 3 minutes before the seminar. First I got up and explained things from where I sit. I tested my #1 theory right in front of everyone. I had no idea whatsoever if it was true or not. But I believe it with every ounce of my being. Ron Jackson will tell you what that is in his article next week. But I put it out there. Few can get away with it. I can. I Do. Then Greg Balestrieri and Joe Melville from Candy.com told their side of the story and the negotiations from their side of the table. They also confirmed my theory. It was truly compelling. Everyone there at that point heard from the end user and found out why I hooked up with Greg and Joe. Hershey’s? Mars? Nestle? Never gonna happen. This is going to be so much more fun and rewarding. All you had to do is see the sincerity and passion in these guys and then the where with all to back it up and history is made. They were born in the candy business and now they are going to disrupt that business. They are going to school that business. They are going to surprise that industry but it is not going to surprise anyone reading this.

From the left....Joe, Rick, Greg

For me TRAFFIC New York was satisfying. We did what we needed to do in the toughest business environment of our lifetimes. The state of the domain industry is STRONG! However the weak are about to be washed away and even the strong need to get their financial houses in order. That is a natural process. That was what 2009 was about.

I will let others comment on what they got out of the show. But for us, we had a number of “Firsts” and in a future post I will explain how those things will allow us to bring costs down without sacrificing.

From here we pass the ball to Rick Latona and his crew. New ideas, new directions, new places. That allows Howard and I to focus on our one annual show here in Florida. Next year it will be in South Beach on October 17th to the 20th with pre-show activities staring on Friday October 15th. So start planning for the bash on the beach. South Beach that is. Movie Stars, Long Legs,  domainers, the hippest place on planet earth.  The hotel? The Diplomat on Steroids! You’re gonna love it.

Have a GREAT Day!
Rick Schwartz           

Time Capsule Circa Dec. 2000. Recap of the first 5 Years in Domaining

Morning Folks!!

Not sure how he finds this stuff, but Owen found this today. I hope you enjoy it. Then check out the first comment. Also from then, posted a few minutes later. I love being on record. Right or wrong. Set in stone. It is the ultimate test and grade. This is why I say, "Time is my Best Ally." A little sweeter as this is now the 5th anniversary of TRAFFIC.

My 5 year anniversary is TODAY.
 
And for the record......the net is 5 years ahead of where I expected it would be at this point in time.
 
Lipservice.com started this and has even survived WIPO.
 
The #1 question was always why aren't you building sites? Actually it wasn't really a question, it was more of an accusation. An assault on my judgment. A put down. Now 5 years later I can explain this, and with MATH, can prove it to be a safer and smarter road to travel than any other I could have chosen. My proof are all the dotcom failures laying on the side of the road.
 
The first year was the darkest. I felt so all alone but knew I was not. The Internet was little more than a wasteland of "Under construction" signs or the first generation carcasses of a website that would remain. There were other domain speculators that I would run into time and again. We were mining the same mountains and the same veins at times. There were not many full timers then. Perhaps about 12 guys that I would run into. In those days the ONLY thing that gave me motivation to plow forward was losing a domain by just a day or two. I knew at that point I was hot on the trail. At $100 a pop it got expensive pretty quick. But I believed in what I was doing so strongly that I could not stop myself. It was like a disease. I was hooked. All day....all night. Mostly THINKING of domains that could be important pieces of property in a few years. And where were the bills?? Netsol had not billed me for over 100 domains for MONTHS. I would pay for what I could afford and risk losing ones that I had to wait to pay. But I did eventually pay for them all. If netsol had not done that I doubt I would be where I am. They gave me financing and that made the difference. Hence my respect for incompetence.
 
It was November of 1996 that I hooked up my first 300 domains. All adult and all pointing to the same place. (A trick in those days that few knew could be done). I made okay money until ONE day in March of 1997. The day I learned to ftp and to manipulate a simple web page. THAT changed my life and my destiny!! My first day of traffic experimentation had begun and while others made ,005 a click or a penny a click. I made a dime a click and more. I thought my calculator was broken. But then the checks started coming I realized my calculator was not broken. I had indeed harnessed some very potent traffic. That led me to the ynot board in April of 1997. A place that changed my life like this place has hopefully changed some lives. It looked and sounded a lot like it does here but with a few REAL geniuses and many VERY sharp individuals. Folks I could never match. Folks that are sharper when they sleep than I am when I am awake. WOW!! I was in awe. But I decided to work my way in and while coming out of left field I had something to bring to the table, the most potent traffic anyone had ever seen. It was the first time anyone called me a "Webmaster" and I felt like I lowered all webmasters by being one myself with NO SKILLS that a webmaster would have. My motto: "If you can cut and paste it, I can do it!"
 
The #2 question was always why don't you have employees working on this all the time building new sites? First of all it would have been a DISTRACTION for me. I was in a unique crossroads of life and I focused on domains like a laser going thru a peephole. It was more important to run in directions never gone before than to stop and invest the time where everyone else was. Besides, I understood that things would get CHEAPER in time. It was in my best interest to move slowly with development and run like a panther to obtain those domains to develop. 
 
For example when I came along $39.95/mo for an adult site was next to impossible to get. I refused to be put on an adult server cuz of their history of getting clogged with traffic and thus putting you out of business. So you were lucky to get $50 a month sites. Many paid $299 A MONTH per domain. I understood that these prices would only come down in time. Today you can get it for free, or just a few $$$ a month. Imagine having a thousand domains and paying $50,000 a month for hosting. I would have been out of business before I started. So while I opened my first domain and had my first site built on this day, it was another 11 months before I hooked up the next adult domain.
 
I remember when nobody believed that I got my traffic by typeins. They did not believe that folks would type an address on the browser bar. They were great techies, but they did not understand that when they would start to advertise a .com on the tv that people would get there via the browser bar entry. You may laugh at that now, but that was the sort of silly stuff I had to overcome with LOADS of other crap. They called me names and by the time they figured out I was right on the mark, I had bought every domain I could think of and knew it could not be duplicated. 
 
Bottom Line.....my way, it is not the only way. It is not the best way. But it was my way. It worked for me. While THOUSANDS of others tanked, with THOUSANDS of employees and BILLIONS of dollars invested by faithful stockholders it was all wasted for they had no plan. 
 
Bottom line.....i went thru the jungle, the desert, the doubters, the laughers, etc etc and I am still on my campaign!! I have SURVIVED!!!!! May others have survived too. But WE are the true warriors!!
 
So I toot my own horn today. I am proud of what I have accomplished and realize it is only NOW that it TRULY begins. I knew the day I started that it would be many years before the soup would be ready to serve.
 
Today is the begining of phase 2. I go into it with several hundred active sites and about 125,000 daily unique visitors scattered among them. Now it is time to focus on growing that traffic and linking the sites together. Most orbit independently but that will eventually change.
 
5 years ago it could have cost me tens of thousands for an obsolete site. Today for a few hundred bucks you can get state of the art site and with the collapse, there is some real talent running around. While I still don't have a clue how to do most things on the net I have been able to accomplish the one thing few have done and that gives me a great advantage. I know how to turn a profit. A footnote for most, but profit is my guiding light and everything else is bullshit.
 
Build it small and make it work, growth will occur. Build it big with no direction and you get the problems most .coms are now facing.
 
The turtle wins EVERY time!!!
 
Remember one thing.......You can have ANYTHING in this world if you REALLLLLLY want it. Those that doubt this, they are 100% right!! :-))
 
Have a GREAT 2001!!
 
Domain King
Wed Dec 27 07:32:52 2000 - 216.34.244.106 - message #2845

Survival to Replace Domaining as your Main Job?

Morning Folks!!

Last year at this time we were in a fog. Business fog. Business runs on preparing for tomorrow. Projecting where you are going and how fast you will get there. When you can’t do that, big problems will occur and they did and they have. Now things are much clearer. The fear of the fog may be gone but the moment of reality is soon to be. It is physically impossible to sustain the status quo. It’s going to blow up if we do. If things are done to make it worse, it will just blow up sooner. It will be uncontrollable once it starts.

The theme of this year’s TRAFFIC is “Survival”. Now that certainly is not a popular thing to trumpet. But what am I supposed to do? Be a cheerleader when I see disaster looming? NONSENSE! What value does that have to you?? It is always so much easier to just tell people what they want to hear. Blend in. Be a pal. Ruffle no feathers. Be a friend to everyone. Mr. popular. And exactly what value is in that? May as well have a meeting and watch a bunch of heads bob up and down in agreement cuz you have a company made up of spineless people afraid to speak out. Afraid and without authority to make a decision. The Sales Department is no longer in control even tho sales drive everything else. No sales = no company. The Advertising Department is no longer in charge of Advertising even tho the sales department needs that to help get the message out and reinforce what they do.  Matter of fact, no department is in charge of anything. Lawyers and bean counters are. CEO's are paralyzed or figure heads. They report to the lawyers and bean counters. So how many sales exactly did the lawyers and bean counters make for you last year? But forget all that. That is the small problem close to home that you can actually control and do something about. Let's turn to what you can't control.

The numbers paint a DISASTER! But that is just the numbers. Just the dollar. The unemplyment. The fact that most of those jobs lost will never come back. That does not include outside factors that could accelerate that disaster. That point is fragile. More fragile than you might imagine. Another 9/11 style attack at THIS MOMENT would be much more devastating than in 2001.

As I write this I just glanced to my right. Outside my room window is the Statue of Liberty. To me it represents a really tough time in America and the world. The struggles they had to endure with little more than the rags on their back and a great desire for a better life. For the first time in my lifetime, that “Better life” is in danger. That is what I see. I can’t help seeing it. I have seen it and written about it for quite a while. Some point to the stock market going up. But when you peel it back and see why, it is the weakness of the dollar and real estate market that are driving it. Safety is driving it. What will happen next? Pretty easy one, reality will set in next year, it is llike going to Vegas and playing Craps, the house is gonna rake in your money……AGAIN.

And while the dollar is in trouble, they are also in demand. Deflation still is the beast even tho they have been fighting inflation for years and years. Decades. The point is, this CRAP is all connected and things are fragile. The industry is shrinking. The weak are falling off on a daily basis. Just disappearing from the scene. They make no announcements. They are just gone. There are those that are running a negative cash flow. It is a matter of time. 100,000 crappy domain names, better trim them sails. 98,000 are going to drop. But not to worry, isn’t it about time you realized it is a liability and not an asset? TIMBER!

Last year I made no points for talking about “Beyond PPC”. But was it the right call given that you have seen your earnings erode away??? Not popular, made me no points, but right on the money. YOUR MONEY! So as an industry, do we want popular propaganda with various agendas or a vision of where we are going that may or may not be right? But I sign my name to what I see, to what I believe, to what I do, to how I see it all unfold. I take the slings and arrows and live by one sentence that usually win over most reasonable folks at some point “Time is my Best Ally”.

We are all here because we saw something before most others. In life you can be one step ahead or one step behind. It truly is a choice. That is why God invented the Ostrich. He also invented the Eagle. They have no choice, they are what they are. WE DO!

Have a GREAT Day!
Safe Travels
Rick Schwartz

Watch Steve Forbes Said at TRAFFIC: "Eat Well or Sleep Well, You Can't do Both"

Morning Folks

Danny Pryor sent me this clip from TRAFFIC in 2007 where Steve Forbes spoke. This 2 minute gem is worth exactly how much?? Hope you enjoy it. Hope you are sleeping well. See you in New York City!

Have a GREAT Day!
Rick Schwartz

Let Me Ask Again....Are Minisites Dead? Is PPC in Peril?

Morning Folks!!

Timing is everything. I wrote the following post Sunday before the aeiou.com announcement. It relates to another recent post when I DARED to ask the question, “Are minisites Dead?” This post goes on to talk way more than minisites. Fasten your seat belts. I should be pissing off many on this one.

Now remember, I wrote this a few hours before the announcement that I knew nothing of. 

Mini Site companies all the rage?? Then Where are They?

If mini sites are so hot and the alternative to straight PPC you would think they would want to have some exposure at TRAFFIC. The only one there on display will be Rick Latona’s AEIOU.COM. But where is the competition? Where is the choice? Where is you guys???

Just a little aha moment for me. The first thing I would ask is why not go to the show in which PPC rules and your target is taking business from them? So what say you guys? Why are domainers going to New York, looking to develop, and the guys that can help them do that are sitting on the sidelines?? Sorry, but I just don’t get it.

I know if there were 5 guys selling mini sites and developing larger projects that I would sit and talk with each one and see how they could help me. So I am surprised that this marketing opportunity is being lost and I think domainers will start looking beyond mini sites as a result. JMO. 

(That was the post I wrote on Sunday and was going to post yesterday but had other fish to fry. Now a bit more)

So with the closing of aeiou.com I will ask again.........

Are Minisites dead? I think first you have to ask if they were actually ever alive? Did they ever work? I think it can be a starting point. Bit really not much more. The results many times pointed to are category killer domains that would have success if you put a naked clown and an “Enter Button”.

I think we know the fate of the mini site. My suggestion would be this. Change the focus to mini BUSINESSES. A business has to be started on a profitable foundation and idea. It does not have to be complicated, complex, heavy. It needs a game plan and THEN build a site around the game plan. We have sites looking for businesses. It is ass backwards. You can’t do zillions of them. You just got to start going down the list and isolate your empire. One business at a time based on your category of traffic assuming you have traffic. Some may take 5 minutes to create. Some 5 days. Some 5 weeks. And if you hit something, 5 years.

How do you know the difference between a "Mini site" and a "Mini Business".....easy, something I learned from Shaun Pilfold. It has a CASH REGISTER! You collect money. Maybe in a mini business you can use the cash register of a partner. But traffic needs to be talked to, sold to and then led to a cash register not a link to somebody else unless they are paying you more than you can make yourself. 

And lastly just a note about traffic. Some say they don't have any. I would tell them one thing, stop buying crappy domains and you would have traffic. No traffic? Why are you even looking at these domains in this economy if you have no traffic unless you are at the stage it does not matter and then this part of the post would not apply to you anyway as you already know? You will never have traffic with a plan like that. Get rid of the liabilities. Get rid of them. Don't even worry about selling them. Get rid of them all in bulk and buy one gem. 10 gems. Crap is crap forever and a day past that. It is nothing more than styrofoam in a garbage dump. Not to insult anyone but let me give you a visual of the guy with really crappy domains. Imagine that vagabond in your town with the supermarket cart full of his worldly possessions. It's all junk, but it is all he has. So I feel bad for him, I feel bad for folks if they are in this category. The ONLY thing I can offer those souls is a roadmap to where they would like to go. But they can't climb the mountain if they refuse to abandon the supermarket cart. 

PPC companies should not be too gleeful. Just ONE NEW ALTERNATIVE and the next title could be "Is PPC Dead?" I could see the entire sector being wiped out like a house of cards. Don't get upset with me guys. We love you. But you too see your vulnerability. You too see the dangers and perils that a new solution could bring to an already weak and suffering sector. Of course the guys sending you the traffic are suffering more. They don't have the ability of adjusting the bottom line if the bills are a bit heavy that month. But if I were you and domainers didn't care, then I would do the same. So I see both sides. But there is a tipping point. If that tips the wrong way, game over. Record profits from Google on the top and record lows for payouts at the bottom. Must just be coincidence!

Hey, these are tough times. Tough times deserve tough talk. The face of this industry is changing. No balls, no glory.  

Have a GREAT Day!
Rick Schwartz

CORRECTION: WhyPark.com will be exhibiting at TRAFFIC. I guess they win just for showing up.

FORECLOSING on the Property.com Deal with Foreclosure.com

Morning Folks!!

The road to hell is paved with good intentioned people. Everyone generally enters an agreement with honorable intentions. But even the best of intentions lead to failure the great majority of time once lawyers get involved or business heads south. So the contract is the only thing that protects you and if that contract is not rock solid, clear and concise, it is worthless. If the contract does not protect the domain owner from unforeseen peril, it is worthless and eventually you will have a really good chance of losing your domain without the other party fulfilling their obligations. I have seen that happen too many times to count and no way would I become a victim of that. The power to walk away from a bad contract is the greatest power in business.

Our lawyers couldn't agree on terms that would protect the interests of both parties (Especially mine) and so I had to pull the plug on the deal earlier this month. I was not going to sign a contract that did not state EXACTLY the procedure for return of the domain in case of default. That did not have a FAIL SAFE built in like I do on the Candy.com deal. In that deal it was easy to accomplish. It should be easy. In this deal, it sank the ship and I refused to go along for the ride. And why should I?? BYE BYE! NEXT!

So there it is. Unfortunate but may be a blessing in disguise. As you can see we are working hard on Property.com and will be introducing Sub-domains and other long term strategies as we move forward.

Have a GREAT Day!
Rick Schwartz

An Industry of Rookies Get Tested. Want to Know How Well you are Doing?

Morning folks!!

An Industry of Rookies Get Tested. The title says it all. Some will earn their wings, more will crash and burn. These are facts. We are a young industry made up of folks in which this is their very first business. They are thrust into it and sometimes not prepared for the tough realities of life. No domainer jumps up and says: “My house was just foreclosed on.” However do you really doubt no domainer has met that fate or will soon?

This is when you earn your wings or you crash and burn. Look at my earlier posts this year. Pull back on the throttle and your days are numbered. You are crossing a GRAND canyon. Why would anyone pull back on the throttle? Give it every ounce of thrust you can. It’s the only way to make it to the other side.

I talk from experience as I have shared this story many times. In 1992 or 1993 my back was up against the wall. The economy was bad. My business was once again on the ropes. I had no safety net this time. Would I charge $10,000 on my credit card? $10,000 that I did not have and add to the debt I had already accumulated? Would I go half way around the world to Seoul, Taiwan and Hong Kong? Would I stay in the best hotels that I had no way of affording because if I stayed in a dump that I could afford, would anyone take me seriously? I wrestled with that decision for weeks, maybe months. I finally decided there was no other avenue and I had to go for broke.

I went for 10 days. I worked all day each day from 5AM to Midnight. From Midnight to 3am I would do the research and have faxes sent. There was no email at that time. At least email used on a daily basis. I would passout for 2 hours and then on again.

In Taiwan I met a man named Peter. I told him I was on my way to Hong Kong to see somebody. He told me instead of seeing him, go see “Ben”. So I took his advice and met with “Ben” in the hotel room I could not afford for over 3 hours. We shared the exact same war story. We were a kindred spirit a world away. We were born within days of each other. We were on the same wave length. That conversation, Peter, that trip, that go for broker deal changed my life and I have NEVER looked back other than to appreciate where I came from and how hard it was to get here and how much fun I had doing it.

Reach DEEP my friends. You would be amazed what you can accomplish when your back is up against the wall. The opportunity you can create. The fire you can make with SHEER WILL!

Truly amazing and that is what is so cool about recessions and being challenged. Once you reach that deep just ONE TIME, then you KNOW you can reach DEEEEEEP whenever you really need to.

Pull back on the throttle?? Are you kidding? No you are not. Sadly you are not. You are a rookie. Rookies pull back, pros give it all they got. Which one are YOU?

Have a GREAT Day!
Rick Schwartz

Recession Report Card. What is YOUR Grade? Find out here.

Morning folks!!

Here is your Report Card for 2009. Now this does not work on new business as a new business is growing by definition. This is for businesses 3-5 years or older.

During a recession if you can manage to “Flat line” no growth……You are doing GREAT!

During a recession if you can manage to just lose 10% year over year.....You are doing GREAT!

During a recession if you can manage to just lose 15% year over year.....You are doing Pretty Good!

During a recession if you can manage to just lose 20% year over year.....You are doing about average!

During a recession if you lose 25% year over year.....You are under great stress!

During a recession if you lose 30% year over year.....You are under great stress and scrambling to stay alive and pay the bills.

During a recession if you lose 35%-40% year over year.....You are GREAT TROUBLE!

During a recession if you lose 50% year over year.....You are probably out of business.

Of course this all depends on overhead. Fixed costs. Employees. The more you have of each, the more trouble you are in.

Have a GREAT Day!
Rick Schwartz

 

Pump, Pump, Pump, when does it POP?

Morning folks!!

How long can you fill a balloon with air before it explodes? The answer depends how big the balloon is. Some think the dollar is in trouble. It may be in trouble because some want it that way. But if it were really in trouble, answer me this: Why is everyone trying to get their hands on the almighty dollar like never before?

Personally I think we are at a tipping point. We have yet to tip, but we are at the point. I believe forces close to home are trying to destroy the dollar. They may succeed, maybe not. Like everything else it is a market and a pendulum. However when you screw with the market, you screw with the pendulum that works naturally and flawlessly if you don’t mess with it.

That said, we have messed with it. The pendulum is no longer relevant. The pendulum is now in control of magnetic political forces and not its’ natural state.

So then we get to my favorite subject, NUMBERS. That disqualifies most people as most people are not numbers people. What would happen to you and your family if you are married, have 4 kids, 8 months behind in your mortgage, $100,000 in Credit card bills that the interest alone is $2500/month and then your wife gets pregnant? Do you think you would spend more or pull back? Go out to eat every night with the kids or make meatloaf at home? Buy 2 new cars or keep driving the one that is in the garage and still working? Whatever the decisions are, we all know the right one. But if you are irresponsible, if you don’t care, if you want to put the burden on someone else, then book a vacation as well and invite your family to stay. If you want to make it worse, go to the casino for a night. Let’s gamble everything!

There is a recipe to make this balloon pop. First is a false hope of optimism. Hooray the stock market is at 10,000!! It’s still down 30%. But I think it will hit 9000 again before you see 11,000.  Things on the street are not good. Talk to your barber. Talk to the restaurant owner. Talk to the guy about to get foreclosed on. Talk to the nearly 20% that don’t have a full time and steady job. Talk to the folks that 90 days after their unemployment benefits stop. (You’ll have to wait a few months for this one, but it is the tsunami that is about to hit)

That fallout is coming. It could be avoided, but there is no will to do so where it counts. Like gas on a fire this has the potential to explode in our face. The folks building this bomb will be LONG GONE when that baby explodes. Don’t believe a word I am saying. Just do the math. Don’t listen to bullshit, do the math. Let the numbers tell you who lies and who tells the truth. Numbers don’t lie, PEOPLE LIE! Politicians lie! Agendas lie! Companies lie! Banks lie! Wall Street lies! Lawyers lie! Defendants lie! So when you know everyone is lying, what do you do? What can you do? Maybe nothing. But the very least you can do is call them what they are…..LIARS! THIEVES! THUGS!

When does the balloon pop? How much more can be added? Infinite? I don’t think so. http://usdebtclock.org/

What does this have to do with domains?? Everything. If your house burns down it affects your business, your future and every aspect of your life. For those rooting for the downfall of the dollar, don't cut your nose to spite your face. It may not burn your house down, but the dream of your summer home may be gone forever just in case you think you have no skin in the game.

Brush up on your Chinese.

Have a GREAT Day!
Rick Schwartz

What Will Rio.com sell for at T.R.A.F.F.I.C.?? Win a Ticket to TRAFFIC South Beach 2010

Afternoon Ladies and Gentlemen!

I am on record all over the place stating that 2009 will be a record year for domain sales. I believe that the conditions will make it actually blow the doors off of pervious years. We won’t know until January, but I want to be crystal clear in what I see. I mean BLOW THE DOORS OFF!

Now, as for the TRAFFIC auctions, I was hoping to quietly look at a couple of domains. Let me be on record as saying there is some major gem in there. There are some bargains in there. I believe at least one domain will go for over 7 figures.

What everyone thought would be a lack luster auction in New York is going to turn into a battle royale. Two good companies each with some major headlining domains. Like in cards, we are about to see where the power is in the industry.  Not as far as the auction companies, but as far as the domainers bidding. I think we will walk away with some real HUGE deals. REAL excitement. Folks will be coming out of their chairs on a few of the names that will go up. Wanna know why?? Low reserves = higher selling prices. High reserves scare people off. The auction process is one that needs to be trusted. The bidding is likely to be the most active in several years.

I anticipate a battle for Rio.com. That baby is going to fly over 7 figures. I would imagine this is going to be the single biggest bidding war we have ever seen for any domain in the history of our auctions. That is what I see. I don’t think anyone reading this would not value Rio.com higher than $1M. I expect many folks to be bidding on this. I would advise those interested to team up if they hold any chance of walking away with this domain.

So what do you say? What will Rio.com go for? The closest guess gets a free ticket to TRAFFIC 2010 in South Beach that we will be announcing in New York. Will be the first one registered for the event.

Have a GREAT Day!
Rick Schwartz

The Power of a TINY Decision. Why "Decisions" Determine your Life Quality

Morning Folks!!

I think the #1 flaw folks make is not making good SMALL decisions. I believe life is about decisions. Nothing else. Good decisions = good life, good things and the residue is luck and your proper destiny. Bad decisions = not so good life, not so good things, and the reside is BAD LUCK and an uncertain negative destiny.

But I also believe that the smallest decisions are just as big and just as important as the big ones. A decision is a decision. A good decision always does no harm and sometimes pays dividends. A bad decision always causes pain. You may not see it right then, but sure as stepping in shit in a dog park, you are gonna have something happen that is unexpected and not in your favor at some point in the future. So EVERY decision is important. EVERY decision counts to the final end. The tiniest decision can have the most major impact. A Tiny piece of sand in a ball bearing can bring the largest machine to a screetching and painful halt. People may even say you are making a big deal of something tiny.  But those are the MASSES that don’t understand. The higher you get on the ladder, the less folks understand because most folks accept and embrace mediocrity. They do this every time they make a decision without considering ALL the aspects and consequences of that decision. ALL. If they don't, they are "Mentally lazy" and "Inconsiderate of others". They are just lazy because once you train yourself to do this it takes a split second in most cases. Maybe a few seconds. Maybe a minute. The harder the decision, the more time and care you need to apply. Some decisions can take years. Marriage for example. But life is made up of tiny decisions, small decisions, sometimes with great impact if you hurt somebody’s feelings with your lack of thought and consideration. That is what a decision is. Besides what it does for you, how does it affect others.  The unfortunate part is MOST people don’t think the small decisions count. That is like having a boat and saying you don’t care about 1001 small leaks. But it only takes a few small leaks to sink a ship. To make you life not as good as it could or should be. But YOU are the only one that can control that process. Do it with great care and you will get great things. Not every time and don’t expect to see it right then. The impact of any of your decisions are not usually seen right away. The decision to fly back from Los Angeles that night has had an impact to this very day. One decision. One moment. Lasting a lifetime. One decision. So the point is, don’t be afraid to make decisions. Just make the best one you can make at the time and the way you do that is considering all the options, all the fallout, all the consequences and finally, all the benefits.

So when I see folks that don’t understand these things, I know they will always be their worst enemy. Nothing I can do or anyone can do to inflict more pain on an ongoing basis. Bad decisions are what prisons are made up of. Some were just stupid bad decisions. Most were intentional bad decisions.

Life is air, water, food and decisions. What does this have to do with domains? Are you really sitting there and asking a question like that??

Have a GREAT Day!
Rick Schwartz

The GREAT Gratz. Part 2

Afternoon Folks!

So after I wrote that post this morning I decided I was going to find the GREAT Gratz. I both succeeded and failed. I found the Great Gratz, but he was on the other side. He died in 2003. I found that out when I tracked down his son. I searched several places and finally found a phone number to his youngest son. Last time I saw him he was 12, I was about 30. So I called the number. I got the right one on the first try. I told the secretary my name and that I was a very old friend of his dads. I told him who I was and to my surpise, he remembered me. Vividly as a matter of fact. But then he told me his dad died in 2003 of lung cancer. It’s a bit hard to write this right now. It may have happened 6 years ago but for me it was 6 minutes ago. So I am a bit blurry eyed. But I still want to write this while it is fresh and I can.  I waited just a bit too long to call.

Anyway, we had a really good conversation and shared a few stories and memories and it was just great to see him doing so well. I wanted him and his family to know what an influence he had in my life and I still draw strength from him. But that would be expected if you were around the Great Gratz growing up. He was flawed just like the rest of us but he was the best at what he did. He could chew you up and spit you out before you even knew you were bleeding. Gentle like a bear. Rip you apart like a bear. So RIP my friend. Thank you of your wisdom. Sorry it took so long to say goodbye. I know where you are so I’ll be sure to bring an air conditioner when I join ya. ;-)

And "D" when I get out west next time, I am coming to see you and share some great GRATZ stories. 

Rick Schwartz

The Story of the "Great Gratz" and how 7 Words Changed my Life at 29

Morning Folks!!

"Follow a Leader or Follow an Asshole" is an expression I learned from the GREAT Bill Gratz. While other folks sold furniture for a living he moved mountains full of furniture. He was better than those that he sold to or sold against. They were not in his league. Nor was I for that matter. But I was learning from a master. He once told me something that absolutey changed my life. He said, “I can follow a leader, but I can’t follow an asshole.”  That one line changed the trojectery of my entire life.

A few months later a 52 year old pipe smoking veteran of the furniture industry that had never held ajob for more than 2 years but had a resume that included every big boy there was became my new boss. See while I tripled their sales in the preceeding year I was a renegade that did not play politics the way they thought they were entitled to at this stage. So they opted to an “Insider” to bring them to the goal line. Even tho I had brought them from $1 or $2 million to $10 or $12 million under my leadership, it was not
good enough. See I was just too young. Even tho I worked for 4 years with the competition, 5 years with them, I was still only 29. So they opted for a new path.   



Well I flew out to Los Angeles to start my new assignment on Sunday night. I got to LA at 11:30PM. I had time to think on that flight. I thought what the GREAT Gratz told me. I decided this guy was an asshole and I was not going to go along with the plan. I arrived in LA. I went to the ticket counter. I booked the same plane back to Miami. I arrived at 6AM. I went to the factory. I waited on the steps until the owners arrived at 7AM. They were flabbergasted to see me there as they know I was in LA at 11:30. They were in disbelief. I went in and stated my case. A week or two later I was on the street. First time in my life with no job. The worst days I ever remember. But that was the day and the moment that my life changed. Where I stood up and said NO FUCKING WAY! I won’t sell my soul. I will always tell it like it is. There is performance and everything else. I performed. I did what was asked. I opened accounts and made the company I worked for famous inside the industry. I increased their market share. I made them a FORCE.

To make a long story short, that event put me in business and I never worked for another ungrateful employer again. Never dealt with that nonsense ever again. As far as the company I worked for and that pipe smoking phony. Well he lasted just under 2 years when the company collapsed and went out of business. On one hand it was sad to see something I built up destroyed. On the other, well that’s what happens when you make a bad decision and fuck with success.  You don’t screw with success. I guess that is why I wanted to see the Dodgers and Yankees in the World Series. I want Joe Torre to stick it to them!

I think as domainers we are amazing people doing amazing things and just because we have yet to be recognized for it does not make it any less real. Any less important. Like scientists, we are unlocking secret after secret. Fact after fact. Result after result. Discovery after discovery.

 Have a GREAT Day!

 Rick Schwartz

The TRICK of turning Social Media into Profitable Commercial Enterprises

Morning Folks!!

I write this blog for you. The reader, the surfer, the pioneer, the lost, the searchers, anyone looking for just a little more. I also write this blog for myself. I enjoy putting my thoughts on paper. I guess that is a last century term. Putting thoughts on paper. I guess now just filing thoughts for the future and the past. I blogged before there was a name for it. It started in 1996. I made a post each and every morning and what was unusual at that time was that I actually used my own name.

But Owen keeps finding stuff I wrote years ago. Yesterday he found one and it is one of the most basic of posts and thoughts to me back a decade ago when there was no domain industry and so few saw what I did.

I do have some of my oldest posts locked away in one of my computers. I talked numbers and facts and dollars and futures and pasts and everything in between. When I started this blog it was an attempt to get my thoughts out there in a more formal method and be able to keep track of them, be on record and then see how things actually unfold.

The following is perhaps one of my best pieces. Short, sweet, to the point and accurate in a day a decade ago that few saw what we do.

"The reason I say this is there are so many facets of a domain name. It has the face value. It has the value with the mineral rights in the form of traffic. It is a collectible like stamps, coins, art, baseball cards. They are real estate on a scale never known before. They are power in a way that has yet to be fully exploited. They are TV stations. They are magazines. They are soap boxes. They are an advantage on many fronts. They are a permanent direct mail piece. They are almost anything you want them to be and so much more. You are an instant broadcaster able to compete with the likes of NBC, ABC, BBC, and all the rest. Your domain can create a situation to capture more eyeballs than all the TV stations put together." ~~ Rick Schwartz 1999

When I envisioned the Internet, I envisioned a new media that would or could give every person a soapbox and a megaphone that could and would equal the most powerful. Soapbox.com was one domainI really wanted. As you will see one of TRAFFIC’S past speakers owns it now. 

So I hope the folks that did not see the wisdom of having Steve Forbes, Ben Stein, Barbara Corcoran, (And there were many) I hope these folks will reserve judgement until they see what unfolds and THEN question the wisdom of having Rick Sanchez join a great list of TRAFFIC speakers. Each one offering us a little something. Each time we left with more than we came. If you understand this post than you will understand where we are going with this. If you can't grasp the notion that the trick is turning social media into profitable commercial media, then I guess we will have to agree to disagree until you figure out at the show and agree. :-) 

Have a GREAT Day!
Rick Schwartz

BREAKING: T.R.A.F.F.I.C. ANNOUNCES GUEST SPEAKER for NEW YORK!

Good Afternoon Folks!!

I am pleased to report that after months of looking (as I described in this blog post last week), negotiating and figuring out who would be a great guest speaker that is plugged in but not too close to the industry and can give us some insight from a slightly different perspective. Also, I did not even know about the Internet until I traveled internationally and started seeing CNN.COM every few minutes.

Nobody could argue that CNN has been plugged in from day one. The purchase of iReport.com meant a lot more than $750,000 for me personally. It was a sale that could be pointed to for many years to come by every domainer and every time a domainer watched CNN and saw iReport.com it would give them the fuel to keep going.

So I am happy to report that RICK SANCHEZ, 3PM Anchor for CNN will be the guest speaker for TRAFFIC's 17th show and 5th Anniversary. He joins a great group of guest speakers over the years and I am sure he will be able to share things with you that will benefit your business and your future.

I am also happy to report that the fee we are paying Rick Sanchez is going to charity. Rick will have his honorarium go to a charity of his choice. I think that is pretty cool and I also think it shows a genuine desire to meet with our industry.
 
Have a GREAT Day!
Rick Schwartz

More than "Survival". Why you need to get ahead of what is Coming!

Morning Folks!!

I live in a town of about 80,000 where there are 20 homes on the market between $10 Million and $25 million. There are also 70 homes between $5M and $10M. Then from $2.5 Million to $5 Million there are another 125 homes. Finally between $1 Million and $2.5 Million there are another 460. It’s even worse than that. Under $1 million has just under 4000 listings.

Yesterday I drove down every street in the city in the primmest of areas. I saw things that I really don’t like. I saw a number of homes in addition to the above that were just vacant and not maintained. Obviously bank owned. No for sale sign either. Dozens and dozens of them. What I saw that disturbed me even more was the observation that in an area where folks really maintain their lawns and plants and trees, they were no longer paying their gardners. It was quite obvious in many homes and many of these are not on the market. YET! I was truly stunned to see what I saw.

You all know what I have been talking about for the past 18 months or so but this even put me back on my heels. This is disturbing. This is the beginnings of a possible catastrophe. What is coming in the housing market will affect EVERY homeowner in the country. The market is about to take a plunge the likes of which we have never seen and it will take the GOOD stuff with it.

What is coming will undercut the market in a way nobody has imagined. I am sorry my friends, even your homes are likely to suffer in a way you may not see coming. How much could your home go down? Well that depends. Let’s say you and your neighbor both bought a home worth $750k 3 years ago. Let’s say the bank foreclosed on your neighbor. The banks job is to dump that property asap and get that liability off the books. They really don’t care what they are going to leave behind because it is about to spin out of control regardless. So the house next door that you owe $700k on sells for $350k. What is the value of the home you owe $700k on? Or even $600k? Or $500k. Many will just walk away refusing to throw good money after bad. That will undercut the market even further and the $350k becomes a HIGH WATER mark, not a low water mark. So prices continue to go down.

This all creates further problems that begin to compound themselves as tax collections go way down and then services go with it. Like I have said for a while, there is this small window of opportunity before the collapse, meltdown and the catastrophe’s that I believe will follow. That window appears to be getting shorter and smaller.

When you filter out the noise and listen to the business people on the front lines with no political agenda, there is no question things are about to get dire. So they can say all day long that the recession is over. I think it is nonsense. If you are in the desert with no water and some schmuck declares the drought over before giving you water to drink, what would you call it?

The numbers prove they are wrong. The numbers prove real pain is coming. The numbers prove that it may be a very long time before we rebound from all this. The numbers don’t lie. Corrupt bean counters do. Stockbrokers do. Bankers do. Everyone with an agenda lies. Numbers have no agenda. They just paint the most VIVID picture and in this case few really want to deal with the reality about to come. They don't do it now and they did not do it last summer. I DID!

If you want to know how this will affect the domain industry, then you can read my interview at DNJournal.com. Not for the faint of heart. I tell it the way I see it.

Have a GREAT Day!

Rick Schwartz

Domains, SEO Spamming, The Past, The Future, The Changes and other Sunday Ramblings.

Morning Folks!!

I bought domains because I was not smart enough or talented enough to get search engine traffic. Ignorance is a great thing sometimes! I bought domains because I did not want to spend a LIFETIME spamming search engines with misleading CRAP to get traffic. I bought domains because that was a non ending stream of traffic that could actually grow over time. I bought domains because it was a unique opportunity in time and those that did not see it missed the greatest gold rush in the history of mankind. I bought domains because in the future nothing would be so important or meaningful on a worldwide marketing basis. I bought domains because it was the greatest resovoir of customers, buyers, consumers, business people and on and on with virtually no limit ever to come to be. Where else can one domain produce 40,000 visitors a day for $8 a YEAR??? $8 divided by 14 million annual visitors. Let the bean counters figure out the cost on that one.

Now let's look at my SEO abilities. I have none. Zippo. I don't believe in a lot of the nonsense. I think relevance is the key. Popularity. Many other factors. So I believe SEO spamming actually can do harm. I think growing your business is the best way to get that ranking.

Now I will piss some folks off and they will try and undermine my listings but I don't really care as it is not going anywhere I truly make a profit. But if you type in "Rick Schwartz" in Google I am #1 out of 750,000. If you type "Domain King" you will see the same thing. But then I took it a step further. Where was I if I typed in "Schwartz"? 26 million results and again #1.

Now there are still names I have yet to type in that I may rank high. "Asshole" may be one some would agree on. Maybe one of the SEO guys can get me up to #1? ;-)

To be honest, I was always a bit jealous of singers. They sang and marketed their name and nobody can ever take that away. In my case I can't sing and while I always marketed my name in way or another, I marketed my companies or company I worked for name much more.

Many think domains have had their golden day and traffic is going down etc etc. Well in some cases they could be right. However if you look at the BIG picture, traffic, audience share, in the future is just getting harder and harder to attract and that is why you are seeing so many outrageous things going on. It's all gimmicks to defend a shrinking audience base in traditional media. That means the cost of doing business is going up. The cost of gaining new customers is going up. The cost of breaking out of the crowd is going up. That means that domains and traffic will become more and more in demand regardless of the current conditions. That soapbox is getting harder and harder to be heard no matter how big you are. No matter how big your megaphone is. What was once 3 channels competing for your eyes, ABC, NBC, CBS is now infinite. Infinity is killing these folks. What started in 2000 and 2001 is finally completing itself in 2009/2010. They were successful in delaying the inevitable. But they no longer have the power to stem the tide. What we are about to see is the greatest shakeout of business and industry in the history of the world. The greatest shift in power that the world has ever seen. The rules of yesterday will no longer be valid in many cases.

Have a GREAT Day!
Rick Schwartz

PS: Did a search for "Rick" and got 83 million results. I was #3. Beaten out by Rick's Caberet and Rick.com owned by Legendary DJ Rick Dees. So much for Rick.com and Ricks.com. Missed those. Had to settle for Dick.com lol

PS: And now the POWER of the domain name. I looked up "The King" I am nowhere to be found which is no surprise. Of course people like Elvis, MJ, Martin Luther King and Burger King appear. My link to them? I own TheKing.com which redirects right to this blog. Take those 6 degrees of separation and reduce to 1.

Chopard and Christie's in the Adult Business?? Oral Sex? You Betcha!

Morning Folks.  

This post is courtesy of my wife who found this little gem last night. When does mainstream hit PUBERTY?? When does mainstream figure out that ALL of their customers have SEX!? May even TALK DIRTY!? Engage in NUDE activities!? OH MY!! What would Mrs Kravitz say? Imagine, Mrs Kravitz is in charge of marketing for the entire Internet!? You don't know who Mrs. Kravitz is? I guess that is part of the problem. Lack of important history. Mrs. Kravitz was the busy body next door in the 1960's TV show "Bewitched." This BITCH, could just never mind her own business, judged everyone and was everyone's nightmare of a next door neighbor.

The absolutely silliness and hypocrisy displayed by the TECHIES and adopted by everyone else without so much as a thought. Mrs. Kravitz must be in heaven! SHE is in charge. This is exactly how Mrs. kravitz would have handed it. Must be someone related.

Only on the Internet is there this “Iron Curtain” between adult and mainstream. In this post I am going to show you how foolish this all is. The absolute stupidity of it all. What JERKOFF made this rule that people follow more than going to Church on Sunday?

So this post is about an auction at Christie’s, one of the most respected auction houses in the world and Chopard, one of the world’s leading watch makers in business for some 150 years and making watches that sometimes go for many millions.

On this $40k white gold watch that was auctioned off back in 2007, it shows a beautiful, well endowed woman on her knees giving a BLOW JOB to a man. Apparently the tick tock simulates up and down on his SHAFT! Nice touch.

Now if these 2 fine companies can manufacture, sell and promote nude people, BLOW JOBS, tits, on their watches and in their auctions, then it is time for mainstream to grow up. Unless of course their parents never engaged in sex which would explain everything!

So not everyone that buys toothpaste watches porno. However everybody that watches porno buys toothpaste. Stop making moral judgements and DO BUSINESS!! Imagine if stores in the mall did the same thing as they do on the web? They would be out of business. "Oh Mr. Schwartz, we can't sell you that $150k Mercedes Benz because you just came from a TITTIE BAR!" "Come back tomorrow and make sure you don't look at any tits first, have sex, get an errection or anything else that has any sexual overtones or connotations whatsoever." 

Have a GREAT Day!
Rick Schwartz