Evgeny (m3chman) wrote,
Evgeny
m3chman

emma said..

eng, для себя:)

The founder of the .CO is right when he said that he priced the .Co domains at $30 to deter domain speculators. In Fact .CO is supposed to be for the start-ups, the general population and end-users. If you are a domain speculator you will hate .CO domains, but if you are an end user then you should be happy because you can get a very good keyword domain with .CO extension at a price that may be 50 times less that the price of the .COM equivalent. One thing people don't understand is that in the world any product has a price/value. If you buy .CO domain and you develop it you know that somehow you will leak traffic to its .COM equivalent, this is not the problem. The problem is how much traffic will you leak to its .COM equivalent?? This question should not be answered with feelings or fanaticism. You have to answer this question with reason, employing mathematics. We have to know the approximate percentage of type-in traffic first. Let's just say that about 30% of all of traffic is type-in traffic, meaning that 70% of traffic comes through search engines(Google, Yahoo, Ask, Bing etc). The next question will be: how do search engines treat different domain extensions for the purpose of ranking them?? Do they treat .com extension better than .CO or .NET? And if yes, to what degree? Let's just say that search engines necessarily rank .COM higher than .NET equivalent and .NET will necessarily rank higher than .CO equivalent.If this is true, comparing conservatively in favor of.COM, it means that in a search result we would see a .COM website ranked all the way to the top and its .CO and .NET equivalents ranked bellow it. Then the other question will be: how do the general population treat different domain extension when deciding what website to go to when they see the search results? We are talking about the degree of conversion now. I know for sure that up to now .COM has more credibility than any other extension. But does this mean that .Net and .CO do not have credibility at all?? I think they do have some credibility. .CO for example, as Mike Mann said yesterday in one of his posts, makes even more sense than .COM, it is recognizable, but.CO has to work hard to live decently. He is right but he is right only in one sense, and I will explain this: Mike Mann is a domain speculator, and as a domain speculator, he can only make money with domain names that other domain speculators need to buy as an investment or domains names that end-users need to buy for their start-ups and these are the .COM domains that are in demand in this sense, that's because .COM has the advantage of first goer and end-users mistakenly think that their online businesses can be successful only with a .COM extensions. But Mike Mann did not say anything about the degree of conversion of .CO by the general population in search engines. I am more than sure that if a .COM website is put near its .CO equivalent website in a search result the general population will go to both websites
(.com and .co), the volume of the traffic coming through the search engine will almost be the same. Certainly .COM website will receive more visits than its .CO equivalent website but the difference will not be so significant. We have to understand now that the degree of conversion of a domain extension in a search engine/result is one thing and the domain speculation is another thing. In the sense of domain speculation as well as in the sense of end users preference .COM is the favorite, but when it comes to conversion/recognition the difference between .COM, .CO, .NET is not so significant, meaning if you are an end-user, you can take advantage of the ignorance of the far majority of end-users/start-ups by buying good keyword .CO domains names cheaply, as they are now, and launching many website and you will do just fine as long as you employ a good SEO, because in reality the only advantage that .COM has when it comes to website traffic is the type-in traffic, which is no more than 10% of all traffic. So why buy a .COM domain name for $300K when you can a buy its .CO equivalent for $20K or even buy 15 to 20 good keyword .CO domains names with that amount and launch well-optimized websites and make money with the search engine traffic and accept losing the type-in traffic to their .COM equivalents websites?? Even if you leak 30% of the traffic to .COM you still will do fine taking into account the low cost of the .CO domains and the money you will be making. You may even do much better than .COM website if you take into account the quantity of the .CO websites you have. End-users should think like this. People's ignorance is what allows the wise people to make money. Just think of your own experience when you go online and see a .NET website, don't you click on them? There is a reason why .NET and .ORG domain names sell for comparably good price. I asked Rick Schwartz the other day to tell me the approximate percentage of type-in traffic as he always warns people about the traffic that would leak from .CO domains to their .COM equivalents if you develop a .CO domain so we can know and see if leaking traffic to .COM as a cost of doing business with .CO domain is bearable or not bearable . Rick never answered my question, and Rick will never answer that question because he is domain speculator, that is how he makes a living. He is not an end-user or an entrepreneur like Jeff Bezos, Pierre Omidyar, Nick Swinmurn, Mark Zuckerberg, the founders of Amazon, Ebay, Zappos and Facebook respectively, just to name few. He is a speculator. It is in fact understandable that it would be suicidal for Rick to reveal all these things or educate people in the way I am doing here, because if people understand this reality his .COM domains names, which barely sell today, will have no destiny or they will lose value significantly. I already told people in my past posts that everything Rick says here he says it as a speculator, not as end-user and today people already realized that there is only one thing you can do with a domain name: developing it. There are tons and tons of premium .COM domains that are in the hands of speculators, they are not being used, not only because they are too expensive, but it is also because coming up with business concept/idea that has the likelihood to succeed even if you have a good domain name is not easy, it needs one to have a sharp brain, whereas you can become a domain speculator anytime, you just need money to buy then resell, and that is what many people are doing since the heard that there is money to be made in domain speculation, but only those who were around or who tried their luck without risking much when the domains names just came out are the ones who did well in the domain speculation business, they are no longer doing well today. That is the reason why the majority of domain names are still in the hands of speculators, they barely end up in the hands of end-users. If there is a domain sale totaling $50K it will be a big news in the domain industry, that says a lot about this business.
My advice: DEVELOP, DEVELOP, DEVELOP, DEVELOP DEVELOP your domain name. The chances of selling a domain name are very slim. SEDO and AFTERNIC sell only domain names totaling $1 million and half a month, and we have about 120 millions .COM domain names alone, and most of them are not being used, they are in the hands of full-time and part-time domain speculators, and there are many speculators/domainers. In domain conferences such as T.R.AF.F.I.C no sales are made. Rick Latona quit this business. He told domainers the truth, that there is no money in this business. Think twice before you waste you precious time and life.

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