January 15th, 2011
Affiliate Summit ended tuesday in Vegas and we were obviously there with Elephant Traffic. Since a lot of our advertisers our affiliate marketers that arbitrage domain traffic to CPA, AS is a really good avenue for us to acquire new advertisers. Our cost to take part with 5 people including booth, flight, accomodation, parties with clients was about $40k. However we usually make this money back in 3 months time from new advertisers, so it’s definitely worth it. We also take part in the Ad:Tech and LeadsCon conferences, which bring us a similar return.
Our booth was sort of stylized to Prague since we were offering a draw for a vacation worth $5k there. This is how it looked (Jeremy Lopez, GM of ET in the photo):
Otherwise Vegas was pretty fun as usual, although didn’t do as much partying as when I was there last year. Surprisingly even managed to win some money and finally learned the basics of craps, courtesy of our head salesman Yancy. Looking forward to DomainFest in LA now…
January 4th, 2011
Unbelievable, I did my first real estate deal today. I have generally always avoided this asset class as the ROI didn’t meet my criteria – buying a house at a 5% rental yield is and was a waste of money for me. That’s why I never bothered even to buy my own apartment to live in since renting made sense to me. But I finally found a way how to improve ROI significantly with blending in some development as well.
I bought an unused attic in an apartment building today, where me and my building partners will develop two pretty exclusive apartments with roof top terraces. I acquired two garages in the building as part of the deal as well. I paid around $260k to acquire the property. Redevelopment will take about 9 months and will cost around another $320k. So total cost around $580k. Then I plan roughly another 6-12 months for the apartments to sell for around $1.3 million. This kind of ROI suddenly makes sense to me, so I might do some more of this stuff in thefuture…
January 4th, 2011
I harvest domains predominantly for their PPC revenue. Recently I’ve noticed an interesting thing with the CCTLD portfolios I create by new registrations – suddenly sales are bringing in a “noticeable” part of the portfolio’s revenue. When it comes to the cctld portfolios, this sales element is about 15% of the revenue (the remaining 85% coming from PPC). With my .com portfolios this is probably only about 3%. Interesting, can’t really find a reason to why.
Otherwise when it comes to ccltds I’ve been much more active with them recently. Since I’ve sort of overharvested the .com universe and ROI has been worsening there, I’ve been looking for other TLDs where ROI is better. So last year I did a lot in .nl, .se., .de, .co.uk, .it, .be, .com.mx, .ca, .com.br, .pl etc. Recently I’ve gone so exotic as to play around with .jp or .co.nz. Now I have around 50k CCTLDs but I think I’ve depleted them quite a bit as well
January 1st, 2011
Happy New Year’s everyone! Hope 2011 will be a great year for you!
Anyway, just wanted to share an idea I have had for some time now. Never really got a chance to do it myself initially, then I decided that the business opportunity isn’t that huge and I have to focus on bigger niches. It’s basically an aftermarket play exploiting the drop game, a domain flea market if you will.
The idea is simple – all of us domainers drop domains sometimes, we choose to let them expire. The idea is that somebody would build a service where you could push these domains, say 2 weeks before they expire, and offer them for $10 a piece + renewal fee. If two or more people would be interested in the same domain, a standard namejet style auction would follow. The service operator and the domainer would then split the proceeds 50/50.
The service would just need to create accounts at all the main registrars where domainers would push the domains and do some simple programming of the marketplace, not much work imho.
This idea is based on a simple premise: some people can find gems (in their perception) in your garbage.
I personally drop a couple hundred thousand domains a year. The thing is that my only criteria for renewal is if the domains make reg fee. If they don’t, I simply let the domain drop and there are definitely gems in these drops that other people can discover but I don’t have time for.
I hope I created a new buzzword “drop monetization”:). Hope somebody picks this idea up. Good luck with it!