Archive for October, 2007

Rare Two-Letter Domain For Sale: IA.COM

The premium LL .com domain IA.COM (ia.com) is for sale!

It has been registered since April 1999.
Archive.org age: 1999

There are many possible meanings for this domain name, such as:

Iowa (US postal abbreviation)
Interactive
Information Assurance
Information Architecture
Internet Access
Inter Alia
Investment Advisor
International Affairs
International Airport
etc.

Client is entertaining offers in the six-figure range.

Please take a look at this PDF brochure or contact me via email at DM (at) DMUELLER (dot) COM for more information.

Quoted: Seth Godin

Seth Godin, marketing guru and author of several books, on the importance of domains for the corporate world:

The internet has taught people what to do when they see a domain. It’s not just an address, it’s the first bit of marketing. (…) If you’re looking to start an online business, consider finding a great domain and build the business around it, not the other way around.

Source: Thinking about domains

Vint Cerf to step down as ICANN chairman

Vint CerfVint Cerf, who is considered to be one of the Internet’s founder fathers, will step down as the chairman of ICANN’s board of directors after the ICANN Los Angeles 2007 meeting. He will remain “chief Internet evangelist” at Google, though, and the Associated Press reports that Cerf is also currently working on five books, only one of which will be about the Internet. In the AP article Cerf says he has spent 25-40 percent of his time on ICANN business and that he is looking forward to having the time back. On ICANN having to get along without him he says:

“I absolutely need this time back, and I don’t want to hover over the process. I want them to feel the pressure to organize themselves and not imagine they can turn back and look for guidance from me. They really should demonstrate that the organization is sufficiently strong and can survive the changes.”

The Register has another interview with Vint Cerf about his views on the future of the Internet and of ICANN.

Single-Letter Domain Auctions

Jay Westerdal from DomainTools.com today proposed to auction off the remaining single-letter domains. This is not a new idea. I remember Sedo once wanted to conduct auctions for single-letter domains too, but this never got anywhere. George Kirikos also proposed this allocation method to ICANN on October 16, 2007. I think this is a good way of making the remaining single-letter domains available and it would probably be the most lucrative solution, as many companies would make bids on these highly coveted domain names.

Any of the single-letter domains could end up being sold for prices in the $1-5 million range, in my opinion. Some might even get sold for more. G.com, for example, would be the perfect domain for Google and Y.com for Yahoo!, and I’m sure the two search engine companies would make a significant bid to not miss such a one-time chance. Because that’s exactly what it would be: a one-time chance. After an auction these domains would never be put on the open market again. This would cause an immediate rise in value of any single-letter domain, because other interested parties would know that they could only get their hands on the domain by making a much higher bid, which could easily be in the $XX-XXX million range, or by acquiring the company that owns it. This is similar to the situation of the domain market in general in the mid 90s, when one could buy many one-word generic domains for no more than $xxx each. Just look at the value appreciation of generic domains and then compare it to single-letter domains, with the only difference that the value of single-letter domains would begin to climb from a seven-figure instead of a three-figure amount.

If ICANN decides to sell the remaining single-letter domains in an auction it won’t handle the auctions in-house, I think. It’s to assume that ICANN would partner with an experienced IP or domain auction company. So, which domain auction company is secretly working to win ICANN’s favor in this matter? By the way, another possibility would be to make the auction companies pay for the rights to hold the auction, which would result in even more revenue for ICANN.

Sedo?
Moniker?
DomainTools?

Support wildfire relief in Southern California

Google has a page up where you can donate money to the American Red Cross and the Salvation Army for the people affected by the wildfires in Southern California. Maps and other information on the fires can be found here.

Google Page Rank Updates

Several SEO blogs reported that Google was making Page Rank adjustments last week. Apparently, Google has primarily targeted blogs, especially those selling text links, and punished them by lowering their PR. If you have been hit by the penalties you can improve your ranking again by removing the paid links and then requesting a reconsideration for your blog through the Google Webmaster Tools.

However, a high PR is not important for a website or blog to be successful, in my opinion. I’ve never really paid attention to my sites’ Page Ranks. With blogs the PR is even less important, because people can subscribe to and link to blogs via RSS, making them less dependent on search engines. Also, you should concentrate on building a good blog with quality content instead of trying to get many backlinks and a high PR. If you have a blog with unique content you have very good chances of being ranked high in search engines even with a low PR number.

And, as the domainer I happen to be, I’m convinced that a targeted domain name will drive more traffic to your website or blog via direct navigation anyway and it will help you attain higher search engine rankings. I’m not saying that SEO is useless, that’s far from the truth, but I just believe that Google’s Page Rank has been overrated by many, as it is just some relative number similar to Alexa rankings and it doesn’t really say much about the relevancy or quality of a website.

Forget about Page Rank. Write unique content and build a strong domain portfolio instead.

Marchex Names Nicolas J. Hanauer Vice Chairman of its Board of Directors

Marchex, Inc. (NASDAQ: MCHX, MCHXP)SEATTLE, WA - October 25, 2007 - Marchex, Inc. (NASDAQ: MCHX, MCHXP), a local advertising company and leading publisher of local content, today announced that it has named Nicolas J. Hanauer vice chairman of its Board of Directors. A pioneer in the online industry, Hanauer was the founder and chairman of aQuantive (formerly Avenue A Media, Inc.), a leading global digital marketing company, which was acquired by Microsoft in July 2007. He also previously served as its CEO.

“Nick’s track record of success in identifying and executing against revolutionary advertising and consumer-focused opportunities, from Amazon to aQuantive, makes him the ideal addition to Marchex’s Board of Directors,” said Russell C. Horowitz, Marchex Chairman and CEO. “His experience, leadership and in-depth understanding of consumers, technology and advertising will provide significant value across our entire organization.”

“I have been very fortunate to be involved with a number of transformational online markets and companies. The local online market is forecast to reach $19 billon in the next five years* and I believe Marchex has the strategy, assets and talent needed to fully capitalize on this massive opportunity,” said Hanauer. “I look forward to working actively with the management team and board to help the company become the local market leader.”

Hanauer has extensive experience building and investing in leading companies. In 1995, he became a founding investor in Amazon.com and served as a board advisor until 2000. He founded aQuantive in 1996 and served as its CEO from June 1998 to September 1999 and chairman of the board from June 1998 until its acquisition by Microsoft in July 2007. In 1998, he co-founded Gear.com, which was later purchased by Overstock.com. Hanauer is currently a partner at Second Avenue Partners, a Seattle-based venture capital firm he co- founded in 2000.

Hanauer began his professional career at the Pacific Coast Feather Company in Seattle where he held a number of executive positions, including CEO and co-chairman, and helped grow the company from several million dollars in sales to more than $300 million.

A Seattle resident, Hanauer received a Bachelor of Arts degree in Philosophy from the University of Washington. He currently serves as a director or board advisor to HouseValues.com, Pacific Coast Feather Company, the Initu group, and Qliance.

*Veronis Suhler Stevenson, 2007

Microsoft gets Facebook stake, beats Google

FacebookMicrosoft (NASDAQ: MSFT) has beaten Google (NASDAQ: GOOG) and invested $240 million for a 1.6% stake in Facebook. This would value the social-networking site, which was founded in 2004, at $15 billion. Microsoft also has an advertising deal with Facebook until 2011, which it expanded to monetize the traffic of international versions of Facebook, too, which the social network is planning to launch shortly. About 60% of Facebook’s users are coming from outside the U.S.

According to the WSJ, the startup expects to break about even on a cash-flow basis this year, with revenue of $150 million.

Here’s the official press release from Microsoft and Facebook:

PALO ALTO, Calif. and REDMOND, Wash., Oct. 24 /PRNewswire-FirstCall/ — Facebook(R) and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.

“We are pleased to take our Microsoft partnership to the next level,” said Owen Van Natta, vice president of operations and chief revenue officer at Facebook. “We think this expanded relationship will allow Facebook to continue to innovate and grow as a technology leader and major player in social computing, as well as bring relevant advertising to the more than 49 million active users of Facebook.”

“Making this investment and expanding this partnership will position Microsoft and Facebook to better take advantage of advertising opportunities around the world, and is a great win for not only for our two companies, but also our collective users and advertisers,” said Kevin Johnson, president of the Platforms & Services Division at Microsoft. “We have partnered well over the past year and look forward to doing some exciting things together in the future. The opportunity to further collaborate as advertising partners is a big reason we have decided to take an equity stake, and is a strong statement of our confidence in the long-term economics of this partnership.”

Facebook continues to experience strong growth both in the U.S. and international markets; 59 percent of Facebook’s users are outside the U.S. With an average of 250,000 new users registering each day, Facebook continues to be one of the most-trafficked sites on the Internet.

On Aug. 22, 2006, the companies announced a U.S.-only strategic alliance that named Microsoft the exclusive provider of standard banner advertising on Facebook using Microsoft’s digital advertising solutions and the Microsoft(R) adCenter platform. In early 2007, the terms were extended to 2011.

The WSJ has another article reporting that Facebook is seeking additional funding beyond Microsoft’s investment. The Palo Alto-based company is looking to raise about $260 million from hedge funds and private-equity investors. After all, the software giant’s $240 million investment is significantly less than the $500 million to $1 billion investment many industry experts were expecting.

ICANN investigating Domain Name Front Running

ICANN is investigating whether domain registrars and other companies that have access to domain search data are using these insider information to register desired domains before the individual or business that originally looked the available domain up can buy it. The security committee of ICANN refers to this practice as “domain name front running”.

The person or company buying the domain first can then offer it to the originally interested party to make a profit. It has not been proven that domain name front running is actually taking place, but this assumption lets the domain business and especially domain registrars appear in a bad light.

Excerpt from an ICANN Security and Stability Advisory Committee document (PDF) on domain name front running:

This Advisory considers the opportunity for a party with some form of insider information to track an Internet user’s preference for registering a domain name and preemptively register that name. SSAC likens this activity to front running in stock and commodities markets and calls this behavior domain name front running. In the domain name industry, insider information would be information gathered from the monitoring of one or more attempts by an Internet user to check the availability of a domain name.

(…)

SSAC does not yet have any hard data to draw conclusions regarding the frequency (if any) of the occurrence of domain name front running. We do know that Internet users have filed complaints of suspected domain name front running incidents with registrars and ICANN. Some complainants offer (pre- and post-incident) WHOIS query results to support their claim. These data alone are often insufficient to determine whether the domain name was preemptively registered, how the data used to preemptively register this particular domain name were acquired, or whether this was an intentional or coincidental act.

SSAC also lists possible methods of identifying domains of interest, such as third-party whois client applications, third-party whois services, unauthorized executables (trojans, viruses, etc.) and DNS operators. Domain registrars and registries also have access to domain search data, because they perform domain availability checks on behalf of registrants.

Personally, I haven’t experienced any incidences of domain name front running, but I find it quite disturbing that insider domain registration might be taking place. In fact, I believe it is likely that there are domain front runners profiting from other people’s domain availability checks, because it is well-known that domains have become valuable assets that can be resold for a quick profit and domain front running is a quite unknown practice that is difficult to monitor.

On the other hand, in many cases it might just have been a coincidence that a checked domain was registered by another person shortly after the availability check. There are thousands of people searching for available domains every day and it is quite possible that there are people looking up the same domain name.

I don’t believe domain registrars and registries are performing domain front running. But to play it safe it should be a good idea to not use whois services operated by people or companies you don’t know, small domain registrars or software from untrusted parties for your domain availability checks.

Facebook deal with Microsoft or Google

FacebookThe New York Post reports that a Facebook deal is expected to be announced in the next 24 to 48 hours. Both Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG) have been in negotiations with Facebook to buy a 5-10 percent stake of what is considered to be the hottest Internet startup currently. Facebook’s investors are valuing it at $10-15 billion, which means Microsoft or Google would have to pay up to $1.5 billion for a 10% stake and $750 million for a 5% stake in the social-networking site founded by Mark Zuckerberg.

I’m sure Microsoft will do everything in its power to keep Facebook away from Google after it has already lost other important companies to the search engine rival. So, it is even possible that Microsoft will make a bid higher than $150 million/percent to get the coveted stake in Facebook if Google is willing to pay the maximum.