Comments on: DataRecovery.com sold for $1.7 million http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/ Dominik's blog about domain names, web search, online marketing and economics. Sun, 06 Jul 2008 04:29:18 +0000 http://wordpress.org/?v=2.5 By: Stephane Van Gelder http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3410 Stephane Van Gelder Thu, 06 Mar 2008 22:16:24 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3410 [...] from the industry, I was right.First off there's this new high-figure sale of a domain name that was reported by Dominik Mueller. ESS Data Recovery have reportedly paid $1.7 million for dataRecovery.com. The company explained [...] […] from the industry, I was right.First off there’s this new high-figure sale of a domain name that was reported by Dominik Mueller. ESS Data Recovery have reportedly paid $1.7 million for dataRecovery.com. The company explained […]

]]> By: ESS Data Recovery purchases Datarecovery.com for $1.7m http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3405 ESS Data Recovery purchases Datarecovery.com for $1.7m Thu, 06 Mar 2008 11:56:05 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3405 [...] datarecovery.com for US$1.7 million, the highest reported domain name sale of 2008 according to Dominik Mueller’s blog. The company claims the purchase is an effort to set itself apart from the growing number of new [...] […] datarecovery.com for US$1.7 million, the highest reported domain name sale of 2008 according to Dominik Mueller’s blog. The company claims the purchase is an effort to set itself apart from the growing number of new […]

]]> By: Gordon http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3402 Gordon Wed, 05 Mar 2008 20:40:39 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3402 If parking $ falls as people are predicting, it will be a huge benefit to people who have the capabilities (technical, financial, vision) to create quality sites. If parking $ falls as people are predicting, it will be a huge benefit to people who have the capabilities (technical, financial, vision) to create quality sites.

]]> By: Yaron http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3388 Yaron Mon, 03 Mar 2008 07:29:34 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3388 I agree with you both, but i think the industry is going in this direction anyway. We are going to see more and better developing solutions for domainers. I think that the biggest problem of parked pages is the luck of return customers. You can't build an online business without them. It is a bad business model. At the same time, Direct Navigation is growing very fast and good domains value will just increase. I don't know why Rick Latona is selling off some of his domains, but I don't think he is selling them for cheap. I think he gets fair prices, so it makes sense that he is trying to improve the quality of his portfolio. I agree with you both, but i think the industry is going in this direction anyway. We are going to see more and better developing solutions for domainers.
I think that the biggest problem of parked pages is the luck of return customers. You can’t build an online business without them. It is a bad business model.
At the same time, Direct Navigation is growing very fast and good domains value will just increase.
I don’t know why Rick Latona is selling off some of his domains, but I don’t think he is selling them for cheap. I think he gets fair prices, so it makes sense that he is trying to improve the quality of his portfolio.

]]> By: Domain Buzz: This Week in Domaining http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3387 Domain Buzz: This Week in Domaining Sun, 02 Mar 2008 22:28:00 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3387 [...] Dominik Mueller reports on the highest domain sale of 2008, DataRecovery.com for $1.7 million: “ESS Data Recovery paid $1.7 million for the domain name, which makes this the highest reported domain sale of the year. The company will forward it to its existing, established website. It said it had bought the domain to set itself apart from the growing number of new data recovery companies…“ [...] […] Dominik Mueller reports on the highest domain sale of 2008, DataRecovery.com for $1.7 million: “ESS Data Recovery paid $1.7 million for the domain name, which makes this the highest reported domain sale of the year. The company will forward it to its existing, established website. It said it had bought the domain to set itself apart from the growing number of new data recovery companies…“ […]

]]> By: Dominik Mueller http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3378 Dominik Mueller Fri, 29 Feb 2008 13:54:59 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3378 Robert, that's a very good comment. I agree with you that it will become increasingly difficult to monetize domains by simply parking them. Especially owners of generic domain names should develop their domains and use the existing type-in traffic to jumpstart the developed sites and services. Domain parking has changed a lot last year and it will continue to do so. I even believe that we will see more dropping domains, because less parking revenue will also result in lower profits after a portfolio's annual renewal fees have been paid. Rick Latona is selling off many domain names, but he is a buyer, too. I would say he is, like many other domain portfolio owners, trying to further improve the quality of his portfolio rather than increase the sheer quantity of domains he owns. After all, holders of quality domains *will* benefit from higher sales prices and more end user sales. But it remains to be seen how owners of large portfolios will do in terms of pay-per-click revenue. I believe they will have to let more low-quality domains drop and sell other domains along the way below market value, all along keeping the high-quality stuff until they receive an offer they consider high enough for selling. Robert, that’s a very good comment. I agree with you that it will become increasingly difficult to monetize domains by simply parking them. Especially owners of generic domain names should develop their domains and use the existing type-in traffic to jumpstart the developed sites and services. Domain parking has changed a lot last year and it will continue to do so. I even believe that we will see more dropping domains, because less parking revenue will also result in lower profits after a portfolio’s annual renewal fees have been paid.

Rick Latona is selling off many domain names, but he is a buyer, too. I would say he is, like many other domain portfolio owners, trying to further improve the quality of his portfolio rather than increase the sheer quantity of domains he owns.

After all, holders of quality domains *will* benefit from higher sales prices and more end user sales. But it remains to be seen how owners of large portfolios will do in terms of pay-per-click revenue. I believe they will have to let more low-quality domains drop and sell other domains along the way below market value, all along keeping the high-quality stuff until they receive an offer they consider high enough for selling.

]]> By: Robert Franks http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3377 Robert Franks Fri, 29 Feb 2008 13:29:19 +0000 http://www.dmueller.com/2008/02/29/domain-names-domains/datarecoverycom-sold-for-17-million/#comment-3377 In the coming years, I foresee owners of generic names doing great by either developing their domains into something of value or by selling them to the companies who will pay a premium for them (like ESS for DataRecovery.com and Barnes & Noble for books.com). Big money will be made. On the other hand, owners who buy/keep domains that do nothing but serve ads on parking pages up will be the loosers. Why? Two reasons: 1. the public will tire of those sites and stop clicking on the ads, and 2. advertisers will not want to pay for those clicks and eventually google and yahoo will discontinue serving up ads to bland parking pages. Why do you think Rick Latona is selling off his stuff? Because he is smart enough to know his PPC income for useless sites is going to disappear and he can't possibly develop all his sites. You will see owners doing the same thing. If you are a domain owner of parked pages or if you are a parking company, you better start looking for a new way go make money. RF In the coming years, I foresee owners of generic names doing great by either developing their domains into something of value or by selling them to the companies who will pay a premium for them (like ESS for DataRecovery.com and Barnes & Noble for books.com). Big money will be made.

On the other hand, owners who buy/keep domains that do nothing but serve ads on parking pages up will be the loosers. Why? Two reasons: 1. the public will tire of those sites and stop clicking on the ads, and 2. advertisers will not want to pay for those clicks and eventually google and yahoo will discontinue serving up ads to bland parking pages.

Why do you think Rick Latona is selling off his stuff? Because he is smart enough to know his PPC income for useless sites is going to disappear and he can’t possibly develop all his sites. You will see owners doing the same thing.

If you are a domain owner of parked pages or if you are a parking company, you better start looking for a new way go make money.

RF

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