Posts Tagged ‘ Domain Development ’

The “Give a Sh** Factor”

Sunday, December 4th, 2011
The “Give a Sh** Factor”

One of the people that has been making the rounds lately in the financial media is a hedge fund manager named Kyle Bass of Hayman Capital.   The guy is often on the right side of the trade, particularly when it comes to his bets in credit markets — notably mortgage-backed securities in 2008 and now sovereign debt in 2011.  In a recent interview, he makes reference to what he calls the “Give a Sh** Factor“.  This is the second time that I have heard him use this term.  Strangely, the notion of a “Give a Sh** Factor” resonates with me.

When it comes to business, I have learned a few things over the years about building companies — both as an operator and as an investor.  Looking back, I have had at least two opportunities in my professional life when I could have simply retired and spent the rest of my life pursuing hobbies. On both occasions I opted against that route, largely because I believe our Creator put us on this earth not to be idle. I genuinely enjoy building companies.  I am also a big believer in aligning incentives with all stakeholders, notably customers, employees and investors.  Without question, there is a success formula.

Earlier this year, the company I founded in 1999, GMI, was sold to WPP Group in a significant all-cash deal that rewarded the founders and investors for years of hard work.  I led the company as Founder and CEO from 1999-2007, during which time the company racked up 100% annual growth and emerged as a respected industry leader.  While the list of Key Success Factors for a company is longer, there are a few core themes that I view as the foundation for serving as an operating executive of a business, and especially in leading a fast-growing startup.  As the President and CEO of Epik, here are my top 3:

  • Know the Customer:   On any given day, I talk to 40-50 customers on the phone.  I also Skype with another 5-10 as well as email with dozens more.  The phone number on the Epik site, 425-765-0077, rings through to my personal cell phone which gets answered from around 6 am PT until around midnight 7 days a week.  With ~30,000 active accounts, you might wonder why the President of the company answers the phone. Simple. It has given me unprecedented insight into customer needs and an opportunity to personally connect with many customers. At Epik, we absolutely give a sh**.
  • Know the Product: I have always had a passion for technology and software development.  As much as I enjoy talking to customers, on any given day, I spend about as much time working with engineers.  Those discussions are invariably punctuated by customer calls.  While the customer comes first, our passion is for building world class software that we believe will empower a new generation of domain investor to get the most out of their domain name holdings.  Epik is building something that is very, very cool for anyone who wants to Acquire, Build, Manage and Sell domains and websites.
  • Focus on one thing:   This is popular logic. For much of my professional life I rebelled against it, thinking that I could handle more concurrent projects than the typical entrepreneur.  However, in the final analysis, I (humbly) agree that to be an effective operating executive, focus is required.  I am focused on Epik. Why? Of all the ideas to pursue and all of the investment categories to master, I focus on Domain names because I believe that the case for domain name investing has never made more sense to me than it does today.   Epik is in the right place at the right time.

Looking ahead, we have some exciting things in store.  As these initiatives come to light, I think it will become increasingly apparent to all that Epik is a company with a very high “Give a Sh**” factor.

 

The “Give a Sh** Factor”

Launching Product Portals 3.0, Where Content is King

Saturday, June 11th, 2011
Launching Product Portals 3.0, Where Content is King

The new Product Portals platform, version 3.0, has now been rolled out to all domain owners! The feedback we’ve gotten from early adopters has been overwhelmingly positive, to say the least.

The 3.0 platform offers a cleaner, updated UI for the storefront, a brand new admin system, and most importantly, the ability to increase the volume and visibility of high quality content on your sites. This last is critical for good SEO, increased page views, and, ultimately, higher page rank and revenue. Under 3.0, we have been seeing an average increase in page views of 23%!

The key to 3.0′s value is the ability to get rich content into the sites, and make that content more visible to both end users and to search engines.

The Articles Editor

There are two ways to add content to your product portals, the first by writing (or commissioning) original content, while the second is to import articles from what are known as “content farms”. If you are interested in ensuring original, high quality content, then writing the articles yourself is the clear way to go. And with the new 3.0 edition of Product Portals, you have an articles editor that enables you to compose articles of any length that support a full range of formatting options and rich content.

As with version 2.x, the 3.0 platform stores these articles on an Articles page. But now, there are additional ways to expose these articles to users.

Featuring Articles

One of the most important additions to v3.0 is the “Featured Articles” element.

Up until now, the primary block of SEO-friendly text in a Product Portal 2.x site was in what we called the “mainbox”. It did an adequate job, but as 1) a fairly generically worded block of text, and 2) a static block at that, it didn’t provide the kind of SEO value one gets from longer, more constantly refreshed content. In addition, while 2.x sites contained an articles page, the articles were not as visible as they could be and thus became something of an afterthought to site owners.

The “Featured Articles” element provides a mechanism for exposing a site’s most relevant articles “above the fold”. This placement has several benefits, including making the site more informative to end users, as well as by breaking up the heavy grid orientation of the test of the pages.

I’ve already described the ability of our new editor to create articles rich in content and graphics. The question then arises as to where to place them.

The 3.0 admin controls give you very precise controls over which articles are featured. Up the four articles can be featured on the home page as well as on on each tab. Because the designations are independent of each other, it would be possible, on a site with a home page and four tabs, to have as many as twenty unique featured articles at one time [(1+4)*4]. Any particular articles could be the primary featured article on one tab, the fourth featured article on another, and not featured as all on a third tab. This allows the site owner to place the most appropriate content on each part of his or her site.

I should also point out that the mainbox is still supported on the 3.0 platform, and that the mainbox and Featured Articles can coexist on the same page. That said, I recommend that those of you who set up the Featured Articles feature consider disabling the mainbox so that the product grid below isn’t too far down the page.

Scalability

The article editor, coupled with the ability to define where and how those articles are featured, gives the site owner the ability to make it an informative site for products and advice. But there is a problem. Writing an article — especially a good one — takes time, and writing several articles takes even more. Not a major problem for the owner of only one or two sites, but for the owner of scores or even hundreds of sites, generating that much original content is impossible. However, the new 3.0 platform has a solution: the ability to import preexisting articles from other sites.

As you well know, there are numerous sites, often called “content farms”, which provide content to web sites. The quality of these articles can vary greatly, from really good pieces to stuff that would embarrass a grade school English student. In fact, Google, through its Panda initiative, has begun downgrading the rankings of sites that house poor quality content. As a result, these farms are beginning to become less lax on the editorial side, and quality has begun to rise. But whatever the case, the owner of a hundred sites needs articles, cannot possibly generate them, and the content farms have them. So, how to get these articles into a Product Portal site?

Version 3.0 enables you to select a source for farmed content, and then set rules for how many articles you wish to import over a specified period of time. You might, for example, choose to have five articles important each week. These articles will be imported into your system randomly over the time specified, and will automatically appear on the Articles page. The import rules can be individually set for each tab on each web site, if so desired. The goal is to provide site owners who have neither the ability, desire, or time to write articles a way of getting longer form content onto their sites.

But what if an owner has 200 sites with an average of, say, five tabs? Setting up the import rules one thousand times is hardly a practical task for most domainers. That is why we’ve added to ability to configure certain settings globally. These settings are applied to every domain in your portfolio. They can then be overridden on a site by site basis for those domains that deserve your special attention. One of those global settings allows you to set the article import rules for all sites in your portfolio, so you are only a few mouse clicks away from filling all your sites with new content!

In addition, you can set global rules for configuring the Featured Articles element. Clearly, the level of specificity previously described cannot be applied generically over hundred of sites, so for those setting the feature globally, you can choose the number of articles (up to four) that are to be featured; the actual featured articles will be most recent ones.

We feel that this combination of capabilities offers the best of both worlds: the ability to make broad, sweeping settings coupled with the kind of detail you might want for particular high value sites. For example, you might have 100 sites, 95 of which you think will be well served simply with farmed content featured strictly by how recent the article is. Another three sites be still get by with farmed content, but you wish to specify the placement of what you think are the best of those articles. And the last two sites — perhaps your top performers — are worth the time and trouble to write or commission custom articles. Product Portals 3.0 would allow all of this through a single, easy to use interface. In this case, you could set up the basic feature globally for all 100 sites, and then for the top five site, make site-specific configuration choices. And, needless to say, you can combine farmed and custom (“free range”?) content on and and all sites.

Getting back to farmed content for a moment, Google’s Panda effort hit the content farming industry like a ton of bricks. Many of them had varying levels of quality pre-Panda, and some of them have significantly improved their editorial control since then, which others have changed not at all. The bottom line is that the quality of farmed content can still range from excellent to terrible. Consequently, we have designed the system to support multiple sources of content. Please note, however, that initially we only support articlesbase.com, which our DevRich team has had good results with. One of the reasons we have not yet turned on multi-provider support is that many of the farms steal from each other, and so the same article might appear of several farms. As you know, avoiding duplicate content is a key to good SEO, so until we can reliably avoid ingesting duplicate articles from multiple sources, we’ve taken the approach that is safest for your SEO. When we are able to safely support multiple providers in a non-duplicative way, we will do so.

Try It Out

To wrap up, we believe that the combination of a refreshed storefront design that emphasizes new sources of rich content, coupled with an entirely new admin system, will enable you to maximize the value of your product portfolio sites.

I have written in the past that there are two basic types of Product Portal customers: passive and active. Passive owners are content with the sites as generated by our operations team, while active owners want to take a more hands-on approach to helping grow their site. The new admin capabilities were designed to enable both set of customers. Active owners will find that they now have a great deal of administrative capability in a vastly more accessible user interface. And passive owners will find that the tools are simple enough that they can easily dip their toes into the waters with one site, and proceed from there.

We are extremely excited about Product Portals 3.0. I encourage you all to begin exploring the new capabilities by going to ppadmin.epik.com, which replaces your old Wishpot admin panel. You now have the tools to take a more active role in the running of your sites, and I hope you do so.

John Lawler
SVP, Products

Launching Product Portals 3.0, Where Content is King

New Platform: Epik|Video

Friday, December 24th, 2010
New Platform: Epik|Video

Certain domain names naturally lend themselves to a particular use. HardDrives.com, for example, is naturally suited to be an e-tailing site that sells hard drives, whereas a site like DenverRestaurants.com would tend towards a directory of restaurants in, yes, Denver. Such natural tendencies are true not just for domain names but for TLDs as well. Case in point: .TV sites, which readily lend themselves to video content, although there are, of course, many .com and .net domains that are equally well suited for video content.

In any case, as followers of Epik know, we often develop new platforms in response to customer requests. When a surprisingly large number of people asking what we could do for their .TV domains, we got to work so that they could unpark those sites. The fruits of those labors is our new domain development platform, Epik | Video.

Earth to Captain Video


The Epik | Video platform allows us to build topic-specific collections of videos, including subcategories. Consider baking.tv —it’s the holidays, so there is a lot of baking going on— which displays how-to videos on how to bake cookies, muffins, cheesecakes, etc. These videos are currently aggregated from both YouTube and Vimeo, although we plan to add additional video sources in the near future.


Visitors can browse through the videos, search against keywords, and let friends know about a particularly useful video through sharing buttons for Facebook, Twitter, and other social media sites.

Site monetization comes from Adsense-style ads, although the addition of Shopzilla-style affiliate elements are planned for January. Additional features such as playlist creation and sharing are also coming soon.

Curation is Key

The question, of course, is why would someone come to a site that aggregates videos that can be found elsewhere on the web? The keys are curation and selection. Developing a worthwhile video site requires separating the wheat from the chaff. Consider someone interested in videos about the paranormal in general, and of Bigfoot in particular. If they simply visit Youtube, they will certainly find a lot of videos about Bigfoot. Unfortunately, they will also discover numerous videos of Bigfoot video spoofs, user car commercials with salesmen in unconvincing Bigfoot costumes, clips from a bad 1987 movie called Harry and the Hendersons, and a lot of other extraneous or low quality material.

This is where Epik | Video comes in. We don’t simply grab every video available. Rather, we sort through videos from across the Web and remove those that are off-topic, of poor video quality, or otherwise don’t make the cut. The result is a set of high quality, relevant videos that give visitors what they want while saving them time and effort.

Our ability to do this in scale is based on tools we’ve developed that let us search the Web for videos based not only on keywords, but also criteria such as video source, duration, ratings, whether the video is HD or not, and many others. This help produce a short list from which our operations team selects the best videos for inclusion. This tool, by the way, will be made available in Q1 to domain owners so that they can continually refresh their site content with the newest videos on their own.

A Look Down the Road

While the current platform is a great way to build out a video-centric domain name and/or TLD, we have even bigger things planned for Epik | Video Pro, most especially the uploading and monetization of custom, premium video content. Video Pro will allow site owners to upload video content they create directly onto the site, and to create Premium channels only available through a paid subscription at a price set by the domain owner. If we think of Epik | Video as basic cable, Video Pro allow us to create HBO. And, of course, such a site might offer a mix of free and premium content—it’s all up to you.

We believe that this model makes particular sense for site owners who have not only a domain name but their own original content, for example, self-help videos, yoga lessons, etc. With Premium accounts, these videos can gain a wider audience without having to give them away for free.

Even more interestingly, we plan to give Video Pro site owners to ability to sell premium channels to third party owners of content. If, for example, you had a site about auto racing, you could approach Nascar about having them put up their content on a premium Nascar channel, and share any revenue from those videos with them. For those who have the right domain names, this capability can let you turn your site into a thriving business.

We believe that Epik | Video and Video Pro are excellent ways to implement your video-centric domain names. Epik | Video is available today, and Video Pro is scheduled for release in late Q1. As for cost, Video sites are $499/site, but if you order any before Dec. 31, you are eligible for our 25% year-end discount. If you have domain names that you think might be suited to displaying video content, this is an ideal time to unpark those sites and getting people watching!


John Lawler, SVP Products

New Platform: Epik|Video

Epik | Recipes: Now We’re Cooking!

Thursday, December 23rd, 2010
Epik | Recipes: Now We’re Cooking!

As some of you may know, I’m a foodie, which is to say that I love to cook (when I have the time), enjoy any opportunity to expand my understanding of food and wine, and that I have a rather debilitating cookbook addiction. I am therefore especially pleased to announce the newest of Epik’s development platforms: Epik | Recipes.

With Epik | Recipes, you now have a platform with which to build out high quality, high performance food and drink sites that are genuinely useful to site visitors.

Main Ingredient: Recipes

The greatest challenge for the owners of great food- and drink-related domain names such as grilled-chicken.com or alcoholic-drinks.com is how to populate them. Even the best name is useless without a sizable cache of legitimately acquired recipes. Epik has solved this problem by building a database of over 10,000 recipes, which we plan to grow to more than 100,000 over the coming months. With this storehouse, we have ample content to match to almost any recipe-related domain—you just need to provide the domain name.

More interestingly, all these recipes are saved in a very particular format, one that offers significant benefits to the domain owner and the site visitor.

Recipes and the Semantic Web

Taken as a whole, a recipe is an inherently structured data type; it necessarily contains concepts such as ingredients, amounts, steps, and durations. Consequently, recipes are an ideal data type with which to bind semantics and data together in order to create recipes easily readable by both humans and computers.

The mechanisms for doing so are microformats: simple, open data formats built upon existing and widely adopted standards. Microformats enable the representation of semantic information within a web page; in simplest terms, the HTML markup now includes the data as well as the meaning of the data. And with this meaning, information can be leveraged in ways never conceived by the author of the data.

In the case of recipes, this format is called hRecipe. And recipe sites encoded in hRecipe offer significant advantages to the domainer and users:

  • Contextual search: Consider a user reviewing a recipe for Vietnamese spring rolls. Any recipe site worth its salt (pun intended) can handle that. But with hRecipe, the site could offer suggestions for other Vietnamese dishes, or other appetizers, or even other recipes that use similar ingredients. And it can easily do so precisely because the concept of Vietnamese as a cuisine, and shrimp as an ingredient, is understood by the site. The ability to offer superior navigation and menu planning suggestions is thus enabled by the microformat in a way not easily possible for a “plaintext” version of the very same recipe. We plan to leverage and extend such abilities in the coming months.
  • Improved monetization: Initially, Epik Recipe site will monetize through fairly standard ads and then through systems like Shopzilla that can display, say, a list of cookbooks appropriate to what the user is viewing. But with the semantic encoding of microformats, more interesting monetization avenues open up in a way not possible with plaintext recipes. Consider being able to click an “Order All Ingredients” button that places an order on Safeway.com or AmazonFresh. How? Because the site knows all the ingredients and the amounts necessary to make that dish!
  • Improved page rank and click throughs: Consider the challenge Google faces. It must scan, try to understand, and classify every web site on the planet. Well, Google likes it when they get help, and encoding sites with microformats is a huge help to Google. Instead of crawling a site and trying to figure out whether the page contains a recipe, a microformat provides that information to Google “predigested”; Google doesn’t have to infer the meaning of the data because the meaning has been directly encoded into the site data. Thus, Google then knows not just that it is a recipe, but that it is a low-cal chicken breast recipe because information like calorie counts are encoded on the page in a standard way. Classification by crawlers becomes both faster and more accurate. Better yet, Google shows its appreciation by ranking and displaying microformatted data preferentially because the data is already semantically encoded; this is all part of Google “Rich Snippets” initiative. And because it has more definitive information to render, it can display search results in a more attractive and useful way.

Google’s preference for rich, microformatted data results in better page rank and more click throughs.

In addition, Epik | Recipe sites will enable and encourage users to upload their own recipes to the site, helping keep the site content fresh and crawlable while creating a sense of community, ownership, and virality.

For anyone who has ever heard Rob discuss the “semantic web”, Epik | Recipes is a perfect example of the power of encoding meaning and data together. It offers a improved experience to the user, and greater opportunities for monetization to the domain owner.

Building out an Epik | Recipe site is very cost effective: only $349/site. Better yet, order before Dec. 31, and our 25% off year end discount applies. I am hard pressed to think of a better platform, or a better time, to build out your food and drink recipe domains. Both Rob and I are very excited about this platform, and we hope you feel the same.

Merry Christmas!

John Lawler, SVP Products

Epik | Recipes: Now We’re Cooking!

Epik | eCommerce: An Industrial-Grade Backend

Thursday, October 14th, 2010
Epik | eCommerce: An Industrial-Grade Backend

Earlier this week, we began shipping Epik | eCommerce, our new e-commerce platform. To say we are excited about this platform is a gross understatement. Epik| eCommerce is much more than just a shopping cart: It is a complete online marketing and sales solution that is powerful and easy to use, giving you everything you need to market, merchandise and sell your items in a single, web-based dashboard. We believe that it is an ideal platform for Product Portals that have paid clicks, or for competing in categories where there are significant margins between consumer price and cost of goods.

The feature set of Epik | eCommerce is extremely rich, offering features previously found only in the most costly, highest-end systems. Some highlights:

Marketing

  • Built with the strongest organic SEO foundation possible, including meta info, H1 and H2 tagging, URL rewrites, auto image-renaming, and site map generation
  • Generates and manages coupon and promo codes
  • Newsletter module, including automatic sign up to build mailing list
  • Sophisticated search functionality: search for categories, products and website content (including blogs) all in one search
  • Full eCommerce dashboard highlighting new orders, total orders for day, value of orders and most popular products and categories by day/month/year (great for determining the good selling products and categories from the slow sellers)
  • Full reporting capability on inventory, sales and visitor statistics
  • Live Activity Log to see what’s happening on your site in REAL TIME, from orders to contact requests to blog post replies
  • Full Google Analytics integration to get all of your important site statistics in one spot
  • User management & control for multiple users and roles

Social Media Integration

  • Single click integration with Facebook and Twitter
  • Integrated ‘Share Product’ functionality via email and/or nearly 300 social outlets, including Twitter and Facebook
  • Integrated blog module w/ categories, authors and social media tie-in, including automated blog post syndication
  • Integration with Comments.com and Questions.com

Merchandising

  • SEO optimized product category pages with category thumbnails and subcategory options
  • SEO optimized product detail page w/ full WYSIWYG editing functionality
  • Automated extended descriptions to capture SEO keywords without filling the page up with text
  • Customizable product options by category or store-wide
  • Single page checkout with registration options to reduce shopping cart abandonment
  • Full inventory control: quantity on hand, flag to reorder when quantity drops to set count, out-of-stock management
  • Multiple images per product with dynamic image swapping on mouse over
  • Automatic Image Resizing for both thumb-nail view and product page view
  • ‘Featured Categories’ and ‘Featured Products’ settings for instantly highlighting items to will be displayed prominently on your site.
  • ‘Suggested items’ option based on category or product
  • Real-time shipping calculations based on type of service

Drop Ship Management

  • Vendor setup and management
  • Notify multiple vendors for items purchased from a single order
  • Send real-time or batched emails to vendors showing only their portion of an order
  • Flexible pricing and inventory management
  • Full reporting, including total sales by vendor, and sales by vendor by category
  • Flexible shipping integration with UPS, FedEx, USPS, etc.

Payment Systems and Taxes

  • Flexible payment options: Authorize.net to merchant bank of your choice, Paypal, or Google Checkout
  • Complete, east-to-use back-end point-of-sale system for handling orders over the phone or at tradeshows
  • Tax controlled / tax-exempt products
  • Blocked shipping areas and/or dates
  • Import/export product lists for quick bulk updates
  • Quickbooks integration

Customer Management

  • Member account management; members can simply log in and control their account, view past orders, change details, etc
  • Built-in CRM (customer relationship management) tied directly to customer history –create and store notes and even uploaded files
  • Immediate order notified via email; customer gets receipt email with full details of order and store owner gets confirmation
  • Order tracking for users to see the status of their purchases. When you update an order’s shipping status you can automatically send an email to the shopper notifying them of the change of status AND also have an option to enter tracking codes too so they can see where their item is.
  • Change-order functionality (automatically triggers replacement emails)

Security

  • PCI Certified hosting
  • SSL Encryption
  • Secure Admin login
  • Premium hosting
  • Captcha image validation for all form submissions (can be disabled)



I think you can see why we are so excited, and why Epik | eCommerce is the ideal platform for developing robust online stores. Of course, our work is never done! We have even more compelling features coming soon, including:

  • Even easier interface with more ‘1-click’ features
  • Expanded reports including user-based reporting (that can be ‘memorized’)
  • Zoom-In on pictures (depending on image quality)
  • Google Base Feed
  • SMS messaging
  • Auto-notification email for out-of-stock products coming back online
  • Additional design templates
  • Mini-cart option (cart contents always visible)
  • Training video database
  • Facebook store integration
Epik | eCommerce: An Industrial-Grade Backend

How folks are building wealth on Epik – 6 case studies

Thursday, September 30th, 2010
How folks are building wealth on Epik – 6 case studies

It is always interesting to me to see how folks are building their development portfolios on Epik.  There are different strategies that are working for different people in terms of how they are building value.  This post spotlights a few individuals and their strategies.

The Empire Builder – Kenny Hartog
Kenny is the largest developer on Epik. As such, he needs no introduction.  Kenny’s strategy has to been to build out mainly long-tail names that are hand-registered.  In addition, Kenny owns some top-ranked sites like IceCreamMaker.com.  Since starting with Epik in January,  Kenny has assembled a portfolio of more than 1,000  sites, comprised mostly of hand-registered names, including many hyphenated exact match names. Because of the size of his monthly payout, Kenny is also fast-approaching our highest revenue share rate (80%) which makes it attractive for him to acquire portfolios of other people that are starting at 50% revenue share.  One of Kenny’s preferred methods for funding development is buying EpikBucks from other people at 85-90 cents on the dollar and then using these EpikBucks to acquire domains (e.g. at SwapFest) or fund new developments.

The Merchant – Oliver Hoger
Those who know Oliver Hoger, know that he is a merchant. He loves the deal. Since partnering with Epik, he has been aggressively acquiring high quality .net names like Police.net and Toilet.net and entering into co-development agreements with Epik whereby we waive setup fees in exchange for 30% of the proceeds from eventual sale of the developed website.  In a very short time, Oliver has partnered with Epik on more than 100 domains.  He is one of the most active buyers that I know, notably of .net domains, which we have proven are just as easy to rank as the .com names. Most of Oliver’s sites have gone online during September. Earlier this month, he sold ComputerTips.com at the Epik-Moniker live auction for $17,500.  I think odds are good that by November, Oliver will be giving Kenny a run for his money on daily revenue.

The Stager – Morgan Schwartz
Morgan is a teacher by day.  At night and on the weekends, he backorders names and develops them on Epik.  Over the summer, Morgan got trained in how to build sites on Epik.  Morgan is also one of the first to sell his developed sites at the Moniker Live Auction.  Here are a few of his exits so far:

In the meantime, these sites were already making money from operating revenue.  Morgan is a great example of a Developer who adds value and exits while leaving plenty of upside on the table for the next guy.  In the real estate terms, he would be what the industry calls a “Stager”, ie. improves the property but then promptly sells it.

The Gardener – Todd Johnson
Todd is one of the most humble guys I know in the domain world.  However, don’t let the humility fool you.  Todd is all business.  He is the original member of what I have come to call the Albuquerque Epik Mafia.  Todd has assembled a portfolio of high performing sites that make money. Examples:

Todd applies best practices for site development and adds value to them through content sourcing and link-development on top of what Epik provides.  Unlike Morgan Schwartz, Todd rarely sells. He would sooner give a name for free than sell.  Todd’s methodical approach is generating solid recurring income that has brought him into the top-10 for monthly income but with much less total capital employed relative to the approaches of Kenny or Oliver.

The Prospector – Aaron Wilkenson
Aaron is on track to finish 2010 with more than 100 live portals on Epik.  He assembled this portfolio with relatively little cash employed.  His method has been to acquire or hand-register the types of domains that Epik likes to develop.  Epik in turn acquired these names from Aaron for EpikBucks which he then used at SwapFest, or used to development of his own high potential domains. If you look at the results from the Epik SwapFest you can see that Aaron did rather well. Aaron picked up 47 domains with websites. The amazing thing is that he has been able to build his portfolio with almost no cash invested. I just smile when I look back at how he managed to do this in a very short time with a relatively modest investment.  Aaron is doing great and is going to be a Developer to Watch in 2011.


The Bandit – Braden Pollock
Braden is perhaps best known for building one of the most complete portfolios of legal domain names — something that he has been doing on Epik’s DevRich.com platform. I call Braden the $219 Bandit because if you look at the results from Epik SwapFest #1, you will see that all of his bids were at $219.   He had prepared a bid sheet at near the lowest price in the Dutch auction, and while most of his picks were already gone, he managed to capture some great properties for $219 each.  In addition to cleaning up at SwapFest #1, Braden is one of the most disciplined domainers that I know. He methodically maps out his targets and pays exactly the price he ways to pay.  While he won’t get every name he wants, he is able to consolidate positions in target markets.   This is similar to a strategy used by Graham Easton of Singapore-based SwiftRank which now has 30,000 live sites in the hotel vertical.  Like a thief in the night, these guys are monopolizing the name space in entire verticals.

What’s your strategy?
As you can see, there are many strategies that work. The strategies that work best are the ones that fit individual personalities and interests.   The Developers profiled in this post are having fun, adding value, and improving the internet by taking parked or unregistered domains and making them into online businesses.   This is a small sampling of some of the success stories that are taking shape.  Look for more case studies in the months ahead.

How folks are building wealth on Epik – 6 case studies

Our latest custom development project: ETF.com

Sunday, September 5th, 2010
Our latest custom development project: ETF.com

When it comes to domain names, the cream of the crop are known as “category-defining domain names”, a domain name that exactly describes the type of business or subject the site is about. To be sure, having such a domain name is not in itself sufficient for success, but the odds are greatly improved, particularly in a world where direct navigation is becoming more popular.

Epik owns, or is in partnership with, quite a number of such names, some of which have been built out, and some of which are awaiting the right partner to turn the domain name into a category killer.

Epik’s newest entry into our portfolio of category-defining domain names is ETF.com.

Those of you versed in finance are now nodding your heads, while the rest of you are rubbing your eyes. ETF.com? What is that?

Investopedia describes an Exchange-Traded Fund (ETF) as “a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund.

In short, ETFs combine the best aspects of stocks and mutual funds. They’re a dessert topping and a floor wax.

ETFs have become a hugely attractive investment instrument because of their low costs, tax efficiency, and stock-like features, and now make up over 50% of the trading volume on the New York Stock Exchange, truly amazing for something so new and so little understood by most investors.

And that’s where ETF.com comes in. As a comprehensive repository of information about ETFs, it is well positioned to become the go-to site for anyone looking to learn about ETFs in general, as well as the daily results of that day’s trading.

But recall my earlier comment that a great, category defining domain name like ETF.com is not in itself sufficient for success. You need only look at mutualfunds.com and stocks.com, two parked sites that are wasting the value of those domain names. The owners of ETF.com had built the foundation of a strong site, but it wasn’t resolving properly, some of its features were incomplete, and it needed a refreshed design.

And so, enter Epik. We’ve entered into a development partnership in which we will lead the ongoing development of new features as well as an improved design. We’ve only been at it a week, but the results so far are strong.

Over the coming weeks we will be further improving the site’s looks and feel while adding even more compelling new features. Of particular note will be the creation of the ETF.com Advisor Network, a directory of financial institutions and experts who can provide advice on how ETFs might fit into one’s investment portfolio. And for those who prefer to do it themselves, we have implemented the first iteration of the ETF Screener, which allows you to search for ETFs based on a wide variety of characteristics and investment goals.

Our development work on ETF.com is a excellent example of the breadth of Epik’s development capabilities. While the bulk of our efforts revolve around the creation of the technology platforms that power our online stores and directories, we also do custom development when the right name comes along.

We are very excited about the prospects for ETF.com. It is an excellent example of the value (and valuation!) that can be generated when a category-defining domain name is matched up with a custom developed web site, and how development projects such as this can help turn a category-defining domain name into a “category killer” business.

It should also be noted that ETF.com will be available as part of the domain auction being held on September 16th during the Epik Developers Conference. It would make an ideal acquisition for any brokerage or private equity firm.

Our latest custom development project: ETF.com

Amazon.com — cracks in the foundation?

Thursday, July 22nd, 2010
Amazon.com — cracks in the foundation?

Amazon’s Q2 earnings are out. They missed the analyst estimates and the stock tanked 15% in after-hours trading.  Domain owners with product category names, take note, as I believe this has implications. I previous blogged about Amazon here. I continue to follow Amazon closely, not just because they are a Seattle-based internet success story, but because they are a bellwether for web commerce. When Amazon catches a cold, it is meaningful because it suggests something is afoot.

The results were good, but below expectations
Today, after the US markets closed, Amazon came out with their latest earnings report. The company earned $207 million  ($0.45/share) on $6.57 billion in revenues.   The  analyst consensus was at $0.53/share on $7.16 billion. For a public company with an out-sized market valuation, that would be a …. BIG swing and a miss!    Why the shortfall versus forecast? Well, the analyst expectations were a bit giddy, for one thing. However, could it be that Amazon’s ability to squeeze stakeholders is finite? I think so.

Symptom #1: Google is Kingmaker
I have a theory that Google has become a significant threat to Amazon’s business model.  Google is increasingly not ranking Amazon product pages at the top of the SERP. On any given day, IceCreamMaker.com is #1 or #2 on Google.  At Epik, we see the same with other fast-risers like IceCreamMaker.com, GirlsSwimwear.com, and Bra.net but also on the vast network of long tail category names that are getting traction like psylliumhusk.com and reloading-press.com. As more competitors compete for these top category terms, Amazon will have to battle even harder to maintain a top position in organic search. Easier said than done when operating on such vast scale.

Perhaps more importantly, what is the incentive to Google to rank an Amazon page? As near as I can tell, there is none whatsoever. If Google sends a consumer to Amazon, that consumer has just been trained to go shopping at Amazon the next time they are wanting to shop online.  It is foregone conclusion that Amazon’s pages will be less favorably ranked than they are today. The writing is on the wall as there is a growing number of domain developers who are learning affiliate marketing, dropshipping and e-commerce. Some of these new entrants are going to execute well. CSN Stores and Hayneedle proved the model but neither has scaled it to 100,000 stores.  And they won’t!

Symptom #2:  The affiliates are waking up
Affiliate marketers are increasingly aware that Amazon is paying out lower and slower.  Our affiliate network pays out an average of 3 times higher than we were earning when we used Amazon feeds.  In the short-term, it makes logical sense for Amazon to (1) increase chargebacks, (2) discount click volume and (3) delay payouts. However, affiliate marketers are generally not idiots, and will eventually wake up and smell the raw deal. When they do, they will come up with counter-measures. Epik already did. Sure, there will be a new generation of affiliates, but if enough of the top-ranked competitors defect from Amazon, that spells trouble for Amazon.

Symptom #3: The consumer is still hurting
At the end of the day, Amazon’s success is tied to a robust consumer economy.  This may or may not be in the cards.  Of note, the ECRI publishes the best non-tampered economic indicators that I have found.   The leading indicators are not good and flashing double-dip recession. See the green line below.

ecri


WWAD  – What would Amazon Do?
So, the operative question for domainers is this?  Given Amazon’s balance sheet strength, and the implied risk of 100,000 category-defining domains being powered by something other than Amazon, when will Amazon embrace a domain strategy?  I don’t know if Amazon has a domain strategy. I do know that the price of not having a domain strategy is going to go up rapidly in the months ahead.

A look ahead at Epik Stores (formerly known as Product Portals)
Luke Webster, EVP Operations of Epik, is normally based in Sandpoint, Idaho where we operate our call center and fast-growing production center.  This week, Luke spent 2 days in Seattle working with the team here for strategy meetings.  A core purpose of the meetings is the planned migration to Dropship, and eventually, e-commerce for many of our online stores.  Luke’s previous work in the e-commerce field, as well as the work of Epik’s sole outside investor, Tal Moore (Founder of Gumballs.com) has taught us that there are categories where there is as much as 90% gross margins — a far cry from the $0.18 average CPC currently being earned on our affiliate networks.  Stay tuned.

Amazon.com — cracks in the foundation?

.CO TLD Domain Development

Wednesday, July 21st, 2010
.CO TLD Domain Development

The .CO sunrise and landrush has generated a tremendous amount of interest.   One of the main challenges for past TLD launches has been the anemic level of actual development, which ultimately resulted in the irrelevance of the TLD — .ws, cc, .mx,  .whocares?   In the case of .CO, a lot of the best keywords have now been taken.  So, what’s different about developing on the .CO TLD?

.CO domains cost more
It is one thing to spend $7 a year to be wrong. It is a whole different story when you are spending $30 per year.  The clock ticks faster when you are burning $30 a year for the privilege of finding out whether you bought into a failed launch.


The .CO is not going to be a big typo story.
Typographic studies don’t suggest that .CO will be a big type-in story, unlike .CM, which profited handily from the wildcard pattern.  I routinely type .CM but honestly can’t ever recall typing .CO.  I know I am not alone on this point. So, anyone counting on big type-in traffic from their .CO name is probably in for a rude awakening.


The .CO means business. Or does it?
The fate of a TLD is largely a function of the brand story behind it.  Just as .ORG is associated with not-for-profit, it goes to follow that .CO should be about business, as the near-cousin of .COM  (or commerce).  What is the fundamental value proposition positioning of the .CO brand?  Not clear yet, but from the registrations I have seen so far, .CO is about business and not about individuals.  For example, as of this moment, nobody own BarackObama.co.  That makes sense to me in spite of the search volumes.


.CO could still be a busted launch

While I am not a huge fan of TLD proliferation, I do think the .CO has legs. However, do not underestimate the task ahead.  For the emerging promise of the .us TLD, I believe we have just witnessed what is likely a failed .TEL launch despite the single best TV campaign for a new TLD that I have ever seen.  If you missed it, enjoy:

And for the record, we did register DomainDevelopment.co plus a few others.

Epik embraces the .CO
We would be delighted to see the .CO succeed.  If you bought a .CO TLD, the good news, through August 31, we will give you a $30 discount on development of your .CO TLD. In other words, if you manage to get a .CO TLD, and develop on Epik, congratulations you got the domain for free and have a year to find out if the .CO is going to be the hit that I think it can be.  And if it is a hit, I would say, give a big hat tip to Lori Anne Wardi — from about day one, she has been relentless in breathing life into the .CO story.

.CO TLD Domain Development

Webcast debut on Wednesday, July 28 at 2 pm ET

Tuesday, July 20th, 2010
Webcast debut on Wednesday, July 28 at 2 pm ET

Owen Frager is pretty irresistible when he wants to be.   When he asked me to do a webcast, I was thinking something small scale and low profile.   It looks like it will be a well-attended broadcast. I am looking forward to the event and hope you will join us for what should be informative session including an announcement.

If you have not registered, please visit here:

https://www2.gotomeeting.com/register/484594659

This will the first time that I do a webcast, but hopefully it is still a fitting capstone for Owen’s impressive run of 40 webcasts. Fingers crossed!

Webcast debut on Wednesday, July 28 at 2 pm ET