Posts Tagged ‘ Domain Development ’

Every dog has his day

Sunday, July 18th, 2010
Every dog has his day

Creative dealmaking is something that I enjoy, particularly when it gives Epik the opportunity to work on a domain that might otherwise be out of reach for development due to the circumstances of the owner.  Sometimes it means bringing together a 3rd party. If it is a deal that makes sense, Epik can help make it happen. And sometimes we get lucky.

puppy

Last week we were able to finalize a deal with domain portfolio owner Harry Daskal.  The deal involved one of the most complete portfolios of names related to puppies.  It is a natural choice for building on our directory platform.   The portfolio includes more than 1,000 pet and dog related names, including some of these gems below.


Domain Appraisal Search volume Avg CPC Ad competition
boxerpuppies.com 45,000 204,600 0.42 high
germanshepherdpuppies.com 19,000 204,600 0.76 high
goldenretrieverpuppies.com 7,900 204,600 0.43 low
dog-kennels.com 920 204,600 1.72 low
huskypuppies.com 17,000 136,400 0.46 high
pomeranianpuppies.com 31,000 136,400 0.68 low
labradorpuppies.com 20,000 136,400 0.41 low
rottweilerpuppies.com 28,000 136,400 0.49 high
englishbulldogpuppies.com 4,700 112,220 0.59 low
cockerspanielpuppies.net 1,400 91,760 0.47 high
puppytraining.net 3,300 75,020 1.26 low
dachshundpuppies.net 540 61,380 0.5 low
frenchbulldogpuppies.com 3,600 61,380 0.49 low
bichonfrisepuppies.com 2,400 50,220 0.43 low
yorkshireterrierpuppies.net 1,200 41,044 0.66 low
chihuahuapuppies.com 7,400 33,604 0.45 high
labradorpuppiesforsale.com 410 33,604 0.4 high
dogpetsupplies.com 10,000 33,604 1.71 high
papillonpuppies.com 10,000 27,528 0.51 high

We initially put these domains on the Epik Wiki platform in order to start the indexing process following an extended time on a parking network.  In about 2 weeks, we’ll start rolling out directories of breeders and service providers.

Other recent examples:

  • Drew Sharma owns VideoProduction.com.  Now that is a gem.  Here is our domain appraisal.   The always energetic Friend of Epik, Todd Reum, brought us the opportunity to develop it.  Drew is looking for $100K for the domain. The domain appraises for considerably more.  If someone wants to buy it from Drew, Epik will pre-approve the development with an exclusive for the video production category.
  • Shai Neubauer brought us the domain Location.com.  I first met with Shai more than a year ago at deli in mid-town Manhattan. I won’t forget that meeting.  Although we did not get a deal done then, we got a deal done earlier this month. The timing is perfect as we are integrating Location.com into our directory strategy in a way that I am personally excited about.  As a result, it made sense for us to take this one on a no-cash basis.  We will release the first phase in August.

Challenging times call for creative solutions.

Every dog has his day

The Epik Ecosystem at work

Friday, July 9th, 2010
The Epik Ecosystem at work

One of the unique aspects of building Epik is the “ecosystem approach”. Specifically there is a unifying architecture that connects the expanding network of Epik-powered sites.  We are 5% of the way through the journey and I could not be more excited about what is coming along.

What do we mean by “Ecosystem”
I previously blogged about the Epik ecosystem.  In that post, I used this visual to begin to explain how the pieces are being assembled to create a more intuitive user experience for consumers as they navigate from site to site.

ecosystem
Like building a city from the ground up, everything is easier for the developers when there is a unified approach to shared services like sewage, water, electric, zoning, and standards for where to find what.  In the next phase of the web, Epik believes that the people who own domain names have a key role to play in building a better web that is more intuitive and more user-aware.

Epik’s implementation of the ecosystem vision is still evolving but the notion of an interconnected network with horizontal components has been a core design principle from the start.  As the various Epik-powered solutions now begin to get serious momentum, we expect that the network effects will begin to build rapidly.  Here are a couple of simple examples of the ecosystem at work.

Product Portal API
The recently announced Epik Wiki platform has been quite popular since going live last weekend.  One reason it is popular is that we give the domain owner 100% of the revenue share from Adsense. So, what is in it for Epik to host these site for free and give 100% of the Adsense revenue to the domain owners?  Well, for one thing, Epik gets the opportunity to add contextually relevant backlinks. So, if you create a Wiki about lawn care, Epik might add a backlink to an Epik store that sells equipment for lawn mowers.

The API is very simple to use:

  1. http://api.epikstores.com/search_domains
    This returns the default amount (5) of random domains.
  2. http://api.epikstores.com/search_domains/amount/8
    This returns 8 random domains. The number after the term “amount/” dictates how many domains are displayed.
  3. http://api.epikstores.com/search_domains/keyword/bed
    This search will look through the main text, tabs, and popular searches of every domain for the term “bed”. The default number of results it returns is 5. If it cannot find enough domains that contain “bed”, it will fill up the rest of the 5 slots with randomly selected domains.
  4. http://api.epikstores.com/search_domains/keyword/bed/amount/8
    This would return 8 domains. It will return as many as it can that include the keyword ‘bed’. If it does not find enough to fill all 8 slots, it will fill the rest with random domains from the Epik Product Portal network.

Sample Results from an API call

<summary>
  <totalResults>5</totalResults>
  <domains>
    <domain>
      <name>laptopcomputerpc.com</name>
      <title>Laptop Computer PC</title>
    </domain>
    <domain>
      <name>laptopmemorycard.com</name>
      <title>Laptop Memory Card</title>
    </domain>
    <domain>
      <name>laptoppowercable.com</name>
      <title>Laptop Power Cable</title>
    </domain>
    <domain>
      <name>leather-motorcycle-jackets.com</name>
      <title>Leather Motorcycle Jackets</title>
    </domain>
    <domain>
      <name>lgtouch.com</name>
      <title>LG Touch</title>
    </domain>
  </domains>
</summary>

Sample PHP code
Here is some sample PHP code for anyone with a site or blog who wants to try out the API.

<?php
$keyword     = “furniture”;                         // The keyword you want to search for
$amount      = 5;                                   // The number of links you want returned to you
$ch          = curl_init();                         // The CURL handle needed to make the request
$request     = “http://api.epikstores.com/search_domains/keyword/$keyword/amount/$amount”; // The API URL

curl_setopt($ch, CURLOPT_URL,            $request); // Handle the CURL setup
curl_setopt($ch, CURLOPT_RETURNTRANSFER, 1);
curl_setopt($ch, CURLOPT_TIMEOUT,        10);
$response = curl_exec($ch);                         // Make the API request
curl_close($ch);                                    // Close the handle

if ($response === FALSE) exit;                      // Exit if we got nothing back
$xml = simplexml_load_string($response);            // Otherwise load XML

if ( $xml and isset($xml->domains->domain) ) {      // Ensure the XML file returned domain information
echo “<ul>”;                                      // Display them as an unordered list
foreach($xml->domains->domain as $domain)         // If so, iterate through all domains
echo “<li><a href=’http://” . $domain->name . “‘>” . $domain->title . “</a></li>”;
echo “</ul>”;                                   // end the list
}
?>

If you visit GunPrices.net, you can see an example of a DevRich portal with active Product Portal backlinks.  Look on the right side of the page. Backlinks will also be added to other Epik platforms including the free Epik Wiki network.  DevRich, which Epik acquired in May, powers a fast-growing network of low cost customized content portals.

backlinks

Although there is currently no formal affiliate program, we do monitor the sources of referred traffic and will do our best to return the favor of backlinks to Epik-hosted stores. We are planning an affiliate network. However, rather than roll out a half-baked solution, we are designing one that is relatively easy and safe to scale.

Comments.com platform for comment management
Comments.com and Questions.com are both examples of what we call “Horizontal components” in the Epik ecosystem. In other words, they work horizontally across the network. After months of planning, the Comments.com platform is being deployed across the network.   For example, the BubbaWatson.com Wiki site that went live on the weekend. Users must register to make a comment. The registration is actually a single-sign-on, powered by Identity.net, another horizontal component. Once you have an Identity.net account the design intent is that this account will work everywhere across Epik.

Single-sign-on and commenting are an obvious synergy.  For example, in the BubbaWatson.com example, once a comment is made on an Epik-powered site, those comments appear on the Epik Wiki site. If you now went to another Epik Wiki site, you don’t need to register yet again, and soon you will automatically be signed in.

commenting

Comments.com also goes on step further with managing comments.  At the same time, the comment is also syndicated as an abstract to Comments.com.

abstract

If a user makes comments in 100 different sites, all of their comments from all of the sites appear under their comments.com profile.   It literally becomes possible to follow someone across the web and see their comments no matter where they made them.  How cool is THAT?

all-comments

Looking ahead into the relatively near future, a user will be able to login at their account at comments.com and be able to change or even delete their comments.  Try that trick with WordPress. No can do! At Epik, we believe that the author of the comment owns the comment. As such, they should be able to redact or remove it.

There you have it. The emerging Epik ecosystem at work.

The Epik Ecosystem at work

Epik and Moniker/Oversee join forces for live auction event at September 16 DevCon

Friday, July 2nd, 2010
Epik and Moniker/Oversee join forces for live auction event at September 16 DevCon

Over the last several months, I have had the privilege of working with several of the talented folks at Moniker and Oversee. In addition to confirming Moniker as the exclusive auction partner to manage the upcoming sale of Patents.com at the August DomainFest in NYC, Moniker is now also confirmed as the exclusive auction partner for the Epik Developer Conference in Seattle. The live auction event will be held on September 16, 2010 from 1:30 pm with remote bidding via Proxibid.

moniker

Partnering to build and sell Domains with Assets
The term “Domains with Assets” is Moniker’s term for describing a developed website. At Epik, we tend to view a website as an online business. The challenge for a buyer of an online business is how to manage hundreds or even thousands of online businesses. That would be near impossible, unless, those businesses could be managed on a unified platform. This is exactly where the auction/sales partnership between Moniker and Epik is an obvious win-win.

Epik is building a unified platform that allows an investor to manage their domains across the entire lifecycle: Acquire, Develop, Operate, Sell. At the core, Epik is a Domain Development company. We provide a growing number of managed technology platforms which make it easy to develop and maintain profitable websites. The addition of Moniker’s ability to sell these developed websites provides Epik’s Developer Community with access to a scalable and proven sales team.

As for Oversee/Moniker, not much introduction needed here. These guys have become a titan of the industry with an enormous domain portfolio, one of the most complete product lines, a talented leadership team and the bluest of blue chip backers.  Though leadership transitions from Founders is not with risks or challenges, I think we are beginning to see the emergence of an exciting next phase for Oversee under Jeff Kupietzky. And in case you missed it, Jeff crushed it yesterday on CNBC:

Auction Inventory coming soon
Looking ahead, we expect to finalize the joint list of websites for the September 16 auction by the second half of July.  Pre-auction bidding will begin during August.  Look for further details in upcoming posts and on the Epik Conference Program page which will be updated regularly with emerging details about the program, venue, accommodations and the auction itself. To be included in the September auction, a domain should either be a developed website, or a super-premium name that Epik has confirmed to be ready for development by the prospective owner.

Epik and Moniker/Oversee join forces for live auction event at September 16 DevCon

Epik Developer Conference – The Domain Developer event of the year

Monday, June 28th, 2010
Epik Developer Conference – The Domain Developer event of the year

The Epik Developer Conference is shaping up to be a must-attend event for anyone interested in learning about domain development.  We are putting together what should be an enjoyable and rewarding program.  This post provides an update on the Conference Venue and some of what we have planned for the delegates of the 1st Annual Epik Developer Conference.

Conference Venue Selected — The Edgewater Hotel in Downtown Seattle
The Edgewater Hotel is Seattle’s only true Waterfront hotel.  The venue combines Pacific Northwest style with the modern amenities of a downtown waterfront hotel.  Delegates will enjoy an ideal environment for learning about latest developments and building partnerships. The Edgewater was also the site of this month’s Search Engine Strategies Conference.

Edgewater_Hotel

Room rates for delegates have been negotiated to $199 for city side deluxe rooms, or $229 for the waterfront full view premium rooms. I checked the hotel venue on Friday and can say the extra $30 is worth it for the waterfront full view.


Work and Play on the Seattle waterfront

The program will start with an evening reception at The Edgewater on Wednesday, September 15 and ends mid-day on the 17th.

The conference on September 16-17, and a Live Auction event on September 16 will be be conducted in the Main Ballroom of The Edgewater which features a panoramic view over Seattle’s Elliot Bay.

After the Live Auction on Thursday, September 16 delegates and spouses will be treated to a 3 hour cruise, open bar, and a 4-course Pacific Northwest menu.

mainimage-ships

The hotel is also walking distance to the Seattle Space needle, Waterfront attractions, and the Pike Place market for anyone who feels the needs to take in more of the full Seattle experience during their visit. And yes there is a Starbucks on nearly every block.

Early Bird Registration — Special incentive ends July 1
The early bird registration for the event is just $695 and ends on July 31.  For registrations made before July 1 (this Thursday), we will also include $350 in Epik Developer credit, for a net cost of just $245.  Use the credit for any development project, site purchase, backorder or content services.  Your registration fee remains refundable through September 1. If you have not reserved your spot, you can register here.

Epik Developer Conference – The Domain Developer event of the year

The Bottom Line

Thursday, June 24th, 2010
The Bottom Line

I will turn 43 years old in August. I now have the gray hair, receding hairline and sports injuries to prove it.  Along with the bad stuff comes also the good stuff: wisdom, accountability, reputation, and enduring friendships.  Whether you call it Karma, win-win, or what-goes-around-comes-around, I have learned that it pays to be nice.

Ebay is an interesting case study
To an extent, empowering a generation of internet entrepreneurs is what drives me. When I look at how many people make a living selling on eBay, I think to myself “how cool is that!”. This was a company that started as a hobby and blossomed into a massive global enterprise that created an enormous network of entrepreneurs, the vast majority of which are engaging in legitimate transactions.  The company built an entire business model around personal accountability and reputation. If you are a reputable seller, you get more business and with less transactional friction. It pays to be nice.

At Epik, our goal is to empower thousands of entrepreneurs to become financially independent through domain development.  However, beyond helping people to make money, I am intrigued by the idea of creating a community of like-minded individuals who also want to be part of something bigger — something that can actually make the Internet work better.  The folks who I think share this vision of the future are what I call “Friends of Epik” or FOE. When I first started using the term, even I thought it seemed a little corny. However, it fit the spirit of what we are doing. After all, life is too short not to have friends.

friends

The FOE Letter
Part of making the “Friends of Epik” scalable has been a Friends of Epik letter, or FOE Letter.  This letter is in the form of an email update that I write personally. I send it out a few times a week, often at night. In this letter, I share details about what we are working on, what is working, and also what is not working. I also publish the list of domain names that Epik acquired recently and which we make available on buyer-friendly terms.

Beyond communicating transparently, we try to proactively seek the win-win even if it is not “profit-optimizing” in the short term. A few random examples:

  • Earlier today, Friend of Epik, Mike Ray, part of the prolific Albuquerque Epik mafia, bought the domain name stainlesssteeltable.com from Epik. He paid $249 for the domain with a product portal. The Estibot appraisal here is $9,000.  The name was a drop-catch for Epik and so it was easy to find the win-win here.
  • A number of folks have bought names from us that for whatever reason have been sandboxed by Google or otherwise underperform.  In good faith, we  do further work on the site. If we still can’t get it right, we’ll buy the name back for what the client has into it, or offer a comparable name in trade.
  • A lot of folks in this industry are what I call “Long on Domains. Short on cash”.   In these cases, we have accepted domain names in trade for developing their sites.  We have done many of these deals. It is always a win-win and gets folks who were losing money on renewals once again cash-flowing from their developed sites.
  • We pay out on the 20th of the month whereas our affiliates usually pay us at closer to day 60 or later.  Is there a risk that we get some charge-backs from our affiliates? Sure. Does our CFO like this practice? Not really.  We do it because it is the right thing to do. We do it because it rewards our partners’ success in a timely manner.
  • Occasionally we will miss our deadlines for delivering a developed website, e.g. because of a technical issue or because something slips through the cracks.  If we screw up, we’ll take the hit. For example, we will offer to develop an additional domain for free, do some free SEO work,  provide supplemental content, etc.

This may seem a little novel but clearly it is not. If you have shopped at Nordstrom, Costco or LL Bean, you get it.  These companies make an inherent assumption that people are not evil.  In other words, in business, as in life, you can usually turn the other cheek. I find that 9 times out of 10, it will work out in the long run.  This is not a license to be asleep in the switch or to be a sucker. Rather it is a starting point for how I approach any new acquaintance.  Trust but verify.

Being a Friend has been a win-win
What has Epik gained in return for being a Friend? Lots.

  • People are building their entrepreneurial ventures on our platform.
  • People tell us when we are screwing up and give us advice on how we can be more successful.
  • People bring us deal flow and refer new business.
  • People trust us with their money, usually paying in advance for development.
  • People offer to come work for us, with us, or be acquired by us.

I could go on. I think the point is clear. It pays to be a Friend.


So…

Thanks for reading and thanks for being a Friend.

The Bottom Line

Why Epik Stores outperform Amazon and Shopping.com powered stores

Saturday, June 19th, 2010
Why Epik Stores outperform Amazon and Shopping.com powered stores

A number of folks have asked about why our Product Portals perform as well as they do. How can it be a that a site makes little to nothing on a parking network, Amazon store, or Shopping.com store, and then months later on Epik dramatically more? There are a number of reasons that are worth understanding for anyone considering how to monetize product category domain names.

Amazon is an oligopoly — and they pay their affiliates accordingly: low and slow
As a consumer, I love Amazon as much as the next guy. They have simply nailed it.  However, as an affiliate marketer, they are burning the bridge with publishers. Amazon’s market power is impressively dominant to the point of being an oligopoly.  As a result, they dictate the price of traffic by lowering revenue share, shortening cookie life, excluding transactions,  and extending payment terms.  Sure, historically, Amazon paid well.  No longer. Today, the only folks that pay lower than Amazon is Shopping.com.

To Amazon’s credit, they made it incredibly easy to build stores around their Amazon affiliate feed with structured data, simple widgets and a robust API.  As a result, large numbers of solutions emerged, including do-it-yourself solutions, that are built around Amazon’s feed. Associate-o-matic is among the better known solutions.  Beyond Amazon’s rapidly plummeting payouts, there are two major problems with these Amazon-centric stores:

  • The content is not original:  Publishers have reported difficulty in maintaining indexing and ranking for sites that relied primarily on the widely syndicated Amazon affiliate content.  The search engines recognize the content as not original and have little reason to rank it.
  • You are training consumers to go to Amazon: If you build on Amazon, the consumer checks out on Amazon. Congratulations, you have just trained another consumer to shop at Amazon.  Amazon has little incentive to buy the resulting site. After all, they are already getting all of the traffic along with the repeat business.

The one big downside of not relying on Amazon’s feed is that it is a lot more work to find products that match a given domain name.  This is a short-term downside that is more than offset by the long term upside of sourcing products from affiliates that pay a competitive rate for traffic.

Epik’s network-wide average CPC in May was $0.18
The Epik portals are monetized on a pay per click basis. A typical visitor will actually click on several product listings, each one of which is treated as a click. As a result, a single visitor can rack up several dollars worth of revenue. During May, the average revenue per click was $0.18.  I have seen Steve Barclay’s Spoons.com rack up some of the highest revenue per visit of any site on the Epik network.  It had 8812 visits in the past 30 days. You can track the progress here.

Building a proprietary affiliate network is hard work.   In addition to having secured one of the highest paying CPC networks for online retail, we also pay out on the 20th of each month and with increasing revenue shares for higher performing portfolios.   A big reason why we were able to build this out as quickly as we did is because of our exclusive relationship with Seattle-based Wishpot.com — a group that I and others venture-backed in 2007.  When Epik partnered with them, Wishpot had already spent 3 years and significant resources to build a shopping comparison network with high revenue share. This capability is a core component of the Epik Product Portal platform.

Looking ahead, because of the rapidly growing transaction volume, Epik’s ability to negotiate with affiliate networks is improving.  We are in discussions with additional affiliate networks that are likely to push the average yield into the range of $0.24-30 per click. The final step will be to enable advertisers to directly buy CPC from the network. So, for example, we often hear from advertisers who want to list their products on our sites.  At the moment, we can sell advertising and sponsorships. In a few weeks, we’ll release technology previously developed by Wishpot that will allow advertisers to upload their product listings and pay for traffic on a CPC basis.

Bottomline:  Where’s the Beef?
When evaluating solutions for product portals, looks beyond the homepage and the short-term SEO tricks. Pay particular attention to how the resulting traffic is monetized in a way that actually benefits the publisher of the site as opposed to the downstream seller of the product.  In other words, “Where’s the Beef?”.

Why Epik Stores outperform Amazon and Shopping.com powered stores

Video Portals – a sneak peak at what is coming next from Epik

Wednesday, June 2nd, 2010
Video Portals – a sneak peak at what is coming next from Epik

The recent TechCrunch Disrupt conference revealed something interesting: FunnyOrDie.com already makes tens of millions of dollars in what is likely high margin revenue for hosting video humor. This has interesting implications for domain developers as the world moves rapidly towards web video as a source of information and entertainment. So, how can domainers participate in the explosion of online video? Read on.

A look back: Yahoo had their shot with Broadcast.com but YouTube dominates web video
Web video was destined to be huge. The ultimate on-demand video entertainment made possible by abundant choice and instant access through a plurality of web-enabled devices. The 1999 peak-of-the-bubble deal by Yahoo to acquire Broadcast.com for $5.7 billion seemed insane at the time, and was insane. Google’s $1.65 billion deal to acquire YouTube in 2006 also seemed insane at the time but was not insane. Subsequent entrants including Hulu, Veoh, Ustream have all placed large bets on various approaches to aggregating and delivering video.

ComScore_Total-Video-Viewed
The net of all this is that we are all watching a lot more online video. This trend is far from over.  The upcoming launch of Google TV will make it even easier to bring video to the widescreen in the living room — the preferred viewing platform for many. The future implication is that internet video will finally be coming into the living room and onto your mobile device — whether the cable and satellite TV companies like that idea or not.

At Epik we are big fans of segmenting online markets with “long tail portals”
A key theme of Epik’s development approach is in developing the long tail of the web. This is made practical by search engines which make it easy for consumers to discover the exact match of what they are looking for in a website that caters to that specific need.

  • Product Portals:Product Portals are what I call “segmented Amazon”. If you are in the market for an Ice Cream Maker, you could go to Amazon, or you could go directly to IceCreamMaker.com. By the same token, Google could decide to rank Amazon’s all-things-to-all-people site, or it could rank IceCreamMaker.com which is increasingly tailored to a very specific audience. What we are seeing is that more and more long tail segments are top-ranked not by all-things-to-all-people sites but rather by niche sites that focus on those segments and are bringing a focused value proposition to those segments.
  • Directory Portals: Directory portals are essentially what I call “segmented WhitePages and YellowPages”. The model here goes beyond the model of a simple Directory listings, but also tailors the functionality to the expected call to action. For example, if someone is searching for Dining options in New York on Dining.com, we can infer that you would like to make a reservation. However, if someone is searching on CosmeticDoctors.com (coming soon) for a cosmetic surgeon, we can infer that they are looking for examples and testimonials about the doctor’s work and qualifications.

These models for niche media are working.  Product Portal are now up to 1300 portals with 150 new custom portals coming online every week and operating revenue up 100+% month-over-month.

So who is segmenting the YouTube model?
I am pleased to report that Epik has been hard at work at solving this issue by creating a network of Video Portals that map domain names to specific topics. For anyone with .TV domains wondering what they are ever going to do with them besides pay renewal fees on parked domains, this should be particularly welcome news. Here is a preview of what is in development.

boats-tv

How do Epik Video Portals work?
The core of the system is what we call Channel Builder — a full-featured and proprietary platform for aggregating video from across the web using an intelligent approach that filters for relevance and quality. The resulting site is one that combines the three elements that we think make a viable site: Content, Community and Commerce

  • Content: Videos: High quality content organized around semantic themes. Users can also upload original videos.
  • Community: User comments and ratings, combined, Q&A, with social syndication.
  • Commerce: Integration of Product Portal feeds for relevant products and, coming later this year, a marketplace for used products.

The platform is built using the latest technologies for rendering videos across multiple platforms and devices.  We piloted use of Silverlight technology on Slideshow.com and will be using it again here.

VideoPortals are a platform for what I call “Winnable niches” in video
The opportunity here is not just to create online video portals for the obvious segments like “French cooking” and “Kite surfing”. The Video Portal Platform also opens up the opportunity to create niche segments that are ideal for the web. A few examples to illustrate the point:

  • DingDongDitch.com — I picked up the his name on the drop.  It is an ideal name for aggregating this silly type of prank video. There are thousands of videos on YouTube alone that fit this genre.   People absolutely watch this stuff, and contribute more of same. There is definitely a mobile angle here …. not that I condone it.
  • MotoCrash.com: If you missed the Daytona 500 this weekend, the highlight for many was a spectacular airborne crash.  Motocrash.com will aggregate motor crashes.  Google the term “motor crash” and you will see nobody dominates the search term. That’s an opportunity for aggregating videos like this one.

As you can see, the opportunity exists for hyper-segmentation of video as online video fragments into niches that bring together content, community and commerce.   We believe domains will play a key role in this logical evolution of online video.

What’s the deal?
Similar to the model for Product Portals and Directory Portals, Epik charges a one-time setup fee to produce each video portal and shares 50/50 in the operating revenue.  The setup fee is pretty close to the actual cost to develop and operate the site long enough to get the site to build sustainable organic traffic.  The planned cost to produce video portals is $749 per portal.  Prior to the official launch, we are offering video portals for just $499 to the intrepid early adopters who order before June 30.

One further advantage of being an early adopter on any Epik Premium network is that we try very hard not to have duplicate sites within any network. So, for example, it is unlikely that we will have more than one video portal about any specific topic.  The logic is simple — as with Cable Television, there is not much point in having blatantly similar channels.  At the end of the day, there has to be meaningful differentiation and segmentation, even when it comes to the long tail.

We are having a lot of fun building this new Video Portal Platform (VPP) and look forward to sharing it soon to power a whole new type of online media.  If you are interested in learning more about it, contact me at rob -at- epik.com.

Video Portals – a sneak peak at what is coming next from Epik

Epik acquires DevRich.com — Luke Webster joins Epik as SVP Operations

Wednesday, May 26th, 2010
Epik acquires DevRich.com — Luke Webster joins Epik as SVP Operations

I am pleased to announce the completed acquisition of DevRich.com — an innovator in the area of mass domain name development.  As part of the transaction, Luke Webster, President of DevRich will also become SVP Operations of Epik.  Luke will continue as President of DevRich, which will operate as a division of Epik.

devrich_banner

Automated website generation is not a sustainable practice
One of the things that we have learned at Epik over the last year is that automated website generation does not work over the long term.  The search engines are simply too smart and ultimately clients get what they paid for — not much. If you, or your vendor, produce a large number of sites without the benefit of human editing or original content, your sites will eventually be banned by the search engines.  In other words, the robo-content model does not scale and inevitably becomes a victim of its own (short-lived) success.

Another major challenge for the traditional providers of low-end content services is that there is usually no “migration path” beyond the “starter site”. If the site starts to get indexed and ranked, then what?  If the content is weak, the bounce rate will be 80+%, and the “online debut” will fail.  When a site starts to get ranked on a term with search volume, the site owner has a finite window — measured in days or weeks — to deliver a more compelling user experience.  To do that, there has to be an integrated plan for moving beyond the starter site once the site gets traction. That is the missing link for anyone operating a network of “farm sites”.

What about Custom sites?  Custom Product Portals, Minisites, and Directory Portals do work — done properly, they often work very well in fact.   However, they are not free. For example, at Epik, there is a $249 setup fee for a custom product portal like IceCreamMaker.com. There is a $999 setup fee for a Directory portal like Dining.com. This is the one-time cost to get a custom site designed, launched and ranked.  The investment is entirely justified but it is not for every domainer or for every domain.

What did Epik accomplish by acquiring DevRich?
First and foremost, we added a talent team, led by Luke Webster.  Epik is well known for responsive customer service. As the Epik business has grown, my personal capacity to be “traffic cop” on new projects will eventually hit a limit.  Luke is a strong candidate to run “air traffic control” for Epik, working closely with other team members like John Lawler who has done a tremendous job producing 100 custom product portals each week. DevRich also brings a call center operation that will play a key role not only in providing expanded inbound customer service for Epik, but also allows us to introduce inbound call processing for sites that are hosted by Epik.

Second, we added competency in the area of building out original sites on WordPress.  This fits with our own growing capability to use and extend WordPress as a content management system for site development.  Chathura Bandara, who leads the offshore team in Sri Lanka, will now report to Luke. For clients, this means onshore account management can be combined with the superior cost structure of a technology-enabled workflow that uses offshore fulfillment where it makes sense.

Third, we added project management capacity for expanded production of custom Minisites.   Sample sites being worked on this week, include Sushi-Menu.com, New-Homes.com, and Rental-cars.com.  In addition to using commercial WordPress modules, these Minisites are being equipped to adopt unifying components from the Epik platform such as Identity.net, Comments.com, Questions.com, as our next-generation Directory framework.


Why this deal made sense
With DevRich, a customer can efficiently take 100 domains out and see what hunts.    The track record for DevRich has been consistent and the customers who have embraced it are pleased with the result. While this is not a substitute for comprehensive development, it is a scalable and cost-effective place to start.   Here are some representative examples of what DevRich produces for its lowest cost solution:

legalaidattorneys.com
appeallawyers.org
dclawyer.net
hydrogencup.com
seejamaica.info
hhoelectricgenerator.com
denverlaborattorneys.com
bl.com
3gPhones.com
wannalead.com

From the above list, the site 3GPhones.com is a good example of one that should be built out since the potential is large due to the high number of related searches.

Getting Started with DevRich.com and Epik
If you have a portfolio of names that you want to develop, the easiest first step is to send us your portfolio. You can send it rob -at- epik.com or luke -at- DevRich.com.   At no cost to you, we’ll review the portfolio and recommend a capital efficient strategy for developing the portfolio.

Epik acquires DevRich.com — Luke Webster joins Epik as SVP Operations

1st Annual Epik Developer Conference — Sept 15-17, 2010 in Seattle

Wednesday, May 19th, 2010
1st Annual Epik Developer Conference — Sept 15-17, 2010 in Seattle

I am delighted to announce the First Annual Epik Developer Conference. The conference will be hosted in Epik’s home town of Seattle from September 15-17, 2010.

epik-conference-logo-med

Client Summits are an important growth driver
As many people in the industry know, prior to starting Epik, I spent 8 years building a company called Global Market Insite (GMI). Thanks to the diligent effort of a talented team, GMI grew ~100% per year for 7 straight years. In 2006, GMI was #93 on the Inc 500. I was named Entrepreneur of the Year in the same year. Shortly thereafter we completed one of the largest venture financings of the year, raising $35 million from 3 top private equity groups. That is “hypergrowth”.

The foundation for hypergrowth was laid way back in 2000. That was the year we hired a talented founding team and also when we hosted our first client summit. The summit was held in the city of Vienna, Austria. It was a one-day event that was scheduled around a major industry conference. Many of the attendees of that event not only became loyal clients, but also many of them became friends, and business partners — both with GMI and with each other.

The lesson I learned from this phase of building GMI is that client and partner summits are an important part of building a strong foundation for growth. Our mission at Epik is clear: we are here to create value for our Network Partners. If, in a few years from now, we have enabled 1000 domain entrepreneurs to build out 100 of their most worthy websites, we believe that we will have created a lot of value for our network partners, and in the process will hopefully have built Epik into a great company.

Save the date – September 15-17, 2010
The full program details are being finalized for what should be a worthwhile event for anyone serious about Domain Name Development. The Epik DevCon will be an opportunity to both learn and socialize. Here are some of the themes we are working on, internally and with outside experts who are participating in the event:

  • Meet Epik: Overview of the Team and Strategic Partners
  • Domain Industry Outlook
  • Strategy Update: What is Epik doing and why are we doing it
  • Acquire: Acquiring Development-worthy Domains without breaking the bank
  • Develop: Developing sites that rank with search engines and win with consumers
  • Operate: Content development, Monetization, SEO
  • Sell: Selling Developed Websites
  • Client case studies: Case studies with real data that show you who is profiting on Epik and how
  • Development Update: New product announcements and Preview of upcoming products
  • Low-reserve Auction of Developed Websites: We will announce our Auction Partner soon and hope to conduct the first live auction of developed websites powered by Epik at the conference.
  • Ruilverkaveling Swap meet: Trade domains and with other Epik Network Members
  • Discussion and Q&A: Open discussion with Network Partners about the future of our shared mission

Play and Network

This conference is not just about work.

On the play side, we are putting together a social program that should be a lot of fun. We have hired an Event Planning consultant to make this 1st Annual Epik Developer Conference an event to remember.

Max Ciccotosto (CEO of Epik partner Wishpot.com) is influencing venue selection and the social program. Max was single for a lot longer than I was and was quick to volunteer for the Program Committee.

Weather-wise, mid-September is normally a great time of year to be visiting Seattle. Yes, it does rain here, but rarely in September. And if there is interest in a Spouse program, we’ll put one together.


Conference Cost

The objective is to make the conference as affordable as possible. Epik partners with 20+ Network sites receive one free registration for the conference event. A registration form will go online next week with deep discounts for earlybird registration.

Hope to see you in Seattle in September.

1st Annual Epik Developer Conference — Sept 15-17, 2010 in Seattle

Domain Farming: Three examples of creative domain development deals

Tuesday, May 4th, 2010
Domain Farming: Three examples of creative domain development deals

In my recent discussions with domainers from around the world, there are a few recurring patterns. One of the patterns is that many domainers are “long on domains and short on cash”.  This creates a challenge for domainers with large portfolios who cannot possibly fund development of all of their development-worthy domains. In times like this, it pays to think like a farmer.

I was supposed to be a farmer
My maternal grandfather — Klaas Kornelius Meijer — was an important person to me growing up.  “Meijer” as they called him in the Northern Dutch town of Kommerzijl was a quality guy by any standard.  Meijer was a farmer. And as you can see below from the family photo archive, I was supposed to carry on the tradition.

klompen
Although I did not end up taking over the family farm, I did learn a lot about farming, spending most summers as a kid working on my grandfather’s farm.  I even studied Agricultural Economics as I tried to reconcile the family expectation to become a farmer, and a personal bias towards entrepreneurship and business.

So what does farming have to do with Domaining?
Farming of cash crops is not all that different than raising young domains. If you think about it, Acquire, Develop, Operate, Sell is a near cousin of the farming equivalent of Prepare, Plant, Fertilize and Harvest.  This is a gross oversimplification of farming but there is a method to growing things with scale, and that includes websites.  As with farming, it can be learned.  However, most domainers are still merchants — they can buy and sell, but most have little interest in cultivating.

Although I have no idea whether farmers are good candidates to become domainers, I do think there are a few traits that make them suitable to the role, particularly now that the technology is no longer the hardest part. Legend has it that one of the industry’s most successful domainers, Scott Day of Digimedia, was a watermelon farmer before becoming a full-time domainer.  Scott assembled a great portfolio, and has methodically gone about adding value to his domains.

As with farming, one can’t be an expert at growing everything.  Yet, domainers will collect all manner of domains that have little to do with one another, and perhaps even less to do with one’s personal core competencies.  Right now, Epik is very good at developing Product Portals.   I believe we will soon be very good at developing video portals, directory portals and geo portals.  We are not good at adult, gambling or music.  We have aspirations to become good at travel portals and biography sites.

Ruilverkaveling
This is a fancy Dutch word for a practice that farmers did to exchange land with each other in order to assemble larger contiguous parcels of land.   This was needed particularly once farming became industrialized. Farmers needed less physical labor because they invested more heavily in equipment. However, in order for the equipment to make economic sense, they needed to work larger contiguous and symmetrical parcels of land.

ruilverkavelingSo farmers would swap land — sometimes with government “encouragement”.   Through this process, landowners got continuous parcels and became more efficient in their ability to work the land with large pieces of equipment that did not need to go onto the public roads in order to get from parcel to parcel.  Aside from the short-term gnashing of teeth by individual farmers, it usually worked out for everyone because productivity went up. And when it came time to sell their land, the farmers usually found that the assembled parcels were worth more.

It worked for farmers — Domainers can do this too
One of the big challenges the Domaining profession faces is that large number of non-contiguous domains are owned by domainers that don’t know each other. This creates a challenge for anyone trying to assemble related portfolios. For example, if Epik can assemble the top 50,000 product categories into an integrated portfolio, the whole portfolio becomes worth more. In the process of assembling the pieces, it is very possible that a portion of the web also ends up working better than it did before. That is an ambitious idea, but not a crazy one.

Ultimately there will be further specialization within each major category.  For example, within the category of Product Portals, Epik has clients who are assembling different portfolios. Kenny Hartog is developing shoe and garment domains. Morgan Schwartz has been developing kitchen appliance and baseball equipment domains. Tony Lam has been developing furniture and medical equipment domains.  Avi Sacajiu has been developing jewelry domains. Etc.

Time to think creatively
Getting the web to work better will require some creative deal-making among domainers who have different objectives. In our own small way, Epik is doing deals.  Here are a few illustrative examples from the last 24 hours of creative deals done with individual domainers who are making the jump to development.

  • John Slaney:  John has way too many names to develop.   We came up with a creative deal that works for him and works for us.  He had a list of 4 names that he wanted to develop Pet-Tracking.com, Foldable-Bike.com, DetoxFootbath.net, and Candy-Bouquets.com. Rather than pay $249 per site to develop them, he offered up a portfolio of 12 names: bridesmaid-dress.com, babyfeedingproducts.net, birthstone-jewelry.com, arteasel.net, dog-jewelry.com, baby-bracelets.com, coppermailbox.net, graphictablets.net, tile-floors.com, gaswashers.com, office-lamps.com and glassdesks.net. All of these met our criteria for exact search volumes.  The net result of this cashless trade is that John will have gone from having 16 names that were costing him an annual reg-fee to maintain, to having 4 developed websites that will be income-producing and can then be sold as developed websites. Win-win.
  • WeiWei Zeng and BeerCoolers.net:  WeiWei wanted to start developing on Epik. He also makes a living buying and selling domains.  WeiWei and I came with a deal that made sense for both of us.  WeiWei sold me a portfolio of 5 domains in exchange for $600 plus the right to develop one of his domains — BeerCoolers.net.  That development would have normally cost him $249. So, for $849 in cash and in-kind, Epik received these: motorbikejacket.net, golfballmarker.net, workoutball.net, dashboardmount.com, and travelshoulderbag.com. We’ll have WeiWei’s new site up in 3 weeks. Win-win.
  • Craig Peterson and Chat-Rooms.com:  Craig already has a few developments being built on Epik. He is also one of the nicer guys I have met since launching Epik.  Last week, he surprised a few folks by buying the domain name Chat-Rooms.com.  That is a big domain that requires a pretty large development to execute on. I estimated a $20K development budget to build and launch a chat network across the Epik ecosystem. Since $20K was a pretty big nut, Craig offered up a domain of his that he did not plan to develop — UltrasoundMachine.com. Win-win.

The net of all these 3 deals is that we now have the following domains available for others to develop:


Domain Appraised
Value
Ad Competition Avg
Cpc
Search
Volume
ultrasoundmachine.com 55,000 low 4.40 9,882
motorbikejacket.net 160 high 0.69 49,410
golfballmarker.net 1,300 high 1.18 18,056
workoutball.net 930 high 2.22 4,392
dashboardmount.com 7,400 low 2.08 2,318
travelshoulderbag.com 620 high 1.55 2,318
bridesmaid-dress.com 140 high 0.51 110,410
babyfeedingproducts.net 1,500 low 1.82 22,082
birthstone-jewelry.com 180 high 1.55 18,056
arteasel.net 3,400 high 2.22 14,762
dog-jewelry.com 140 high 1.23 12,078
baby-bracelets.com 100 high 1.19 9,882
coppermailbox.net 3,700 high 3.66 9,882
graphictablets.net 1,800 high 2.61 9,882
tile-floors.com 660 high 2.09 8,052
gaswashers.com 1,800 medium 1.79 475
office-lamps.com 120 high 2.60 5,368
glassdesks.net 890 high 2.63 12,078

Most of the acquisitions are product portal names that will either be developed by Epik, or by others.   UltrasoundMachine.com is a great domain but not in our immediate sweet spot.  The Estibot appraisal is a whopping $55K but it is worth less than that to me which is why I would happily swap it for a solid portfolio of Product Portal names that I know how to develop and monetize.

Want to make a creative deal? Contact me at rob -at- epik.com.

Domain Farming: Three examples of creative domain development deals