Jerry Seinfeld helps Microsoft waste $300 million

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Today I read about Microsoft’s new TV ad with Bill Gates and Jerry Seinfeld, which was aired for the first time during yesterday’s National Football League broadcast. I then went online looking for it and, as expected, quickly found it on YouTube:

Bloomberg reports that the ad campaign will cost Microsoft a total of $300 million. The campaign has been developed by Crispin, Porter + Bogusky, an ad agency that has done work for Burger King and Coke before.

The big question is: What is this ad about? Sure, the Windows logo can be seen for almost one second at the end of the 90-second spot. Bill and Jerry didn’t talk a lot about it, though, did they? I’m sure Microsoft and CPB want the spot to work as a teaser trailer to get people talk about it or think about the great things MSFT will (possibly) put on the market in the future. For me, the ad just did not work. If the purpose has been to make Windows look more sexy and appealing to the Apple-loving customers, I’m sure it didn’t work for the target group, either.

So, is Microsoft wasting $300 million? Think of the truckloads of money MSFT could have made or the millions of targeted visitors the company would have driven to its websites via direct navigation traffic, if only they had chosen to invest the $300M in domain names. It’s out of the question that they’re getting a lot of exposure in return for their massive ad spending. Blogs and other media are busy discussing the TV spot already (look at me, here I am writing about it). But I still think the money has sort of gone to waste, because people do not know what the ad is about and I doubt it will help Microsoft fight against Apple’s newly-found sex appeal.

Buy domains. Buy a search engine. Buy an online advertising company. But don’t throw the money away to get Bill Gates and Jerry Seinfeld into a shoe store together. Looks to me like Microsoft has not been the master of its domain so far.

But to be fair, the campaign has only started yesterday. Maybe we will be seeing something innovative from Microsoft and its ad agency, after all. Fingers crossed!

Funny (or Die) Domain Video

Via FunnyOrDie.com:

See more funny videos at Funny or Die

Google releases Chrome web browser

Google released its “Chrome” browser today. It is available for download here. It took a long time until Google finally got its own web browser. To be honest, I had been expecting a browser from them earlier. Anyway, it’s out now and it will put Google in an even better position with its search engine and on the Internet in general.

I’m sure the open-source browser will be extended by the large community of developers and it’s even possible that they will develop applications that will be a threat to Microsoft not only online but to Microsoft’s popular software products, too.

I haven’t given the browser a try myself, yet. TechCrunch has more details and screenshots.

These are two “Chrome” videos directly from Google:

DNHour.com website for sale

The Digg-style domaining website DNHour.com has been put up for sale by its owners via Sedo’s marketplace. DNHour.com is a portal where you can submit domain-related news articles, which can then be rated by the website’s members. I used to submit articles to DNHour myself for some time, but it has been obvious that the owners didn’t put too much time into their site anymore after its quick and successful start about one year ago.

Still, DNHour.com has been a good service for everybody interested in the latest domain news. Although it faces competition from Domaining.com and other similar services, I think there is some potential for further development.

The owner has set an asking price of $2,500 at Sedo. According to the listing, DNHour.com received about 6,600 unique visitors in August, which resulted in just under 13,000 page views. DNHour.com has a PR4 and an Alexa ranking near 120,000. Details about the site’s revenue haven’t been provided, yet.

Details can be found on Sedo’s for sale page.

McDonald’s serves unsnobby coffee (.com)

http://adage.com/video/article?article_id=130611

McDonald’s registered the domain name UnsnobbyCoffee.com about one year ago in 2007. It has now launched a website under this two-word generic domain, using it for a local marketing campaign targeted at the Seattle area. In Seattle, McDonald’s hasn’t really been able to break into this lucrative market yet, which is still heavily dominated by Starbucks.

Not only do I like McDonald’s’ local marketing efforts, including stylish coffee trucks and giveaways, but I also like their UnsnobbyCoffee.com website and domain name. Although this is no Coffee.com (that domain is owned by Peet’s Coffee & Tea), it is still a nice semi-generic domain the company is now using to establish its McCafé brand name in that particular area. It delivers a better message than the brand domain names McCafeSeattle.com or McDonaldsSeattle.com could ever do, in my opinion. McDonald’s has chosen a domain that is both descriptive and brandable, hence making it perfect for the corporation to grow its business.

Just as local advertising is getting increasingly important on the Internet, it also offers great opportunities offline. Marketing campaigns specifically targeted at smaller local markets can be designed to achieve more positive responses than broad nationwide campaigns. The Internet, in turn, does not only grow along with the local advertising dollars rolling in, but above all it is the very tool that has made local advertising easier and more efficient than ever before, even making it affordable to small businesses, too.

That’s one reason why local advertising companies like Marchex.com hold great value in their hands. If those companies hold a quality domain portfolio consisting of generic and geocentric domain names on top of their cutting-edge technology in order to support their clients’ marketing campaigns, as Seattle-based Marchex has been doing for a long time, I’m sure they will continue to grow and succeed not only in the near future but for a long time to come.

The Bad Image of Domainers

http://blog.ericgoldman.org/archives/2008/08/domainer_loses_1.htm

Eric Goldman, Assistant Professor at the Santa Clara University School of Law and Director of the school’s High-Tech Law Institute, made a post about domain lawsuits on his blog yesterday.

The post, which I linked to above, outlines the recent rulings in the lawsuit of Verizon California vs. Navigation Catalyst Systems.

He writes:

This is an extremely interesting and potentially precedent-setting case regarding domaining and domain name tasting. The court condemns both practices, leading to a preliminary injunction against the domainer and its registrar based on the Anti-Cybersquatting Consumer Protection Act (ACPA). (…) As a result, this is a major loss for domainers and might very well force them to change their practices.

The defendants are Navigation Catalyst, a domainer, and Basic Fusion, its registrar. Navigation Catalyst engaged in some common domainer practices, including:

* high volume automated domain name tasting. Many of the registered domains have nothing to do with anyone’s trademark, but some were typographical error versions of Verizon’s trademarks (allegedly, nearly 1400 were variations of Verizon’s trademarks)
* trademark “scrubbing” of domain names during the tasting period (both an automated blacklist and a manual review)
* disabling ads on any challenged domains and offering to transfer those domain names to the trademark owner

To me Goldman makes it sound like all domainers engaged in domain tasting, cybersquatting and typosquatting. But that is far from the truth! I’ve said this too often already and I actually don’t want to repeat myself, but it has to be said again: There might be domain investors registering and monetizing trademark-infringing domains. This practice doesn’t reflect the entire domain industry, however. Most professional domain investors, by which I mean those making a living off domaining, invest in generic keyword domains.

In the case discussed by Goldman, the preliminary ruling has been in favor of Verizon. Nothing wrong about that as far as I can tell, since there were TM domains involved. On the other hand, it’s also good to see that the defendants called attention to Verizon’s practice of monetizing typo and trademark traffic via its FIOS “service”, although the court didn’t want to hear about it.

Domain tasting as well as the registration of typo domains is a problem that has to be dealt with, but as far as I can tell it is no common practice among the majority of domainers anymore, despite what Goldman is saying. The industry has matured and it will continue to do so in the future. One-sided articles such as Goldman’s blog post wrongfully create a bad image of the domain business. This, in turn, will lead to misinformed companies and lawyers suing domain registrants and registrars for their generic domain names!

Unfortunately, it can be observed that there is an increasing number of lawsuits against domain owners who rightfully hold valuable keyword or acronym domains only to be sued by large companies that don’t have any comprehensible right to own the domain in question in the first place. Just take the recent LH.com ruling as an example. Lufthansa won the lawsuit against Future Media Architects and it was awarded this valuable two-letter domain name practically for free. That ruling was a joke, in my opinion, and what is even worse, is that such rulings will only motivate more companies to try their best, no matter whether they hold a related trademark or not. For your information, Ron Jackson did a good job writing about this issue in his July 2008 newsletter, giving you the other side of the story so to speak.

Rick Schwartz sells Property.com to Foreclosure.com

The one-word generic domain name Property.com has been sold to Foreclosure.com. Although the price hasn’t been disclosed, I’m sure it’s well into the seven-figure range. Knowing the seller, Rick Schwartz, I can tell that he wouldn’t let any of his top domains go for much less. Rick bought the domain in 2005 for $750,000, which many believed to be above value at that time. By the way, he also owns Properties.com, but the plural version hasn’t been part of the deal, as it looks.

Rick posted the following on his blog a few minutes ago:

Foreclosure.com Founder, President and CEO, Brad Geisen, announced today that he has reached an agreement with “Domain King” Rick Schwartz to acquire the domain name “Property.com,” paving the way for his entry into a new market.

With Property.com Geisen intends to create a one-of-a-kind — and convenient — one-stop online real estate marketplace that is easy-to-use and navigate. The Web site will serve as an easy-accessible national real estate classified that is going to be free to all visitors, providing sellers, buyers and investors with a whole new concept of marketing and finding homes on the Web.

According to Geisen, the acquisition of Property.com will allow him to focus his efforts on a different and potentially much larger segment of the real estate market. In fact, in Geisen’s opinion, the niche foreclosure market, which is Foreclosure.com’s market, represents just 2 percent of all available real estate inventory.

“I’m going after the 98 percent of the real estate market outside of the foreclosure business.” said Geisen. “For the past several years, I’ve built and run one of, if not ‘the,’ most successful Internet foreclosure businesses, but the business was always exclusively distressed real estate. I’ve achieved in Foreclosure.com what I set out to accomplish and I am ready for a new challenge in a different market. I intend to shift my focus on developing my new ideas that will revolutionize how homes should be listed, viewed and purchased. I’ve developed the critical skills which I intend to apply to this new market,” said Geisen.

Property.com will include all listing types, including those indexed the Multiple Listing Service (MLS), creating a database that could surpass more than 15 million homes, but not including distressed properties, which will remain the business of Foreclosure.com. The best part is that it will be totally free to search for potential buyers and visitors, and sellers will be able to upload and edit their own personal listings at no charge.
It’s a wide-open model that Geisen knows will create an invaluable resource for just about anyone interested in real estate.

“I’m raising the stakes and pushing all my chips to the center of the table,” said Geisen. “Foreclosure.com and my related companies have been leaders in their spaces for nearly a decade. I’ve seen what’s been wrong with the way things were done and I’ve developed the methods to fix them. I have the knowledge and resources to take this to a whole new level … and that’s what I plan to do.”

Geisen revealed the new Property.com will be unveiled sometime in 2009. The specific terms of the deal to acquire Property.com were not disclosed. However, Geisen indicated that the value of the deal is one of the largest URL purchases to date.
That’s a deal that has the seller Rick Schwartz – who is known as the “Domain King” — smiling from ear-to-ear. He purchased Property.com for $750,000 in 2005 and was recently introduced to Geisen through Kevin Leto of BigTicketDomains.com about a possible re-sale.

“My job is to acquire prime, industry specific domain names with large volumes of natural type in traffic and eventually develop them to their fullest potential by partnering with leading companies in their respective fields which I have been doing for more than a decade,” said Schwartz,” “Early on I saw the value in Property.com; however, I never had the resources to develop it so it could reach its maximum potential. Brad Geisen has the vision to truly get the most of Property.com for the benefit of so many people in every corner of the United States. I’m thrilled to be a part of this exciting new project with Brad.”

Stay tuned for frequent updates and milestones for the new Property.com. Feel free to visit the Web site in its current form. However, as mentioned earlier, the complete re-launch will not be official until sometime in 2009.

Two six-figure .ORG sales

As reported by DN Journal, there have been two very nice .org sales: Both Ringtones.org and Revolution.org were sold for $120,000.

There have already been some other high-value .org deals this year, including Sexe.org ($151,400), Coffee.org ($100,000), PI.org ($40,000) and No.org ($37,500). Army.org changed hands for $99,000 last year. In 2006, Date.org and Loan.org were sold for $150,349 and $105,500 respectively. In 2003, Engineering.org was sold for $198,000.

I have always liked .org, because it’s a generic TLD that I think many can relate to. It makes sense to have this top-level domain in place, as opposed to the recently introduced unnecessary TLDs. I guess that is why the .org gTLD continues to grow in popularity and why we’re seeing more solid .org sales. Now, the market is small compared to .com, but with reported sales in the six-figure dollar range I’m sure we will be seeing some other top-dollar sales soon.

Some of the domain sales mentioned above, including Ringtones.org for instance, aren’t even appropriate to the DotORG extension. Imagine the sales prices we’ll be seeing when more appropriate keyword .org domains will be put on the market.

GamblingForumOnline.com sold for $1.1 million?

http://www.prunderground.com/00237/record-11-million-usd-paid-for-three-word-domain/

This press release claims that the three-word domain GamblingForumOnline.com was sold for $1.1 million in stock and cash. Now, I don’t know what you’re thinking, but this doesn’t sound very legit to me.

First, who would ever pay $1.1M for such a domain name? Second, the domain was registered in June 2007. Third, there are lots of substitutes and probably even some comparable domains still available for registration. Fourth, the alleged buyer BestOCG.com doesn’t seem to have been in business for a long time, either. The domain BestOCG.com was registered in 2006 and, on top of that, the website sure doesn’t look like the site of a million-dollar business: It’s a mini-site full of casino affiliate links.

As always, press releases have to be taken with a grain of salt.

What are your thoughts on this sale?

Rick Latona with Live Auction at TRAFFIC NY

Rick Latona

http://www.ricklatona.com/2008/07/17/go-big-or-go-home-ricklatonacom-is-now-in-the-live-auction-business/

Domain reseller Rick Latona today broke the news about him doing a live domain auction at the upcoming T.R.A.F.F.I.C. domain conference in New York in September. This makes him the third auctioneer to be privileged to sell domains at the prestigious domain event.

The two other domain auction houses known to date are Moniker and Thought Convergence (TrafficZ). I think it’s likely that Sedo/GreatDomains will be another broker having a live auction there, but this hasn’t been confirmed yet. As I wrote earlier this week, Rick Schwartz has announced that there will be a total of five live domain auctions held by different companies.

Rick Latona has been a very active buyer and seller of domain names for years and he sends out a successful domain sales newsletter to interested buyers. He has been the seller of some valuable domains, including EdistoBeach.com ($115,000), Jake.com ($100,000), FollyBeach.com ($98,000), Trusts.com ($75,000), HTTPS.com ($50,000), RaceTracks.com ($49,000), ChristChurch.com ($45,000), JP.net ($25,000) and many others.