The thin line

You know what I just realized? There's hardly any difference between Web.com's web hosting service and WhyPark.com's domain monetization service.

Web.com asks you to select a site builder template; its software then "removes the blank slate for many small businesses, providing relevant starter text". WhyPark asks you to choose a few keywords; its software then auto-creates a website with relevant articles.

Both services mention ease of publishing ("No HTML! No programming!") and the importance of dynamic content ("Search engines will love you! Visitors will keep coming back!"). And both target customers who want to make money online - only Web.com calls its audience "small business owners", and WhyPark says it helps "domain name owners". If you think about it, the two groups are not at all mutually exclusive.

Earlier this week uber-domainer Frank Schilling expressed concern that the domain business isn't attracting enough newcomers to maintain vibrancy. Might web hosting providers like Web.com be able to help - while carving out a slice of this multi-billion dollar opportunity?

(Web.com's domain registration interface is strangely self-defeating, by the way. If you search for an unavailable domain, its system does suggest a list of alternatives. BUT - it only allows you to purchase one domain name + one extension. What if you wanted both the singular/plural or .com/.net versions of a domain??)

My friend Jothan Frakes thinks so (his company, Oversee.net, just launched a domain parking program for web hosting companies and ISPs). He'll be chairing a HostingCon workshop next Monday morning on the convergence between web hosting and domain monetization. As you see above, there's quite a thin line between the two markets. The session will feature domain industry luminaries such as Tim Schumacher from Sedo (which is partly owned by 1&1), Sean Stafford from dnZoom (ModernBill's sister company) and Frank Michlick from DomainNameNews.com.

Unfortunately I won't get a chance to hear the discussion because I'm on another panel that's scheduled during the same slot :(  But I do see lots of cross-over opportunities for web hosting providers, who are in a great position to...

1. Increase domain awareness among customers, as GoDaddy has via its personal domains promotion. But why position domains as baby gifts when plenty of technology execs should be using TheirName.com to manage their professional presence?

2. Highlight the use of generic domains as a marketing tool. Matt from DomainBinge reports that ToledoTreeCare.com, a parked domain of his with decent type-in traffic, has been populated with Google ads from various tree care providers in Toledo. Instead of purchasing Location+Product keyword ads, these companies could have enjoyed a much higher ROI by registering Location+Product.com in addition to BrandName.com. Might it make sense for their hosting providers to make such a suggestion?

3. Act as a conduit by...
(a) Connecting domain sellers with prospective buyers. GoDaddy, for instance, offers "premium domains" from Fabulous.com - but why not also partner with domain leasing services?
(b) Helping customers dispose of no-longer-needed domains. 1&1 could dramatically increase available inventory on Sedo by putting a "sell this" button next to every domain on its customer interface. Considering the 10% commission Sedo earns, maybe it should!

4. Work towards a Lego-like platform on which customers can make sliding scale rather than either/or decisions between passive domain monetization and active website creation. For instance, why shouldn't I be able to...
(a) Seamlessly mix and match any combination of original vs third party content (and perhaps even offer original content for syndication)?
(b) Market my own products alongside third party merchandise (and perhaps offer other customers a commission to sell my items on their websites)?
(c) Display CPM, PPC and CPA ads from any ad network?

So many possibilities. Tim from Sedo says domain monetization will be a $1 billion market this year, while secondary market transactions will generate $500 million. I'm beginning to think neither has reached even a fraction of its potential...

Comments

[Adam]

Tim might be under-estimating the numbers even. They're already pegging the retail end of the domain business at Billions. I think the aftermarket is already in that realm. With so many unreported sales though it is very hard to grasp.

Btw one other interstign company that you forgot to mention is an exhibitor at HostingCon is Domain Distribution Network domaindistribution.com (a company created by registrar and domain owner DarkBlueSea aka Fabulous.com) Their service is exciting stuff too for hosting companies and other service providers. Check it out. I'm personally excited to see their service become a reality

I look forward to being at HostingCon as the domain service-providers spread their wings.

[Isabel Wang]

Thanks, Adam! I didn't know Domain Distribution Network will be at HostingCon. That's definitely a very cool service.

I think what would *really* help the domains business is easier access to transaction stats. You are providing an awesome and much appreciated service by reporting TDNAM/Snap sales - but instead of you having to look deals up manually, wouldn't it be nice if all the auction services created a "recently sold" widget for DomainNameNews? This will greatly enhance public perception of domain name liquidity and bring new investors into the market.

[Matt]

Interesting thoughts Regarding #2, I think you're dead on...there's a real need for someone to make such suggestions regarding generic domains, and it's not being addressed by the people that I thought would be doing so.

Case in point - I've talked to a few business consultants that claim to specialize in "helping newcos get off the ground." I asked them what they recommend for newcos on the domain name issue...and the response was horrifying. Every one (I polled a small group, but still....) told me the same thing -- "oh, that...yeah, we just wait until they finish the branding process, and then go register the brand domain...it's easier to get those."

Egads...these so-called specialists are completely missing the point. They're missing the boat...and someone else should step in and fill the gap...it might as well be the registrars or hosting providers as you suggest.

Great post.

Matt