• Products
  • About Us
  • Home
 
  • Categories
    • Management
    • Marketing
    • Process
    • Product
    • Revenue Model
    • Supply Chain
  • Archives
    • August 2010
    • July 2010
    • June 2010
    • May 2010
    • March 2010
    • February 2010
    • January 2010
    • October 2009
  • Meta
    • Register
    • Log in
    • Valid XHTML
    • XFN
    • WordPress
 

Archive for March, 2010

Candy.com and other domain-driven businesses

Thursday, March 25th, 2010

Back in the days ( late 1990s ) when the mass had just become acquainted with the web and newly born Google hadn’t quite earned the attention it receives today; when popular websites had to have the letter E or word cyber in front; a simple search on Yahoo took 2-3 minutes just to load the search result. Before the introduction of search navigation such as Real Names, many surfers simply typed a keyword and then .com to find what they were looking for.

At the time, generic domain names such as loan.com, men.com, travel.com, mortgage.com, sex.com, casino.com, gambling.com, poker.com, and business.com were selling for millions more than real estate.
Before Godaddy.com and before other high profile domain name registration sites entered the E scene, I remembered a specific television spot luring prospects to register their dreams, register their pet names, register their hobbies and passions, and register their business online. Basically, any person from anywhere should register a word s/he wanted with the word dot com after it. That was the push. All they had to do was visit Register.com.

As I write this, the domain candy.com had recently sold for $3 million, insure.com $16 million, webcam.com $1 million, sever.com $770,000, screensaver.com $330,000, musicvideos.com $225,000, and biking.com $250,000. Yahoo.com recently acquired OMG.com for $80,000. Who would have thought that something that cost as little as $10 a year could sell for hundreds of thousands, even millions?

Well it’s true. A domain such as Candy.com could sell for $3 million because a thousand or more people a day type in candy.com. In fact, more than 850,000 webpatriots every month search the keyword “candy”.
The name is easy to remember and easy to recall on radio, it’s short and it’s what people search.

Increasingly, entrepreneurs are paying top dollars for good domain names and many are building businesses to capture traffic and/or build businesses for resale. A visit to Spanish.com and you’ll see a website that provides a “search engine” experience for things related to Spanish. Candy.com has become a virtual store for everything candy and loan.com provides a loan comparison and searching site for everything related to loans.

While it’s true that a great domain name isn’t necessary for commerce and portals such as facebook, twitter, yahoo, amazon, google, and myspace have proven it — businesses with a penchant for protectionism or young enterprises desiring a piece of the pie would do well to seek short, easy-to-remember, and category specific or generic domains. As the internet become even more mobile in the months to come, domain names will increase in value as fewer surfers will want to search.

Candy.com, for example, offers greater pulling power than a keyword search for “candy” on google or yahoo. It’s easy to remember on return trips and reduces marketing and promotional cost. Which is why the new owner of candy.com happily paid $3 million. Clearly, domain-driven businesses have their advantages.

Domain driven commerce has been at the right time, ten years and counting.

Posted in Marketing, Process, Product, Revenue Model, Supply Chain | 8 Comments »

10-10-fone hype or business innovation?

Tuesday, March 2nd, 2010

In the late 1990′s, it was literally impossible to enjoy a decent dinner without having someone from MCI, AT&T, or Sprint call to pitch their “new” long distance plan. But with the average long distance rate priced at 30 CENTS a minute, a little pestering was a necessary evil. And when some commission earning salespeople began signing up people without permission, consumers outraged and filed complaints with the FTC and FCC. The term “slamming” became synonymous with pesky telephone operators who had illegally signed up customers without consent.

Telephone companies made comparison shopping difficult and with the onslaught of domestic and international calling plans, tracking the best deals became a daily chess match. One could get the best domestic rate, and still pay the highest for international rates. Or, pay a monthly fee for low international calling to a country of choice.

The long distance industry was able to effectively and systematically put consumers in a hynogogic state of mind. Families were paying high rates for long distance and in some cases over-spending by hundreds a month, namely international calling. Some customers even had their long distance privilege stripped away due to unpaid bills.

It was during this same time period that the telecom mania introduced pre-paid calling cards. With prepaid calling cards, consumers no longer had to worry about overspending. Whatever one’s budget for calling became his/her call management card. Finally, international callers could give big bills their long-awaited quietus.

As prepaid calling cards gained in popularity the traditional telephone mammoths stepped up their mindsharing campaigns with:

10-10-321
10-10-220
10-10-345
10-16-570
10-10-811
10-10-566
10-10-719
10-10-297
10-10-987
10-10-457
10-10-636
10-10-811
10-10-868

In some cases, MCI and AT&T secretly marketed more than one 10-10 numbers. It was as if the big boys were tracking and testing which calling plans had the highest response rate. Clever. Hardly a day went by without seeing or hearing Dennis Miller, Tony Danza, ALF, Hulk Hogan, John Lithgow or Sugar Ray Leonard hawk their “exciting” 10-10 saving plan.

With 10-10 calling codes, callers could use a calling plan of choice regardless of the subscribed-to long distance provider. Unfortunately, many of these so- called dial-around services had hidden surcharges, monthly fees and minimum talk times. For example, some 10-10 plans guaranteed up to 20 minutes of talk time for 99 CENTS. Thus even a one second call could cost the caller 99 CENTS. Others had a minimum fee per call, making a quick 30 second call cost $2-4.

Leading up to 2010, the line between local and long distance calls has become gray. With the advent of the internet and voip services like skype, magic jack and vonage, and telephone number portability, any caller could take his local number and place or receive calls from anywhere in the world. For a small fee of $2 to $3 and web connection, calls from the U.S. to Japan cost the same as that from a next door neighbor.

What is the future of telephone? Is there one?

Posted in Management, Marketing, Process, Product, Revenue Model, Supply Chain | 1 Comment »

  • Good To WOW
  • 1769 Lexington Ave. N. #163
  • Roseville, MN 55113 10001 USA
  • tel 866-765-7355
  • email Kosol@goodtowow.com
How wow is your business?
-- Good To WOW.
© 2010 Good To WOW.