Archives for April 2008

It is inevitable that every week at some point the question appears on every domain-related message boards.   That question is which is better: dot net or dot org?  

I find this to be a very good question, as it is widely accepted that dot com is king across most of the world, and certainly in any relevant country.   If dot com isn’t the standard in your area, you probably use a ccTLD.  Either way, it still leaves domain investors with a question that needs answered.  Should I invest my money into dot net or dot org domains?

In the long run, this really comes down to a matter of opinion.   You’ll even find some that argue for dot info as the second best TLD you can get.   In my opinion, dot org is the 2nd best, but here are some positive and negative things to think about for each:

Dot Net

• Seems to have the highest resale value on the market. 
• Gives the feeling to users that you couldn’t find the dot com.

Dot Org

• Can  be a first choice extension for many organizations or websites that that are informative by nature.
• Most orgs were registered by endusers that wanted them.   Investors have a tough time reselling them due to lack of demand.

Dot Info

• Many feel this is second best for geo domains.
• Four digit TLD
• Not commonly known among the non-power users of the internet.

In my opinion, if you are investing to flip/resell the domains, dot net will probably get you the best results.   If you are planning to develop or hold for an end-user, dot org is the best way to go and the way I go more often than not.  It just sounds good and is easy to remember.  If it wasn’t for the dollar promotion on info domains I probably wouldn’t own more than just a few.  It is probably just personal preference, but I really dislike four letter TLDs. 

So, as you can see, dot org is my preference.  It also helps that domainers have largely ignored dot org, leaving a bunch of very high quality domains available on the registry.  Just yesterday I picked up GeoDirectory.org which I hope to develop sometime in the next few months.  

Which do you prefer?  Dot net or dot org?

If you are new to domaining, you will probably start out where most of us started, and that is the public registry.   Even today you can still find some good domains available for registration and you can often make some quick money flipping these domains to resellers on eBay or message boards.   With that said, eventually all domainers come to the realization that the money is minimal and you will be forced to either quit domaining or enter the world of backordering domains.  

I know when I started it was pretty intimidating.   Not only does the money involved go up significantly, but you will often find that you are going head-to-head with other domainers who have a lot deeper pockets for premium domain names.   With that said, you can often find great domain bargains on good domains that aren’t worth the attention of high-end domainers.  When you first enter the world of backordering, this is going to be your bread and butter and will determine if you are successful or not.

So, where do you start?   You’ll first need to setup some accounts.   You’ll need an account with the following companies:  Pool, SnapNames, and Namejet.   You’ll probably also want a TDNAM account, but that will be the same as your GoDaddy login information.   If you don’t already have a GoDaddy account, I recommend you create a GoDaddy account (even if you don’t plan to register domains there). 

Now you need to work on developing a list of keywords you are looking to target.  If you don’t go this route, you will spend a good part of your day mindlessly digging through lists of expiring domains which is inefficient and mindnumbing.   Once you’ve picked the names you want to go for, I recommend setting up email alerts each day for domains containing your keywords.  Most services will offer this and it will make your life much easier. 

Each day you will want to dig through the lists of domains coming available and pick which ones you’d like to backorder.  For SnapNames, Pool, and NameJet, you just add them to your backorder list and if there are multiple bidders, you are entered into an auction.   Only the winning bidder pays, so you are out nothing if a great domain goes to auction.  If noone else bids, you get the domain!  Keep in mind that the minimum bid on with each of these services ranges from $29.00-$59.00.

For TDNAM, backordering works a little differently.   You’ll want to search their expiring domains lists and “Watch” the domains that you are interested in until the last half hour if possible and then place your bid (2 minutes before it ends is the most ideal).   Bids here usually start at $10.00.  You will need to add $9.95 to any winning bid to cover a year renewal, so keep that in mind when you are bidding.

Sometimes you may have an interest in a domain and the Whois shows that it has or is going to expire soon.   If this is the case, you’re probably better off just waiting and going after it through backorder.  This is especially true when the domain is not one that is going grab a lot of attention.

You’ll want to look on the WhoIs to see where it is registered and determine where you need to go to backorder the domain.  Most registrars have deals with backorder companies, which gives these companies first crack at any expiring domain names that they have.  This can be confusing at times trying to figure out where you need to go, so I’ve thrown together this list of the top backorder companies and the registrars they have relationships with:

• TDNAM - GoDaddy, WildWestDomains
• NameJet - Network Solutions, eNom, BulkRegister, ClubDrop
• Pool - NameScout, DotAsia
• SnapNames - Register.com, Moniker.com, Answerable.com, MyDomain.com, Dotster.com, DotRegister.com

Have any other questions about backordering domains?   Let me know in the comments below!

For all of you active domainers out there that try to keep an eye on the industry, you’ve probably been spammed with blog posts and even e-mails recently regarding the Snowe bill, which is a bill that could have very negative implications on domainers world-wide.   Basically this bill, if passed, would give businesses with trademarks more access to domains than they currently have, costing many domainers thousands if not millions of dollars in losses due to being forced to turn over their domains.

The Snowe bill is obviously the biggest threat to our industry, but there are several things that a domainer needs to be conscious of in general when determining whether to invest into a particular domain name.   Over the past decade, there has been a lot of presidence established that helps guide internet law and provides you with general guidelines to follow.  

If you are interested in doing what you can to protect your investment, you first need to understand how things work from a legal perspective.  Domain Bits has taken the time to collect a bunch of things you need to know when it comes to Domain Law.   Here are the subjects covered:

1. The Contract Rules
2. Your Domain Can Be Shut Down
3. No Such Thing As Domain Ownership
4. US Law Overreaches International Boundaries
5. Generics Can Be Trademarks
6. Registrars Will Park Your Domains
7. Record Keeping
8. Private Whois
9. Accurate Whois
10. Front Running
11. Hijacking
12. Most Registrars Aren’t Helpful
13. Not Much Legal Protection

Click over to get full explanations of each option and make sure you are doing whatever you can to protect your investments!