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Dozens
of alternate choices have already been introduced, but to
date, none has progressed far enough to clearly demonstrate
that they can consistently beat parking for monetizing large
portfolios of domains. However, several promise superior
results for specific categories of domains. The answer may
be to divide portfolios and assign the categorized parts to
the platforms that can provide the best returns for each
category.
Root
Orange is among a group of new players that is
trying to attract the cream of the portfolio crop -
generic domains that define entire categories of products
and services. They are doing so with a unique service that
allows multiple businesses to share the same domain name via
local usage rights assigned to specific geographical
locations.
| The
platform, devised by Princeton University
classmates Camilo Acosta and Frank
Langston (who serve as Root Orange's
Co-Presidents) was impressive enough to win a a
prestigious Princeton University Business Plan
competition last spring. We hooked up with |
|
| Acosta
and Langston to find out how they came up with their
idea to allow individual names to be used by
multiple users, thus increasing the potential
revenue each name can produce for domain
owners. |
Langston:
We saw Google was serving geo-targeted ads on search
results pages and started to wonder why the same principle
couldn’t be applied to domain names. After a lot of
research into domaining and geo-targeting technology, we
discovered no one was doing this or had thought of it in
this way before. We decided it was a great opportunity, got
a team together to start building the service, and submitted
our patent. We read “The
Domain Game,” which was a great primer on
the industry, and the real estate analogy clarified for us
the simplicity of our model. A lot of people still
don’t understand the world of domains, but they
intuitively understand the value. We want to help
bridge that gap for the sake of domain owners and small
business owners alike.
DN
Journal: In a nutshell, tell us how the system
works both technically and from a business marketing point
of view.
Acosta:
We partner with domain owners to lease generic domains to
local businesses that can benefit from qualified local
leads. We are devoting significant resources to
efficiently market to small businesses and sell the
localized leases. Domain owners usually have a backlog
of people who’ve contacted them about names and these
serve as hot leads for us as well. These are often
people that wanted to use the domain but were turned off by
a high purchase price. We encourage owners to help
spread the word in their networks and actively market the
names they have in our inventory.
|
|
Langston:
On the technical side, the first step is for domain
owners we work with to point their names to our
nameservers. We then route all requests for
that domain based on the user’s location using a
combination of geo-targeting technologies. Our
customers set up their business’s profile in our
system for SEO purposes and give us the URL for
their website. Our customers benefit from a
directory structure when it comes to SEO. Whenever a
user from their area types in a domain our customer
has leased or clicks on it as a search result, they
will be routed directly to our customer’s website
local to them. On all of our domains, there is
a small bar at the top of the page (an iframe) that
allows the user to change their location if
they’re looking for a business in a different
area. |
DN
Journal:
Timing is always a key factor when launching a new business.
With PPC revenues going through a historic slump, interest
had probably never been higher in alternative solutions that
might produce a better revenue stream. You are just getting
out of the gate, but how do you feel Root Orange returns
will fare vis-a-vis domain parking:
| Langston:
For domains that describe local products or
services, we absolutely think our service will
deliver returns far superior to parking or any other
monetization option. Timing is crucial. We
have identified two major trends that we think
combine to make this the perfect time for our model
to be successful. First, traditional domain
monetization options, particularly parking, are
delivering historically low returns. Second,
over 70% of local small and medium-sized
businesses |
| now have
an online presence. More and more are coming
online every day, and they are all looking for ways
to stand out from the crowd. It’s this
second trend that’s critical to our ability to
deliver great returns for domain owners, even
relative to the good ‘ole days of parking.
Ten, even five, years ago the dynamics were
completely different among local small businesses.
Root Orange would have been dead on arrival, but
today the market has matured and the timing is
right.
DN
Journal: Generic
product or service defining domain names with
type-in traffic would obviously be the best
candidates for your system. If people believe that
have appropriate domains, how do they submit them
for approval and what criteria will you be applying
to determine the domains you will accept? |
|
Acosta:
Domain owners should email us at [email protected]
with a list of names they feel could be a fit. We then
scour the list and choose those that are good fits for Root
Orange. Our criteria is simple: we want names that
describe local products and services and avoid any verbs,
qualifiers, or adjectives. We like names such as DivorceLawyer.com
(Editor's Note: this domain is
currently using the Root Orange system) and avoid names such
as TheBestDivorceLawyer.com.
|
|
Langston:
We're looking for names that would appeal more to a
local provider than an e-commerce player. We
see whether there are any local advertisers for the
domain's keywords. It needs to be a term
people are looking for to ensure we're delivering
leads for our customers, and it needs to be in line
with how the business envisions themselves so that
they want the domain in the first place.
DN
Journal:
Let’s close by giving each of you an opportunity
to provide any other thoughts about the Root Orange
program that you think potential clients should
know.
Acosta:
Root Orange maintains a strict confidentiality
policy. Domain owners can rest assured that
conversations with us will remain private. |
Langston:
We are fortunate enough to have strong financial backing and
the support of domain industry veterans and plan on sticking
around for the long-run. We’re looking forward to
getting to know more people in the industry!
2009
- The Year That Domainers Stopped the Trademark Interests
and Began to Turn ICANN Around
Editor's
Note: The article below
is a guest letter from Phil Corwin, Legal Counsel for
the Internet
Commerce Association, the non-profit Washington,
D.C. based trade association that represents the
interests of domain name owners. In it Corwin details what
the ICA was able to accomplish in 2009 and why it is so
important for domain owners to protect their own rights by
supporting the organization in 2010. DN Journal supports the
efforts of the ICA and our Editor/Publisher Ron Jackson,
is a member of the ICA's Board of Directors.
|
2009
has been a challenging year for domain investors.
While the Internet Commerce Association
can’t change the economic environment,
ICA
can – and is – fighting for you against
wrongheaded laws, bad judicial decisions, and
mistaken ICANN policies.
If
you’ve been following
ICA
’s activities at www.internetcommerce.org
you know that we has been speaking out for domainer
rights throughout 2009 – and having a real
impact marked by important victories.
We
took on the trademark interests and
succeeded in blocking the most outrageous
recommendations of ICANN’s Implementation
Recommendation Team (IRT) – particularly the Universal
Rapid Suspension (URS) proposal that would have gutted
domain owners’ rights at new gTLDs. And the
trademark interests were openly planning to quickly impose
these same unfair procedures on .com and other
existing TLDs in
your domain portfolio.
|
Phil
Corwin, Legal Counsel
Internet Commerce Association |
ICA’s
steadfast opposition led
to ICANN’s Board interning with a new policy process that
included ICA – and that has just recommended a balanced
approach to trademark protections at new gTLDs that not only
preserves but also strengthens domainer rights in many
ways – including a declaration that holding
a large domain portfolio is no indication of bad faith,
and creation of a “safe harbor” defense that recognizes
domain parking as a bona fide business activity.
ICA
has shown that it can make a measureable difference in
protecting your rights and your domain portfolio’s value
– but we need your support to continue our vital work!
|
|
Because
the trademark interests aren’t done with trying to
dilute domain registrants’ rights. Both WIPO
and the CAC are now proposing their own
versions of “fast track UDRP” that
would threaten all your .com and other generic TLD
domains – and is even worse
than the URS.
Once
again,
ICA
is
leading the fight against
this blatant attempt by UDRP providers to encourage
more UDRP filings at your expense – by providing
trademark interests with a
faster, cheaper UDRP that will lead to more reverse
domain name hijacking,
and less ability for you to defend your domains.
ICA’s
position is clear – any changes in the UDRP must
be fair,
balanced, and uniform reforms that address the
concerns of |
| domain
registrants and trademark holders.
ICA
will
oppose any attempt by the individual UDRP
arbitration providers to give away your rights to
trademark holders.
|
But
to keep making a difference we need your continued support.
As
2009 draws to a close, we urge you to join the
ICA
, or renew or upgrade your membership (join or renew at http://www.internetcommerce.org/membership_application),
or make a donation (donate at http://www.internetcommerce.org/donate).
ICA
dues and contributions are tax deductible business expenses
for
U.S.
taxpayers (see below for details).
Annual
memberships in
ICA
start at less than $1 a day – a small price to pay
for an insurance policy that helps protect your portfolio
value.
In
addition to representing the domain industry at every ICANN
meeting held in 2009, as well as in the halls of Congress
and other decision centers,
ICA
–
- Filed a
friend-of-the-court brief with the 9th
Circuit Court of Appeals that helped
reverse a lower court ruling, and revived CFIT’s
lawsuit against VeriSign’s sweetheart
contract that allows unjustified increases in
.com pricing.
- Filed a brief with the
Kentucky
Supreme Court
to uphold its quashing of the Governor’s
outrageous attempt to seize domains as
“gambling devices”.
- Spoken out within ICANN
to successfully stop governments from gaining
unwarranted control over geo-names at the second
level of new TLDs.
|
|
Looking
ahead, 2010 will bring new and unanticipated challenges –
and opportunities:
- While we succeeded in
quashing the Snowe bill, CADNA and others
have openly stated their intent to seek Anticybersquatting
Act changes that dilute domainer rights and vastly
increase your legal liability.
- We are exploring
proactive initiatives for domainers, including potential
legislation to make domain theft a designated crime with
serious consequences.
We
welcome your feedback on how we are doing and where we
should be focusing. ICA has given the domain industry a
seat at the table within ICANN, Washington, and those
other places where the decisions are made that affect the
fortunes of every domainer.
|
|
ICA
is only as strong as the combined support of our
members and contributors.
And
2010 is shaping up as another year in which our
industry will face serious challenges – and
new opportunities - on many fronts.
With
your continued generous support we pledge to keep
fighting the good fight for all of you.
Thank you!
And best wishes for this holiday season and the
coming New Year! |
Philip
S. Corwin
Legal Counsel
Internet
Commerce Association
ICA
will be updating its website in January 2010 to list new
members, reflect the upgraded status of those members who
have renewed at a higher level, and delete those members
whose membership has expired. By acting today you
will ensure that your support for
ICA
is properly noted in the New Year.
ICA
operates as a Business League under Section 501(c) (6) of
the Internal Revenue Code.
United States
residents cannot deduct membership dues or contributions
(such as donated domain names, or the proceeds of the
auction of such names) as a charitable contribution for
Federal income tax purposes.
However, for
U.S.
tax law purposes, dues and donations to a business league
(including non-cash donations) are generally deductible as a
business expense, except for that portion that is devoted to
lobbying and political campaign expenditures. The
ICA
does not anticipate incurring any political campaign
expenditures in 2010.
ICA
estimates that ten percent (10%) of its dues and donations
received for 2010 will be devoted to nondeductible lobbying
expenses, as defined for
U.S.
Federal income tax purposes.
ICA
is required by Federal law and regulations to provide this
estimate of the percentage of members’ dues and other
receipts which will be devoted to lobbying expenses for the
calendar year 2010.
The
above general information may not be relied upon as tax
advice, and any affected
ICA
member or donor should consult with the member’s own tax
adviser regarding the proper treatment of their
ICA
support under the tax laws of the
U.S.
or any other nation. In particular, affected ICA members
should consult with their tax advisers as to whether the
excess of the auction sale price for a donated domain name,
over the member’s cost for the domain name, should be
reported as income or gain to the member for U.S. Federal
income tax purposes.
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