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T.R.A.F.F.I.C.
Silicon Valley should give us a good reading on where
things stand now. Just about every leader in the
domain space will be there giving us a chance to gauge
their sentiment. We will also draw insight from the kinds
of deals that are being cut in the corridors and what sort
of products and services are being unveiled by the
companies (new and old) that will be exhibiting there. Two
major live domain auctions will be also held,
offering an up-to-the-minute look at where the domainer to
domainer (wholesale) side of the aftermarket stands (end
users are still scarce at live auctions).
For
the inside scoop on what is being planned for
T.R.A.F.F.I.C.'s return to Silicon Valley we hooked up
with Rick Schwartz (who co-founded T.R.A.F.F.I.C.
with Howard Neu) for the exclusive interview below.
DNJournal:
T.R.A.F.F.I.C. returns to
Silicon Valley
next month after a landmark
show at the beginning of 2006 that played a
key role in the long domain boom that continued until the
closing months of 2009. General economic conditions today
are or course dramatically different than they were the
last time you went to Santa Clara, yet the domain
business, despite taking some body blows of its own
(especially in PPC) had held up much better than most
other sectors including traditional real estate. I know
you always tailor your shows to what is happening at the
time they take place. What kind of theme are you
developing for this conference that will take place in the
most financially treacherous times that most people alive
today have ever seen?
|
Rick
Schwartz
T.R.A.F.F.I.C. Co-Founder |
Rick
Schwartz: We are going to Silicon to
talk to the people with the dollars. We
start with Google and Yahoo and work
all the way down to new alternatives in
monetization. I don’t think folks realize
just how many companies are out there working to knock
PPC out of the box. PPC is fighting for their
survival.
Any
domainer that thought he was immune from
what we are going through now knows better. Even
if your own financial position is good, your other
family members, friends and others may not be in
such good shape. Our favorite restaurants are
closing. One after another. These are serious
times and in serious times you have three camps.
One camp just takes cover and hopes to wait it
out. The duck and cover group. 50% of them
will be wiped out. The other group is out there
knowing there is opportunity and seizing it for
pennies on the dollar. They become tomorrow’s
geniuses and visionaries for having acted
against all odds while the masses were running
in the opposite direction. The third group is the
one in defensive mode as dollars are running low
and time is not their ally. |
Some
companies we may have thought of as being strong may be
weaker than we know. Some will just quietly disappear with
no fanfare. Others may cause an earthquake. Let’s face
it, we were all in acceleration mode and then it all went off
a cliff. Bottom line, we will focus on the bottom line
and making more money and new ways to make that
money. The numbers have changed and so now too must the
solutions. Plus we will discuss what the industry will
look like in the months ahead and a year from now. I
don’t think anyone ever discussed the energy you
get from spending a few days with like minded people
compared to what we do solo behind the computer screen. 6
billion folks with a fairly equal opportunity and less
than 500 answered the call and found the prize.
It is one of the most exclusive groups in all the world.
Attendees
will be part of a “Think Tank” on the future of
the Domain Industry and will be not just one step ahead of
everyone else, but a mile ahead of everyone else in
continuing to be successful in this down economy by
working smarter.
DNJournal:
In addition to having to choose the right content
for the times we are in, the large number of shows that
have followed T.R.A.F.F.I.C. into the conference space has
added another challenge – coming up with a fresh
approach for the overall presentation and scheduling
each day in a way that will give attendees the most
bang for their buck. How are you tackling that issue for
Silicon Valley
?
|
Rick
Schwartz: Nobody can deny that
T.R.A.F.F.I.C. has been an easy target to copy
over the years. But if you peel that marketing
ploy back, it is our model that has been copied
over and over again. Whether it be the speakers of
which more than 90% spoke at T.R.A.F.F.I.C.
before they spoke anywhere else. Whether it be our
auctions in which they all copy our ideas and
implementation but since the audience has a
different make up, the results are dismally
inadequate. All the other show auctions added
together don’t equal most of our single
auctions. So sellers get less at the other venues
and since domainers know that we have a much more
dynamic auction to begin with, we have access to a
better crop of domains.
We
just need to do a better job picking the ones that
actually make it to the stage.
Unfortunately, since the results the others have
had have fallen short, and whether it reflects the
market or not, people start questioning what they
do and before you know it people are questioning
their futures in the domain business, values etc.
That’s a big mistake. The results could
be predicted before the first auction started. We
have improvements to do as well and that was why I
spoke
out about the auctions last
month. |
Auctioneer
Wayne Wheat directing
Moniker's live domain auction at
T.R.A.F.F.I.C. New York (Sept. 2008) |
|
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Domainers
have a responsibility too. They should stop sending in
hundreds of domains and shave them down to ones that can
be picked. 100,000 submissions, 200 picks. That’s
nuts. On the other side of the equation, the auction
houses really need to pick solid domains. They also
need to stop putting in domains with end user prices. This
is a wholesale auction not a retail auction. So
there is a lot of room for improvement here and the
reason it is so important is how it has reflected on the
industry when you have a lackluster showing. When you have
a $12.5 million dollar auction in 3 hours that is a
rising tide for everyone.
This
economy provides fuel for the auctions. Domains
that would never be sold come to the Market because cash
may be needed. On the other hand the cash sitting on the
sidelines needs a reason to come out of the wallet.
That reason is a great domain name and a one
time chance to snag it. So auctions really will play a
big role in the upcoming months and years.
The
point is that we have set the standard each and
every step of the way and when you copy something you are
always at least one step behind and usually more. We may
be accused of many things but we have never been a
step behind. We always set the pace. Our only agenda is
the raising of awareness, payouts and values of our
assets. These are tough times and having been through many
recessions and worse and surviving them becomes a great
strength. Those who think that this is going to blow over
quickly are going to be surprised.
| What
we do at T.R.A.F.F.I.C. is different than
any other show. Even if they duplicate the agenda
and if they duplicate the format and if they
duplicate the physical seating, they can’t
duplicate the formula and chemistry for
creating a deal-making atmosphere. They can’t
duplicate what I see. They can’t duplicate a
vision that has proved to be “dead on” time
and time again. That is why I love the net. It is all
on record.
What we do is
create an atmosphere that creates opportunity out
of thin air. We create a magic that changes lives.
Our agenda dovetails with the dreams and
aspirations of every domainer and
businessman |
Rick
Schwartz and Howard Neu
T.R.A.F.F.I.C. Co-Founders |
| the
world over. We have changed lives at T.R.A.F.F.I.C.
and I have nearly 100 testimonials to that effect.
What will we do in
Silicon Valley
? We will move the ball forward. We will stop
the bleeding. We will introduce new companies
working on new ways to make us more money. We will
do what we always do. We have overcome strong odds
and show #15 will be the show that turned the
corner. Period.
|
DNJournal:
You have taken T.R.A.F.F.I.C. to some great locations over
the past five years; from your South Florida base
to
New York
,
Las Vegas
,
Australia
and several points in between. But as far as
impact on the domain industry, you could certainly make an
argument that
Silicon Valley
in 2006 was the most important location of all. With the
world situation shifting attention to what is happening on
Wall Street and in
Washington
,
D.C.
is being in
Silicon Valley
as important now as it was to be there three years ago?
Rick
Schwartz: The show in 2006 was huge and
we only had 10 weeks to find a venue and pull it off. But
think back where the industry was and where domains were 3
years ago. As they say…we’ve come a long way baby!!
That maturing process will work in our favor. It will work
in everyone’s favor. Plus going to
Silicon Valley
at the very depth of this crisis will prove to be more
than timely. Whoever comes will get rewarded many times
over and just like we can remember
Silicon Valley
from 3 years ago like it was yesterday, this time the show
will be etched in the fabric of our lives forever.
Like I
say, nobody ever “Paid” to come to T.R.A.F.F.I.C.. The
folks we cater to at the level we are at can make water
from sand in the desert. We posses a special talent that
allows us to see opportunity while others see nothing.
Silicon Valley
will prove magical for anyone who comes.
Silicon Valley
will stop the payouts from hemorrhaging any further
because new alternatives will change the way we all do
business.
|
|
DNJournal:
You have a new overall show sponsor this year in Skenzo
(a Directi company). Directi is a perfect
example of the fact that smart entrepreneurs can
find ways to thrive in even the worst of
times. Their business, staffing and office space
all continue |
| to
grow despite the recession. They would appear to
be an ideal match for T.R.A.F.F.I.C. Silicon
Valley where people are going to be looking for
the best way to keep moving forward. |
Rick
Schwartz: Skenzo has become a valuable
partner as opposed to just being a sponsor and I think
that is about to benefit all of us. I guess that is why
they are doing so well and growing while others are
showing signs of distress. The relationship with them as
the show approaches is what I always envisioned. Our
success is their success and their success is our success.
So I think as 2009 evolves we will evolve with it and come
out looking much better and stronger. T.R.A.F.F.I.C. has
been fortunate along the years to have great sponsors and
I think each sponsor will agree that T.R.A.F.F.I.C. has
helped to grow their businesses. Each of them has
done so well that they have spun off their own shows.
Maybe Skenzo will be next. It’s like giving birth each
time. LOL!
DNJournal:
Is there anything else you would like to add before we
close?
| Rick
Schwartz: Just as a businessman who has
been through some pretty tough times, this is not
the time to go into the bunker. There is too
much opportunity right now to turn your back
on it. My only problem these days is deciding
which opportunity to seize and which ones to let
fly away. Folks know that we mean business
once the show starts. The shows we have had
have |
| not
been shows. They have been landmarks in time.
Memories etched in our minds. A place where great
friendships began. It is the root of many deals
that have been made and partnerships that have
come together and we still had all that time for
speakers and parties and life changing
experiences.
“Timing is
Everything” is the theme behind every word I
have ever written. There is a time to relax and a
time to put your nose to the grindstone and get to
work. This is the time that the industry needs to
be in
Silicon Valley
. This is the time. This is the best time. This
may be the only time. Either way this is the
moment and we are not there at this important
moment for nothing. We knew where the train was
going and we |
Santa
Clara Marriott Hotel
Site of T.R.A.F.F.I.C. Silicon Valley 2009 |
| decided
to go to the main station. Many of us are at a
crossroads. The business model is changing
because the numbers are changing. Recalibration is
needed. New alternatives are required. The result
is the most timely and important
T.R.A.F.F.I.C. since we started. As always,
results will speak for themselves. |
We will
of course be at T.R.A.F.F.I.C. Silicon Valley to bring you
all of the show highlights. We will also be in California
the week before T.R.A.F.F.I.C. to cover the GeoDomain
Expo in San Diego April 23-25. We will
be publishing a preview of that event later this week and
will drop a note to all of you who receive this newsletter
by email as soon as that article has been posted.
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