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Market Introduction

Highlights of Discussion

Scope of this Paper

Value Segmentation

Stock

Open Exchange

Finance

Marketing

Capital

Industry Issues

Reactive vs. Proactive Marketing

Slicing the Pie

Value and Process Segmentation - With Commission Distribution

Sell Domains!

Summary Value


Why your business needs a Domain

Taking your business online is now a necessity to keep up with the competition, to do that; you'll need a domain name.
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Choosing the Best Name for You

You've decided that you want to own a domain name. There's just one problem, you're not sure how to choose a good one.
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Direct Navigation

As the Internet matures, the number of potential customers online is growing and with it, the number of ways to promote your business online. More...

Slicing the Pie

Instead of competing for market share the aftermarket domain industry needs to concentrate on industry growth. Growth must be driven by finding new ways to distribute aftermarket domains for sale. New distribution can only be accomplished by offering adequate incentives to aftermarket domain lead generators and opening the system to promote expansion.

Domain Owners

Domain owners already own the pie. The general problem is that they can't sell the pie at retail rates with any reasonable liquidity. Liquidity is the domain owner's best friend or worst enemy. A lot of domain portfolios could be worth 3 to 4 times what they are today if they could obtain liquidity of 3% or 4% per annum. The trouble is that the majority of domain owners are too worried about other businesses making revenue. In the process they starve the market from being able to operate on all but a basic reactive level.

If you attribute revenue using a segmented value model to determine how the pie is sliced. View the results for a 10% vs. 20% commission on domain sales. (PDF)

Most of the percentages for distribution are unchanged when the model has an increase in commission and is distributed according to value. If the lead generator can be compensated independently, it ensures that 5 times the revenue earned on a 10% commission is provided in revenue to the lead generator. That lead generator according to the following graphic could purchase 139 clicks from Yahoo.com in an effort to generate sales compared to only 28 clicks on a 10% commission.

For the sake of this section let us assume that on domains under $5,000 domain owners are willing to pay a 20% commission on all domains sold in return for 5 times the marketing effort.