Domaining isn't Monopoly. Or is it?

[woopwoop]

I've been in the domain (accumulation) business a while and something struck me today, I domain the same way I used to play Monopoly.

I treat sets as a good thing (like my London name set). I have a few domains that I would never sell (generics or those with websites that the income is regular and in a niche). I really consider them like Park Lane and Mayfair.
If I could, I'd own everything, I never sell a domain or a property for less than I paid for it, and only consider developing when no other properties catch my eye. Both I treat as a game, up until recently where I'm questioning more of the decisions.

Sure Monopoly and domaining are both business, but I guess that there's an evolution I've gone through with them both being a game or a hobby, to understanding a little more about the business behind them (investments, opportunities, opportunity cost, resale value, income, development).

I think it's important with most things in life to be reflective every now and again. Domaining is no longer Monopoly for me - well at least I'm changing my strategy from how I used to play Monopoly. I now just need 1 or 2 sets with a few nice hotels and then I'll be happy! (I don't need the stations and the utilities).

How do you play Monopoly or domain? (yes I did turn it into a verb)

 

[bensd]

I always remember reading Scott's post comparing the two: http://selfmademinds.com/200901/domainopoly/

 

[Edwin]

I think you're right that there are some similarities, but I think the sets need to be more tightly defined than your London set in order to constitute a monopoly.

A better example might be a case where there are only 3 ways of describing a product, and you have all 6 related names (3 singular/3 plural) so that no matter how many times people go back to the drawing board and try and think of other ways of talking about the product, the bottom line is they'll come back to one of your domains.

In the geo space, a set of all the counties in the UK would be a monopoly set, or on a more local level, all the major towns in a county. I'm assuming here they're all in the .co.uk extension - if it's a mix of extensions then again you're not in a monopoly situation as other people can slip through the cracks you've left.

Another parallel would be that if you have a successful site in a lucrative niche that you've become very familiar with, why stop there? Build other similar-but-competing sites, or go on an acquisition rampage and buy up competing sites until you hold a much stronger hand.

 

[woopwoop]

That is very spooky (first time I read his post - thanks for sharing).

I guess that there are a lot of parallels between the domaining and Monopoly !
I'm also a cheapo when it comes to the side-dealing.

 

[woopwoop]

I think you're right that there are some similarities, but I think the sets need to be more tightly defined than your London set in order to constitute a monopoly.

A better example might be a case where there are only 3 ways of describing a product, and you have all 6 related names (3 singular/3 plural) so that no matter how many times people go back to the drawing board and try and think of other ways of talking about the product, the bottom line is they'll come back to one of your domains.

In the geo space, a set of all the counties in the UK would be a monopoly set, or on a more local level, all the major towns in a county. I'm assuming here they're all in the .co.uk extension - if it's a mix of extensions then again you're not in a monopoly situation as other people can slip through the cracks you've left.

Another parallel would be that if you have a successful site in a lucrative niche that you've become very familiar with, why stop there? Build other similar-but-competing sites, or go on an acquisition rampage and buy up competing sites until you hold a much stronger hand.

Just saw your reply Edwin - I wasn't being too literal over the word monopoly, but just the general feeling that as a player I have my favorites, the things I go for in whatever niche (student/London/other).

My comment about the London set wasn't that I think it is anywhere close to a monopoly (or even that that was my intention) but rather the "buy them up because they are related" mode that I've been in for a while.

I'm starting to change a bit. It just takes time but when it's all down on paper the £ in vs £out don't lie and I should have focused on the ares that have been profitable for me a long time ago, instead of just keeping up in the game.

 

[accelerator]

Is what you're saying a long way of saying you've got more domains than you can manage to do something with?

The difference between the game Monopoly and domaining is that in the game, there is a very small and finite number of properties you can buy, whereas with domaining, there is a potentially infinite number of properties. In domaining, the reality is that only a very small fraction of domains have standalone value, and they got regged years ago.

Rgds

 

[ScottJ]

Crikey that's a blast from the past that post, generally speaking you don't win at Monopoly without houses & hotels, owning the property by itself leads to a lot less revenue but can be used to great advantage when trading for other things and sometimes your sets become more valuable when you cover areas completely in geo terms of certain niche's.

One man's hotel is another man's house though.

 

[tifosi]

Crikey that's a blast from the past that post, generally speaking you don't win at Monopoly without houses & hotels, owning the property by itself leads to a lot less revenue but can be used to great advantage when trading for other things and sometimes your sets become more valuable when you cover areas completely in geo terms of certain niche's.

One man's hotel is another man's house though.

Blog a bit lacking in updates thesedays Scott. Bit too busy? Not that I've any room to talk. My last one was about the same time...

 

[ScottJ]

Aye I've been quieter online - not doing much apart from the odd website purchase so nothing to say.

 

[Bailey]

There are similarities, And I like your analogy to building on property rather than just holding the ground so to speak.

However there is one lesson I've taken on board (which does tie in with your Mayfair comparison) and makes perfect sense to me - And because I'm not a 'builder'.

Safesys - from Domainstate days and now occasionally here once talked about the sense of NOT owning to much in one niche or indeed sets (extensions). The logic being You want the 'outside' market to hold everything else apart from the one that works or is the best-fit for that particular market. Then as development goes on all around you You actually get to a stronger position due to others growing wish to own that term.

Now you could say you are then looking to profit from the work of others, And I can't disagree with that. It does also lead to the conclusion that is better to hold the "primary-term/extension" in a weaker area than hold a minor term or extension in a popular area

 

[woopwoop]

Is what you're saying a long way of saying you've got more domains than you can manage to do something with?

I think that's it - and it blinds me from developing.

Safesys - from Domainstate days and now occasionally here once talked about the sense of NOT owning to much in one niche or indeed sets (extensions). The logic being You want the 'outside' market to hold everything else apart from the one that works or is the best-fit for that particular market. Then as development goes on all around you You actually get to a stronger position due to others growing wish to own that term.

So instead of buying the worst (and cheapest) house in the best neighbourhood (which is kind of the thinking for many first time house buyers
, I guess his theory was buy the best house in an area that not much activity's happening in, and hope other people come, build and lift the value of your property. Which I guess would work with significant research/prospect skills or luck.

Can everyone buy one domain off me? Many I'd sell sub £50/£100... Take a look at a chunk of the domains I'm selling here.

 

[Bailey]

So instead of buying the worst (and cheapest) house in the best neighbourhood (which is kind of the thinking for many first time house buyers
, I guess his theory was buy the best house in an area that not much activity's happening in, and hope other people come, build and lift the value of your property. Which I guess would work with significant research/prospect skills or luck.

Yes, Indeed the ground-work has to be done. But, once done don't be tempted to try to monopolise that ground. Is Pauls thinking I believe. Obviously it's far harder to find any decent ground these days. But, the thinking of those that have held a certain term in all the major extensions or sets for say a number of years- may need questioning. Obviously that's different if you were actually developing - more of looking at it from a purely domainers perspective. And in effect working in opposite to your 'Monopoly-game' analogy really

 

[Admin]

Nice thread but don't reg any TMs or you will Go Directly To Jail!

I think we all know that owning the plot (domain) is not really enough these days, you need to build at least a small house to make it more attractive to visit and maybe to buy. Would you buy a house just from drawn plans? or pay more for the finished show home?

Would you play Monopoly if everything was unpriced? and someone was asking Mayfair prices for The Angel Islington? (which BTW is not a street in London but an area of North London named after a coaching inn that stood on the Great North Road)

So to build up your piggy bank, sell more for less.

Admin

 

[Edwin]

I still believe that owning the whole "street" (to continue the Monopoly comparison) adds more value than not. It means that any company in that street's niche that "gets" domain names has only 1 choice when it comes to securing the domain name(s) they need, which makes your negotiating position much stronger.

 

[Bailey]

Edwin, as much as I admire you for your domain accumulating. You don't see yourself as a 'facilitator' which to me is part of a good business acumen.

The UK domain market is 'stifled'' - And I've no problem with those that think otherwise. Anybody operating in the TLD market understands why the Uk domain market has no growth - I think your commitments cloud your judgement.

 

[Edwin]

Edwin, as much as I admire you for your domain accumulating. You don't see yourself as a 'facilitator' which to me is part of a good business acumen.

The UK domain market is 'stifled'' - And I've no problem with those that think otherwise. Anybody operating in the TLD market understands why the Uk domain market has no growth - I think your commitments cloud your judgement.

Can you perhaps rephrase this another way? I genuinely have no idea what you mean by the above...

 

[Bailey]

Nope - I genuinely think it's clear enough.

There's reasons why UK sales do not have the prominence in global domain sales (of which, I would agree there are several)

Our current domain 'capture systems' being foremost.

In the Past we have disagreed on the UK markets potential against the reality - I don't see the point in us going at loggerheads again and again

 

[Rob_F]

I'm lost too.

- Rob

 

[Bailey]

Nothing wrong in being lost Rob - It aids concentration.

 

[AuthorityDomain]

I also did a blog post a while ago on this topic.
http://www.authoritydomains.co.uk/my-domain-name-analogy/

Bailey - Not sure I agree on the geo domains. I'd think it would be better to own a lower attractive property in a prime area rather than a decent property in a crap area. Just my opinion though