Then, as a service to his readers, he put forth that the term “Domaining” itself has yet to be defined. For a practice that’s as old as the web, one would think this is either a naive assumption or a bold statement.

But, frankly, he’s right. Most folks know about the internet now, they know what a web site is and they don’t scrunch up their eyebrows anymore if you tell them you are a “Web Developer.” They might even think they need a website.

But tell them you are a Domainer and their eyebrows furrow as the words, “What the heck is that,” slide past their lips.

What is a Domainer?

The term “domainer” can best be understood first, by understanding what a Real Estate Investor does (although there are probably a slew of Trademark Attorneys who would disagree) and then by understanding how the real estate investor differs from a Real Estate Developer.

A real estate investor buys real property for profit. When the investor finds a willing buyer, the investor sells the property. If making a profit on the property entails “squatting” on the property (i.e., holding title to the property until a profit can be made), then a real estate investor squats. Note that this is not considered illegal in real estate.

Similarly, a domainer buys domain names to make a profit. Like a real estate investor, sometimes, most times, a domainer must hold on to the domain name for some time before finding a buyer. Some erroneously refer to this as cybersquatting. It’s not. Buying a domain name and holding it instead of developing it is not cybersquatting.

Some Domainers are also Developers But Not All Developers are Domainers

Going back to the Real Estate Investor analogy, some real estate investors are also real estate developers. They have a vision of profitability based on putting the real estate to some use and developing it for that use. The intention is to buy the land, develop it then sell it for a profit.

Some Domainers are also Web Developers but not all Web Developers are Domainers.

A web developer typically builds sites on domains owned by others using the tools of the web development trade: HTML, CSS, XML, php, Ruby, Perl, Dreamweaver, PhotoShop, a text editor. The goal of the web developer is to produce a website.

Some web developers are also domainers. They buy domain names and develop websites for that domain. The goal of the web developing Domainer, however, has not changed: buy a domain name and sell it for more than s/he bought it for. If building that site creates a stream of steady, verifiable traffic or revenue from product sales, all other things being equal, this should increase the attractiveness of the domain name and the profitability at sale.

At this point, I think it is safe to define a domainer and the industry of Domaining.

Domainers buy domain names to make a profit; some make a profit only at sale, some profit along the way through development. Domaining is the practice of buying domain names for profit. Like real estate investors, domainers purchase with the intention of profiting.

Perhaps if industry folks referred to themselves as Domain Name Investors, the nature of the business would be clearer to others.

As it is, the term, “domainer” has taken root in the industry.

Domaining Philosophies

Domainers appear to be separated into two “camps” or philosophies. Some domainers buy and park their domain names, banking on type-in traffic or simply making a profit at sale. Rick Schwartz and Frank Schilling have a bit to say about buying and holding domain names.

Others buy and develop their domain names, banking on selling a product online, making money with affiliate advertising, generating revenue with PPC (pay-per-click) advertising and increasing the perceived value of the domain by creating a stream of traffic.

As a domainer, this is my personal philosophy as well: the money is in the developing and for good reason.

You’ll find Domainers on both sides of the fence; some of us develop, some simply park their domains. Most of us probably do a bit of both with the distinction being only our initial intentions. For sound explanation of the reasons behind developing versus parking, have a look at Shane Pike’s article How To Really Make Money with Domain Names at AskShane.org.

All of us, as Domainers, want to make a profit selling our domain names. So, whether we buy and park or buy and develop, the end goal is the same: Sell the Domain Name for a profit.

That is what separates us from web developers and defines us as Domainers.

The Cost of TRAFFIC

To help folks understand why he is asking this question, it is helpful to know, first, that this industry event is not cheap. As of right now, the “early bird” registration fee to attend T.R.A.F.F.I.C. East in Orlando this May is $1,495; after March 1, that price climbs to $1,995. Ouch! And, as Sahar points out, this does not include airfare, hotels, meals and the opportunity cost of attendance (lost revenue due to taking time off from work or leaving one’s business unattended).

The Value of TRAFFIC

At the bottom of the T.R.A.F.F.I.C. website, the words, “Network with the biggest and the best,” appear. This is the seven word hook upon which many of us hang. Who wouldn’t want to be a fly on the wall when Rick Schwartz takes the podium? Anyone out there not want to rub shoulders with the physical embodimonts of success in this industry?

For Sahid, this is a question of Value. For me, like many others, this is a question of potential Return on Investment: what is my business going to get in return for all of the costs of event attendance?

It is not that I am not a hopeful person; I am.

It is not that the esoteric is lost on me; it is not. Certainly there is a cozy and warm zen value meeting folks who do what you do and who love what they do, they way you love what you do. Trust me, I don’t feel like the black sheep of my field lurking on Sarid’s site or reading Rick Schwartz’s Blog. Frank Schilling and I share similiar feathers.

But, I have to ask, what actionable ideas will I come home with? What information will I have as a result of the show that I would not have otherwise or that I would not have in a timely manner? Finally, what can I put to work immediately to increase my cashflow?

And Your Favorite ROI Is… ?

Sahar wants us to look beyond the cash ROI. He acknowledges a complex form of value greater than cash value when he writes, “The more complex form of value is not to judge ROI in only dollars and cents, but judge ROI in the bigger picture.”

And I agree with Sahar, with all of my heart: The T.R.A.F.F.I.C. Event holds much potential value for domainers.

Having good friends and famliar contacts in your industry makes me go gooey inside; I long for the day or evening when I can get together with a group of people who understand the words, “conversion,” “SEO” or “organic traffic.” I long to be able to call someone and say, “Hey! I just bought umpty-frats.com!” and hear that person say, “Holy Crap, park that domain!” instead of, “Okay, show me the money.”

I long for the flow of ideas that happens when friends with similar interests get together (a weekly event over here where 99.9% of our friends are pilots and if we could eat on aviation ideas we’d all be fat).

But I cannot agree with my wallet. I have to ask the nasty cash questions: how long will it take me to make the money back? what cash profit potential does T.R.A.F.F.I.C. hold? what will I learn that I can act on now? I fI cannot positively answer these questions with a cashflow gameplan, I cannot justify spending the money on T.R.A.F.F.I.C. (Well, I could, but my husband would hit the ceiling)

Even Rick Schwartz says, “Nothing happens on this planet until a sale is made.”

The World Intellectual Property Organization (WIPO) disagreed, proving size does not matter.

The fact that a company operates “internationally” or holds “world trademark rights” does not lessen the claims of another legitimate business operation, regardless of the size of the territory in which that other business is located.

Imagine an international food grower claiming rights to a “local” farmer’s land based simply on the claim of
1. “World trademark rights” and
2. “That local farmer is located in a small territory.”

That smacks of internet imperialism to me.

But I like this remark by Jasper Sellin most because it shows, for all to see, a dangerous sense of elitism:

“In our opinion, it is far from clear that a holder of worldwide trademark rights should find it obvious that a company operating in a small territory like the Bahamas should have legitimate rights in a .com domain name.”

You must be joking, Jasper.

You mean to say you could not have possibly thought that a company, operating in a “little territory” might actually have a legitimate right to a .com domain name?

You mean to say that the owners of one business could not possibly have known that the owners of another business might have a legitimate claim to a .com name?

Gee, with that reasoning, why not march into every company operating in a “little territory” and demand their .com domain names.

It should be obvious to you that *any* company, regardless of location and regardless of the size of that location, has, from its inception, the same legitimate rights as the company you represent.

And these “world trademark rights” do not give you the right to squat on or squash the potential of any other business idea simply because you want something you don’t own and are not willing to pay the seller’s price for it.

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