traffic jan 2010 - epik.com - acquire - development - monetize - exit
TRANSCRIPT
Rob MonsterCEO, Epik.com
Playing the Drop Game
Why Dropcatch today?
• Uneven economic recovery ==> Many great domains are dropping.
• The end of domain tasting ==> More good inventory available for tier 2 domain catchers.
• Automated (and Semi-automated) domain development ==> Non-traffic names are more interesting than ever.
Tools for screening for domains
Domains.Epik.Com
Epik's Ecosystem approach
Horizontal platforms:
• When selecting a name to catch, the name needs a business concept that fits.
• Build vertically oriented sites on platforms that use common horizontal services
Epik | Directory Epik | Product Epik | Q &A Epik | Reference
For businesses with physical
location
300+ product portals
More than 1M Sites about people, places,
and things
For details visit:Directory.Epik.com
Interoperable components that are part of a semantic network
All Q&A content aggregates to Questions.com
All services scheduling powered byAppointment.com
All comment/reviews aggregates to Comments.com
Single sign on attached to central profile for identity and reputation at Identiy.net
Built onEpik | Directory platform
Epik's Ecosystem approach
• High and sustained search volumes
• Trademark-free
• Good potential to aggregate content + community
• Passes the New York Times test
• Compelling Business Opportunity!
What I look for in a drop catch target
What is a Compelling Business Opportunity?• At least 10x return on capital
Traditional models
“Catch and park”• $60 domain catch cost• $10/month parking revenues
Year 1 Net cash: $60 (1X)
“Catch and minisite”• $60 domain catch cost• $500 of development costs• $25/month in average revenue• Sell 10% of the minisites for $2,000
Year 1 Net cash: -$60 (ouch!)
Epik models
“Catch and develop - Basic”
• $7 domain catch cost• $50 in domain development costs• $25/month in average revenue• Sell 10% of sites for $5,000 year 1
Year 1 Net cash: $743 (14.3X)
“Catch and develop - Pro”
• $7 domain catch cost• $500 in domain development costs• $100/month in average revenue • Sell 5% of sites for $25,000 year 1 Year 1 Net cash: $1,943
(3.8X)
• View each drop catch as the raw land of a future business.
• You will make most of your money on the front end of the deal.
• Find a partner that can give you a scalable efficiencies measured by “cash on cash”.
Closing thoughts