1. Generating New
Revenue Streams with
Premium Domains
Bob Mountain
SVP Bus Dev and Acct Services

2. Agenda
• What
is
a
“Premium
Domain”?
• Overview
of
premium
domain
a9ermarket
• A9ermarket
technology
• Benefits
• New
TLDs
• How
can
you
get
involved
• Q&A
2

3. What is a Premium Domain?
• Domains
are
similar
to
commercial
real
estate:
they
are
a
business’s
“online
store
front”
and
“digital
idenKty”
• ExisKng
registraKon
• Short
• Highly
memorable,
supports
a
business’s
on-­‐line
idenKty
• SEO-­‐friendly
• May
have
type-­‐in
traffic
before
being
developed
3

4. Premium Domain Customer
"Not only it is easy to
remember for our
customers and
partners, we ranked
#1 on page 1 for
both Yahoo and
Google for the
keywords "Chinese
teachers" after just
one week. Thank
you BuyDomains!"
— Sheila Sauvage,
Founder
ChineseTeachers.com
4

5. Premium Domain Customer
"Find and buy a
great domain name,"
he advises "Our
Alexa web ranking
has gone from >5
million in October
2008 to 500K
currently!"
— Joost Bongaerts,
President
FabulousFlorals.com
5

6. Premium Domain Customers
LivingAuthentically.com PearlParty.com PoolClean.com GlobalRenewable.com HotSoup.com
RatePoint.com FoodSteps.com SafetyTown.com McCapital.com SteakExpress.com
6

7. Why Invest in a premium domain?
Key Point Details
Legitimacy A good domain name conveys legitimacy and professionalism.
Customers will be more apt to do business with you online.
ROI The .COM extension is easily the most valuable and sought after
extension – and most quality .COM addresses are only available
on the secondary market and only for a premium price.
Discoverability Domain names are equivalent to online Real Estate. You want a
prime location so your prospects and customers can reach you.
Search engine Domains with strong keywords can improve your ranking in the
strength major search engines
Traffic Purchasing a domain with existing traffic can help drive targeted
leads/sales and grow your business
Previous Domains with previous history are considered more authoritative
History in the eyes of search engines
7

8. Domain Values Have
Increased 72% Since 2009
“This is the first index
of ‘virtual real estate’
constructed using the
same types of
econometric
techniques that have
been pioneered for
tracking prices of ‘real
real estate.’ This is a
great next step into
the new frontier!”
— Professor David
Geltner, Director of
June 2009 Dec. 2009 June 2010 Dec. 2010 June 2011 Dec. 2011 June 2012 Research at MIT’s
IDNX Index Historical Price (Bloomberg) Center for Real
Estate
8

9. Premium Domains Represent a
Significant and Growing Market
Value of Aftermarket Domain Sales
$1,000
$800
$ Millions
$600
$400
$200
$0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
9

10. SMBs Need Premium Domains To Be
Successful Online
Online Presence Growth Scarcity
Only of Indian SMBs with a strong web Million .com
5% MSMEs have an presence report: 103+ domains
online presence registered
Only of SMBs 2x
Growth rate Annual growth
33% worldwide 11% rate across all
have a website 2x
Revenue increase TLDs
of businesses in Increase in sales
2x Hiring
75%
Asia ran social 8x
volume on
marketing Afternic since ‘07
campaigns in ‘11
10
Source: McKinsey, 2011

11. Premium Domains are Optimized
for SMBs
77%
of
A9ernic
Domain
Buyers
are
Small
and
Medium
Sized
Businesses
Non-Profit Personal
4% 4%
Domainers
10%
500+ Employees SMB 1-5
4% Employees
42%
SMB 24-499
Employees
15%
SMB 6-24
Employees
21%
11

12. Afternic Enables Smooth Transition with
Fast-Transfer Technology
1 Purchase 2 Authorization 3 Transfer
Reseller partner Afternic requests Losing Afternic gives Reseller the
purchases a domain Registrar to start transfer and get authcode to transfer the domain
from Afternic inventory. authcode from Registry. via Registry.
Reseller Afternic Losing
Registrar Afternic Reseller
Buy Authcode
+
Domain.com Owner
info
Authcode Transfer
Registry Registry
12

13. Who Sells Premium Domains Today
Europe
Canada
Caribbean
U.S.
Asia
Oceania
13 21

14. Search Engines Like Shorter
Domains
• Older,
more
established
domains
tend
to
be
shorter
• Long,
exact
match
domains
tend
be
owned
by
spammers
• Large
corporaKons
invest
into
shorter
names,
more
SEO
and
content
• Shorter
domains
are
more
memorable
14

15. Search Engines Don’t Like Multiple
Hyphens in Long Domains
Bill Slawski, the Google patent guru, recently Example: Consider these
identified a patent that describes how Google alternatives
might handle hyphenated domains:
Hotdog.com
“… when two, three, or more hyphens are ChicagoHotdog.com
present, this is often an indication that these Chicago-Hotdog.com
domain names are associated with companies Best-Chicago-Hot-Dog-Cart.com
that are attempting to trick search engines into
ranking their web pages more highly” .
[United States Patent 8,046,350]
15

16. Search Engines Love Exact Match
Domains
• Exact
match
domains
perform
well
in
search
results;
recent
study
by
the
Open
Algorithm
confirmed
correlaKon
of
exact
match
domains
to
search
query
on
Google
• Successful
brands
create
new
exact-­‐match
domains,
much
like
Amazon
and
Facebook
16

17. Search Engines Love Exact
Match .com Domains
17

18. Search Engines Even Like
Hyphenated Exact Match Domains
18

19. Keyword Match Improves Search
Engine Position
19

20. New TLDs will Create Huge New
Premium Domain Opportunity
Today Very Soon In 2-3 Years
gTLD extensions In the next few months, New gTLD
18
in active use new TLDs are coming: 66 internationalized
extensions
Internationalized .PW
Professional Web Global brands
23 county-code 900 launch their own
extensions .SX
Saint Martin extensions
country code
Traditional New open gTLD
250
country-code 500+
extensions
extensions available
20

21. What’s in it for you?
• New
revenue
opportuni-es
– Make
profit
on
premium
domain
sales
– Extremely
high
renewal
rates
– Premium
domain
customers
have
highest
life-me
value
• Be?er
user
experience
– More
domain
choices
• Customer
reten-on
– Don’t
let
your
customers
buy
them
elsewhere
21

22. What is Important in an
Aftermarket Partner?
• Fast
Transfer
• High
quality
inventory
–
Quality
is
far
more
important
than
Quan-ty
• Domain
Integrity
Process
• User
Experience
–
Best
Prac-ces
Program
• Scalability
and
Reliability
• Support

23. Get Involved: Integrate Premium
Domains into Your Service Offering
Domain Search Name Spinning Email Marketing
Suggestions
23

24. About NameMedia
“NameMedia
is
a
leader
in
the
acquisi-on,
development
and
trading
of
digital
real
estate
through
a
network
of
highly
targeted
websites
and
a
marketplace
for
premium
domain
names.”
Brands
SM
Afternic is the leading domain BuyDomains.com is the SmartName is a leading domain
reseller network in the world, destination website of choice monetization company,
spanning four continents and where tens of thousands of generating millions of dollars in
serving nearly 1 billion domain businesses buy premium advertising revenue through
queries per year.
domains. advanced technology.
Investors
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