Reading in a wired world
A few weeks ago I bought the new Kindle2 and downloaded books wirelessly from Amazon. I love gadgets and this one doesn't disappoint. I still visit bookstores, but now just to browse and when I find an interesting book, I'll ordered it for my Kindle from my iPhone. Don't be surprised if bookstores soon become obsolete like record stores.
Reading books on the Kindle is easy, plus Amazon sells magazine and newspaper subscriptions. I was sick of seeing my daily delivery of the Los Angeles Times being thrown away still incased in its protective plastic cover. I was going to cancel my home delivery eventually, but the Kindle sped up that decision and now I subscribe to the "paper" and it automatically arrives to my Kindle by the time I wake up. Now no one ever steals it from my driveway, the sprinklers don't turn it into mush and I no longer run out in the morning in my underwear and scare the neighbors.
Will the Kindle help or hurt the newspaper industry? This is a topic all its own, but for me it helped me realize that day old news is not going to cut it much longer. I subscribe to so many blogs and news RSS feeds and read them using my iGoogle start page or Google Reader from my Web browser and/or from my iPhone. So Google Reader is my new main source of news. In one place, I read my industry news, sports updates and even breaking world news. News is posted as it happens and some of these news feeds are actually from the Los Angeles Times. So the following morning, not only is the paper outdated in general, but I've already read many of the LA Times articles for the Dodgers, Lakers and UCLA from my RSS reader. Why pay for a subscription to the paper, even the Kindle version, when I can read the same exact stories the day before?
The way I "read" books also drastically changed. I love to run and often listen to the audio versions of books or audio podcasts from my iPhone in a runner's armband. I subscribe to a service from Simply Audiobooks, which is like NetFlix for audio books. It's a great way to fill my mind while I plod away on my jogs. Now I have so many options.
Back to my vacation and how my reading habits have changed. In preparation of my trip, bought "Outliers" by Malcolm Gladwell for my Kindle, but I also have it saved in audio format on my iPhone and on the iPod in my car. Sitting by the pool, I was finally ready to start "Outliers", but Lisa was reading one of her books on my Kindle. So I used the Kindle application on my iPhone and started to read it there. Lisa finished her book a few hours later and I continued reading from the Kindle. The Kindle knew where I left off on my iPhone and opened to the exact spot in the book. Seamless and brilliant. The next day I continued the book, but this time I switched to the audio version on my iPhone while I was on a run. The Kindle doesn't sync with the audio version, but it was pretty easy to find where I was in the book. I stopped the recording after a couple chapters and resumed my reading by the pool later that day on either on the Kindle or the iPhone. The icing on the cake was the drive home. Everyone in the car was sleeping, so I fired up the iPod connected to my car's stereo and finished the book using the 4th device.
So much has changed and I can only imagine how our kids will gather their news and information in the years to come.
Viral Videos, The New Mainstream Media
Viral videos used to be funny or disgusting clips passed from friend to friend via email, often with a threat of bad luck if not passed on to 10 others friends. It got so bad, some friends forced you to treat them like the spammers they were. But as much as we complained about the crap, we secretly watched just about everything, hoping for something special and 1 out 20 times we received the amazing car crash, funny blooper or the shock value image that lulled you in, then slammed you in the face with grotesque imagery or ear piercing audio.
Times have changed with the proliferation of blog sites (like the one) and the ease of posting videos and images. Now you choose what to see and when to see it, helped out by search engine listings, RSS feeds and popular sites with their top lists. But most of all, the production value increased since mainstream marketers started moving their traditional ad dollars from TV to the Internet. Savvy marketers create TV quality videos for the Web and market them into the viral jet stream of America. Political groups have embraced this technique and pushed the medium to levels never seen before. Their audience is engaged, spirited with a desire to share their thoughts with co-minded friends or change the mind of a "hardheaded" person who doesn't see the obvious "correct side" of the argument.
As this presidential political season comes to an end, it will be fun to see major marketers fill the vacuum left by the Democrats, Republicans, PACs and other special interest groups. Will their "constituents" follow their call to buy pizza, beer, green vehicles or protect their identity with the same vigor and passion of tax policy, gay marriage or blue versus red? Mostly not, but it will be fun waiting for that special message to break through the clutter and drive the next catch phrase like "Where's the Beef" or "What's Uuuuup."
Speaking of Budweiser's famous commercials, watch the following video's attempt to use past emotions to connect with current issues. I don't know if this short movie was paid for by the Obama campaign or if it was created by someone making a statement, but either way the goals are the same. Score another point for Viral Internet Marketing.
Domain Portfolios, Safe Investment?
Changes in the economy and the overall financial system have made people think differently about where they "park" their cash. Stocks, bonds, mutual funds and even checking accounts are not as safe as we once thought they were. There are also obvious risks with hiding your cash in the mattress too. I'm not saying buying domain portfolios is risk free, but if bought with skill and proper analysis, you have an opportunity for a pretty reasonable rate of return with decent asset value protection.
Ad revenue dropped over the last 12 months for parked domains, mainly because Google started monitoring conversion down to the domain level, ending the free lunch for low quality domains and fraudulent traffic. There are rumors Google might make additional changes, but many experts believe the majority of the changes have already been implemented and domain level revenue has stabilized. If you own "sub-prime" domains, you feel the same pinch as Countrywide and Bear Stearns, but at least the revenue has stabilized to a flat level. Hopefully that level is not $0.00. If you owned quality domains, then your revenue dropped less and should continue to perform.
Just like any investment, there still are other variables to consider, including if:
- Google or Yahoo stops monetizing PPC ads on parked pages or significantly change their approach.- Google or Yahoo may begin filtering out traffic from long tail domains.
- Traffic slows or people just stop visiting your domains.
- The economy slows further, causing advertising rates to drop more.
- Technology changes, causing people to find sites differently.
- Something totally unforeseen happens.
Too many people look for reasons not invest or take chances, I believe it's better to look for opportunities in periods of change. If you just look at the recent revenue drops and uncertainty for the future, then it's easy to overlook so many other factors that may out way those risks.
Upside factors:
- Revenue has stabilized and prices will be based on new lower numbers.- Revenue multiples to calculate sales price have dropped. (from 4 or 5x to 2 or 3x)
- Supply/Demand imbalance. More sellers than buyers.
- You may find "diamonds in the rough" within large portfolios.
- Ability to "cherry pick" the best names from larger portfolios.
- Buy wholesale and sell retail.
- Optimization by moving domains from a lower revshare to a higher one.
- Optimization by finding the best parking company by domain.
- Alternative sources of revenue
- 2x multiple earns a 50% annual rate of return, significantly higher than a CD.
People are scared in this economy and are selling portfolios more than last year. A portfolio selling for $1,000,000 last year might be available for much less today. If a portfolio had projected annual earnings of $250,000 last year, it might have sold at 4x, which is $1 million. Let's assume these names are higher quality and revenue dropped recently by 20% to a projected annual of $200,000. That portfolio might now sell at 2x, which is $400,000. That's quite a discount and a 50% annual ROI on cash flows. Sure, PPC rates might drop more, but you counter that by selecting domains with steady traffic and consistent earnings, then optimize and look for small pockets of names to sell at a premium price. There are many other tricks and tactics possible, but mostly hard work and proactive adjustments will keep you ahead of the pack.
Remote Office
I love to say my office is anywhere I can use my laptop and cell phone. Trying to find balance between family, work and personal time is not easy in this 24 hour global economy, but with technology and and good time management, you can have your cake and eat it too. I'm very lucky my work is indeed global, requiring most of my communication via phone, email and IM. It also helps to have an understanding family and the best boss possible - me.
Some people avoid Blackberrys, iPhones or even regular cell phones in general, fearing that these devices will control their life and never allowing them to escape work. I think it's the exact opposite. When I'm away from my communication devices, I find it hard to relax. Often, I worry about what I'm missing at the office and this fear used to keep me firmly planted behind my desk. Carrying an iPhone or a Blackberry allows me to work in spurts while I'm out enjoying time with my family, golfing or even trips to tropical locations. I'm not saying I can work 100% of the time on the beach or be as effective when away, it's just a mindset change to enjoy the best of both worlds. When at home in the office, I'm working full speed ahead and the beach "office" is 95% vacation and 5% work. This 5% allows me to vacation for longer periods of time and spend more quality time with the ones I love. Prior to technology, I would get real antsy being away any longer than a 3 day weekend. Sure, I check my email more than necessary and I probably stay up too late on the laptop. However, my wife and two little boys know having dad on the laptop by the pool in the desert on a Monday afternoon is better than dad being away in the office.
Cell phones are great, but nothing replaces your laptop for real effectiveness. Wifi is almost everywhere, but I enhance that by using a broadband wireless card for my laptop when coverage is spotty or if a local establishment charges for access. I'm writing this poolside using my wireless card, even though the hotel has free WiFi. Their coverage is just ok, so I use the card instead of searching for the spot by the pool with the best reception. It might be considered rude, but I often bring my laptop and broadband card to lunch when I'm dining alone. My friends call my office "The Cave" since it doesn't have windows, so when cabin fever starts, I'll go work from a local coffee house, restaurant or even on my boat in the marina. Most wireless carriers offer these cards for free in exchange for a 2 year commitment at $60 a month. These prices will come down or be replaced with WiMax or other technologies making Internet access truly ubiquitous.
Bottom Line, life is short, so work hard, play hard and spend quality time with the ones you love. Even if that means sneaking a peek at your email from time to time.




