Michael and David Castello are no strangers to the Geo Domain Industry.  Some of the domains in their portfolio include Nashville.com and PalmSprings.com.  They have become a part of the elite leaders in the industry thru hardwork, determination, and staying the path with their Geodomains when development was the unpopular idea at the time.  They are two professionals who have consistently and unselfishly given back to the industry by helping others reach their goals.  In the short time I have known the Castello Brothers, I have seen them help people in our industry by offering mentorship, coaching, and teaching without asking anything in return.  These gentlemen are two of the most genuine level headed professionals I have had the pleasure of getting to know.  They are a true resource to the domain industry as you will be able to tell by their answers.  The Castello Brothers will be on a panel in the upcoming DomainFest discussing the following topic;  Experienced Session: Maximizing Revenue from Local Advertisers.  Due to the length of the GeoView, it will be delivered in two parts.  The Castello Brothers are the first GeoView of 2008, a great way to bring in the new year! 

**SMO**When did you register your first geo domain and what name was it?

(MAC) That would be PalmSprings.com in March of 1995.  I was the first and only owner of PalmSprings.com. Back then they were free since no one really had any need for a domain name. Thankfully that has changed.

Let me give you some insight into the internet environment back then. No one was even thinking of acquiring names for a business because there was no business concept on the internet at the time. Those of us who were registering were imagining what it could be. I knew that some on the internet were in other countries and the thought was how they might like to visit and see what I liked. That was my motive. The social aspect was inherent from the beginning. We literally looked at barren land and imagined what it could be.

(DJC) I partnered with Michael in the Summer of 1997. He had been trying to get me involved as early as 1995 and I remember how excited he was when he acquired PalmSprings.com. There was a gold rush in 1997 because many of the names that were available for free in 1995 were expiring and the owners didn’t want to pony up the $70 to re-register them (I know, go figure). I quickly picked up Tangerine.com, Eel.com, Snuff.com and Passover.com.  Our mother Victoria (now our CFO) was financing the purchases and I registered Stud.com. She found the name offensive, didn’t pay for it and someone else grabbed it. We laugh about it now, but back then I said, “You did what?!”
 
**SMO**Why did you decide to pursue the geo domain niche, instead of focusing 100% of your time acquiring generic domain names?

(MAC) Good question. We could get our arms around the city names we had back then. I could much more easily visit Palm Springs to get information and pictures then I could developing Traveler.com. It was easier to complete a virtual destination like Palm Springs. Traveler.com would have been a monstrous task to give the public what it expected. So the revenue was quicker at the local level because we could produce sizable revenue for those local businesses to be happy. That was not an easy thing to do at the time but you know the saying, “money talks and BS walks.

(DJC)   We were simply acquiring anything we felt had commercial potential. It didn’t matter if it was a GeoDomain or MegaGeneric. However, we were so targeted on the bigger fish that we let a lot of multi-word domains slip by like ForSaleByOwner.com. Regardless, we’re extremely fortunate to now have one of the best domain name portfolios in the industry.

**SMO**How have your Geo domains enabled you all to grow into one of the top leaders in the industry?

(MAC) It was not the names, it was my brother David. He created avenues of revenue from what I initially built. It’s like I created the wheel but he created the other three wheels. We went places.

(DJC)   In one word? REVENUE.

When I first studied the portfolio we’d amassed in the Summer of 1997, my reaction was, “This looks great, now how do we monetize this?”  I was immediately attracted to our GeoDomains because I believed that if you owned the city name plus .com you essentially owned the intuitive Internet brand for that city.  Today, this is considered a logical deduction. In 1997 it was considered highly speculative thinking.

In August 1997 I began signing clients to our hometown site BoyntonBeach.com and I immediately saw the future.  By February 1998 I had relocated to Palm Springs, California to build PalmSprings.com. To give you an idea how fast things progressed, in 1997 PalmSprings.com generated $300 in revenue. In 1998, it pulled in over $400,000.

I also want to make it clear that all of this money was made through static advertising. In other words, we charge a set monthly fee on a one year contract (like newspapers and magazine have done for years).  None of this money was made by PPC and I cringe every time I see Google Adsense on a well developed GeoDomain.

**SMO**How has development of your geo domains affected traffic and revenue growth over the years? Do you recommend geo domains to be parked?

(MAC) Development directly relates to public need. Everything follows from there. There is a learning curve that is playing out on the web. Those that can navigate at an advanced level and those that are just beginning. We try to develop for the most return providing for both the beginner and advanced visitor. That keeps expenses in check and profitability in balance.

I would only park a geo if it was an obscure locality and not in need of visitors. We provide a function for destinations by providing customers to businesses in those areas. It is a win win. Read some of the testimonials from  PalmSprings.com clients at http://palmsprings.com/advertise/index.html

(DJC)  GeoDomains are still the lion’s share of our revenue. The beauty of a GeoDomain is that they are so easy to monetize. However, our MegaGenerics have the ability to do as well or better. We have a co-development deal with TRAFFICZ  and our Cost.com.  It’s a long-term project and when Cost.com comes to fruition the results will be fantastic.  I would also say the same for our Rate.com and Sample.com. When developed, they will be formidable.

The only time you park a name is before it’s developed. Parking is just one big “Under Construction” sign. And no one should ever park a decent-sized GeoDomain. Even for a week.

**SMO**How do you feel about geo domains that cover an industry, such as ChicagoRealestate.com? What value can they deliver to consumers?

(MAC) It has evolved into a viable investment. With the right application and personal investment it could be very profitable. The visitor base has grown to such a level that there is wealth available for all in the right position.

(DJC)  I call those Secondary GeoDomains. Though ChicagoRealEstate.com has nowhere near the Direct Navigation of a Primary GeoDomain like Chicago.com (not even close), the name definitely has premium value to be developed and/or sold.

(Part 2 of the GeoView with the Castello Brothers will be published tomorrow, please check back)  

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