The ICA, How Did The Industry Get To This Point? (Part 1)

Posted by Steve under ICA on Sunday, March 23rd, 2008 9:19 am

All the blogs in the domain industry have written articles on the ICA and the current threat of the industry with the introduction of the Snowe Bill. I really have done my best to stay away from discussing this topic. My personal feelings surrounding this topic might not be what people want to hear. We are in this position because domainers have failed to evolve throughout the years to protect their assets as a unified front.

Because I have received several of emails and some blog posts recommending I cover this topic, I will.  It will be published in two articles. The first will discuss the domain industry and domainer habits, and the second will focus on how you can make a difference and protect your assets. This post will probably be controversial, but in order to understand why things are in the current state in the industry, we must look to the past for answers.

The domain industry started gaining momentum in 1998. Of course back then, people did not consider it an industry. It was considered an opportunity, and many people figured out how to take advantage of this opportunity and generate revenue with domain names. Sure there were names registered before 1998, but the market did not start evolving until 1998. The domain industry was born internationally over night with the sale of business.com in November 1999 for $7.5 million by Marc Ostrofsky and the rest is history.

“Our industry is at risk” is the tagline you will find on almost every blog discussing the ICA.  Join the ICA now because of the Snowe Bill is definitely the wrong message to promote to form a unified front.  I find this a little frustrating when I read this throughout the blogs, as many use these key phrases because it is the hot topic. History always repeats itself in different manifestations, if you stay around long enough. For many of the old school domainers who started in 1999 and earlier, these words are nothing new. They have been preached since November 1999.

The domain industry has been under attack since November 1999 when Congress added a new cause of action to the Lanham Act (15 USC S.1125(d)) ["Anti-cybersquatting Consumer Protection Act"] expressly designed to prevent cybersquatting. This is when the cease and desist letters flooded everyone’s mail box. Am I right domainers? ICANN and WIPO became mainstream in the industry once this law was passed.

What did domainers do? Absolutely nothing. As time went on, they continued to take care of “Number 1″ and focus on building their portfolios. Many of them were sued and taken to WIPO only to lose their valuable names. There were hundreds of factual stories going around every month on people loosing names to companies because of the new law and WIPO decisions. Again, domainers did not nothing. They focused on themselves and faced issues individually. The industry was very divided back then and secretive. It was all about hording information to advance your self interests and everyone could care less who they screwed over building their portfolio. Trust me when I tell you, that many of the leaders in the industry today, were not about helping anyone but themselves back then, or if they did help, they had a hidden agenda.  This is how the domain industry evolved. There was no sharing of information like the transformation of the industry in 2007 where industry leaders decided to share insight and useless secrets. Unfortunately, I see this same type of behavior occurring in the new generation of domainers. This all must end and a unified front must be established. This is why I took the bull by horns and chose the geo domain industry to build a unified front.

Domainers have had many opportunities to unite and form an organization to combat laws aimed at the industry since November 1999, and they refused to unite. It was not until late 2006 that the ICA was established by big players in the industry to protect “their assets”, I mean the industry.

They have the most to lose and the writing was on the wall of new laws coming to fruition against domain owners. The only way to protect their assets and their way of life was to form ICA and get the small guys to pay for the funding after the initial investment thru membership and donations. It was the cheapest way to protect their assets. That is how things have been done for thousands of years by big corporations and elections, if you take the time to research historical events. The great thing about forming the ICA regardless of the hidden agendas, it will also protect everyone in the industry and form a unified front for the first time ever in the industry.

You see, it is not hard to predict what is coming in any industry if you analyze market history across different platforms. Domainers look at individuals as visionaries when they say something and then it happens, but they are simply repeating something that has already happened in another market and it is inevitable of occurring in the domain industry. The real estate market closely resembles the domain industry. Historically, you can see the trends by starting back in the wild wild west days when the rail road wanted everyone’s land in its path and it has evolved from that point, much like our industry.

I am done talking about the past, it is time to focus on the future. The future demands a unified front in order for everyone to continue their hobby, part-time business, business, or livelihood in the domain industry. I felt it was important to outline the characteristics of domainers throughout the years, to see why the industry has not evolved into a unified front. This is why it is so hard to get domainers to support the ICA, or anything they can not directly profit from, they are simply used to doing things on their own. It is a hard habit to break and it is the reason some people have stopped blogging, you simply can’t force change, just inspire it.  In my next post, I will do my part to break this habit and educate individuals on how to protect their assets.  The information will not be forced and will simply be placed on the table for you to digest when you are ready.  I am sure I have offended some people, however the statements I have made are factual. The truth is always in the pudding!

I will post part 2 later today. Thanks.

 

12 Responses to “The ICA, How Did The Industry Get To This Point? (Part 1)”

1. Dey Says:
   March 23rd, 2008 at 10:00 am

   Steve:

   Thanks for your honest and frank assessment of the current domain climate. I am a newby still finding my way in the domain industry–if there is in fact remains a way to be found. As I am new to the domain industry, I have not made my first domain sale although I do own a few domains for my own personal buildout and for developmental purposes. In any case, at this juncture, as a new domainer I find it counterintuitive to expend funds to join an industry organization that has nothing to do with my chosen vocation, without more.

   As I am still at the very formative stages of learning the many nuances of the domaining industry, domain development and exploring whether or not continued participation in the industry is even sustainable or tenable at this point, it seems to me, that until I can turn a profit in this industry–joining the ICA would be akin to throwing good money after bad. I don’t know if there are other domainers, that are similarly situated to me, but if there are then perhaps some if not all can identify with this position.

   In any case, our historical synopsis on the industry was great; but, it doesn’t take a rocket scientist to uncover the issues raised and discussed in your post. Hopefully, no one is offended by what you stated in your post because all of that is public information available through research, historical chronology and inference. I anxiously await your next post because I am sure that your suggestions and/or recommendations will be quite interesting. Hopefully, the domain industry will survive the coming storms, but if it does not, I will continue to focus on developing the few domains in my portfolio that warrant developing.

   Thanks for sharing your insights,

   Dey

   ***SMO***

   Dey,

   Thanks. I would recommend that you and others who feel this way at least consider donating to the ICA. At this point in your in journey, it is imperative that you take a stand and support something that is bigger than yourself. Even if you do not embrace the the industry as a whole in the near future, your contributions will make a difference to an industry that is struggling to form a unified front.

   You have ventured this far, chances are you will catch the bug. My advice is to build a solid foundation by giving, in order to receive. Welcome to the industry Dey and good luck.

   
   
   
2. F.B. Says:
   March 23rd, 2008 at 11:17 am

   I am new to the industry and have spent hundreds of hours reading through the various blogs of veterans and other new folks.

   I do this part time. I don’t own any of the top 500 words or generic domain phrases. I don’t have extra cash to play with like those who make their living solely from domaining. However, I realize and understand the importance of supporting an organization that will represent the interests of the industry as a whole so I will support the ICA as soon as I can afford to (which will be, uh, next paycheck).

   Right now, I’m trying to figure out my niche and just looking for mentors. I have been watching your initiatives and am impressed with your leadership. Keep up the good work.

   ***SMO***

   Thanks F.B.

   Keep up the good work.

   
   
   
3. Damir Says:
   March 23rd, 2008 at 12:23 pm

   Great post.
   You are 100% spot on History is repeating itself.
   The truth is not liked by the ignorant people only by the one which have wisdom and vision for what is to be but is not yet.

   
   
   
4. David J Castello Says:
   March 23rd, 2008 at 12:46 pm

   If you consider domaining a hobby, don’t join the ICA. But if you even remotely consider yourself to be a serious domainer, it is imperative that you join this organization. Phil Corwin and Michael Collins are working 24-7 to protect your rights. I had dinner with Phil Corwin in Palm Springs and we spoke all night about the industry. Phil has years of experience in dealing with the politicians in Washington. He knows all too well how the “game” works.

   Corporate America is just now starting to wake-up and realize the value of domain names. And what they can’t have they will try to take through enacting new laws, etc. It’s the same old song and dance about the big guys preying on the little guys. It only costs $295 to the join the ICA and no serious domainer has an excuse not to join.

   **SMO**

   David,

   I respect your comments, but I would have to disagree with you with your first statement. Even if domaining is a hobby and you use it to sell a name once a month or every 3 months to generate a little extra cash, you should be motivated to donate or join the ICA to ensure your rights are protected to continue to do so. There are no rules as to who should donate or join, nor should there be.

   WHat many people fail to realize is there are far more hobby and part time domainers in this industry than full timers. They are just waiting for the right opportunity to come along so they too can become full time domainers. I do not think we should forget about them, after all, the ICA’s goal is to form a unified front for the domain industry, and this includes all who have an interest in domain names. Whether you own 1 or 300,000.

   10,000 voices of domain entrepreneurs are louder than 100 big players. The more the better and stongerthe industry will become.

   
   
   
5. Jamie Parks Says:
   March 23rd, 2008 at 12:51 pm

   First off, great post. Really glad I found your blog. You speak with a clear tone of integrity which I hope will begin to echo like a dark blue wave across our industry.

   My Key Points Gathered From Your Post:

   1. Domaining as an industry was born Nov’99 w/ the sale of business.com for 7.5mil.

   2. Domaining has been under attack pretty much ever since (Nov’99) due to passage of the Anti-Cyber Squatting Protection Act.

   3. Domainers have failed to evolve and unite as a collective institution; up until 2007 many have remained divided and secretive.

   4. The ICA was formed in late 2006 by a handful of the industry’s heavy hitters in hopes of protecting their individual assets (and operating as a unified front for all domainers?)

   5. Domainers are accustomed to getting things done on their own. Be it a good habit or a bad habit, it’s how it is.

   My Questions:

   1. Will the ICA really be funded by the small guy? If so what’s the small guy/girl’s motivation? We already understand the major leaguers concerns, by why should we have to buy someone else a bodyguard?

   2. By the word donation, is the ICA only interested in collecting cold hard ca$h? Aren’t there other necessities required by the association that would stand to benefit it and it’s evolution? (I’m talking IRS free donations like old school sweat equity.)

   My Response:

   IMO, if the ICA is truly seeking to be what you are so adamantly describing in your 1st post - the industry’s most powerful legal advocate, then what they are going to need is a lot more than just money and cocktail parties. How about hitting little league domainers at the grassroot level, from the bottom up.

   Because I do believe that other people/domainers do want to take part and be more involved in cultivating values in our industry, it’s just usually not the kind of value that is focused on at conferences and inside forums. I’m talking about the kind of values that you can feel and see clearly in blog posts like the one you just wrote. That’s the kind of value that the ICA or a united domainer front should seek to accrue.

   I’m looking forward to the 2nd half of your post. Because as a little leaguer I’d like to know how else, other than throwing money into a pot, can we contribute to the healthy cultivation of a truly dynamic and democratized domainer advocacy group designed to protect the rights and interests of ‘all’ domainers?

   After all Phillip Corwin isn’t superman =)

   ***SMO***

   Jamie Thanks. In response to your questions.

   1. Will the ICA really be funded by the small guy? If so what’s the small guy/girl’s motivation? We already understand the major leaguers concerns, by why should we have to buy someone else a bodyguard?

   The answer is yes. But it is not a bad thing. Ten thousand voices are louder than 100 of the big players, and the support given by all will be echoed throughout corporate America as a unified front. The fact of the matter is that you are not paying for a bodyguard, but for a voice on capital hill to look out for yours, ours, and the future domainers rights and priviledges. It will benefit everyone in the long run. The motivation should be giving to something bigger than you, me, the big players for a improved and protected industry that will continue to give, so long as you work hard and smartly.

   There is no other industry in the history of man kind that has given so much opportunity to the small guy than the domain industry.

   2. By the word donation, is the ICA only interested in collecting cold hard ca$h? Aren’t there other necessities required by the association that would stand to benefit it and it’s evolution? (I’m talking IRS free donations like old school sweat equity.)

   I will get back to you on this and will contact ICA to see if there are things people can do. One thing I know that you can do immediately, is send a letter to the congressman that the ICA has preapred to battle the Snowe Bill. I am sure there are other things they need assistance with. However, in the end, money will keep the machine running and it is needed to battle Corporate America.

   
   
   
6. Dey Says:
   March 23rd, 2008 at 13:02 pm

   Hey Steve,

   Approximately two-months ago, I suggested to an officer of ICA that ICA consider accepting new membership via domain donations. Briefly, the idea was to kill two-birds with one stone. I thought this a very plausible, feasible and acceptable idea at the time, although I was aware that its implementation would require a bit of work and effort on the back end.

   Essentially, I suggested that ICA allow any domainer who wanted to join the ICA to donate a domain equal to or greater than the membership fee which would in turn be auctioned off with the proceeds going to ICA to defend threats to the industry. At the time, I thought that this was a reasonable position especially for those who were still waiting for their first scratch. In essence, most domains would probably have an intrinisic value worth more than the $295 membership fee, so the excess monies could go directly to the ICA pot.

   Although a bit speculative, I assumed that ICA would apply quality standards to all domains submitted if the Board liked the idea. I also assumed that most of the submitted domains would have been worth two, to three times more than the actual membership fee to make the concept attractive. Nevertheless, not to belabor the point here Steve, but if I, for example, donated a domain that was worth $500, $1,000, or $2,000 to ICA, wouldn’t that type of mutual benefit donation be more effective than just getting a domain for sale at auction without the added membership component? This is the type of goodwill that ICA seems to underestimate or are over-looking.

   Fast forward to today, and it seems odd that ICA would take the approach of merely asking Domainers to donate a domain, without at least giving this a try because if they tried and there was no response from the domain masses then one might be able to say without equivocation that Domainers are in fact an apathetic group only out for self, but that is not the case. I believe that had ICA introduced this program, whether temporary or long-term, it would have had the potential to bring all industry participants together in a show of solidarity against the challenges that lie ahead. Instead, the industry remains divided, splintered, etc., etc.

   Finally, I agree with you and also believe that we should all aspire to something greater than ourselves no doubt about that; however, leadership starts from the top, and in my experience leaders lead by example. Over the years, I have learned that sometimes in dealing with others, it is better to meet them where they are rather expect them to meet you where you are living. Perhaps, my idea was a bit too novel and/or naive–feel free to digitally slap me back into reality if it in fact was, but hey, it was a start at trying to engender a dialogue, and build a bridge at the very least.

   Regards,

   Dey

   ***SMO***

   Dey,

   Thanks. We will become a professional member. The reason why we have failed to do so up until this point is because we wanted to see the facts come out in the wash through all the postings about the ICA. If there were faults, and major hidden agendas, they would have surfaced by now. So we will lead by example, like so many already have. The first step was to conduct research and learn about their mission. The second step was to educate others on ICA. The third step is to join and encourage everyone to join collectively. If we were members already, all our readers may have thought that we had a hidden agenda being apart of the ICA encouraging membership. This is the truth. That is why I found it very important to promote it as a non member after obtaining all the facts, so we could all collectively move forward and either donate or join the ICA together. People would rather hear something and make a decision about an organization from a neighbor than to hear it from the company sales man/woman.

   Your idea to donate domains is not bad. But it is not efficient for ICA. They have much work to do to concentrate on selling names for revenue. I will promote your idea and create a page for domains for sale for ICA. Of course I will list decent domains at affordable prices to generate revenue. The proceeds will be donated to ICA by the owner of the domain and they must become a member or donate the full proceeds to ICA.

   In return I will list the names of all members we have inspired to become members of ICA on the blog. Of course proof must be provided. This may be a far fetched idea, but at least we can give it a shot and see if it works. Thanks for bringing this idea to the table.

   
   
   
7. Canadiandomaineer Says:
   March 23rd, 2008 at 13:22 pm

   I am sure reducing the membership fee to $99 will make it more affordable for smaller investors worldwide.
   Lower fee = more memberships. Guaranteed, try it and see.

   Best!

   ***SMO***

   Hi canadiandomaineer. I agree with you 100%, but you have options. You can donate any amount you choose. I will contact the ICA and talk to them about what they plan on offering to those who do donate and even membership benefits. Every organization has benefits for its members, besides the services they are already providing.

   I can not promise anything, but I will raise the questions and see the response I get.

   Thanks.

   
   
   
8. David J Castello Says:
   March 23rd, 2008 at 14:53 pm

   Hi Steven:
   The reason I wrote this -

   “If you consider domaining a hobby, don’t join the ICA. But if you even remotely consider yourself to be a serious domainer, it is imperative that you join this organization. ”

   - is because I’ve rarely met a domainer who told me they were in this business as a hobby. Practically every domainer I’ve ever met - large or small - has told me they are serious and passionate about this business.

   In Palm Springs, Phil Corwin told me something that hit a nerve. He said that many politicians vote a certain way based upon the last person they spoke with. Especially if it is a topic they’re not too familiar with (like domaining) Phil told me he considers one of ICA’s biggest responsibilities is to stay in front of their faces and keep them informed.

   
   
   
9. F.B. Says:
   March 23rd, 2008 at 16:34 pm

   In my opinion, part time does not equal hobby. I don’t consider this to be a hobby and have not read in any of the forums where anyone has said that. I am serious and passionate about this business. I am the owner of a small business (that I’ve incorporated) and am fascinated by the opportunities that exist through building internet properties online. I believe I have something to offer through dedication to the domain industry and meeting and networking with people who also love and work in the industry.

   The thing about starting from scratch is that you have to start from scratch.

   I would LOVE to be able to quit my job, travel from state to state and spend the day on the internet striking deals with all the big investors, registering domains, participating in forums.

   I can only dedicate my time and energy to domaining on a part time basis at this time because I am not making enough profit to be able to do this full time. When the moment comes when I can financially sustain my domaining business, I will leave my full time job.

   When I achieve my goals as a domainer in this industry, I will personally mentor and help new people who truly want to learn and work hard rather than doubting their commitments based on full or part time status. It’s a little disappointing to keep hearing, especially as a newcomer, that I am not serious because I do this part time. It’s simply not true.

   It reminds me of the military, Steven, when the members of the Guard or Reserves were called Weekend Warriors or made to feel that they weren’t “real soldiers/airman/sailors/Marines” because they were not full time Active. Many of the Guardsman and women and Reservists are fighting right now in the Operations in Iraq, Iran and Afghanistan!

   We are all in this together, full time or part time. I mean this post respectfully and in the highest recognition of all the achievements of the Big Domainers and Businesspeople. Thank you all for inspiring me.

   ***SMO***

   F.B.

   I think you may have read the post the wrong way. There are some people who do this as a hobby and even they are serious about it. All part time domainers are serious about this industry, as it takes a good amount of capital to do it part time. No one referrenced part time domainers as not being serious about the industry. That is why it is important for everyone to donate or join the ICA.

   Keep up the good work and stay motivated.

   
   
   
10. F.B. Says:
    March 23rd, 2008 at 17:13 pm

    I apologize to David J. Castello for misreading your post. The way I read it I believed that you were saying that part time domainers were not committed/serious to the industry, thus my attempt to clarify my position and commitment to the industry.

    Thank you Steve!

    
    
    
11. David J Castello Says:
    March 23rd, 2008 at 17:37 pm

    No apology necessary, FB. It’s passion like yours and Steven’s that makes this industry great.

    
    
    
12. Dey Says:
    March 24th, 2008 at 07:03 am

    Steve:

    I am always glad to help. Thank you for engendering a tremendous dialogue with your domain space. Thanks also for lending your expertise, knowledge, energy and more importantly your time to such an endeavor. Hopefully, the effort will be fruitful and well-received. Let me know if there is anything that I can do to suppport this movement beyond the obvious.

    Dey

    **SMO**

    Thanks Dey.

    
    
    

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