What are Geo domains?  Everyone has their own opinion to this question, however I would like to offer a more accurate definition based on facts rather than opinion.  I am sure it will probally ruffle some feathers and cause some controversy, but I ask readers to keep an open mind to what I am about to present.  It is neccessary to educate people in this industry as a whole, so no inaccurate assumptions or misleading comments are made to define Geo domains.   

There is a common misconception that has evolved in the domain industry over the years on geo domains. The term “Geo” is short for Geographical/Geographic and the term “domains” has been added to represent the industry.  Here is the definition of geographical, please focus on #2.
 
ge·o·graph·i·cal 
 
1. of or pertaining to geography. 
2. of or pertaining to the natural features, population, industries, etc., of a region or regions. 
 
While many view geo domains as city.com, state.com, country.coms, these are not the only entities that the geo domain industry encompasses.  These are some of the most elite names in the geo industry though.  Many like to use those 3 categories to define geo domains.  They are not wrong, they are indeed geo domains, but the geo domain industry is much larger than the 3 categories listed.
 
Just like the domain industry is not just Generic.coms, there are a variety of other categories that fall into the domain industry, products, services, popular search terms, etc.
 
If you read the definition of what the term geographical means, it tells you exactly what geo domains are when the terms are put together.  This is what “NORMAL” people think of when they search on and off the internet for information.  They do not only think of just city.com, state.com and country.coms only.

These are what Geo domains are:    
 
1.  City.tld, State.tld, Country.tld, Region.tld
2.  City+Industry/Service.tld, State+Industry/Service.tld, Country+Industry/Service.tld
3.  IDNs and Country ccTLDs. 
 
In all countries, the country domain is more popular than a .com address.  This is fact, not opinion.  A great example of this is VeraCruz.com.mx.  The citizens of Mexico embrace their domain extension, just as americans embrace .com.  They have VeraCruz.com pointed to their site.  VeraCruz.com.mx is interested in delivering content to Mexicans, and adds value by capturing Americans and others who visit VeraCruz.com.  There are thousands of examples just like this that prove how powerful ccTLDs are when compared to .com.  IDNs are soon to follow once the infranstructure has been put in place.  These geo domains are very powerful in their regions. 

American domainers are very egotistic for the most part, although not all.  They believe there is nothing better than a .com address and that it is the only universal extention.  The rest of the World does not neccessarily look at things the same way.  If they did, the volume of .com addresses available to domainers would have been depleted by true businesses and end users long before domainers evolved.  The reason there was and is an abundance of domains still available in .com is because the rest of the world is embracing their ccTLDs.  Many people will insist that everyone in the World missed the boat on .com, yet these multimillion/billion dollar companies, businesses, and entrepreneurs in other countries are doing just fine with their geo domains.  Isn’t it funny that they are still successful doing business online with their ccTLDs?

I find it very entertaining when I read or hear this closed box way of thinking in the domain industry.  Perhaps the rest of the World looks at .com as the United States country code. Sure it is universal, but I can assure you that the foreign companies that buy the .com address, also own the ccTLDs for the most part.  Think about this, is it possible the rest of the World looks at .com for the most part as a United States ccTLD and use a .com domain to attract Americans to their international business? It’s strategic marketing, especially if you own an office in the U.S.

I lived in Europe for almost 5 years, and traveled all over the place.  I know from experience talking to people from many countries that they feel this way about .com.  All you see is ccTLDs printed on everything; signs, cars, SemiTrucks, etc.  There are .com addresses also, but this is the exception than the rule.  Those people in Europe who search the internet for things in other countries, use the term and ccTLDs.  This is fact and not opinion.  Geo domains are powerful and the true value has not been unlocked in the United States.  Countries outside of the United States have unlocked Geo domains true value long ago with mobile technology. 

It will be interesting as the industry matures and IDNs get into the mix.  I am sure many disagree with what I have outlined here.  I once again ask you to look at this with an open mind and place what you have been taught in the domain industry, aside for a second.  There is more to the World and domain industry than .com.  The Geo domain industry is much larger than defined historically.  I hope this opens your eyes to exactly how big this industry is outside of the United States.  The United States is just a small part of the industry. 

I welcome all comments and disagreements. 

The Castello Brothers have recently completed a podcast with OZDomainer.com.  It is a great interview that is a must if you are serious about geo domains.  Even if you are not into geo domains, this is a great podcast that will enable you to learn about the emerging industry.  

Please feel free to post comments on the interview.  Ed continues to do a great job with these podcasts.  Great interview David and Michael.   

It was a very slow week for Geo domain sales.  However, the geo market still delivered $90,936 in sales.   

The internet remains the number one business tool to creating millionaires of all ages.  This is a great article on this subject.  While geo domains are not neccessarily tech related, I believe they will be acquired in much the same fashion as tech companies are being comsumed by major industry players.  Major media companies will rather buy an established targeted location with built in traffic than having to create one on their own.  Really, it is all about the intimate brand the geo domain projects to consumers as this industry unfolds.  This is a historical fact in acquisitions in the tech industry that will later become the norm with those who build powerful geo targeted brands of the future. 

Some may be thinking this is wishful thinking, but a major media company will buy a geo domain for 7 figures in the months to come (confirmed).  This will be the start of a new acquisition stream for media companies as the power of an intimate geo domain brand proves to be the center of the local strategy evolving on the internet.

The smarter and harder you work on developing your geo domain(s) effectively, the more revenue it will generate and the more appealing it will become to major media companies moving forward for geo acquisitions.  This will result in big dollars being spent in acquisitions, just as in the tech field.  Building a successful business model with a great domain name has already proven to be a lucrative platform for major media companies to add to their empires.  Geo domains are just another stage manifesting on the internet.  The only thing constant in life is “CHANGE”, embrace it, find ways to exploit it, and then profit from it.  Those who do this consistently, will surpass those who were once leaders of an industry.  Complacency stunts growth.    

Y Combinator’s Graham wishes the Auctomatic team had held on longer; he says the most successful entrepreneurs are those who resist buyout offers and keep building their companies. But he understands the temptation.

“When you’re that young and someone dangles all that money in front of you, it’s hard to turn down,” he says. Now he’s going to order some black shirts for the newly minted Auctomatic millionaires.

 (via WashingtonPost.com)

UPDATED:  Before I get tons of disgruntled emails, this is in regards to all prime geo domain extentions.   

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Sahar posted this topic on his blog today.  It is a great topic that I wanted to share my insight with readers of the blog.  There is alot of uncertainty about the geo domain industry among domainers.  To many, it is just a fad/trend in the industry that will come and go.  This fad/trend has been ongoing in stealth mode since the internet started evolving in 1996.  It is not going to disappear and those who have embraced their geo domains, have reaped huge rewards, all in stealth mode. (Read My Poker Analogy) Those traditional domainers are failing to realize that the internet is evolving and nothing stays the same.  The old ways of doing business are evolving and those who do not adapt will be much like traditional media is today, with decreased revenue streams, as the companies who embrace change develop multiple streams of revenue.     

However, many fail to realize that geo domains represent the future of the domain industry, which is domain development.  There are several of people who are curious as to why no information has been made public on how to make mega revenue from a geo domain.  The truth is, it is a protected trade that is shared among inner circles.  This information is guarded because of the threat that exists of substandard geo domains using the the same strategies to take market share from established prime geo domain markets.  This is why these very profitablestrategies are well guarded secrets that are very profitable and kept on the downlow.  However, it is imperative that this information becomes public to ensure the industry reaches its full potential.  (This will be for another future post)  

This was my reply on Sahar’s blog today.  There were some really good posts from the Castello Brothers as well.

Great article to comment on. There is so much to this topic, however I will keep it short. Geo domains are not over rated, but under rated. The momentum is building and I concur with your assessment of the time table it will take for the industry to hit mainstream 2-4 years. Right now, there are several of geo domain owners earning over $1 million a year gross from a well developed name. This is increasing every year. This is a great start to an industry that is maturing.

We are already seeing a great deal of platforms and new media strategies transforming the internet into a local community. All the major media companies want to be 100% local. Evolution is great, where the internet used to be 100% global, and 0% local, now the tables have turned. Consumers have empowered change and demand local content. Geo domains fit right into the transformation of the internet.

Those who are buying now are pretty smart investors. But they are also the end-users to the geo domains. Most who are buying geo domains have no plans on selling anytime soon. Geo domains are guaranteed streams of revenue once developed with effective content and strategy. It would be foolish to sell, unless another end user comes along and the price is right. After all, business is business. Another reason for selling is that the geo domain does not fit into their long term goals.

Of course, there are people who make money selling geo domains, such as Rick Latona who would rather sell, than develop them. But this is a very rare thing to find in the industry. Prime geo domains for sale are rare in the domain industry, but they are available if you take the time to look and negotiate.

It is a rare moment in history to own a specific geo location that delivers a targeted service, to include the valuable city.com, state.com, and country.coms.

If you own any of the last three, you hold the keys to city, state, and country for world to visit. You are the embassador for it. (Analogy here)

Things are heating up. We have had several media companies contact us asking questions and wanting guidance on geo domains. The Kelsey group is discussing geo domains at their Drilling down on local 08 conference at the end of the month. (Big Media Company) This is only the beginning.

I also have an inside scoop on a major geo domain deal that is going to shock the domain industry and prove that what I am saying here is fact. The industry is maturing and this deal will make headlines and the geo domain industry known. It will be announced 3-6 months from now due to all the details, but it will be worth the wait when news breaks on the deal.

In my opinion, prime geo domains are going to be the most valuable domains on the planet as the industry matures and the internet continues to grow with consumers.

Everyone knows a city.com, state.com, country.com, and many travel to these locations and take pride in each. Many actually fall in love with the physical locations. No other domain offers the same characteristics that geo domains offer. (When developed properly) This also includes prime location service geo domains.

This is a great topic. So much more to say, just not the right time to discuss it. Geo domains are under valued, and certainly not overrated.

In the domaining world, everyone loves making money off of PPC for doing very little work.  It is easy money when you own the asset that delivers the traffic.  But what will happen when the revenue well runs dry? PPC has started to decrease for many who depend on the PPC business model.  Soon, it may drop even more once small businesses figure out they can save a bundle by effectively investing in SEO for their website instead of spending a fortune on PPC.

When you truely look at things, PPC is nice, but is definitely not mandatory to be successful on the internet.  On the other hand, SEO is mandatory to be successful on the internet.  So where should a business spend its revenue if they are looking to build a solid ROI for their money spent?  SEO.  PPC is becoming very expensive for many small businesses to compete over key words.  Additionally, a click thru is a compulsive visitor that takes revenue from the business if they do not spend on the site.  Does this makes sense, you are paying someone to send traffic, to take even more money from you by not purchasing.  Although, there are obviously a large amount of benefits from PPC traffic.  

I never really understood the true business sense for small businesses using PPC.  I used it for my wifes realestate business in Austin and it produced alot of leads from all over the world.  Worked great to get initial contact, but poor for business transactions.  PPC is great if you own a business that has a high profit margin, such as realestate, cars, loans, and other type services.  You could pay for 2,000 PPC visitors and 1 sale would pay for all of them and still give you a huge ROI.  Small businesses are struggling to find the best cost effective strategy.

This is a great article that oulines the difference in both.  Once again, this is an indicator of why domainers should develop their assets.  The writing is on the wall, and if domainers want to continue keeping a portfolio of domains, they will need to supplement the revenue they earn thru a variety of platforms.  It is never wise to place all your eggs in one basket.  If the bottom falls out of PPC, we are going to see the market flooded with domain deletions and on auction sites.

Aren’t we already seeing this from major domain companies in the past couple of weeks?  Funny, how people refuse to accept what is going on and continue to say development is not mandatory.  PPC will eventually become another overcharged service that business owners will abandon once it hits its peak.  The proof is always in the pudding! 

When companies invest too heavily in traffic before considering how efficiently they can convert it into sales, planners and, especially, managers find themselves in a reactive position. The sudden influx of traffic illuminates every deficiency
in a website, while offering few clues as to what needs to be fixed.

A more deliberate content optimization strategy allows you to be more proactive. The result is better fiscal control and more accurate outcome (and income) projections.

When SEO-driven traffic supplements that of pay-per-click, overall costs per visitor are substantially reduced. Higher conversions with reduced cost per visitor increase both net profit and ROI.

 (via PromotionWorld.com)

Yahoo! has announced its one-stop-shop advertising platform aimed at streamlining the process of buying and selling online ads across digital formats.  This is a pretty smart idea that advertising networks created in the past.  Now Yahoo! is making it much easier for businesses both small and large to find the right targeted advertising plan that best fits their budget.  

In my opinion, I think this will be an instant success.  However, advertising agencies are not going to like it much because they will see a decrease in customers.  Most advertising companies make a bundle of revenue off of consulting fees and linking the business with the right advertising platform to get the best results.

Yahoo! is taking the middle man out of the equation and giving the power to businesses and publishers to connect.

I think this is a great tool for those who have developed Geo domains and need additional advertising revenue.  It will surely be interesting to see how well this new service of Yahoo! does and how many publishers/businesses participate.

Transformation is great!  Anything that can put more money in a publishers pocket has my support.   

AMP will also provide a set of tools allowing advertisers to target campaigns based on geography, demographic criteria and online behavior, Yahoo said.

Ad networks also would benefit by using the system to broaden the scope of advertisers with which they could connect their publishers.  

(via MediaPost.com)