If you did not get a chance to read Part 1 of the GeoView, you can read it (HERE)   The GeoView Continued:  

**SMO**Since becoming a member of AssociatedCities.com, how has the geo niche industry grown?

(MAC) Associated Cities enables those of us that have succeeded to provide a window into what makes a geodomain one of the best investments in this industry. A geodomain has multiple revenue verticals that can be tapped at different levels of development. We give to others in understanding and experience the successful tools that we developed and created. This would be akin to a major company giving away the blueprints of their success to their competitors. The original spirit of the internet’s creators like Vinton Cerf, Jon Postel, Robert Kahn, Tim Berners-Lee, Leonard Kleinrock  gave the internet freely to all for its growth and advancement

We are all helping to grow an industry like never before. If you have ever had children and watch them grow you have some understanding of the emotion and passion that flows through the internet. It is inherent in its foundation and that is good for all of us.   

(DJC) Associated Cities is great for sharing ideas and trumpeting GeoDomains through the GeoDomain Expo. It also promotes best practices. Just because you have a GeoDomain does not mean you can join Associated Cities. To join AC, your GeoDomain has to be a city name .com. In addition, it has to be developed with unique content. Many present members were originally denied membership because their sites weren’t developed.

The irony for me and Michael is that even though the success of our GeoDomains have put us on the map, our GeoDomains are the smaller part of our portfolio.

**SMO**What added features do you plan on adding to your geo domains in the near future?

(MAC) At the beginning the need was coming from the visitor outside of a hundred miles of our geos. That is where we found our public and income. Local has evolved into the front position for us now. The locals live there full time and have an emotional tie to the area and name. We are now applying applications like classifieds, forums, local search and local social networking to bridge these two areas. Our Traveler and CCIN logo reads “Local Choice, Global Voice” and we adhere to that logic.   

(DJC)Monetizing local traffic is the future goal for GeoDomainers. In other words, most GeoDomains still make most of their money via tourism related advertisers like hotels.  It’s starting to change, but it encompasses a whole new set of strategies.

**SMO**What role do you think geo domains will evolve into as the internet continues to grow and more consumers come online?

(MAC)  I would like to see all the major .com city names come online with a consistency that is worthy of the visitor. Once the public accepts the trust factor with these geodomains they will virtually connect the dots in creating this virtual world. Other geodomains have a course and visitor base laid out for its continual growth.

(DJC) Properly developed, GeoDomains have the branding power to become the local media of the future. They can have the local relevancy that local newspapers have enjoyed in the past. And they certainly have the national and international branding advantage that newspapers never did.

**SMO**What are some future goals and where would you like to be in 5 years with your geo domains?

(MAC) Of course I would like to live on an island in Tahiti just fishing, diving and relaxing but the internet if far too exciting. Our goal is to be in the mix of it as it grows and prospers. I would hope that vendors and businesses feel they have a place where they could sell their good and products right through the city site. I remember in 1996 someone from Japan emailed wanting to buy some expensive shoes from a store in Palm Springs. I made the connection for them and the store sold and delivered the shoes. I did not make a penny from it but I understood at the time that it could and should be done at some point. We have the ultimate storefront. It comes down to these vendors understanding that there are customers waiting to buy their goods from all over the world. That is not the easiest thing for a small town shop to understand.

(DJC) Working a lot less harder than I’m working now! Even though the advertising sales I handled in 1997-1999 are now done by others in our company, you cannot mentally get away from this.  It’s all consuming and I yearn for the day when I can only check my laptop once a day because we’re too busy SCUBA diving, fishing and sailing through French Polynesia.

**SMO**Any advice you can give to new Geopreneurs entering this niche in the domain industry?

(MAC)  There are those successful in this business that want you to succeed and are willing to help you. Join Associated Cities and ask questions at conferences and blogs. Also, buy the best, most fun, most impassioned city name you can buy. The cost should not matter as long as it is a well know, well traveled destination. That is all relative to how much money a city site can generate. If I were to spend a million dollars on a major name, I would know that with effort I could be making a hundred thousand the first year. It will and probably pay for itself in several years. That’s a great deal and when it is generating a million a year, how much would you then sell it for? You get the picture. If you believe in this business like we do, the prices are well worth it at this stage. It can only grow in value. I have watched this trend continue for 12 years with no end in “”site”.   

(DJC) Three things: 1) Learn from those who came before you, particularly those in traditional media, and do not listen to webmasters or those who know nothing about sales (this will cost you dearly), 2) No matter what anyone tells you, go with your instincts. You’ll be right at least 90% of the time, and 3) Be prepared to work harder than you’ve ever worked before.  Everyone you see enjoying life in this business is at least a 10 year overnight success.

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)  

Snapnames.com released the preliminary auction list for Domainfest 08′ and their online auction.  There are some outstanding names coming to auction, roughly 2,500 names will be auctioned live and online.  They have hundreds of prime generic domain names going up for auction and will consolidate 300-400 of the best names for the live auction.  You can take a look at the list (Here) I am predicting a huge bidding frenzy because of the quality of names.  Domainers are anxious to sink their teeth into some prime domains the beginning of 2008 to set the standard for the year.  Domainfest might set a new live auction sales record on 22-23 January.  We will have to see how this competes with the Traffic Show in February.  If Domainers and investors spend large amounts of cash flow at Domainfest, will they be as anxious to bid at the Traffic Show in February?   Once your hungar is filled, the motivation to eat fades.  Time will only tell us how things will turn out.  There are some names that fit Geo Areas, but too many names for me to go thru and research to list here.  I would like to wish all of those bidding in the Domainfest auction “Good Luck!”       

 Here is the release info.  You can find all the details of DomainFest (Here)

This Preliminary Catalog includes all the names we’re actively considering for our Live Auction. Over 110,000 domains were submitted. So many great names, in fact, we cannot fit them all into one event. So we are introducing an extended catalog to make sure all the very best are presented.

By January 10, this Preliminary Catalog will be divided into two auction formats.

THE LIVE AUCTION: 300-400 top names will be auctioned on January 22 and 23 at DOMAINfest Global.

THE EXTENDED AUCTION: An additional selection of remaining premium domains will be identified for an online-only auction. This special 7-day auction will run January 24 through 31.

Greatdomains.com will be conducting an online auction on 17 January.  The only geo domain listed is VirginIslands.net with a reserve price set between $1-4,999.  It is a good geo domain with over 100 million results in google.com that can be turned into a gold mine if developed correctly.

Join the profitable Geo Niche!  There is still plenty of opportunity to secure affordable domains on the aftermarket and at registration costs.  Local content and advertising is hotter than ever before, and newcomers have an opportunity to profit from it. This is the new internet trend that will continue to grow.

Here are a few tips you will need to consider if you decide to jump in at this stage of the game. These are not the only things you should consider before purchasing a geo name, but are the most important in my opinion.  

Over All General Rules:

-Think local! and not global. If you secure a good local domain, it will grow into a global presence.

-Name must be discriptive of the area and short.

-Secure a name of the location you live near or know the area very well.  Your motivation to develop will increase rapidly because you are able to see the possibilities of your name and how it can impact the area.  Additionally, it allows for you to communicate with business advertisers face to face.   
 
-Purchase only dot com names.  There are several of profitable opportunities registering different extentions, but if you are to build a geo business, you must stick to dot com names. Your chances of selling your geo domains for great ROI to end users increases imensely if you own the dot com.     

-The name must have commercial value.  Commercial value can be described as a place with several of businesses that consumers know and use often or a name that covers an industry, such as AustinHomes.com.  

-The name must be known by consumers. It must be in the vocabulary of locals and those outside of the area.  To see if the name is used, Google It.  You want to secure a name with a minimum of 200,000 google results.  This will give you an idea if the name will receive type-in traffic. The endstate is to secure names with type-in traffic.       

I am sure I missed a few general rules somewhere.  Please provide your input in the comments section if I missed something of importance.

Godspeed,
Steve