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Newsletter February 2005
Dear Customer,

Looking back at 2004, the most important development in the domain industry was clearly the rising importance of domain traffic. A DNJournal.com article summarizing the year's highlights mentions the word "traffic" no less than 36 times! Traffic has fuelled what many are calling a revival of the late '90s domain speculation — except this time the astronomical valuations are based upon solid analysis of existing cash streams, not mere speculation.

In this newsletter, we provide you with a skeleton key to unlocking the secrets of this powerful force in domain valuation, telling you the experts' tricks for locating and evaluating high-traffic domain names.

We also introduce you to one member of Sedo's growing family of registrar partners, and give the scoop on the launch of a new TLD targeted at a market of over 1 billion people — talk about high traffic potential!

Happy Domaining!

Matt Bentley
CEO, Sedo.com

In This Issue
FEATURE: Determining a domain's traffic
PARTNER PROFILE: 1&1 Internet
INDUSTRY HOT SHEETS: The Latest Domain News
LATEST ARRIVALS: Great domains for sale this month at Sedo!
RECENT SALES: Some great sales from the past month
NEWBIE POST: How to use the WHOIS

(1) FEATURE
HOW TO FIND MONEY-MAKING DOMAINS:
Predicting traffic before you buy
by Mara Miller, Sedo.com Marketing Associate
Thanks to Sedo's Domain Parking program, many of our users earn hundreds or even thousands of dollars each month without selling a single domain name. Instead, they park their high traffic domain names, and then sit back and watch as the checks roll in. Domain traffic, they realize, is like a license to print money. Inevitably this leads to the next question: How can I get more of it?!

In this article we'll explain the tools and techniques domain pros use to determine — or at least reasonably guesstimate — how much traffic a domain receives. Armed with this knowledge, you'll be able to predict approximately how much money a domain will make, and thus gain a better understanding of the domain's true value. The educated buyer always comes out ahead, so read on to unlock the mysteries of domain traffic and learn how to determine scientifically if a domain is really worth buying.

We will discuss three methods for evaluating traffic:
Trackers/ Direct Methods
Predictors/ Indirect Methods
Traffic Source
Click here to read on...

(2) PARTNER PROFILE: 1&1 Internet

1&1 A Company You Should Know...

Headquartered in Germany, 1&1 is widely regarded as the most dominant player in the European web hosting and domain registration market, and currently stands as the world's largest web hosting provider by known servers. Internationally, 1&1 maintains over 3 million contracts with both consumer and business users. 1&1 has also registered some 4.5 million domain names! It operates four highly secure data centers housing 26,000 servers that process over 2 billion monthly e-mails.

A subsidiary of United Internet--a profitable public company with 4,100 employees and a market cap of $1 billion--1&1 employs 1,300 individuals globally. Its U.S. headquarters is located in the Philadelphia suburb of Chesterbrook, PA. But 1&1 also has operations in Germany, Britain, France, Austria and the Philippines. 1&1 was founded in 1992 on a unique business model that positions it as a one-stop Internet shop. From domain registration to web hosting, site creation, technical support and cutting-edge technology, 1&1 offers users every available resource to easily and affordably create and maintain an optimal web presence.

1&1 introduced its distinctive approach to the U.S. in September of 2003 with an innovative and aggressive promotion that offered three years of web hosting for free. Since the January 2004 launch of its complete product line in the U.S., 1&1 has registered more than 350,000 users, already making it one of the country's largest web hosts. A foundation of 1&1's rapid growth in the U.S. is its selection of unique domain registration specials and sales, such as an Independence Day promotion in which .us domain prices were dropped to $2.99 per year. In October 2004, the company began offering .name domains for the same price, and gave away 25 free .info domains per customer. By December 2004, 1&1 was ranked by Netcraft.com as the fastest growing web host from December 2003- December 2004.

In a unique partnership with Sedo U.S. and Sedo U.K., 1&1 offers Sedo visitors and customers the ability to buy available domain names from 1&1 at one of the lowest prices in the world. 1&1 in turn makes it easy for its customers to sell a domain or get a free domain parking page from Sedo - right from within their 1&1 user Control Panel. This partnership has led to thousands of new domain sales for 1&1 and has helped Sedo and 1&1 customers to earn revenue from ads on "parked" domain pages.

For 1&1 UK, go to: 1and1.co.uk
For 1&1 US, go to: 1and1.com
For 1&1 in all other countries, go to: 1and1.org

To find out how your company can partner with Sedo, please see www.sedo.com/partner/


(3) SEDO HOT SHEETS
Sedo Contributors: Nora Cotter, Dominik Agolli, Meredith Croyle, Louise Scott
Denic Hopes to Deprive Verisign of .Net

The Internet Corporation for Assigned Names and Numbers is considering taking charge of the .net top level domain away from Verisign and putting the tld in fresh hands. Frankfurt based Denic, which is already responsible for the .de tld, the second most popular tld in the world behind .com, is considered the strongest contender and may become the first Non US based company to be placed in charge of a generic top level domain. Besides being in charge of the .de tld, supporters of the change point out that Denic operates servers in 6 different countries putting it in a good position to take over the tld. This is seen as a coup for net reformists who see too much American influence on the web.

It would be a significant change and give Denic considerable responsibility beyond its current command of the .de tld. 30% of the web's commerce is currently done through .net addresses and 40% of the US government's domains end in .net.

It won't make much difference to their bottom line. However, Verisign considers the tld very important. They will have to fight off several strong contenders to keep command of .net. The decision, to be made by an independent 3rd party, isn't due until next June.


Over 4000 Applicants Pre-register for .IN Domain

As of January 21, over 4,000 applications have been received for domains in the new .IN registry. Pre-registrations during the so-called "Sunrise Period" are open to Trademark holders and registered companies.

.IN, intended as the new general-purpose TLD for India, is open for registration from February 16. India is a market of over 1 billion people, where the primary languages are English and Hindi. Pre-registrations are available at www.onlinenic.com.

(4) LATEST ARRIVALS

Great domains for sale at Sedo this month - contact us for more details - [email protected]

PRINTERS.com
ARROWS.com
TATOOS.com
MARRIAGE.com
ER.com HERBALTEA.com
JOURNALISTS.com
SNEAKERS.com
CAMERA.com
RECYCLING.com KGB.com
SCANNER.com
OFFICES.com
MSG.com
PLANET.com


(5) RECENT SALES



A selection of some of the notable sales at Sedo last month:

Chat.de
GED.com
Net.net
FreeCellPhones.com
Banker.com
LogoOnline.com
EUU.com
PayOne.com
Dedupe.com
Auto.biz
Oakland.info
Projects.co.uk
Beautiful.us 360,000 EUR
$150,000
$101,500
45,000 EUR
$41,000
30,000 EUR
20,000 EUR
$15,000
$10,000
6,000 EUR
1,400 EUR
500 GBP
395 EUR





(6) NEWBIE POST


Continuing the series of "How To" articles for those Sedo members who are new to the domain trade. This month - the third installment:

How to use the WHOIS?

Individuals are required to enter contact information into a record with their registrar upon the registration of a domain name.

The WHOIS contains some important terms:
Registrant:

This is the individual/organization that registered the domain.
The registrant is the domain owner.
Administrative Contact:
This is the name and email address of the person responsible for the administration of the domain and the term is often abbreviated to "admin-c".

Billing Contact:
This is pretty self-explanatory. This field shows the contact information for the person responsible for any billing issues involving the domain.

Technical Contact:
This is a very important part of the WHOIS record as it shows the person to be contacted in the event of any technical issues. It is also known as "tech-c".
This is usually the registrar with whom the owner registered the domain.
Registrar of Record:
The domain name register service that registered the domain name.

Record last updated:
This displays the date of the last alteration to the WHOIS record.

Record expires on:
This is another important one - the date on which the registration of the domain expires. Most registrations are one or two years long. It is the responsibility of the domain owner to inform him/herself of this date and ensure the domain's registration is renewed, should they wish to retain ownership of the domain.
Domain registrations do not automatically renew.
Most registrars send an email to the admin-c address to remind the owner of a pending expiration, so remember to keep the contact information up-to-date and ensure your email filters allow mail from your registrar through.
Record Created on:
Again, quite easy - the date on which the domain was initially registered.

Domain Servers:
This shows the DNS (domain name server) information for that domain - ie. the server to which the domain is pointed.
If you are the owner of the domain and want to park it with Sedo, you need to change the DNS to:
Primary Server Name: NS1.SEDOPARKING.COM
Secondary Server Name: NS2.SEDOPARKING.COM

Registrars are required to make all this information available to the WHOIS database. If this information is not correct or not kept up to date, certain problems can occur. Most importantly, if registries cannot contact a domain owner to verify ownership using the contact information given on the WHOIS, the domain's registration can be suspended and ultimately released for re-registration. The owner will also not receive reminders for re-registration and could lose control of their domain name after their registration expires.

In terms of the domain name aftermarket, if the WHOIS information is not correct, it can be quite difficult for interested buyers to contact domain name owners. The WHOIS information is the first port of call for most domain buyers - who owns the domain, what is his/her email address, when does the domain expire etc. If you need to see details of former owners, the service provided by www.whois.sc is very useful. There, you can view two years of WHOIS records using their WHOIS History service. In addition, you can conduct a wildcard search of all current/deleted/expired whois domains.

Don't forget:
ensure the contact information in the WHOIS is correct
keep that information up-to-date
ensure your email filters do not block mails from your registrar
keep an eye on the "record expires on" field
read the information sent to you by your registrar and inform yourself of procedure etc. at your registrar's homepage






This newsletter is sent to all Sedo members who opted-in when creating their Sedo account. For questions, comments, and feedback, please write: [email protected]

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Sedo.com LLC • www.sedo.com • © 2005 Sedo.com LLC

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