traffic jan 2010 - epik.com - acquire - development - monetize - exit

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Rob Monster CEO, Epik.com Playing the Drop Game

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Page 1: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

Rob MonsterCEO, Epik.com

Playing the Drop Game

Page 2: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

Why Dropcatch today?

• Uneven economic recovery ==>  Many great domains are dropping.

• The end of domain tasting ==>  More good inventory available for tier 2 domain catchers.

• Automated (and Semi-automated) domain development ==> Non-traffic names are more interesting than ever.

Page 3: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

Tools for screening for domains

Domains.Epik.Com

Page 4: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

Epik's Ecosystem approach

Horizontal platforms:

• When selecting a name to catch, the name needs a business concept that fits.

• Build vertically oriented sites on platforms that use common horizontal services

Epik | Directory Epik | Product Epik | Q &A Epik | Reference

For businesses with physical

location

300+ product portals

More than 1M Sites about people, places,

and things

For details visit:Directory.Epik.com

Page 5: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

Interoperable components that are part of a semantic network

All Q&A content aggregates to Questions.com

All services scheduling powered byAppointment.com

All comment/reviews aggregates to Comments.com

Single sign on attached to central profile for identity and reputation at Identiy.net

Built onEpik | Directory platform

Epik's Ecosystem approach

Page 6: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

• High and sustained search volumes

• Trademark-free

• Good potential to aggregate content + community

• Passes the New York Times test

• Compelling Business Opportunity!

What I look for in a drop catch target

Page 7: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

What is a Compelling Business Opportunity?• At least 10x return on capital  

Traditional models

“Catch and park”• $60 domain catch cost• $10/month parking revenues

Year 1 Net cash: $60 (1X)

“Catch and minisite”• $60 domain catch cost• $500 of development costs• $25/month in average revenue• Sell 10% of the minisites for $2,000

Year 1 Net cash: -$60 (ouch!)

Epik models

“Catch and develop - Basic”

• $7 domain catch cost• $50 in domain development costs• $25/month in average revenue• Sell 10% of sites for $5,000 year 1

Year 1 Net cash: $743 (14.3X)

“Catch and develop - Pro”

• $7 domain catch cost• $500 in domain development costs• $100/month in average revenue • Sell 5% of sites for $25,000 year 1 Year 1 Net cash: $1,943

(3.8X)

Page 8: Traffic Jan 2010   - Epik.com  -  Acquire - Development - Monetize - Exit

• View each drop catch as the raw land of a future business.

• You will make most of your money on the front end of the deal.

• Find a partner that can give you a scalable efficiencies measured by “cash on cash”.

Closing thoughts