The Bob's Rug Syndrome
POSTED BY Rick Latona IN Web Sites

Bob's RugWhen I was younger, GTE used to have a commercial for their Yellow Pages that featured a fictional character named Bob. Bob owned a store called Bob’s Rug. In the story he’s asked why he doesn’t advertise in the GTE Yellow Pages and his answer was, “I can’t advertise in the Yellow Pages. If I did, someone might buy my rug”. I always loved that commercial.

I tell this story often. It’s my answer to the reason why there are so many domainers that won’t sell their name no matter what you offer them. If you buy it from them, they won’t have it anymore. You’d be buying their rug.

I have never-ending faith in my ability to continue replacing my assets. I start companies, I sell them. I buy domains, I sell them. I have zero fear of selling any asset because I don’t suffer from Bob’s Rug Syndrome.

Take the owner of America.com. He won't take less than a million dollars for that name. It appears he wants twenty million dollars for it. Does he honestly think he'd get that much? This country isn't even called America. In fact, there isn't anywhere called America. The United States of America is in North America. To not sell it is just foolish.

Now you might even suffer from this disease. You might think your name is priceless or worth twenty million. Ask yourself, how much money could even be made with the name if all the stars were aligned. Does this owner think a travel company could earn more than twenty million dollars off of America.com? Of course they couldn't. My country's government would also never buy this name for that kind of money. It isn't even their name.

He'll never sell this name until he begins to seek a cure to his Bob's Rug Syndrome. And what harm has he done to himself and his family by turning down high six-figure offers? I'm sure he could have eliminated significant debt, started another business or more.

Bob’s Rug Syndrome is a terrible disease that affects tens of thousands of domainers. It causes them to turn down huge offers, often at large multiple of the domain's true value, out of fear of being able to replicate their success. If you think you may suffer from this disease, please seek help immediately.

  • http://www.creativeadvertisingblog.com Matt Hanson

    Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..

    Matt Hanson

  • E

    Brilliant post, best one yet! Thanks rick

  • Andrew Reberry

    Great post! Very well said Rick.

  • http://www.bigcherrydomains.com Chris.B

    Nice post Rick, it got me thinking overtime! I dont have "Bobs rug syndrome" but I do have "BobsRug". The problems not in selling just finding the buyers,I turned down a good offer this week for one of my Domains but I still got another offer on the table, I reckon ill take that offer! Thanks Rick.

  • Steve Morales

    Rick,

    Well said about domainers. Most are scared they can not replicate their success with their asset, these guys are short sighted for the most part. However, America.com could easily generate $20 million in revenue with the right game plan, including travel agencies programmed into it. It is an amazing name that has everything going for it. They said the same thing about business.com selling for $7.5 million, and it was developed and turned into a business that sold for $320 million.

    If I owned America.com, I would build a simple listing directory for businesses, until I generated enough capital to develop a full blown global business. If you were to charge $1 per month to every business that has America in it broken down into directory listings, you would make well over a 1 million a year. If a kid can charge $1 dollar per pixel with http://www.milliondollarhomepage.com/ and generate over a million dollars, then America.com can easily do this with a listing directory. It would more than likely generate $1-3 million a year with this listing directory and that is not including advertising banners, Adsense, etc...

    Honestly, I do not know why these owners do not partner with someone 50/50 who can turn it into a full blown business. Fractional domaining would work best with a name like this, if the owners can not develop it themselves. $1 million would be a start to owning 50%.

    There are so many creative ways to generate revenue with a great name. The problem with most domainers is that they look short term and have horse blinders on. They are looking to maximize profits now, instead of building an elite domain into a business that will generate 3-5 times more the amount they sold for yearly by simply building it into a business. Many domainers do not like to work on development, so they should partner with someone who can develop a great name into a business that will generate seamless revenue streams.

    This has been working for thousands of domainers and is one of the best kept secrets in the industry. Better to receive 50% of something big, than 100% of something small.

  • Angus Fathead

    Rick your right on the Bob's Bug Syndrome. I see how that applies in most circumstances. However, I believe there is a caveat, meaning some domainers (meaning at least me)look at certain domains we own as works of art that cannot be replaced b/c there are no others that can take its place for the meanings they represent. Profits be damned, once I sell - gone, over, can't be replicated. I have a long-term vision of doing something good for humanity with some of these - a higher calling if you will.

    But you are right about most domainers not wanting to sell b/c...... then they are "assetless". I would bet that most domainers have never thought about carefully about their exit strategy when making investments in the first place. No end-game plan other than a million dollars a domain - which if planned differently could have made them rich.

    Great article :)

  • http://www.adomaindeal.com RT

    Very Great Post Man! Sound like you did your Masters in Psychology Field.Thanx to discuss Domain Industry's weak point.

  • http://uglypeople.com Anunt Patel

    1. Doesn't have much revenue
    2. Definately does not have legs
    3. Sure isn't exciting
    4. No obvious uses

    Conclusion : Definately NOT sellable!!!

  • Han Kessington

    I have the opposite problem, I want to sell my rugs, but nobody wanna buy them. Could you recommend any good serious domain buyers out there ?

  • http://sellmydomainportfolio.com Robbie Ferguson

    Great Post Rick!

    Do we any idea of who made the guy an offer?

    The name is worth maybe $1-3mil max if it was developed and to expect $20mil thats just plain STUPID!

    For a start look at the current market, couldnt have choosen a worst time to sell!

    Maybe he didnt actually want to sell and this was all a stunt to make people aware of America.com

    If this guy had any sense he would find a partner like you or someone else and turn it into a business.

    My thoughts only,

    Robbie

  • Steve Morales

    Robbie, are you serious? "The name is worth maybe $1-3mil max if it was developed and to expect $20mil thats just plain STUPID!" I know of people who have sold 50% of a country.com for more than $3mil. Owen Frager said it very well why America.com is so valuable on his blog yesterday.

    The owner was not asking $20 Million, Rick only gave his opinion that the name would not generte $20 million, which is untrue as well. Like saying Germany.com can not make $20 million either.

    It is rubbish, but it all depends on a solid business plan to determine how much a great name can generate. America.com developed into a vibrant site is worth far more than $20million.

  • http://www.ricklatona.com/ Rick Latona

    Steve Morales, I'm ready for that interview when you are.

  • http://www.dailybull.com Gordon

    Hello everyone. My name is Gordon, and I have Bob's Rug syndrome.

  • http://elliotsblog.com Elliot Silver

    Some people don't need the cash badly enough to lower their prices. It can also be a major tax burden to sell a domain name for that much money.

  • http://sellmydomainportfolio.com Robbie Ferguson

    Steve,

    As I stated its my thoughts only!

    I personally wouldnt pay more than $3million for the site, Yes it does have huge scope and could be worth more in someone elses eyes but in my eyes $3million is the most I would pay!

    My thoughts only!

    Robbie

  • http://namethat.com Mike

    Rick -

    I agree 100% w/ your post esp the part of having faith in your ability to replace assets but why are you assuming that he "could have eliminated significant debt?"

  • James

    When I saw the title, I thought Mr Parsons must've invested in a toupe!

  • http://Dropped.ws Sukhjinder

    @ Steve Morales,

    I would like to say once again "America.com " is not sellable or worth around 7 Million. I would like make something very simple for you, as you had mentioned, that America.com is great , need a gameplan, and etc etc, Then I must say, for the right gameplan, you just need an average "GAME PLAN" and that too can pay MILLIONS bucks in return, and you do not need "America.COM" I read your post, and you seems to be under the cause of bob;s rug situation. Anyways, I do not agree with your "arguements" at all. You can buy Americaplan.com, and do the "game plan" can earn millions in revenues.

    @ Rick, This is a great post like usual, and once again you had proved, moving with technology, Adaptation is the way to success and you are again proving that fact true and you are actually doing it that way, currently successfull. People who do not change themsevles when the change is necessay usually end up losing the battle, example is America.com, I would sell it for One million, and would buy some domain that earns me atleast over 100,000 In year revenues than earning few hundred per year.

    Great post Rick.

  • Beachie

    The asking price for America.com is $2 million, not $20 million.

  • http://smallbusinesslaptops.com/auction.php?eb=aHR0cDovL3JvdmVyLmViYXkuY29tL3JvdmVyLzEvNzExLTUzMjAwLTE5MjU1LTAvMT9jYW1waWQ9NTMzNTgyMjUwOCZjdXN0b21pZD1EZWZhdWx0K2NhbXBhaWduJnRvb2xpZD0xMDAwNSZtcHJlPWh0d small business laptops.com

    Hahahah
    Boy you sure did hit the nail on the head on that one. Many people read articles online about kevin ham and frank schilling and how he doesnt sell domains and they all want to he him; you know treating his name like babies.
    I am just getting started and appreciate domainers with balls enough of starting a blog ahem- "you ", frank and truly talking about real life experiences that affect them everyday.

    Incase you are interested -- You can buy smallbusinesslaptops.com from me with a reserve of 10000 $ lol.
    Sry for the shameless plug. Love your blog rick, latona

  • http://www.domainerdeveloper.com Jamie Parks

    Kinda like Steve points out: If the owner of America.com would make an effort to partner with an established geo-developer or marketing firm, to draft up a fractional ownership agreement, then they might could start making the kind of money that they're looking for.

    I personally can't see AMERICA.COM selling for over $5MIL anytime this decade. Besides the essential point that Rick brought to light about AMERICA not even being the factual name of The United States (i.e. North America) there are unfortunately several other potential risks about making an investment in AMERICA.COM - 1. The U.S. dollar is getting slammed right now. 2. Globally, at large the American people (or at least the current administration) are not the once trusted leaders that they used to be. In other words the brand of "AMERICA" has more than just a few dings in it, and who truly knows if the U.S. will ever really recover. 3. The .US extension is doing a great job at fulfilling most North American's desire to represent their country. Seems to me, people would probably want PIZZA(2.6MIL) more than AMERICA(1MIL) these days.

    Take the MILLION Mr. or Miss. AMERICA.COM, You just never know when the rules of this beauty pageant are going to change and leave you with zilch...

    BTW, Looks like Bob's rug slipped out from under him! Nice score Chris: http://www.BobsRug.com

  • http://namethat.com Mike

    the weakness of the dollar and the political climate in the US have -0- to do w/ determining fair value of america.com.

    "who truly knows if the U.S. will ever really recover" - what a ridiculous stmt - history has many peaks/valleys and this time is no different.

  • http://www.domainerdeveloper.com Jamie Parks

    @Mike - You're entitled to your opinion and you may even be right. But are you telling me that the value of a country's currency, and it's economic stability, and it's reputation with the global community has nothing to do with the way a buyer equates value when considering the $MIL+ purchase of a country.com? Like I said, you're certainly entitled to your opinion... but it seems like AMERICA.COM is more of an 'idea', or a 'spirit' than it is a country that's for sale. So if in fact none of the risks that I mentioned in my last comment do apply to AMERICA.COM, maybe the owner of AMERICA.COM will sell it to someone in China or India or hell sell it to someone in Europe who can get the domain at half price and really wreck havoc. That fact alone should drive droves of U.S. citizens to the doorsteps of AMERICA.COM - Pathetic, just sell out, take the easy MILLION... Or be a true American and build AMERICA.COM into something amazing. But then again that will probably require some actual work. Something most "Americans" (and domainers for that matter) are too lazy to do.

  • http://namethat.com Mike

    @jamie - currency/stability/reputation are very important factors - but we're talking about america.com, not liberia.com.

    i do agree w/ your "idea" comment - it's not a true targeted geo name.

  • http://SmartAss.Com John

    I think I have a worse case of Bob's Rug Syndrome than the owner of America.Com. I am the owner of SMARTASS.COM and truly feel it should rival Google as the next best search engine or My Space as a Social Interaction Site. But then again..I fell on my head as a child. My god, if someone paid $10 million for Funds.com what the heck should I settle for ? By the way, I do have some other names to sell/develop so it can't be just a case of separation anxiety...SmartYield.Com, DietsSuck.Com, Unbay.Com...etc. Hey Steve Morales..tell me where to find Fractional Domainers interested in helping me develop these names for profit.

  • http://www.domainsformillion.com Siva

    I feel best time to sell an asset, particularly appreciating asset like premium domain is when the owner needs money.

    If it is not properly monetized, the owner is simply loosing opportunity cost.

    Sure America.com is not even full name of the country but people type that in.

    America.com owner is holding a goldmine. If he sells for less than 10 million dollars, the new buyer got a great deal. If I win exactly 20 million dollars tomorrow and all I have is that 20 million dollars, I will not hesitate to buy America.com

    Any one who can work on that domain for 3 to 6 months seriously can take that business to public in 3 years. Now they will be talking in 100's of millions. premium traffic is there, monetization is some content is required.

  • Steve Morales

    @Rick-I will send you an email Rick.

    @Robbie-I came off the wrong way and do respect your opinion, I apologize. A name like this is irreplaceable however.

    @Group-I think some may have misread my post. I am not saying America.com is worth $20 million alone. However, selling for less than $3 million is foolish IMO, unless the owner is in need of cash. The true value with this name and all premium geo domains is in development. Though, this is not for everyone.

    @Sukjhinder-Americaplan.com and America.com can not be compared. With the same exact game plan to the "T", America.com would outperform AmericaPlan.com. Why, because it is the Brand of the United States of America, it is known and a trusted brand, and because of targetted traffic. AmericaPlan.com or any other name besides America.com, would not be able to compete.

    Of course, this all depends on the game plan. If America.com only places a generic template with PPC and a site like AmericaPlan.com builds actual content, then in the long run, AmericaPlan.com would outperform America.com. IMO

    @John-Join Geodomainer.com and join the group called fractional domaining. You may find a partner.

  • http://www.ricklatona.com/2008/08/19/whats-funny-to-me-about-all-the-fixedloanscom-hoopla/ What’s funny to me about all the fixedloans.com hoopla

    [...] the hell really knows? Personally, I hope it proves that Bob’s Rug Syndrome is a horrible disease and that you should sell your names from time to time. After all, I [...]

  • The Liquidator for Bob’s Rug

    I've been searching for years for a copy of those ads. There was bobs rug and a few others. If anyone knows where to find them, please let me know.

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