You don't develop domains, you develop businesses.
POSTED BY Rick Latona IN Web Sites

I know a little about developing websites. I'd like to think that aeiou had essentially started the mini-site boom and I've had outsourcing operations in either Panama or the Philippines for more than a decade. If I've learned anything from all of this experience it's that you don't develop domain names, you develop businesses.

When I shut down aeiou last year I threw up a now infamous blog post titled, there's no money in web design. I believe that post was largely misunderstood and I never commented on that fact but I will now.

What I meant was there's no money in selling project based design solutions. It's hard. The customers are never happy because they expect the design company to deliver them a business. There's a disconnect between the solution provider and the customer. I felt that we'd never be able to have happy customers and a profitable business at the same time so the best thing to do was just shut it down.

I'm getting back into the outsourcing business now but in a different way. This post isn't about that though. You all will have to wait a couple of weeks for the launch to find out exactly what it is. I'll get back to my point now.

I strongly believe that the mass-majority of domain owners have completely unrealistic expectations when it comes to web development. I believe that Epik and Wanna Develop have good intentions and ultimately, they probably add incremental value and revenue to the domains but I would never use the services personally. Please don't misunderstand me. I'm not trash talking them because I believe their services have a place in the domain industry and they are right for a majority of domainers.

I just want to get one very important point across and that's that you don't develop domains at all, you develop businesses. Let's take a look at my last two ventures, WatchBrokers.com and AmericanOil.com. In both of those instances, the business came before the domains. We didn't acquire the rights to those names until after the business plans were complete.

I don't look to my portfolio when I want to decide what project to work on next, I look to my idea spreadsheet (which is updated daily).

To me, it isn't worth spending time and money on development unless its worth spending time and money on it. Meaning, I wouldn't spend time and money to get a $1 a day domain to make $10 per day. The opportunity cost is too high in that example.

To get a site ranked well in Google on not one but hundreds of search terms it takes a team of one to three link builders working on it for months, depending on the competitiveness of the terms.

To build a site that looks fantastic and will convert it takes time and effort. Then you have to build multiple landing pages and split test and do so many other things to make the site work.

What I'm getting at is to have a site that can be a real business you must treat it like a real business. It can't be done in mass. That's what I realized last year.

I urge all domainers to head this advice. Don't develop a site unless you think you can have significant revenue off of it. If you do feel you can produce significant revenue, put significant time and resources into it. Otherwise, it isn't worth it.

Start with a business plan. Study your competitors. etc, etc, etc. Start a business! Don't just "develop a domain".

Ok, my writing got weak at the end there and it turned into a rant. I think I got my point across, though.

  • Bonkers

    That is why I have been so wishy washy on doing something 100%.

  • http://links.com Rich

    Hi,

    Totally agree with you. Building a business takes lots of time and effort. Being a first mover in a space is always helpful, otherwise one has to consider what will differentiate a new site so that it might have a chance of attracting audience away from the market leader.

    One top of this, it is difficult finding quality developers who will build a site that is reliable, secure and usable. Kudos to your success in building a team that works for you.

    I continue to look for a business model and developers that will work for me on Links.com. I am focusing on the financial niche but I am still experimenting. Little known to most site owners is that many of the successful web sites had many false starts before hitting pay dirt. Conserving funds and clarity, as you suggest, is often a prerequisite for success.

  • http://www.ComprarDominio.com Leonard Britt

    Very true - minisites generally are ineffective as there is no intent to provide relevant value to the visitor - just to generate a click on an Adsense block. And how long is Google going to rank a static five-page site when there are thousands or perhaps millions of other sites which could rank for that term?

  • Rick Latona

    Bonkers, that's why I'm trying to get you to commit to your one project. Let's do it right.

  • http://www.nicdirector.com Mark Hoffmeister

    I just reminded myself of this fact this morning! (and now you publish this! weird) I purchased names of businesses that I wanted to develope in areas that interested me, and that I know something about.

    I guess its time to get started - rolling up the sleeves.

  • http://www.sellmeone.com Greg

    So true on all points Rick. I tell colleagues all the time if they were so good at seo they would just do it for themselves. Selling design work is very frustrating and hard to price, you tend to work for clients forever. If you are building the entire business I tell clients why do I need them? In nicer words of-course. When developing mini-sites the site better have large potential to offset the time it takes to do it right. I'd rather sell a domain quick for a small profit then spend many hours building a site that makes $1 a day, take the profit and grow a portfolio, a better business plan. Why be at the mercy of an affiliate program, ask yourself is it your business or theirs? Build mini sites to just get dropped from the search engines in a few months? Invest in decent domains and sell, your product is worth the asking price. If anyone still wants $1 a day, just list affiliate urls in paid search...faster and easier. Getting a site on the front page of google is pretty easy for one term, it takes hundreds of terms to make steady revenue, besides the category killer terms. You are right..build businesses not mini sites.

  • http://www.bydomainers.com byDomainers

    Yes, this is the key of the success online!

  • http://digibroker.com Bruce Tedeschi

    Minisites don't work because people are lazy. They think build it and the will come. They don't offer anything! A good domain name and a product can work.

    I have been at domaining since 1996. I can tell you that domainers take thousands of domains and put up one page and think that works. Each site has to be worth the visit. Without products to sell, your are doomed.

    Sites with just info have seen there day. People want value and pricing and they will buy.I have seen domains that were sterling diamonds and they put a one page minisite in it after spending thousands to buy the names.

    Just my opinion

  • http://www.morganlinton.com Morgan

    So true Rick - excellent post and great points!

    As I say on my show, "Develop. Develop. Develop." :)

  • Bill

    Rick, carry on 'ranting' :) - the fact is your point is well made. Indeed your point is so obvious that many will (unfortunately) ignore it.

  • Richard Justin

    Rick you have spoken the truth.

    Years ago (2006 - 2008) I spent time on domain forums, paid for memberships and found that when I would post my ideas which were based off of making a domain a business were usually shot down or started a heated thread. I quickly stopped posting and went to work and did not look back.

    It's nice to see someone of your stature say this.

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  • Jenang

    No need to explain your comment.. there's no need too because you are 100% correct in saying that there's no money in web design. Because there isn't. Web Design is a joke indusry... Unless you're 16 years old and making people websites for $80.00 , you can forget about making any money in web design.

  • http://filsupport.com/web-design-outsource/ Web Design Outsource

    Hey Rick just wanna say that i had great time reading your article. Good thing that clarify what you've said about web design. Thanks!

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