Rick Schwartz discusses his domain investment and sales strategies, IDNs, and much more in the following exclusive IDNBlog interview. Regarding IDNs, Rick understandably points out that investors should try to stick to what they know, and given his English .com expertise, the advertising dollars are not yet there in IDNs to incentivize him to invest.

Rick should be known to IDNers and all domainers for making some of the shrewdest buys and biggest sales in the domain industry to date. While some considered his investments in domains “speculative” in the 1990s, he has since proven that they were more sound than investments in any comprable market. Enjoy this classic interview with a domaining legend.

Q: You once said “Domains will go up faster in value than any other commodity ever known to mankind.” Do you still feel this way? Why?

A: Of course. Why? Because it actually has happened and nobody has been able to prove otherwise. How much was an ounce of gold 1000 years ago? How much was a diamond 100 years ago?

Q: What was the best domain purchase you ever made? How about the worst?

A: Best was Porno.com by far. $42,000 cost. Return of over $12M (So far). Worst would have to be flowers.mobi at $200k but the fat lady has yet to sing so ya never know. I am a very patient person and with 1000 other new extensions coming to market, you could see a revival.

Q: What sectors do you like to buy domains in?

A: Anything commercial in nature. Usually Main Street type businesses.

Q: What methods, and metrics do you use when buying domains? At this point is it mostly based on your “gut” instinct and awareness of potential end-users?

A: No metrics. Few give accurate stats even tho they have them so you MUST know so the ONLY tool I use is my gut.

Q: When you pursued many “firsts” in the domain industry what was your attitude towards all the critics and naysayers, and how would you advise others who meet similar resistance?

A: You just have to look to history. Their attitudes and naysaying was their shortfall not mine. Sitting on the sidelines hoping others fail is not the type person that I am interested in engaging. Time just kept proving them wrong each and every step of the way. So time is my best ally. They naysayed when I went out and accomplished stuff. So now we get to look back and see the results. What I had was based on something very strong and very unique with proven results based on numbers and dollars, not emotion and hope. So that would be my best advice, make sure you are on to something and use the naysayers as fuel to prove them wrong.

Q: How would you suggest that domain investors contact end users in other countries who speak foreign languages?

A: Get a translator.

Q: Would you agree or disagree with the rule that generic domain owners should hold out for 10x their purchase price before selling?

A: Disagree 100000%. Multiples on domains have nothing to do with domainers unless you let the potential buyer brainwash you. 10x??? I have NEVER sold a domain for 10x. I would NEVER sell a domain for 10x. 150x. But if you sell for “X” you are leaving dollars on the table and many gems are slipping thru their hands. 10x?? NEVER EVER! It’s WEAK! You have a unique asset. Sorry, different rules and “X” ain’t one of them! If you are buying or selling based on “X”………….all I can say is there is a much better and much more profitable way. Candy.com based on 10x? I don’t think so. 100x?? I don’t think so. 200x? I don’t think so. 300x? A little closer. But “X”is a fake game that domainers play because they just don’t know any better. When I bought property.com I paid 132 X if I wanted to look at it like that. But I don’t, I won’t and never will. That’s like buying art based on how much the canvas and paint cost. It’s absolutely ridiculous and what else can I say? It may have been something I did back in 1997 but those were different days and times and those rules are different now.

Q: What do you think of the potential value of IDNs given ICANNs recent announcement of the ccTLD fast track process which will introduce .IDN in the root?

A: I have no clue. Time will tell. Dollars will tell. No domainer will decide who or when no matter how much they try to predict.

Q: Any specific thoughts on Eric Schmidt, Google’s CEO, stating that “Five years from now the internet will be dominated by Chinese-language content”?

A: Not really. I don’t think it really matters to me personally or most folks. If I go to Amazon.com or Apple.com or whatever, I won’t be seeing any of those pages.

Q: Can we expect to see you owning any IDNs in the near future?

A: Probably not. I believe in do what you do and doing it well. I have never been very interested in IDN. I am just not that smart. I am a dot com guy and always will be and for very good reasons. If you play baseball well does not mean you can play tennis well. If you play guitar, does not mean you can play the saxophone. I do what I do, others do what they do. IDN, thousands of new TLD’s, just reinforces the dot com brand. IDN will become important when you see ad dollars spent on them by companies. Follow the money. If $500 billion is spent collectively by individuals and companies promoting dot com worldwide via ads, brochures and other stuff and IDN is at close to $0, THAT is what makes the difference. It’s ALL about those ad dollars. Collective ad dollars. Right now IDN is built mostly on speculation. Unfortunately those speculators have been promising things they can’t deliver on a timetable that they can’t control. There are so many factors involved and ignoring any of them will leave folks frustrated by creating timelines that are just not consistent with reality. The dollars always tell the story.

Q: What projects and opportunities can we expect to see you involved in next?

A: Too many to mention. I have a few things underway and others in the discussion stage. Great time for big deals. The very best!

Q: Thank you for your time and for continuing to advance our industry.