Michael Gargiulo is a simple visionary. He loves to dream and get seriously bored with people who do not know how. He enjoys building websites and driving quality traffic to them. He studied finance and risk management but his competitive advantage over others is in search engine optimization and conversion rate optimization.
Sully: You are the founder and CEO of VPN.com. Tell me about the company and what you do. Is it a VPN comparison site?
Michael: Thanks for the opportunity Sully to share some ideas with your readers. And yes, I am the founder of VPN.com where we provide information on more than 900 different VPN providers to help you find the right VPN for your needs and budget. We have spent thousands of hours researching the industry and nearly every provider inside of it to make it easy for potential customers to quickly find the information they are looking for before buying and downloading.
Sully: In 2017 you acquired VPN.com. I’m going to take a wild guess that purchasing a 3 letter category killer name wasn’t a cheap affair. Can you tell me about how you came across the opportunity? Are you willing to share the purchase price?
Michael: This was probably the toughest part of our journey thus far. I had been pursuing the previous owner for more than four years before a deal was struck. Most of the time, I didn’t get replies to my emails or phone calls so it wasn’t like a negotiation was made during that time either. Three years into my chase, I brought in a broker to help with the acquisition and after working with him for nine months we were finally able to put a deal together. I highly recommend a broker for large transactions like this as we nearly lost the opportunity to someone else several times there at the end.
And unfortunately, I am under an NDA through July of 2018 on the exact price but I can say we will be in the top 10 domain purchases of 2017 according to DN Journal’s 2017 Year-to-Date Top 100 Sales Chart.
Sully: Why a VPN comparison site. Why not offer your own VPN service with a name like VPN.com?
Michael: We looked at several models for our site. Of course, building and selling our own VPN was one of them. In this space, you need $2-3 million to develop a competitive suite of products. We were not interested in making that investment to become just another VPN provider. Instead we wanted to maximize the potential of our domain name and we let this guide us to the version of the site you see now. Just like Cars.com, Hotels.com, and Apartments.com, none of these multi-billion dollar corporations own the products they provide information offer.
I believe if we execute on our current strategy over the next 18 months, we can bring 20 million people to the site per month and that type of volume will continue to attract many opportunities.
Sully: This isn’t your first crack at business and not your first time leveraging a premium keyword domain name. Tell me about ProxyServer.com and the business there.
Michael: I have been in the proxy and VPN space for nearly a decade now and it started in high school when I was trying to unblock different websites behind the school firewall. Its interesting to reflect back on those days. Most grand visions, like ours, take years to prune and even longer to gather the proper resources for. I am lucky to have ProxyServer.com and lessons it taught us. Without it, VPN would have never happened.
ProxyServer.com was the precursor to VPN.com. While we were trying to acquire the VPN.com domain I actually had most of the technology we would attempt to initially sell on VPN.com already set up and being sold on ProxyServer.com. I knew if we acquired VPN, we could easily migrate it over or pivot to another model.
Sully: How important have you found the quality of your domain name to be in relation to the success of your business?
Michael: The domain name was the best investment the company will ever make. VPN providers, teammates, new hires, and even competitors take us seriously and for no other reason than our name is VPN.com. I have had many great conversations with CEOs and executives of some of the largest VPN companies on earth because our name is VPN.com.
I still don’t think we fully understand the value of owning the name. Moving forward, I think the domain will continue creating inbound opportunities for us especially as we move on to page one in Google for “VPN.” No matter if you are a provider, competitor, end user or investor, people will always respect a name like ours.
In addition, we receive dozens of offers on a monthly basis to buy or invest in the project along with some incredible partnership opportunities from various VPN providers. This tells me we are on the right track and that people are watching.
Sully: You seem like you’re still a young guy, but while in college you bought and sold more than $2 million dollars of unwanted gift cards. How did you do this?
Michael: The gift card hustle was a critical period of my life. Primarily through Craigslist and eBay, I was able to purchase cards at a discount and resell them to larger buyers and make my cut on the spread. Selling the cards was much easier than finding people you could trust and buy from. Thankfully, I developed several relationships with contractors and builders who were constantly turning over cards and needed a quick way to cash them out.
Most of the profits I generated from gift cards I invested into my first websites. I knew gift cards would not last forever and wanted to move to a form of income that was a bit more hands off. Looking back on it, it was small decisions like this that moved me in the direction of what became VPN.
Sully: You also built and grew 3 websites to 3,000,000+ monthly visitors (making $2-3k per day). Can you give up some of your secrets? What’s the story behind these sites?
Michael: My biggest secret is buying a great name. The location you offer your products matters even more online. I was fortunate to make some solid domain acquisitions early on in my career that offered me great insight into search engine optimization. I grew all of my sites organically through search engine traffic and I have always believed if I couple a great name with a great experience there was absolutely no way I could lose with my visitors and no way I could lose with search engines like Google. Basically, this is the same formula I used for VPN.com and I expect to see similar results with it over the next 18 months.
Thank you for this opportunity Sully and everyone reading. Check out our latest VPN article on Yahoo targeted at Reed Hastings, the founder of Netflix, and Netflix VPNs. We plan to deliver more accountability to brands who don’t take the privacy of their users seriously. Stay tuned!
And feel free to reach out on LinkedIn.