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| Domain Buyers Club - Good or Bad? by Eric_Lyon 02-21-2011, 01:23 PM
I found this article interesting.... A domain buyers’ club or domain buying club or domain club in short is in essence a consortium of buyers who pool their cash to buy domains. That’s the short version. The long version is most ‘clubs’ have ‘membership fees’ and unless you sell enough to cover these fees and make a decent profit, the club won’t generate revenue for you. I think most domain forums have at least one club, then there are fractional ownership clubs like fusu, DotSauce recently launched it’s Domain Club as well and Gene has one of the oldest the Domain Profits Club. Each has a different take, with fusu you buy ‘shares’ of a domain at a price pre-determined by sellers. The downside is not all prices are realistic or can ensure that you get a decent ROI on your investment. So to realistically invest in fractional ownership, the investors grasp on the subject has to be exceptional. I’m not even going to get into the controlling interest issues with fractional ownership – unless you own 51% or more, you don’t decide when to sell and for how much. Forum Domain Clubs operate a little differently – they mostly pool cash to pick up domains from drop auctions and sell them for a profit to end users....... Read the full article: Source Article
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| Views 2759
Comments 6
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| | #3 (permalink) |
| Extension Agnostic Location: Mumbai, India
Posts: 7,918
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | Thanks for adding the post scorp, was just thinking of this from the perspective of the new domain investors. Brujah, forum clubs might have no startup charges beyond your investment in the domain, as compared to subscription clubs but there still is the issue of control over the domain in a fractional purchase environment. Also, the major conclusion seems to be that newcomers without a knowledge of what is and what isn't good should first learn what does, since joining a club is only part of the equation, selling domains is the most important and one won't get any end user sales with also ran domains. |
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| | #4 (permalink) |
| Senior Member
Posts: 1,478
![]() ![]() ![]() ![]() ![]() ![]() ![]() | This may not be quite the same as a typical "forum club," but NP has a small domain club. It began with a charter to handle most of the foreseen issues. It was actually written really well and has worked well in practice, but like anything there were some hiccups to deal with over the past few years. As a result, we've taken a break from accepting new members until we're finished rewriting the charter to resolve the issues we've faced. Overall, I consider it a positive experience. I would certainly recommend it to a newcomer for the learning experience alone. |
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| | #5 (permalink) |
| NamePros Supporter Location: Pennsylvania
Posts: 106
![]() ![]() | Thought of starting or joining on have thought about this for a while now and it seems to be a valid route. Keep in mind that not only to combine financial resources but, also talents and knowledge. This would not be a typical club yet sounds very good. Enterpryzman |
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| | #6 (permalink) |
| Business Member Location: DK
Posts: 1,010
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | Well I first applied to be a member of the Namepros fractional ownership group more than two years ago, have since applied at least once but never heard anything back. To me it is kinda disappointing that it is such a closed knit group. It would be a great learning experience, but people learn very little when not a part of it. Maybe we should look into starting up a parallel one here at NP, since it seems that the current one is closed for new members. |
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| | #7 (permalink) | ||||
| NamePros Supporter Location: Pennsylvania
Posts: 106
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I requested info several months ago and I was told they had a limited # of memberships and all had been gone for a long time. I would consider joining forces in the right situation. Enterpryzman | ||||
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