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Broker · 07-02-2009, 10:54 AM

Off domain name wire... anyone care to discuss exactly what this means? Sounds like domain insurance?

Domain Name Wire » News » GoDaddy Files Patent for Method of Selling Equity in Domain Names - The Domain Industry's News Source

Dongsman · 07-02-2009, 03:31 PM

"Selling equity in domains" suggests that they're devising a domain securitization system where anyone could invest, say, $1000 and buy 1% of a domain they valued @ $100,000.

Right now, the only way to invest in premium domains is to buy the entire domain. This would allow for people to invest in portions of them. Say I believed that there was enormous future in carbon fiber. I already own a number of related domains, but ideally, I'd like carbonfiber.com. Unfortunately, the owner isn't selling, or even if he was, I couldn't afford it.

The owner of carbonfiber.com could issue shares in his name and in turn, I and other investors could purchase these shares, becoming fractional owners of the domain. The rate of return would probably be contingent on a future sale, or on whatever returns the name generates via direct development, leasing, or whatever.

It's actually a brilliant idea and if it catches, may serve to inflate the value of ultra-primo names even further. Kinda suggests that domains might be reaching maniacal pricing levels- where the prices they're commanding are getting too far in advance of their actual ability to earn- but a good idea for the future, none the less. If the idea takes causing issuers get greedy and ignore dilution factors- as far as actual value/shares issued ratio- we could see a very painful bubble where $10,000,000 worth of shares are issued and purchased for a domain that might only have $1,000,000 worth of realistic value. If the share prices aren't predicated on open-market valuation (meaning, priced in real time by some sort of exchange) but rather fixed by the issuers, it's a 100% certainty this will happen.

copper · 07-02-2009, 04:14 PM

I forgot the URL, but, isn't there web site already that you can buy share/percentage of domain name?

duceman · 07-03-2009, 12:14 AM

fusu.com

ssamriga · 07-03-2009, 05:07 AM

I invested $12 in fusu, gained $3 and then domains lost value, so I now only own something worth around $8

copper · 07-03-2009, 07:32 AM

Originally Posted by duceman

fusu.com

That's it.
Fusu.com came up with idea, started web site based on this new idea.
Now, GoDaddy is trying to patent this idea?

What's difference between Fusu's and GoDaddy's idea?

dombastic · 07-03-2009, 09:30 AM

Originally Posted by copper

What's difference between Fusu's and GoDaddy's idea?

godaddy has better lawyers

labrocca · 07-03-2009, 11:47 AM

I hope GD doesn't get this patent.

copper · 07-03-2009, 01:22 PM

Originally Posted by labrocca

I hope GD doesn't get this patent.

I agree.
If anyone get patent, it should be Fusu since they are the one who started it
unless it's different idea.

iowadawg · 07-03-2009, 09:11 PM

IT is not a patent to sell equity or a share of a domain.
Rather:
United States patent application 20090171823 describes the method of connecting domain owners and equity underwriters as well as protecting the domain names that receive investments. Go Daddy has also filed United States Patent application 20090171678 specifically for protecting the domain name during investment.

Broker · 07-04-2009, 07:09 AM

From investopedia, I had to look lol

Underwriter

What Does Underwriter Mean?

A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network.

Investopedia explains Underwriter

Underwriters generally receive underwriting fees from their issuing clients, but they also usually earn profits when selling the underwritten shares to investors. However, underwriters assume the responsibility of distributing a securities issue to the public. If they can't sell all of the securities at the specified offering price, they may be forced to sell the securities for less than they paid for them, or retain the securities themselves.

07-02-2009, 10:54 AM	#1 (permalink)
Broker Senior Member Join Date: Mar 2006 Location: Philly Burbs Posts: 3,194 552.50 NP$ (Donate)	Godaddy Files Patent Off domain name wire... anyone care to discuss exactly what this means? Sounds like domain insurance? Domain Name Wire » News » GoDaddy Files Patent for Method of Selling Equity in Domain Names - The Domain Industry's News Source __________________ www.HillClimbersForum.com

07-02-2009, 03:31 PM	#2 (permalink)
Dongsman Account Closed Join Date: Apr 2009 Location: Usually Chicago Posts: 881 0.00 NP$ (Donate)	"Selling equity in domains" suggests that they're devising a domain securitization system where anyone could invest, say, $1000 and buy 1% of a domain they valued @ $100,000. Right now, the only way to invest in premium domains is to buy the entire domain. This would allow for people to invest in portions of them. Say I believed that there was enormous future in carbon fiber. I already own a number of related domains, but ideally, I'd like carbonfiber.com. Unfortunately, the owner isn't selling, or even if he was, I couldn't afford it. The owner of carbonfiber.com could issue shares in his name and in turn, I and other investors could purchase these shares, becoming fractional owners of the domain. The rate of return would probably be contingent on a future sale, or on whatever returns the name generates via direct development, leasing, or whatever. It's actually a brilliant idea and if it catches, may serve to inflate the value of ultra-primo names even further. Kinda suggests that domains might be reaching maniacal pricing levels- where the prices they're commanding are getting too far in advance of their actual ability to earn- but a good idea for the future, none the less. If the idea takes causing issuers get greedy and ignore dilution factors- as far as actual value/shares issued ratio- we could see a very painful bubble where $10,000,000 worth of shares are issued and purchased for a domain that might only have $1,000,000 worth of realistic value. If the share prices aren't predicated on open-market valuation (meaning, priced in real time by some sort of exchange) but rather fixed by the issuers, it's a 100% certainty this will happen. Last edited by Dongsman; 07-02-2009 at 03:40 PM.

07-02-2009, 04:14 PM	#3 (permalink)
copper Senior Member Join Date: Dec 2006 Posts: 1,119 494.00 NP$ (Donate)	I forgot the URL, but, isn't there web site already that you can buy share/percentage of domain name? __________________ Legal Matters \| Visit Australia \| Computer Hardware Hosting Solution \| Domain Names for Sale \| Silly Times

07-03-2009, 12:14 AM	#4 (permalink)
duceman Senior Member Join Date: Nov 2004 Location: Indy Posts: 2,261 2,317.60 NP$ (Donate)	fusu.com Last edited by duceman; 07-03-2009 at 12:21 AM.

07-03-2009, 05:07 AM	#5 (permalink)
ssamriga Senior Member Join Date: Aug 2007 Location: EU Posts: 1,732 156.50 NP$ (Donate)	I invested $12 in fusu, gained $3 and then domains lost value, so I now only own something worth around $8 __________________ SnowyRange.com 13 yrs old, PR 4, DMOZ listed, 3000 uniques and 55$ per month My domain portfolio: DNFit.com

07-03-2009, 11:47 AM	#8 (permalink)
labrocca NamePros Expert Join Date: Aug 2004 Location: Las Vegas Posts: 5,871 2,196.64 NP$ (Donate)	I hope GD doesn't get this patent. __________________ Support Forum <-- My latest endeavor. Debate Forums Free Online Sudoku My vBum Blog

07-03-2009, 09:11 PM	#10 (permalink)
iowadawg Senior Member Join Date: Aug 2007 Location: Iowadawg.com Posts: 1,405 20.00 NP$ (Donate)	IT is not a patent to sell equity or a share of a domain. Rather: United States patent application 20090171823 describes the method of connecting domain owners and equity underwriters as well as protecting the domain names that receive investments. Go Daddy has also filed United States Patent application 20090171678 specifically for protecting the domain name during investment. __________________ Lists of Domains Available to Register. \| Iowadawg's Blawg

07-04-2009, 07:09 AM	#11 (permalink)
Broker Senior Member Join Date: Mar 2006 Location: Philly Burbs Posts: 3,194 552.50 NP$ (Donate)	From investopedia, I had to look lol Underwriter What Does Underwriter Mean? A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network. Investopedia explains Underwriter Underwriters generally receive underwriting fees from their issuing clients, but they also usually earn profits when selling the underwritten shares to investors. However, underwriters assume the responsibility of distributing a securities issue to the public. If they can't sell all of the securities at the specified offering price, they may be forced to sell the securities for less than they paid for them, or retain the securities themselves. __________________ www.HillClimbersForum.com

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