discuss Part Ownership: Can I own a part of a domain name?

[abstractdomainer]

When I started off domaining, I once came 3rd in a private auction and the first 2 bidders had bailed out.
Since I was the next highest bidder in the auction, I was given the domain name to purchase for the price I had bid.
In the meantime, knowing that others had bid more on the domain name and it was well beyond my budget now, I decided to purchase another name for a similar amount from some other place.

Given the option to own the domain name, it was very enticing but I had already spent the money that I had kept aside for this auction. So the fourth-highest bidder who wanted to own the domain name but also wanted to minimize his risk, asked me if we could own the domain together.

Although I passed on the opportunity and he purchased it himself (it was a 4 letter domain during the Chinese boom, so I am pretty sure he must have made a stellar return out of the name), this incident reminded me of an idea whether it was possible to officially own a portion of a domain name.

Is there any facility or service that makes it legal that you own a say, 40% of the domain name? If not, and if the domain is not extremely valuable (say a portfolio or a domain name of a possible appraised value of $50,000 (self-appraised that is), how do we ensure part ownership, while keeping it official so that if there is a difference between the partners, the legality is there to ensure that the partner having access to the names doesn't end up owning it completely?

How do you do it?

 

[bmugford]

Well, the problem is if the domain is not very valuable no legal option is that practical. It will just add to the cost of a domain not worth that much.

If you have something of value there are multiple options from forming an LLC to having a contract drawn up by a lawyer.

On a lower value domain basically one person is going to have control of the domain, and the other party needs to trust them. You could draw up a basic contract yourself, but then you would need money to enforce it if there was a dispute.

It is really just not practical for low dollar assets unless you trust someone.

Brad

 

[PatrickV]

If you own on paper/contract by lawyer a part of a domain it's posible imo

 

[dombastic]

Sure.
As mentioned above via a company/entity.
Replace "domain" by "building", if it is easier for your thinking.

But to be precise, you cannot OWN any domain name.
You are just a registrant who needs to pay every year and still is not completely sure how long will be able to use it...

I registered fu**.com and Network Solutions/Internic canceled it, because of profanity...

 

[biggie]

Hi

here's an old thread started by @RJ in 2003

https://www.namepros.com/threads/new-domain-investment-group-any-interest.524/#post-7847769

imo....

 

[koolishman]

Yes. I do.

As others said, trust is the key. Lot of business transaction in other areas involve joint ownership. Better to have one person- the expert-make the call on selling and I trust them.

Also, I do hold some names for others, where I tell them to take a call on selling/dropping etc.

 

[abstractdomainer]

Well, the problem is if the domain is not very valuable no legal option is that practical. It will just add to the cost of a domain not worth that much.

If you have something of value there are multiple options from forming an LLC to having a contract drawn up by a lawyer.

On a lower value domain basically one person is going to have control of the domain, and the other party needs to trust them. You could draw up a basic contract yourself, but then you would need money to enforce it if there was a dispute.

It is really just not practical for low dollar assets unless you trust someone.

Brad

Absolutely. The thing is, while it is easy to trust, things start getting tensed once the money starts flowing in.

If you own on paper/contract by lawyer a part of a domain it's posible imo

Cost intensive, isn't it?

Sure.
As mentioned above via a company/entity.
Replace "domain" by "building", if it is easier for your thinking.

But to be precise, you cannot OWN any domain name.
You are just a registrant who needs to pay every year and still is not completely sure how long will be able to use it...

I registered fu**.com and Network Solutions/Internic canceled it, because of profanity...

When was this? You would have retired by now, had you held it.

 

[dombastic]

When was this? You would have retired by now, had you held it.

in the 90s

 

[Rich]

I think the fractional ownership of domains will become a thing in the future once the kinks are worked out, it has been discussed and tried. This is the most recent example that I know of, shares sold out quickly.

 

[Bob Hawkes]

Also, I do hold some names for others, where I tell them to take a call on selling/dropping etc.

Am I understanding correctly that you have given certain people right to buy at a future time at a certain price if the name has not already sold? Or am I totally misunderstanding?

On the general topic of the thread, I agree with what @bmugford wrote that it can readily be set up through legal agreement, but not worthwhile unless the name is fairly valuable.

If valuations, human or machine or hybrid, could reach closer consensus, there is a possibility of domains becoming an asset class that could be held across a group of people. I believe there have been several attempts to do that over the years.

Thank you to the link of the past discussion along these lines @biggie. We are fortunate to have people like you and @bmugford, @equity78, @RJ and many others that have a deep knowledge and long history in the forum. It is easy to try to recreate the wheel or at least not know issues others had in trying to create the wheel.

Bob

 

[Bob Hawkes]

s there any facility or service that makes it legal that you own a say, 40% of the domain name?

I believe that DAN have said that their technology is set up to do that, and it is a future offering in their plans, but can't readily find where they said it. Pretty sure when Domain Automation Network first discussed that was one of their plans.
Bob

 

[koolishman]

Am I understanding correctly that you have given certain people right to buy at a future time at a certain price if the name has not already sold? Or am I totally misunderstanding.

On the general topic of the thread, I agree with what @bmugford wrote that it can readily be set up through legal agreement, but not worthwhile unless the name is fairly valuable.

If valuations, human or machine or hybrid, could reach closer consensus, there is a possibility of domains becoming an asset class that could be held across a group of people. I believe there have been several attempts to do that over the years.

Thank you to the link of the past discussion along these lines @biggie. We are fortunate to have people like you and @bmugford, @equity78, @RJ and many others that have a deep knowledge and long history in the forum. It is easy to try to recreate the wheel or at least not know issues others had in trying to create the wheel.

Bob

Not that way.

I bought certain domains for them and hold in my portfolio. They are the largest investors, so I tell them to do the selling part. If they are unable to sell, I try and sell.

 

[Samer]

https://www.namepros.com/threads/shares-of-nnr-com-sold-out-go-here-for-more-opportunities.1166612/

 

[Kuffy]

Sure.
I registered fu**.com and Network Solutions/Internic canceled it, because of profanity...

I have a number of names registered with Name Silo, and I don't have any problems with them.
fu2.net
f**k-me.net
throatf***s.com
etc....

and one I registered just after I got a parking ticket
f**kparking.com

 

[dombastic]

I have a number of names registered with Name Silo, and I don't have any problems with them.

I do not know what you are talking about.

NameSilo did not exist in the 90s.
There was only Internic/Network Solutions.

 

[Kuffy]

Apologies - I didn't pick up that bit.

 

[biggie]

Hi

here is another thread related to part ownership of domains

https://www.namepros.com/threads/http-www-fusu-com-domain-stock-exchange.435119/



imo....

 

[dombastic]

It is really funny that adult people discuss this.
People figured this out centuries ago.
Just replace "domain" by different words and you will realize that.
You either have a company or at least a contract...

 

[blogspotter]

two people can partner up to buy a domain. You could start a partnership or a company with different people and invest in domains.
But before domains get very liquid, a REIT style fun might not work.

But I would love the idea of a REIT style fund for rental domains. Not a bad idea. Add some developed property as well and add rank and rent style websites too

Could work with a few partners at a small scale

 

[abstractdomainer]

It is really funny that adult people discuss this.
People figured this out centuries ago.
Just replace "domain" by different words and you will realize that.
You either have a company or at least a contract...

The question is for low value portfolio, does it make sense to create a legal entity?

 

[dombastic]

The question is for low value portfolio, does it make sense to create a legal entity?

No.
Then you use a contract.
But will you go to court because of a low value portfolio?

Even very good friends can have a different opinion when to sell...

 

[MasterOfMyDomains]

Yes

 

[abstractdomainer]

No.
Then you use a contract.
But will you go to court because of a low value portfolio?

Even very good friends can have a different opinion when to sell...

Doesn't make sense definitely, to go to the court when the portfolio value is low.
But then the ownership of domains is in a particular account only. Hence, of there is a difference or possibly misunderstanding going forward, the owner on whose name, the domains are registered gets to keep the domains.