services Crowd-renewal idea

Are we talking about a $9 renewal fee here?

For example, yes. Even better said, Crowd-buying, with more than one owners, original vs new investors/renewers

its been thought of before..

first you are assumign someone would trust to send a total stranger (you) money for this. which is easier said than done.
2nd, there are no registrars who support ideas like this. cause they are busy making money their own ways, and they do not care someone can't afford to renew their domains or wants partners.
3rd, everyone's perception of doamin sale potential varies. especially for newer domainers versus older ones. whcih is normal cause like all in life, domaining is about experience.... as result of this, it can be hard for bunch of people to all agree what to keep or drop.. and as result and most importanly of all above, it will be also hard to agree what to sell when offers come.. or for how much etc.

so.. just drop what you think is bad, keep what u think is good and u can afford.. its pretty much how this works

gl

I believe you are right on some points. But if a domain costs now 250, then you dont have the finance but believe there is potential...why do.not Crowd-fund buying investment of a domain as a single entity, assigning one responsible for ROI when selling?

slkn said:

I believe you are right on some points. But if a domain costs now 250, then you dont have the finance but believe there is potential...why do.not Crowd-fund buying investment of a domain as a single entity, assigning one responsible for ROI when selling?

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what do you mean 250? I thought you were talking about renewal fees.. now your talking about splitting money to buy domains on market?

in either situation, you will run into similar problems I just mentioned.

It seems like it would be a logistical nightmare to set up and keep track of.

Brad

Yes, both cases (250 to say an example high comparing to market value). But splitting money to buy its same case, and I think more real user case than renew.

On a simpler level it involves basically asking a wealthier person you trust to take over some of your domains, maintain them and then split any profit with you.

But then we get into ongoing maintenance fees and the issue of tax on the profit. It’s hard to calculate what the tax liability is for a single given sale until the end of the year when all expenses are in.

Also, can’t really know in the long term what the profit will be on a given set of domains until all have been sold or dropped.

For example say I take over 100 domains from you and my annual cost is $800 to maintain them.

In year 1 I sell 2 for $500. each. So my gross profit before taxes on these for that year is $216. that is, - $1000. gross minus $800. renewal costs plus $16. for the two I don’t sell (two domains I don’t need to pay the $8. reg fee on at the end of that year because they sold).

So you come to me and say - give me my half of the $216. I say - wait a minute - I owe taxes on that and also what if next year I sell less than $800. worth and lose money? Are you going to split costs with me next year? If you’re poor enough that you couldn’t afford to pay the renewals this year will you be able to pay half next year?

So you see - without even getting into details - we couldn’t even know what the exact end profit would be on such a scheme until all 100 domains were sold or dropped, and this is not even accounting for tax liability which what taxes I pay on such sales might depend on a lot of factors I might not even want to share with you.

In all - a mess, even if you can trust the person you turn the domains over to. You can see how if it would be hard to manage with just one person imagine how hard with a crowd. You’d almost be better off just giving them away to a friend and asking to be tossed a bone if something big happens in way of a sale.

I believe financial instruments have already applied strategies to manage taxes from lots of investors when a mutual funds. Bonds structure with face and market value at the end of period would serve as a reference, with a fix amount of trading shares (lets say fix supply as bitcoins) to be traded...all in all it sounds hard to manage until you create the whole wheel, of course with law borderlines.

Sorry I couldn’t even follow or understand what you just posted. A lot of mixed business terms that don’t necessarily apply to each other. Didn’t jibe.

xynames said:

Sorry I couldn’t even follow or understand what you just posted. A lot of mixed business terms that don’t apply to each other. Didn’t jibe.

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My comment is about financial products and how these are structured and application to crowd-domain (asset) buying/trading.

There are indeed partnerships that have attempted to pool assets to buy and sell domains together. These attempts have all failed for one reason or another. Either they never got going or the partnership fell apart sometime after start.

Here is one that never got going:
https://www.namepros.com/blog/exclu...in-investment-fund.912489/page-7#post-6388979

Here is one that fell apart after start:
https://www.namepros.com/threads/ol...-domains-after-the-sale.1044751/#post-6412622

An interesting idea, although I can see the potential problems, and tax complexity, that others have mentioned. For a single domain name, unless really high value, it seems probably not worth the effort, in my opinion.

Another option might be a market specifically for those who feel they have valuable domains but are not able/willing to renew (or maybe such already exist). I realize existing facilities, such as here, already exist, for doing exactly that - maybe just label one Expiring Soon? (or is there one here?)

bmugford said:

It seems like it would be a logistical nightmare to set up and keep track of.

Brad

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The logistical nightmare could be corrected by using a ledger consisting of blockchain technology. Just one way blockchain is changing the way business will be conducted.

The OP's suggestion is along the lines of what I posted above, a sort of mixed partnership. Would never work. All the blockchain record keeping in the world would not account for my changing tax liability year to year depending on what else I have going on, since these domains would be mixed in with my other domains, not to mention all my other businesses and income.

Only way it could work is if an entirely separate venture were created that owned the domains outright, and this separate entity were responsible for all accounting of income, expenses, taxes. As I've pointed out above, this has never worked out and record keeping was the least of the problems faced by such ventures.

Excellent ideas, @xynames It would sort of be like an exchange traded fund (ETF) for domain names. I am not sure if the community is (yet) to that point, but it would provide a way to invest in domain names collectively, without the volatility of individual portfolios. I think some universally accepted (and good!) domain value tool is needed for it to work, however, so that the fund could report things like the current value of its holdings.

Also, whether it would trade in conventional stock/ETF space (lots of security legalities to do that), or in some other market.

Probably a very big domain player would need to spearhead it, realistically.

Great feedback and discussion guys, hope we all learn from this exchange