Overview
The Domain Name Buyers Group ( “the group”) is a small group of domainers who pool together funds to buy and share ownership in domain names. In a private forum we research and discuss expiring domains and purchasing opportunities and decide together which to target and how much money to commit to each.
Group will use a single SnapNames and Pool account for bidding on names at auction. Group leader or someone else assigned by the group will manage the account under direction of buyers in a project.
Initial Deposit
We request a minimum $750 upfront deposit. Funds are held by the group leader and applied to purchases made within the group that the group member agrees to.
Ownership Of Domain Names
Domains will be considered ownership of the individual buyers based on amount spent in that particular name. For example, if a domain name is purchased by the group for a price of $2000, with one buyer putting up $1000, and four buyers putting up $250, the $1000 buyer will own 50% with the remaining buyers each having a 12.5% interest.
Participating In Group Auction Purchases
When a group purchase proposal is made, any members that wish to participate can agree to the proposed maximum purchase price and commit as much of their funds as they would like towards the purchase.
Members may have their expenditure contingent on the maximum purchase price and can make different offers based on that price. For instance, Member X can agree to spend $500 if the name is purchased for any price under $2000, while at the same time agreeing to only expend $200 if the final price is more than $2000 but less than $3000.
At time of auction or offer to buy domain, group will attempt to acquire the name at a price up to the total amount of money committed by group members or the maximum purchase price, whichever is lower.
Determining Ownership Percentage
If more than the final purchase price is pledged by members, purchase amount and ownership percentage shall be determined by dividing interest equally among all pledging buyers up to their total expenditure, going from the smallest buyer first. The group member who proposes the purchase is guaranteed right to purchase up to a minimum 33% share in the ownership of it. The remaining percentage is available for purchasing by the remaining group members.
Examples (In all cases, Member A is the proposing member)
Example 1
$2800 total pledged – Final purchase price $2000
Member A = $1000
Member B = $1000
Member C = $500
Member D = $300
Final distribution of ownership share and expenditure per member:
Member A: 33% ($660)
Member B: 27% ($540)
Member C: 25% ($500)
Member D: 15% ($300)
Example 2
$2800 total pledged – Final purchase price $2000
Member A = $500
Member B = $1000
Member C = $1000
Member D = $300
Final distribution of ownership share and expenditure per member:
Member A: 25% ($500)
Member B: 30% ($600)
Member C: 30% ($600)
Member D: 15% ($300)
Example 3
$2800 total pledged – Final purchase price $2000
Member A = $2000
Member B = $600
Member C = $200
Final distribution of ownership share and expenditure per member:
Member A: 60% ($1200)
Member B: 30% ($600)
Member C: 10% ($200)
Determining “Sell Price”
If a domain name is bought with intentions to resell, owners of the domain will vote to decide on a minimum sale price (here by known as the “sell price”). Votes will be weighted based on shared ownership percentage, with a majority vote required to set the sell price.
If a majority vote cannot be reached or sell price is not discussed, the sell price will be assumed to be equal to 300% of the purchase price. Once decided upon, the sell price cannot be changed without a 2/3rds majority vote. Sell price can never be set below 200% of the purchase price unless there is a 100% vote.
Users can sell their shares in a domain at any time to other group members. In this case, the remaining shareholders should be given equal consideration to offer to purchase the shares from the selling member at the price he is offering them at.
Domain Name Use and Revenue
Domain names will be held in trust by group leader or a secure agreed-upon third-party. Usage of the domain shall be determined by 2/3rds majority of shareholders. If not determined, or agreement cannot be reached, domain will be parked with a reputable domain parking company.
If domain is parked or developed and is earning revenue, stats shall be made available to the domain's shareholders and income divided equally into the funds of the respective owners. This should be done regularly, no less every 3 months. It is recommended that names have renewal dates extended to at least 2 years from acquisition date. Domain renewal fees shall be split by owners.
Expired Domain Auctions
Members of the buying group should agree not to bid in auctions the group is bidding on. However if the price of the auction goes beyond the price the group has agreed to go to, then it is considered fair game. Manipulating auctions, purchase prices, or competing against the group is bad form, and can be considered as a reason for removal from the group.
Member Resignation or Removal
Membership in the buying group is completely voluntary. Member can leave the group at any time and their remaining uncommitted funds will be returned to them within 14 days.
Members can be voted out of the group by a 2/3rds vote of members. Reasons for removal may include, but not be limited to, inactivity (not participating in discussions or purchases for an extended time), breach of confidential information (group private forum is considered private), dishonesty, shill bidding, or competing against the group at auctions. If any member of the group resigns or is removed for any reason, their ownership shares in domain purchases will remain and not be forfeited. Remaining members of the group can opt to purchase the member's shares in any commonly owned names at the predetermined sell price.
UDRP / Loss of Domain
If domain is lost by the group in UDRP or lawsuit for any reason and is considered lost, the group as a whole or any particular member of it cannot be held responsible. Members accept this liability when deciding to purchase an individual name. To avoid this situation, it is advisable that we stay clear of trademark infringing names.