I got hit by ANOTHER crazy idea. Check it out.

Midano · Mar 22, 2005

Okay. Here goes. If it sounds insane, I can explain - I was asleep in REM state of mind.

Goal: Get ICANN accredited and make profit.

Business plan:
- Get together with 49 other domain speculators;
- Form a partnership;
- Apply for ICANN accreditation or buy an ICANN accredited registrar.

Partner/Shareholder Requirements:
- $2,000 as initial contribution (that's $100,000 total);
- You must have your own website(s) with collective traffic of x uniques/day (500?);
- You must actively promote the new registrar by all means possible - the sites mentioned above (non-adult), forum signatures, etc. This could be massive and low-cost.

Partner/Shareholder Benefits:
- You're allowed to register x domains at registry cost (that's rock-bottom, no markup). Limited to x registrations/year (50?) to prevent abuse.
- You're entitled to a share of revenue (proportional to your initial contribution) generated by outside sales.
- You get the first pick of dropped/captured domains.

I'm a believer. Crazy ideas are the ones that work. What do you think?

.Mike · Mar 22, 2005

In principle it is a good idea, however the legalities and administration connected with this are immense (but not impossible).

I suggest you speak a commercial solicitor/lawyer, to get a good idea of what is involved - you will be surprised (I am assuming you don't own a business at the moment).

To give you an idea, I launched a Ltd company last year, it took me 4 months - this consisted of at least 12 hours a day, 7 days a week - a lot of time and we are only a fraction of the size this would be.

I also feel you would have to make a substantial financial outlay (even just in services) before you could encourage people to invest.

I don't mean to sound negative, but just trying to make you aware that this would be a huge undertaking for you (financially + personally).

If you do go for it best of luck!!! %%- :imho: :tu:

Midano · Mar 22, 2005

I do own a business (LLC is my entity of choice, but for this project LLP would work better).
I was also involved in a mass-registration of offshore (Delaware, NJ, Oregon, Belize, etc.) companies to be sold abroad (Eastern Europe mostly) - all perfectly legal.
Never used a lawer for this - opening a company is fairly easy and inexpensive. Most states provide a capability to incorporate by completing a series of forms online.
I know what I'm talking about. The biggest challenge of this idea is logistics.

Dave_Z · Mar 22, 2005

Midano said:
Never used a lawer for this - opening a company is fairly easy and inexpensive.

It's one thing to open a new company, it's another to get ICANN accreditation
to finally be allowed to register and manage domains on your own.

You might want to retain an attorney to cover your behind. It never hurts to
have a belt and suspenders on, especially when you're dealing with ICANN.

But hey, all things start from a dream. Good luck!

Midano · Mar 22, 2005

davezan said:
It's one thing to open a new company, it's another to get ICANN accreditation
to finally be allowed to register and manage domains on your own.

Agreed, no kidding. That's why BUYING a ready-made ICANN registrar is a more attarctive option. I think it wouldn't be a problem with $100.000 in hand.

I'm not engaging into this (yet), just throwing an idea to see what kind of ripple it will produce.

mole · Mar 22, 2005

Why would anyone want to live with the hassle of all that backend stuff when you can register a name for dirt cheap at established registrars like eNom?

armstrong · Mar 22, 2005

mole said:
Why would anyone want to live with the hassle of all that backend stuff when you can register a name for dirt cheap at established registrars like eNom?

Here's why: expired domains. Having your own registry connections would be priceless, specially if ICANN disallows snap monopolies like Netsol/Snapnames.

Midano · Mar 22, 2005

mole said:
Why would anyone want to live with the hassle of all that backend stuff when you can register a name for dirt cheap at established registrars like eNom?

Because one can make a profit like eNom.

UKZJ007 · Mar 22, 2005

Hmm, it's not a bad idea ... There's not enough candy for me to jump in and taste just yet however.

Midano · Mar 22, 2005

Here's some rough math (just assumptions).

If an average domain sale markup is $3, it would take 91 domain registrations/day (make it 100 to cover other expenses) to return an original $100,000 investment over a course of 1 year.

marisolblue · Mar 22, 2005

What about the ongoing maintenance of the registrar, salaries for staff, office rent, insurance? Would this be factored into the domain name price? Just going with a volume wholesale account with enom or someone else would make better sense to me

ExpireGuy · Mar 22, 2005

Midano said:
Here's some rough math (just assumptions).

If an average domain sale markup is $3, it would take 91 domain registrations/day (make it 100 to cover other expenses) to return an original $100,000 investment over a course of 1 year.

In the highly competitive domain market that's easier said than done....and that's putting it lightly.

Why pay to be an eNom when you can be a reseller and still make a profit without putting 100k up front?!?!

Midano · Mar 22, 2005

Domain registrations is just the first step. Offering parking, hosting, email services, etc., etc. might be next.

Hm.. Good conversation. Hypothetical, but interesting nevertheless.

armstrong · Mar 22, 2005

If you are dealin with resellers, and selling regs for $6.95 (like an enom ETP), then your markup would be about 50 cents after expenses. If you have to pay credit card fees for each reg, then you can bet on a loss for each reg.

ExpireGuy · Mar 22, 2005

armstrong said:
If you are dealin with resellers, and selling regs for $6.95 (like an enom ETP), then your markup would be about 50 cents after expenses. If you have to pay credit card fees for each reg, then you can bet on a loss for each reg.

Not with the 3 dollar markup variation as first posted...at 100 thousand to just get started in this competitive market chances are you can kiss one tenth of a million goodbye as well....

kw31 · Mar 22, 2005

It will be a big investment with not much guarantee
However, risks always generate the most revenue

If I had the money I would no doubt think about it
Good luck!

.X. · Mar 22, 2005

kw31 said:
It will be a big investment with not much guarantee
However, risks always generate the most revenue

If I had the money I would no doubt think about it
Good luck!

I agree,And legal issues arise aswell.Lawyers can get expensive quick.

.Mike · Mar 22, 2005

IMO, one thing you are missing is that if an existing registrar is making $3 profit x 100 per day giving an annual return of $100K, there is no way you could buy them for $100K. As a general rule, the purchase price of a busines should be about 3.5-4.0 x annual profit (saying that there are many ideas on this), however this would mean to make $100K in the first year you would need to buy a registrar for $350 - $400K, or for your $100K you could buy a business that would give an annual return of $25K - $28.5K which aint bad if you were running it on your own. :lol:

RJ · Mar 22, 2005

>> - You're allowed to register x domains at registry cost (that's rock-bottom, no markup).

Maybe bump "x" up to 500 or even 1000 or more. No point getting in business to make money off yourself or other co-owners and you might attract the $2000 investors easier if they're looking to save money on their portfolio renewals.

Other than that, I only have three words for you.. Let's do it!

Premium · Mar 22, 2005

Interesting...

I get Dibs on Secretary :lol:

Good luck

I got hit by ANOTHER crazy idea. Check it out.

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