50% ownership of a domain

[mrcurly]

Hi,

I have been offered £3,000 (UK) for 50% ownership of one of my domains by a company in a particular field.

I personally think the domain is worth more than £3,000 for 50%, however it might be a starting point.

Has anybody ever done a 50% shared ownership on a domain, does it work out with an easy contract etc.....

Any help would be appreciated.

Cheers

Stu

 

[.NJ]

I think your setting yourself up for possible unwanted issues and complications with the 50% split ownership offer.

1. Do they have plans to use the domain, or resell it?
2. Do they have plans to develop the name? And if so, how would you benefit?

If they are offering you this because they can't afford your asking price right now, then I would offer them a leasing contract with an option to buy.

This will leave you at 100% ownership with the added benefit of a nice monthly income until they can afford it.

The 50/50 split is a no go IMO.

 

[urlurl]

I would either lease the name (with or without the option to buy)

or

Sell an 'Option' for L3,000 and give them the option with a specific date and specific price to buy in the future. if they don't exercise the option after the expiry date you keep the L3k and the name.

or

sell for L3,000 and ask for partial ownership of the business.



50/50 of a name to be used for development does not make sense. on the other hand if 2 or more people pooled their money together to buy a name is a different scenario.

 

[alien51]

What's the reason behind the 50% ownership stake?

All i can see there, is that your half-owner can now block anything you want to do with your domain. You cannot point it to a website without his consent. You cannot sell it without his consent. You are hostaged.

 

[mrcurly]

What's the reason behind the 50% ownership stake?

All i can see there, is that your half-owner can now block anything you want to do with your domain. You cannot point it to a website without his consent. You cannot sell it without his consent. You are hostaged.

The owner of the business believes my domain will grow in value, and would like to invest some money into it as he can not afford my full asking price......he also mentioned that he would like the opportunity to buy my 50% further down the line or maybe we both sell the domain for big bucks to another company/business.....

To be honest, I have never come across anything like it before, hence why I started this thread........

Thanks for the input so far guys.

Cheers

Stu

 

[alien51]

This is like selling equity shares to shareholders. Usually, the owner of the business uses the money to grow the business. In exchange, he relinquishes some control of his property to the shareholder.

Theoretically, if your business is a sureball success, you would like to own ALL the shares so you can make your own decisions and don't have to share profits with someone else.

Do some reality check, whether what the other guy is just selling you is some hypothetical "future" that may or may not happen. After all, what you have is just a domain. You didn't mention if it's a full running e-commerce site that is earning revenue now.

On most situations, a 50-50 split is not a good idea. It's like taking on a wife. You can't sell your car without your wife's consent.

"Control" is a big word, when you have shareholders.

 

[urlurl]

in that situation the best thing to do is sell him the option.

 

[alien51]

You know why George Clooney is still single? Because a divorce is very costly.

It's the same with a business partnership. Especially the 50-50 split kind.

So how do you get rid of a business partner who is a pain in the ass? You have to buy-out his 50% share, of course. And no business partner in his right mind would want his shares bought out at the same price he paid for it, given the inflation and all. Most buyouts are paid premium. Tiger Woods knew that first hand when he parted ways with his wife.

 

[mrcurly]

Thanks for the advice guys, much appreciated.

I will sit on the domain for now, best all round I think.

Cheers

Stu

 

[lennco]

Hey Stu,

I would pass on the deal, especially if its one of your Smart names.
If it is then yes I believe it will be worth a lot more someday and I would just hold on to it.

Good luck

 

[biggie]

:talk:


pass on it and wait


imo....

 

[ecuadorbusiness]

Why would you need an investor to upkeep a domain that is growing in value? Will your investor help you pay 50% the renewal fee? Non sense to me. Hear all these guys.