Domain Empire

discuss Domain Buyer Group Idea - Your comments

Spaceship Spaceship
What do you think about the formation of domain buyers groups? I have thought of a system that has the following characteristics.

A group of 10 domain investors come together and on the first day of the month put $35 each in a fund that will be used to acquire domain names. This amount is just a suggestion to start the discussion.

The group members suggest and decide by majority vote on which names they will bid or acquire.

Each member makes an effort to sell or find a buyer for the name(s) acquired.

Once the the domain is sold, the funds are distributed among members.

We can decide if we want to keep contributing $35 per month whether we have sold the names we already acquired or not, or we could establish the rule that no one contributes anymore unless we have already made a sale.

Why only 10 member per group?

This will make the group more manageable in terms of interaction, such as voting in a timely manner, which may be very important when making a last minute decision on a great name that needs to be acquired soon.

What are the benefits of this system?
One of the most important benefits of this idea would be that a few veteran domain investors would put their expertise in evaluating and deciding which names to buy and how to sell them. In addition, the 10 members of the group will do their best to market the domain and that would increase the possibility of making a sale. The $35 investment is minimal, but the collaboration brings the funds up to a decent investment level, since a $250 or $350 investment may pay off substantially.

Who will keep the funds contributed by members?
Each group could select a well known and trusted NP member to keep the funds. From the start, I decline to be the holder of funds for my group since I am the one coming up with the idea and do not want it to be misinterpreted. So, it could be somebody else in the group of which I become a member.

What requirements could be implemented for membership?
Each group can decide on how they will proceed, but I would prefer to be a member of a group whose members have been here for a while and who have been relatively successful at acquiring and selling domains.

What venue will the members use to communicate to each other?
This is open for suggestions. Feel free to mention any system that you believe could be convenient.

I am definitely interested in being part of something like this. As you obviously realize, more than one group can be created.
The views expressed on this page by users and staff are their own, not those of NamePros.
It's not going to work...because just like in the old high school days, 1 or 2 members are going to be doing all the work handling the meetings, getting everything setup and promoting all the names...while the rest will simply be along for the ride and the money. Eventually, the ones doing all the work will get tired of it and resent those getting the same pay that do nothing to help sell the domains.
With stock investments, mutual funds are comprised of various stock holdings managed by a professional fund manager. Theoretically a group investors interested in domains could select an administrator who is compensated for their experience and track record in the industry. However, the most qualified individuals would be those who entered the industry in the late nineties who don't need your money. There are also legal and licensing requirements related to administering investment funds. Could Godaddy manage such a service? Perhaps. But that would mean endorsing domain names as investments when they know that most domain investors lose money. The legal implications would prevent that. What happens when a fund becomes insolvent due to a lack of sales, renewals consuming limited funds and disappointed investors wanting their investment back?

I don't believe pooling funds and having one member administer them is going to work - too much risk of fraud by a rogue member.

Another problem with a group of random domain investors is that experienced domainers are not going to want their investment funds influenced by newbie domainers who are going to vote on investing in worthless domains. Outbound marketing can generate sales but someone's time has to be compensated for. It just doesn't work well unless you are dealing with very high-end domains. Higher-dollar sales generally result from waiting for someone who actually wants your domain and is willing to pay good money for it rather than trying to push it on dozens of end users who have reg fee domains because they don't think a domain should cost more than $25.

So the group obtains a great domain. An offer comes in at a price well below the group's target sales price but since most domain portfolios have very low turnover, a sale is needed to fund upcoming renewals. Do you accept the low offer? There will be disagreement as to domains to acquire, how to price them, whether to ease up on pricing, etc.
It may work for some but I don't think its the best of ideas.
When money is involved among strangers,there won't be 100% trust and if not the money issue,differences in opinions will break the group.
Happens almost all the time
  • The sidebar remains visible by scrolling at a speed relative to the page’s height.