Domain Investment Club

[billinchina]

Usually in investment clubs, 5 to 10 people get together and donate $50 a month to a common pool for buying stocks. Maybe a couple of us could get together and contribute to a common PayPal account each month and then look for a good domains in our spare time. After a few months (when we get a few thousand dollars), we could buy one of those really good names we found available in our spare time (voting would take place of course). Keep doing this... Then when we sell a name, the proceeds go into the common Paypal account. PPC rev. also goes into the common PayPal account. If you want out, you get your share of the assets (if they are tied up in names, you'll have to wait until one sells to get out). Must have a 1 year commitment which is renewable every year. Must give 60 days notice before club membership expires if you want to get out (or suffer penalty). Common PayPal account should be managed by third party to keep thiefs from stealing others money.

I think it would be fun for 10 or so of us regulars to get together and do something like this... We could probably make arrangements with an escrow service to handle our PayPal account if we agree to use their service in the selling of our names.

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I will revisit this thread on Wednesday, June 16, 2004 to create a list of those who are serious.

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Update on Friday, June 18, 2004

Here is the list of who is interested so far:

billinchina
-RJ-
SY4
maddogsplace
Redleg
silverman567
filth
redhippo
bensontwenty
johnny6
rabid_nerd
companyone
spikedo
FMS
todalen
DomainOgre
domainlab
brassneck
4u-domains
dgaussin
Terry
Darkfire001
Sell-Web
Grrilla
ezimedia
painperdu
rube08
AdsenseGuy
ajibra

Please let me know if you would like to be added or removed.

Here are some basic rules for the domain investment club. Please provide feedback and help shape this into something useable.

Domain Investment Club Rules

1) Each club will have 20 members that all agree on:
a) The maximum amount the club will save until they buy a name.
b) The monthly amount they will contribute.
c) Which escrow service to use. The escrow service must agree to accept 20 separate payments and make 20 separate disbursements.
d) Who will place the offers on behalf of the group and deal with the escrow service.

2) Each member will set aside an amount of money in their own personal or business PayPal account each month (think of it as a piggy bank).

3) Every week, each member will provide at least 1 suggestion of a name for the club to consider buying (max 10).

4) When the club saves up enough to buy a name (maximum amount needed to save), they will vote on which name to place an offer on.
a) Every member will rank their top 30 picks at that time.
b) Every member will transfer their money to the escrow service.
c) A 7 day offer will be made to purchase the name with the most votes. If the offer expires, the process of voting will be repeated 7 days after the offer expires. This will continue until a name is finally purchased.

5) When a name is purchased, the group will vote on what prices to specify.

6) If an offer is received, the group will vote on whether to accept or decline.

7) When a name is sold, 20 equal disbursements will be made (1 to each member).

8) The name(s) will be held in an account monitored by escrow service and listed on all major exchanges (unless exclusive agreements restrict it. ex. Showcases).

I was going to send PMs out to everyone, but there is a time limit between sending messages that makes it impractical.

 

[Peter]

Originally posted by Redleg
I think it's easies to have just one group who contributes with an equal amount of money each month.
That way it would be easiest to split the profit if someone decides to leave the group...

I think he actually means that each person in a given group would contribute the same amount the other group that contributes a different amount would act independantly

 

[DomainSage]

Sounds like a great idea, I have too much happening at the moment to join in .... But hopefully will have all that cleared up in a couple of months and will be able to join in ( if there are any places left ).

Wishing you all the best

Richard

 

[johnny6]

i'm interested.

 

[Redleg]

Sent a PM with some suggestions to you Bill..

 

[RJ]

Originally posted by all4cost
Don't start PM'ing - RJ can set up Private chat I believe for the meetings -

Can't You -RJ- ?

Yes, we could setup a private forum.

The strategy I personally want to follow is bargain hunting. I'll keep my eye out for names with 'make an offer', or low min offer amounts that don't have a 'buy it now' price.. Eventually you'll find someone that is willing to let their name go who's impatient and wants to sell a name for a change.. My target range for spending is $2K to $5K and expected return is $10K to $15K.

Agreed, that's a good strategy.

 

[Anthony]

Sounds like an interesting idea, but I think it might be a good idea to draw up an agreement for members to sign, so that there isn't any fighting going on down the road...

 

[ezimedia]

HI

Yes looks like a lot of people are interested in this idea and I also would be interested in it if as Anthony says members would need to sign an agreement or something to protect all members, Just incase,

The biggest issue I can see is the handling of the money that builds up over time, I would not want to see the account holder do a runner some time down the road, not saying it will happen but hey you never know

Any ideas on how to over come this problem.... Comments... Ideas.... anyone..

Thanks
Tom Dahne
http://www.expireddomainspy.com

 

[redhippo]

is the club taking of yet

 

[maddogsplace]

is thing going to happen or not? no one has talked for a few days :o

 

[rabid_nerd]

interested...

 

[companyone]

Hi,

I am interested

 

[spikedo]

Same here, although I'd like to see the group's "policies and procedures" first.

 

[billinchina]

Here's The Shindig!

Joining this type of investment club will require patience as it can take a few years of waiting to sell a high class domain at a great price. So, I will revisit this thread in a week from now (Wednesday, June 16, 2004) with more information. That will give us all plenty of time to think about whether or not we really want to commit to this on a long term basis.

Keep posting if you're interested. When I return to this thread next week, I'll create a list of all the people who are interested and then we'll start hammering out all the nitty gritty details. We might split into a few groups (or might remain in one big one).

Just some ideas I've come up with in the past few days...

Every member gets their own email address @ the names we buy (ex. [email protected]). In the whois records, we'll use something like [email protected] and it will forward any mail received to all of our accounts. We don't need a website for this club (as someone earlier mentioned they could build one).

 

[spikedo]

Couple of important issues are:

1) What happens when a person wants to leave the club?
2) How to vote on which domain to buy?
3) How to vote on an offer to sell?
4) Who manages the money?

I think the rules from stock buying clubs could easily be adapted to this proposed club. That could be used as a start.

 

[FMS]

interested

I'm interested but wonder who will be responsible for marketing the name? If we just hope to list on SEDo or one of those we might wait forever. How many people are firmly committed to purchasing a domain and sitting on it for 2 years or more? Think about this...Every few months we buy a new domain...then we can expect to wait roughly 2 years from the date of purchase to sell. I'm fine with such a committment but just playing devils advocate in case someone is expecting any huge life changes in the next few years (i.e.-college, marrriage, children, job change etc.) that could prevent the person from participating in the future.

I like the idea and am interested in hearing more. Is there an attorney on the board who might be willing to join us or write up an agreement document?

 

[Monsterman]

Im also interested in this idea. Put me on the list. I also have afew other ideas that may work? Thanks.

 

[rabid_nerd]

Is this not unlike the domain competitions (in a minor way, that is) that were successful here in the past?

WaveMail - RJ - any input on that observation?

 

[DomainOgre]

You know the Ogre has to join something like this . Guess I missed this thread till now. Count me in.

Its a little like the competitions in a way, which were a success or a failure depending on the team you were on. It all depends on how committed each member is. I see quite a few great domainers interested so this should be good .

 

[domainlab]

Sounds like a great idea - count me in if you've still got room

 

[redhippo]

Originally posted by rabid_nerd
Is this not unlike the domain competitions (in a minor way, that is) that were successful here in the past?

WaveMail - RJ - any input on that observation?

a combined namepros reg team against time and the whole wide web! wWOW! (Namepros investment club=NIC) might work if we cobble the proper guidelines. anybody have a copy of stock investment club rules?


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