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.

 

[maddogsplace]

The units idea is very good, and could help us all very much

 

[billinchina]

Sorry For The Delay

I'll be back Friday to PM people. I'm going to a Marlins / White Sox baseball game tonight and I was busy yesterday. The share purchasing idea sounds real good that some of you have mentioned.

 

[AdsenseGuy]

Just my 2 cents

Why not as you said earlier have a few independant groups each with a group leader to report on such activities such as, monthly news ect for their respective group. I for one would be interested in leading and keeping everyone in the 20.00 per month group. I would also institute a weekly chat session so all in my group could be kept up to date with current issues. For example if a member has found a great domain or whatever the issues could arise this gives each group a time to spend together. I would also like to say that if I was to lead the 20.00 group I would open the group up to more than just 10 members as i think alot of namepro members could handle a 20.00 investment alot easier then all you rich fellows at 100.00 / mnth. And in by doing this with the 20.00 group we could ensure just as much monthly revenue as the bigger groups with less members.

But just to let you know membership would have to be based on a pro rated ratio, if for example the 20.00 group starts with 15 members and in time for the next installment we have another 10 wanting to join , the initial 15 that have already paid dues would recieve a higher pro rated ratio, But I can see this idea working for everyone involved. I also like the idea of having a private website where members could go for updates ect. At least thats what i would have installed for the 20.00 group, All The news and all the current events on a private site.

When it comes to the money I would suggest that the leaders of each group who say for example have been nominated to be leaders or whatever must have at least 2 other leaders approval before any transactions could take place. So what i mean is this all group leaders would have a meeting be it weekly or monthly and for example I say being the leader of the 20.00 group OK fellow leaders my group would like to initiate a purchase of xxx.com i need your approval to transfer xxx.00 out of our account to leave our group with a balance of xxxx.00 and only once approval has been granted may the funds be moved ,

Anyways im done rambling on for now. Put me in for the 20.00 per month group and let me know when we start, The first of the month is just around the corner.

 

[ajibra]

Count me in

 

[pelican]

This really generate alot of interests among domainers. But need to be very organised

 

[billinchina]

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.

 

[Darkfire001]

Hmm:
1) Each club will have 20 members that all agree on: (YES)
a) The maximum amount the club will save until they buy a name.
$20,000?
b) The monthly amount they will contribute. $50
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). (Why not one single account?)

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

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. (Why not top 20)
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. (okay)

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

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

7) When a name is sold, 20 equal disbursements will be made (1 to each member). (Meh, Why not one group account?)

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). (Okay)

 

[billinchina]

It's hard to depend on people that you've never met, and keeping your own money in your own Paypal account it much less nerve racking. We still need to come up with closure polices and what to do when people disappear without a trace.

 

[Darkfire001]

Thats true, but one flipside is if people have money in the account they are less likely to dissapear

 

[Peter]

Anything I didn't have any comments for have been deleted.

d) Who will place the offers on behalf of the group and deal with the escrow service.

this of course should be someone who is used to negotiating and also used to dealing with escrow services.


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).

Fine but could be a nuisance waiting for people to tranasfer the money, some people only come on for example once every several days so if an offer has been made could delay the process. I personally think it would be better to have say a paypal account that everyone has at least veiwable access to (im sure you can do that with a business account) also for payments to be made using subscriptions then if the person is not online then payments will still be made.


4) 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

tied in with the above


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

would 100% be disbursed out or a % so that the pot grows.

regarding if people dissapear for a while the action to be taken would really depend on what stage of the process they were last seen. for example if we hold money in our own paypal accounts and we make an offer all of a sudden we would find ourself short (unless we did something like I suggest).

Also if they dissapeared and money was paid but they went before a vote took place could we use their money? make it so that people have to sign an agreement if that instance happens that the decision will be made in their absence and they abide by the majority

 

[Anthony]

What percentage would be lost in fees if using Escrow.com?

 

[Peter]

Originally posted by Anthony
What percentage would be lost in fees if using Escrow.com?

https://www.escrow.com/support/calculator.asp

if paypal was used as well there would be fees with this as well

 

[RJ]

My opinions on the PM from Bill.

How about having a group leader that is trusted by the group that would be in charge of opening a bank account and PayPal account for the group. Paypal has something called Multi-User access that lets you create accounts with limited access. All or some other members can have access to the PayPal account to monitor the balance. A bank account can be opened from any bank for $100 (Easy) and could be used to verify the PayPal account.

I just think finding an escrow company willing to do the 20 payments/20 disbusments will be difficult. I doubt escrow.com would go for it, and I don't trust most other online escrow companies.

20 person gruop? That will be crazy to manage because there will always be a certain percentage of people that disappear or stop participating. If you use a high number like this be sure to have provisions to have votes cast on their behalf if they don't enter a vote, and guidelines of what happens when they stop participating or contributing money. I would prefer to see smaller groups of 5 or 10 myself, but will support whatever the group decides.

 

[jstep]

hmmm..


Id be interested, but cant pay the 50$ a month right now

i dont think theres any other way?

 

[Kimberwyn]

Thats a great idea. If i had the money I'd probably join up.

 

[Darkfire001]

What about a 10 Person Club with $100/Monthly Per Share? People who couldnt afford a full share could just as easily split a share with someone else. And $1,000/Month is enough money for the group to save up for a big domani fast, yet also be able to scout around for good domains on a monthly basis.

 

[William9]

I am impressed billinchina by how well you have thought the Domain Buyer’s Club. You particularly did an excellent job by first addressing controls such as escrow etc!

Am I correct with my understanding of the $50/month club. If one joins, one is committed to pay $600 each year in $50 per month payments, unless taking the option out which is offered once a year.

My life experience has been that individuals join clubs (or buy life insurance policies) with good intensions. However, 25 to 50% shortly stop paying for this or that reason [mostly they are out of money].

• Most importantly, what name goes in Whois (the legal owner of the domain!).

• What if a member is late with payments?

• What exactly are “penalties” paid to the other club members who are planning (budgeting) that $50 receipt when a member simply stops making payments.

• What if a member is simply not heard of again?

• -RJ- mentioned using a group leader that is trusted by the group that would be in charge of opening a bank account and PayPal account for the group. What happens the group leader dies or are simply not heard of again? Also, in my opinion, it probably should NOT be based on trust, but instead controls (eg. two signatures).

• How are UDRPs to be handled if at all (I want my lawyer to answer them, as he will charge the club double, but then give me a terrific discount (smile))

Don’t get me wrong. I think the club is a terrific idea and once again I want to give you a tremendous amount of credit for your work so far. My point is merely that if unpleasant but possible issues are put in writing ahead of time, there is little to argue when then they come up in the future.

Thanks again,

 

[domainlab]

Still a great idea and still interested.

My previous post re taxation still applies. This club, where is it taxed. If the club makes a profit, where is it taxed? I am assuming that most members will be in the States which would I presume mean that any profits would be taxable - is this correct?

In any event, I would be interested to have any feedback regarding the tax situation of the intended club - also where would the given address of the club be - there may be implications for non-US resident individuals

many thanks

 

[brainstorm]

Great idea! I can spend $50 per month.

 

[ezimedia]

HI

Domainlab, I think the tax issue would be up to each individual member and they would have to pay tax according to the tax laws of the country the member resides in,

So say the club has 10 members and after a period of time the club buys a domain for $10,000 and then sells it for $20,000 a few months later and each member got a $2,000 cut of the sale then each member would have to pay their own income tax on that $2,000

That is the way I see it but I could be wrong... LOL

Thanks
Tom Dahne

Expired Domain Spy
http://www.expireddomainspy.com