Domaining...

[playercool]

Hello All...

I am starting to invest in domains. I have purchased many domains over the years but I am giving it some serious thought of actually doing it as a business model.

Should I keep registering domains in my personal name or would it be a much better idea to register an LLC and start taking ownership in that name.

My exit strategy is to get good domains and have potential end users contact me by most likely finding my information in a whois search. Would I scare people off if they saw the owner was XYZ, LLC as opposed to seeing my real name?

Would love to hear some thoughts on this subject. Thanks

 

[south]

Form a corporation & take advantage of the tax benefits that come with it.

 

[dompro]

Would I scare people off if they saw the owner was XYZ, LLC as opposed to seeing my real name?

As long as you put some "this domain is for sale" in the whois or on the parking page, that should be inviting enough to attract offers. I would saying having a company name in whois should look more professionally and speak for more serous offers as opposed to when it is a registered to a random Joe who might not know what he's domain worth

 

[malcarada]

I am a little surprised that you are considering to go into domaining full time but do not mention any sale. You have bought a few domains ok, anyone can do that, but have you actually sold any domain and made a profit?

You don't learn by buying, you learn by selling, if you can sell that is.

 

[zoomactive.com]

If you want to do it as a business then why are you doing it in your name to begin with?

 

[playercool]

Thanks for the replies everyone.

Yes, I have been fortunate enough to sell some domains. 3k, 1k, and $250 are my latest sales, coming from the end user contacting me. I have several LLC's that are for other companies and I was thinking it might make sense to hold all my new domain purchases in a new LLC. I don't want to put any domains under my other LLC's as one is for real estate and the other is for actual internet businesses.

Since I have been heavily buying in the last couple weeks I have considered the LLC structure for domaining. I am still trying to think of a name, however I think it is most likely wise to put this all into an LLC.

I guess my main worry was I would start a company called XYZ Domains, LLC and it would turn off potential end users from contacting me. In all liklihood that is incorrect thinking on my end.

 

[Kate]

An LLL/Inc. is not a must-have, most domainers trade as individuals.
If you have a sound business plan, talk to a CPA.
As mentioned above, there may be tax benefits as well.

As to your question, "would turn it off potential end users":
I have incorporated, I don't own any domains personally. Sales are always taking place, especially when the domains are parked and advertised as being for sale.

My thinking is that when the domain is owned by a little guy, some end users might be tempted to lowball or strong-arm him, or call him a squatter.
But they might think twice when the holder is a legitimate corporation.

 

[dompro]

My thinking is that when the domain is owned by a little guy, some end users might be tempted to lowball or strong-arm him, or call him a squatter.

exactly the point I was trying to make

 

[zoomactive.com]

"I guess my main worry was I would start a company called XYZ Domains, LLC and it would turn off potential end users from contacting me. "

It will only turn off low ballers who are not serious business people. Those looking for deals. Business people understand the value if it is explained in business terms and how it is a bargain and of real value even if it is $3k "maybe more". A business will feel safer buying from a business than an individual and you will get more money.

 

[jyotsna01]

you can sell or buy more domains at SEDO and Godaddy (premium listings for .COM/.Net and Godaddy auctions for .TV) and via direct Whois contact than at Afternic.