NameSilo

New Domain Investment Group, Any Interest?

Located in General Domain Discussion, started by RJ, Jun 1, 2003

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  1. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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    I'm considering forming a Domain Investing Group. The basic concept is to seek out reasonably priced domains and purchase them for resale.

    For instance, we would find xyz.com for sale by it's owner for $1000 and we are reasonably sure that the efforts of the group could resell the name for $5000.

    The investments would be on a domain-by-domain basis, and each member could opt-in on any particular offer that is proposed to the group. The domain would be held in a single location and when it is sold for a profit the investors would receive their share of the proceeds.

    The idea is to make it easier to be able to invest in and profit from quality domains.

    Any interest in this? The minimum investment would probably be $100.
     
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  2. dotNAMES

    dotNAMES Established Member ★★★★★★★★★★

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    I find it great.
    For me all kind of investment are welcome.
    Just i have to wait a bit for the money.
    I will take my hollidays in a week (3 weeks around Europa), and i would like to save my money before them.
    After that i will be please to be in the course.
     
  3. drifta

    drifta VIP Member VIP ★★★★★★★★★★

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    I think its a great idea
    It kind of lets the people that dont have $1000 to buy a domain
    get their peice of that pie B-)
     
  4. kohashi

    kohashi Established Member ★★★★★★★★★★

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    I agree with FreeOnli. I think I will pass on the offer though. I am solo.
     
  5. Jeff

    Jeff Emeritus VIP ★★★★★★★★★★

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    Nothing wrong with "flying solo", Koho ... in fact, that can be one of a domainer's biggest advantages. I think this is a GREAT opportunity here though to potentially go after higher caliber names with the hope of landing hopeful bigger payoffs!
    Good Luck with this effort, RJ.
    Also, to let folks know ... I'm leading a team for registering domains/drops/pending deletes for approx. the per member cost of registration in another thread here in this section. Once we get up-and-running, we'll have access to our own Private Forum and will be consulting with one another up until actual registration, marketing, and resale (or development).
    The membership for that thread is now *closed*, but any folks that post from this point forward will automatically be included in the next team, round of teams. Wish us luck! :)
    Thanks, and stay tuned!
    B-)
     
  6. doubledee999

    doubledee999 Established Member ★★★★★★★★★★

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    I might be interested in this RJ
     
  7. DaddyHalbucks

    DaddyHalbucks Established Member ★★★★★★★★★★

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    It's a neat idea. It's been debated before. We discussed this at length on Rick Schwartz's board.

    The problem is the implementation. If you are talking real money from investors, you really need to setup a LLC or corporate structure to do it right. The rules have to be firmly established, and all investors have to be fairly represented.

    Perhaps a limited partnership would work also. You could have big investors and small investors.
     
  8. URLCollection

    URLCollection Established Member ★★★★★★★★★★

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    RJ - Great idea. We did this for the past 4-5 years with some investors and other brokers - Not so much in the past year. It worked out fine - just alot of work to keep it straight. We set a min. of $50,000 investments and all names that were bought in the group had to have a min of $50K in wholesale value each. The return was good, but as the market slowed and prices fell everyone got a little nervous and our corporation bought every position. In concept it is a great idea, just real tough keeping all happy, specially in a falling market at the time. May work real well in the terms as you outlined - Hal (DotComCowboy) hit on a few legal issues that are extremely important to make something like this work. Best of luck.
     
  9. -OutlawBiker-

    -OutlawBiker- Name Cartels - Mr PINK ★★★★★★★★★★

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    Sounds interesting to me RJ.
     
  10. customb

    customb Established Member ★★★★★★★★★★

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    I don't think it will all work out. If I put up $100 and we get a $1,000 domain name then that means I own 1/10th of it. Then if you want to sale it for $5,000 I would have a return of $500 on my $100 initial investment. What if I wanted to get out before it's sold? What if it's never sold? What if you want to sale it for $5,000 and I want to sale it for $50,000? Who will be the registered owner? What if he dies? What if he skips town and changes ownership? TOO RISKY FOR ME!!!! Good luck to all who join but I suggest thinking VERY hard about putting up any cash for something you don't have a legal claim to.
     
  11. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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    All these questions would be addressed first of course. The target sale price would be agreed upon before any investment.

    Each investment would be on a domain-by-domain basis and I would expect each member would know domains enough to decide if the domain is "worth it".
     
  12. KingDon

    KingDon Mr Big Stuff VIP ★★★★★★★★★★

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    I can spare $100 for this RJ, I can help dig out the leads; I'm also starting to get comfortable with the cold call process, let me know when you're ready to start.

    Don
     
  13. GoldenDomains

    GoldenDomains Established Member ★★★★★★★★★★

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    I'm always open to JVs and have had some successfull ventures in the recent past.

    Here's an idea that I've kicked around for a bit. If I find the right people to work with we might have something great.

    Everyone's heard of a drop right? Has anyone heard of a Domain Name Lottery? I was thinking of having a site that puts up a good domain name for grabs with, lets say, $10 buy in per person. At a given time a winner will be drawn and the domain given to him/her. If the domain's worth $50 and you get 10 buy ins that's a good profit :)

    Maybe RJ can start something like that over here as part of NamePros :) Just a thought. Let me know what you guys think.
     
  14. markits

    markits Established Member ★★★★★★★★★★

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  15. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Flashback Probably the first of it's kind.
     
  16. Joakim

    Joakim SalesBusiness.com VIP Gold Account

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    I've discussed this at length in private groups with both senior and new investors. Although the concept sounds intriguing, we never came to a decisive conclusion.

    The risk vs reward + legal aspects, is what terminated it from moving forward.

    But, if this could be organized in a functional manner, I might be interested in joining. It would be great if it did.
     
  17. Samer

    Samer Top Contributor VIP

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    “affordable to the masses”

    i love the idea.

    Samer
     
    Last edited: Jul 5, 2020
  18. lambo.com

    lambo.com dnas.com highiq.com VIP Gold Account

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  19. Samer

    Samer Top Contributor VIP

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    Can we make a Poll?

    Samer
     
    Last edited: Jul 5, 2020
  20. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Yes very hard to pull off. ego's need to be checked at the door. You really need to have things in place for when there is a potential sale.

    10 people in group, do they all have the same expectations?

    Meaning some people want to make a good profit, others always have their heads in the clouds, think every 3L.com is worth $250,000.

    So we get an offer on our 3L.com that we paid $20,000 for, it's $60,000. 8 want to sell 2 don't. Now we have a problem and it will linger going forward. Even if you have something in place up front, like on any deal 51% of the vote decides. People will have bad feelings moving forward.
     
  21. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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    13+ years ago we had this group running somewhat successfully. The partnership lasted a few years and we operated on a private forum here at NamePros and a Skype chat that we used to facilitate purchases.

    There were agreements in place. When we bought names as group, shares were split on the members based on how much they invested on a per name basis. For sales, we decided on a target sales price upfront, but we had a 200% minimum return in place to protect smaller shareholders.

    >> So we get an offer on our 3L.com that we paid $20,000 for, it's $60,000. 8 want to sell 2 don't.

    This deal would have gone though since it's 300% return, but the 2 that didn't want to sell would have had the first option to buy the shares at the $60k rate from the other 8 if they really believed in a name.
     
    Last edited: Jul 6, 2020
  22. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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    I found the original agreement that we operated under:

     
  23. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Cool stuff, did you do a lot of sales?
     
  24. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    That's what I thought you did, give them the chance to buy the equity. Most of the time no one has that amount of cash though. The sale the best choice in my opinion.
     
  25. Windoms

    Windoms Top Contributor VIP

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    Fractional domain ownership.
    Issuing shares for a domain we already own.
    And being able to submit a project for the acquisition of x domain.

    Should be a registrar (straightforward, safe).

    @DAN.COM had plans for fractional domain ownership.

    Could also be Godaddy.
    @Paul Nicks
    @Joe Styler

    Uniregistry domain exchange.
    Being able to issue shares on premium domains.
    Like 100 shares totaling 50% ownership of somedomain.com.

    Great idea @RJ

    Ps if afternic uni cant become godaddy
    Then afternic should become uni
    New platform
     

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