NameSilo

Part Ownership: Can I own a part of a domain name?

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Aug 25, 2020

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  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    When I started off domaining, I once came 3rd in a private auction and the first 2 bidders had bailed out.
    Since I was the next highest bidder in the auction, I was given the domain name to purchase for the price I had bid.
    In the meantime, knowing that others had bid more on the domain name and it was well beyond my budget now, I decided to purchase another name for a similar amount from some other place.

    Given the option to own the domain name, it was very enticing but I had already spent the money that I had kept aside for this auction. So the fourth-highest bidder who wanted to own the domain name but also wanted to minimize his risk, asked me if we could own the domain together.

    Although I passed on the opportunity and he purchased it himself (it was a 4 letter domain during the Chinese boom, so I am pretty sure he must have made a stellar return out of the name), this incident reminded me of an idea whether it was possible to officially own a portion of a domain name.

    Is there any facility or service that makes it legal that you own a say, 40% of the domain name? If not, and if the domain is not extremely valuable (say a portfolio or a domain name of a possible appraised value of $50,000 (self-appraised that is), how do we ensure part ownership, while keeping it official so that if there is a difference between the partners, the legality is there to ensure that the partner having access to the names doesn't end up owning it completely?

    How do you do it?
     
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  2. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    Well, the problem is if the domain is not very valuable no legal option is that practical. It will just add to the cost of a domain not worth that much.

    If you have something of value there are multiple options from forming an LLC to having a contract drawn up by a lawyer.

    On a lower value domain basically one person is going to have control of the domain, and the other party needs to trust them. You could draw up a basic contract yourself, but then you would need money to enforce it if there was a dispute.

    It is really just not practical for low dollar assets unless you trust someone.

    Brad
     
  3. PatrickV

    PatrickV Established Member

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    If you own on paper/contract by lawyer a part of a domain it's posible imo
     
  4. dombastic

    dombastic Established Member ★★★★★★★★★★

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    Sure.
    As mentioned above via a company/entity.
    Replace "domain" by "building", if it is easier for your thinking.

    But to be precise, you cannot OWN any domain name.
    You are just a registrant who needs to pay every year and still is not completely sure how long will be able to use it...

    I registered fu**.com and Network Solutions/Internic canceled it, because of profanity...
     
  5. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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  6. koolishman

    koolishman Top Contributor VIP Blue Account

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    Yes. I do.

    As others said, trust is the key. Lot of business transaction in other areas involve joint ownership. Better to have one person- the expert-make the call on selling and I trust them.

    Also, I do hold some names for others, where I tell them to take a call on selling/dropping etc.
     
  7. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Absolutely. The thing is, while it is easy to trust, things start getting tensed once the money starts flowing in.

    Cost intensive, isn't it?

    When was this? You would have retired by now, had you held it.
     
  8. dombastic

    dombastic Established Member ★★★★★★★★★★

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    in the 90s
     
  9. Rich

    Rich Top Contributor VIP ★★★★★★★★★★

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    I think the fractional ownership of domains will become a thing in the future once the kinks are worked out, it has been discussed and tried. This is the most recent example that I know of, shares sold out quickly.
     
  10. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    Am I understanding correctly that you have given certain people right to buy at a future time at a certain price if the name has not already sold? Or am I totally misunderstanding?

    On the general topic of the thread, I agree with what @bmugford wrote that it can readily be set up through legal agreement, but not worthwhile unless the name is fairly valuable.

    If valuations, human or machine or hybrid, could reach closer consensus, there is a possibility of domains becoming an asset class that could be held across a group of people. I believe there have been several attempts to do that over the years.

    Thank you to the link of the past discussion along these lines @biggie. We are fortunate to have people like you and @bmugford, @equity78, @RJ and many others that have a deep knowledge and long history in the forum. It is easy to try to recreate the wheel or at least not know issues others had in trying to create the wheel.

    Bob
     
    Last edited: Aug 30, 2020
  11. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    I believe that DAN have said that their technology is set up to do that, and it is a future offering in their plans, but can't readily find where they said it. Pretty sure when Domain Automation Network first discussed that was one of their plans.
    Bob
     
  12. koolishman

    koolishman Top Contributor VIP Blue Account

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    Not that way.

    I bought certain domains for them and hold in my portfolio. They are the largest investors, so I tell them to do the selling part. If they are unable to sell, I try and sell.
     
  13. Samer

    Samer Top Contributor VIP

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  14. Kuffy

    Kuffy Name Stag VIP

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    I have a number of names registered with Name Silo, and I don't have any problems with them.
    fu2.net
    f**k-me.net
    throatf***s.com
    etc....

    and one I registered just after I got a parking ticket
    f**kparking.com :)
     
  15. dombastic

    dombastic Established Member ★★★★★★★★★★

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    I do not know what you are talking about.

    NameSilo did not exist in the 90s.
    There was only Internic/Network Solutions.
     
    Last edited: Aug 31, 2020
  16. Kuffy

    Kuffy Name Stag VIP

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    Apologies - I didn't pick up that bit.
     
  17. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Last edited: Aug 31, 2020
  18. dombastic

    dombastic Established Member ★★★★★★★★★★

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    It is really funny that adult people discuss this.
    People figured this out centuries ago.
    Just replace "domain" by different words and you will realize that.
    You either have a company or at least a contract...
     
  19. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    two people can partner up to buy a domain. You could start a partnership or a company with different people and invest in domains.
    But before domains get very liquid, a REIT style fun might not work.

    But I would love the idea of a REIT style fund for rental domains. Not a bad idea. Add some developed property as well and add rank and rent style websites too

    Could work with a few partners at a small scale
     
  20. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    The question is for low value portfolio, does it make sense to create a legal entity?
     
  21. dombastic

    dombastic Established Member ★★★★★★★★★★

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    No.
    Then you use a contract.
    But will you go to court because of a low value portfolio?

    Even very good friends can have a different opinion when to sell...
     
  22. MasterOfMyDomains

    MasterOfMyDomains Top Contributor VIP ★★★★★★★★★★

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  23. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Doesn't make sense definitely, to go to the court when the portfolio value is low.
    But then the ownership of domains is in a particular account only. Hence, of there is a difference or possibly misunderstanding going forward, the owner on whose name, the domains are registered gets to keep the domains.
     

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