What are the must have features for DNProtect.com?

[equity78]

So what features are a must for DNProtect now that the name has been chosen?

The domains wanted thread will get closed so here is a dedicated thread to discussing the concept @Rob Monster outlined below.

@bhartzer and I have agreed to work on a new venture that is designed to protect end-users from buying damaged domains. Some of the risk factors that can be mitigated include:

Prior Fraudulent Conveyance
Domain Theft post purchase
Negative SEO
UDRP Complaint
Civil Trademark Claims
DDoS attack
Copyright / DMCA complaint
RBL/Spamhaus whitelisting
DNS Hijack protection

The product can be sold as a one-off risk assessment report for a fixed fee of $149 per domain. There will also be free API-based risk scoring estimate available to qualified partners, e.g. Estibot, etc.

The product upsell is an insurance product with target pricing of either:

(1) 1% of face value per year
(2) 4% of face value for duration of ownership

 

[Rob Monster]

You have many banks now that will loan against securities.
It is called securities-based lending or portfolio lending.

These are based on highly liquid, easily understandable assets (stock, bonds, precious metals, ETFs).

You can generally already got a loan now if you run a successful business, even if that business is based on domain sales.

If you are talking about getting a loan based on the underlying value of a raw domain, from a major bank or lender, I doubt that is going to happen.

I highly doubt major banks like Chase, B of A, Wells Fargo and others are going to introduce a new product with such tiny demand. How many people in the general public even own domains, never mind any that are valuable?

Maybe some random boutique bank somewhere might consider it.

Brad

Back in 2009 I was in a syndicate that bought the domain Hobbies.com from Toys R Us out of bankruptcy. Back then it was possible to get a bank loan at a low rate. Things changed since then due to changes in regulatory oversight. However, as domains become a more respected asset class, it is actually inevitable that banks will lend against them. For many businesses, your intangible asset (website) is actually safer and more essential to continuity of operations than some Class A office space. Banks make money by lending with a spread. Banks need someone to lobby to change the law. We'll get to that. One step at a time. I am actually interviewing a DC attorney/lobbyist this week.

 

[bmugford]

Back in 2009 I was in a syndicate that bought the domain Hobbies.com from Toys R Us out of bankruptcy. Back then it was possible to get a bank loan at a low rate. Things changed since then due to changes in regulatory oversight. However, as domains become a more respected asset class, it is actually inevitable that banks will lend against them. For many businesses, your intangible asset (website) is actually safer and more essential to continuity of operations than some Class A office space. Banks make money by lending with a spread. Banks need someone to lobby to change the law. We'll get to that. One step at a time. I am actually interviewing a DC attorney/lobbyist this week.

That is fine, but you don't need to convince me.

You need to convince major banks with market caps of hundreds of billions that it is something they should care about, that has enough demand and upside for them to justify it.

It is not just going to be a regulatory issue. It is a demand issue.
Very few people actually own super premium domains.

Good luck.

Brad

 

[Recons.Com]

there really shouldn't be any reason why regulated banks wouldn't lend against domains.

This is simply not true.

Banks won't lend because a) it is hard to valuate a domain asset; b) domain assets are very illiquid.

 

[Rob Monster]

If you are talking about getting a loan based on the underlying value of a raw domain, from a major bank or lender, I doubt that is going to happen.
Brad

One very important challenge that the domain industry faces in working collectively to make the pie bigger is overcoming chronic MYOPIA.

Just because it did not happen before, does not mean it can't happen or won't happen.

Even mighty Verisign with their .COM franchise is actually a relatively tiny business compared to the importance of the underlying namespace that they manage.

Lending against domains is not about premium domains. If an online brand is an essential operating asset for a business to function, it becomes logical collateral for a bank to lend against.

And yes, it might start with boutique banks before it moves into the realm of FDIC-secured depositories but I see it happening.

As it is, the IRS values domains for contributions. I have seen this in action too. So, clearly there is some legitimate basis for discussion around domain valuation as an enterprise asset.

There is absolutely a market for cash-out lending at hard-money rates. Epik has never charged interest for the domain loans we do, but the demand is there. So, I prefer to partner and outsource that scenario.

We have started working with a NYC private merchant bank for folks who need cash-out domain loans in addition to our popular solution for interest-free domain loans.

If folks need help finding a lender for their domains, happy to advise. It helps a lot if either (1) the domains are liquid, or (2) the domain is an integral asset of an established online business.

 

[equity78]

How are things moving along.

 

[Rob Monster]

How are things moving along.

We are on track to be live in beta before year-end and commercial launch in January in time for Namescon.

The high level spec is here:

https://my.armored.net/index.php/s/2LTcLkCLyJWk7ci

The other major theme is securing the alternative risk transfer provider that stops short of having to become an insurance company.

Overall, on track.

@Ala Dadan - DNprotect.com needs a landing page.