What If An Investor Funded You

[dnrabbit]

It is safe to assume that most people on the forum have limited capital and hence the risk appetite to buy high-value names is finite.

With so many startups getting funded these days, what if an investor came to you and proposed a funding of say $10 Million for investing in domains?

Would you do anything differently?

How would your buy/sell strategy change?

Do you think $10M is enough to make a difference?

Would your % Expected Return increase?

 

[d-e-x]

Just one is enough...

 

[dnrabbit]

$1 Million, you mean?

Assuming you had it, what would you do different than how you do business today?

 

[ZapNano]

Quit domaining business in a heart beat

 

[Haroon Basha]

You are right limited capital is a major constraint in taking short to long term positions. Flippers make a little profit whereas investors earn multiple incomes. If one can keep a domain 3 to 6 months time and have some patience, sure his money will be doubled.
If you want to test, give me one million dollar, and I will give you back two million dollars in one year time. Search for low price and sell at higher price, in other words, buy at Ebay or Godaddy auctions and sell at NameJet or Sedo auctions. Anyone can apply this strategy to double his capital in one year year time frame.

 

[Mahogany]

3-4 L coms only. Buy and sit on them a while....

 

[d-e-x]

$1 Million, you mean?

Assuming you had it, what would you do different than how you do business today?

Yes, one Million
Not to much. But I will keep that for myself, who knows, maybe I find some investor in the future

 

[ZapNano]

3-4 L coms only. Buy and sit on them a while....

What about 1-3N investment?
I noticed 1-4N is coming back; big demand & prices!

 

[Mahogany]

What about 1-3N investment?
I noticed 1-4N is coming back; big demand & prices!

Plenty of money to be made there. No denying that. However, businesses will always want acronyms .com domains.

Numerics 1-3L are safe and solid investments but have a lot of variables and factors. If the price was right Id invest but my primary focus would be 3l-4l Coms.

Of course this is all my humble opinion.

 

[Grego85]

I'd be buying up all of the premium GTLDs with huge renewal fees. Of course keeping to my normal standards of focusing mostly on sports and multimedia related domains. There are many .live, .network, and .watch names I've been salivating over that I could never afford.

 

[ZapNano]

Plenty of money to be made there. No denying that. However, businesses will always want acronyms .com domains.

Numerics 1-3L are safe and solid investments but have a lot of variables and factors. If the price was right Id invest but my primary focus would be 3l-4l Coms.

Of course this is all my humble opinion.

I seen that 2-3L dot com darn so pricy! As well as 2-3N!
But I also noticed from other short extension, they are racing like 100% miles per hour!

 

[ZapNano]

I'd be buying up all of the premium GTLDs with huge renewal fees. Of course keeping to my normal standards of focusing mostly on sports and multimedia related domains. There are many .live, .network, and .watch names I've been salivating over that I could never afford.

I heard you; I have invested few dn, more than reg renewal fees!! Dang!! Hope these babies pays off!

 

[cyc]

With this kind of funding, i prefer applying to ICANN for having multiple accredited domain name registrars.

Within minimum 100 sub-registrar, i would join the race in dropcatch business.

ROI seems much better if you think in long-term.

 

[dnrabbit]

Even $10M wouldn't be enough to buy too many LL / NN.

 

[dnrabbit]

With this kind of funding, i prefer applying to ICANN for having multiple accredited domain name registrars.

Within minimum 100 sub-registrar, i would join the race in dropcatch business.

ROI seems much better if you think in long-term.

Too much headache though. ICANN compliances are a pain.

 

[Asfas1000]

"What If An Investor Funded You ?"

They'd lose their shirt :P:P

 

[Grego85]

With this kind of funding, i prefer applying to ICANN for having multiple accredited domain name registrars.

Within minimum 100 sub-registrar, i would join the race in dropcatch business.

ROI seems much better if you think in long-term.

Great point!

 

[cyc]

Too much headache though. ICANN compliances are a pain.

Using this kind of funding is a bit much headache first of all in wherever you invest.

Better to find which can worth for more.

 

[campout]

Armed with a lot of money, you can lower your pricing per unit by doing big, bulk deals -- there is one definite advantage.

 

[slimjim270]

@dnrabbit -

I'd set up an LLC (or Inc) and hire 3 teams.

1) Acquisition - I'd hire 4-5 members from NamePros on a contract basis, set an acquisition strategy, and begin acquiring. I'd provide a bonus incentive based on Gross Profit (GP) when the names are sold

2) Sales - I'd hire a sales team of 8-10 members to handle inquiries form landing pages.

3) Development - I'd hire a team of 3-4 developers to develop landing pages, but also to initiate a build out strategy for a bunch of lead gen sites (later to be sold at a higher margin).

Everyone would receive quarterly bonuses based on GP (mutually aligning their interest with the corps interest).

-Jim