Domain name investors group

[Randall]

Hello,

I think this already exists everywhere as we all do business sometimes in partnerships and sometime with help of other people.

I was thinking that should we make a small group of some trusted members and then accumulate some funds and get some domain names.

We can discuss what should be done for it. Should it be parked? If yes then we already have some parking people here who are good at parking and monetization. Maybe they can give us a tip or two. If it is to be developed then we also have programmers who can develop fast and flexible scripts. If marketing is the issue then we also have SEO's and link builders and bloggers.

What are your ideas. We can start with small amount and then make money as we go on and invest it back again in the central pool of the money.

I know that people are capable of investing on their own but was just thinking that if more then one brain is at use we all could benefit from it. Mutual understanding, co-operation and combined efforts along with people who have good ethics can surely make a difference.

If there are some issues in this or you can predict some problems then also please don't hesitate to mention them. We need to discuss it out and then take a step. My tiny brain says it would be a good idea. But don't know it if is missing some really good and valid points that it could be a disaster.

 

[RCRiver]

This could be interesting, count me in.

The only problem I can see is that it might be very hard to keep the balance fair.

e.g. if I put in some money to buy a domain, but then someone else spends a week developing it, how do we adjust their stakeholding?
Also there may be different worth to peoples time. e.g. I am a programmer working in London, in terms of pound sterling currency, my time is worth quite a lot.

I think managing the balance of shares may be very hard.

 

[Randall]

About the developing part you can leave it on me if you want.

I have the world's most cheapest rates going here. But it again will be measured in terms of money.

Lets take an example:

Out of our group of 5 people lets say we invested $100 each.
We will also take the paypal fees into consideration so that the person who is handling the money doesn't have to pay the rest of the amount from his own pocket. At first it would not seem a big issue but in one year the paypal fees alone can pile upto 2k or more.

Okay now we have the money at one place. We want to invest in the domain name first. So we all do our research and look for the investment options. Like purchasing an existing domain name from someone, getting it from the aftermarket, sometime even registering it (Don't know if this would come but it can be)

As per the domain name we can discuss the things what we want to do with it. Sometimes even just reselling it can get us the profits. Here also the transaction fees will be calculated and then we can take on a deal.

If the development is required for it. Then we can discuss what and how to develop it. If someone from us can get it done in specified time and with specified money then he will get the money from the funds as if he is just a person acting as our programmer. (He can be of the group or out of the group) We will focus on the quality and cheaper rates. As the goal here is to get back the investments with more profits.

Lets say it is developed within 10 days. Server rented. SEO and marketing we can take that also as we did with programming.

We can continue to have the revenue from it and share it as per the investment of money. Time investment would create more problems. It doesn't requires anyone to put their time in it. Everything we can measure financially. If someone has invested 100 and other two have invested 50 each. Then it will be 50 - 25 - 25

Now the work and everything will have to be done with that $200 which is in the group funds.

It can be done by the one of 3 persons or it can be done by some other person. It must be finished within that $200. As $200 was the total investment for that particular project.

After that lets assume it gets sold for $400. Then according to 50 - 25 - 25 percentage. We can give $200 - $100 - $100 back. (Back here means in the funds, on their name) So we don't have to pay transaction fees each time.

If someone wants to leave the group then he can leave it with his funds whenever he thinks but with the money that is on his name in the funds. Not with the money that is invested in the projects that are undergoing at that time. Those funds will also be released as soon as the project finishes and the deal is finalized. Plus when someone is leaving he cannot urge other investors to sell it fast. Because other investors might want to get the maximum benefit from that project.

Overall. We will try and understand each others situations and act accordingly.

When the money in the funds grows a bit the payout will be sent so that the investors gets the returns of the money. We won't just keep on spending everything that we earn. I think we will get to know about it as the things progresses. With too much on the plate it will be more tougher and at that time we might be making wrong decisions and wasting the finance as we would not be able to keep up with the things.

 

[RCRiver]

Very thoroughly thought out, I'm certainly impressed.

I would definitely like to participate, ( if you'll accept me! )

 

[getaddicted]

Hey admin its a good idea.. There are really many things we need to consider but if worked out with plan then we can make what ur saying

Count me in.. but As you know Im 99.9% in Domain Parking And 0.01% in Developing hehehe...

 

[Randall]

Yes that is what this will give us. A chance to share our knowledge along with the profits. You will also get some insight about the developing and we can get some of the parking as well.

The things can go wrong. But it still depends on the members of our group. Other things that are not controllable would have to be watched.

The main problem is the understanding between group members. What I am planning is to take it on fast track in the beginning and pay returns to our members the amount they have invested. After that we can use the remaining money which was our profit and which is alloted to the members but is still in the group funds for further investments. So this will minimize the risks.

The worst scenario that can happen is we would be in loss. Lets say 20% loss or 40% loss.

By that time the capital would already have been taken out and yes we can think that we lost some profits. But it was some profits not our capital.


The above purple thing I am not even thinking will happen. As we are not that much new and we all can take care of the projects.

 

[nielsencl]

I'm interested, but I had something a little different in mind than just an investment group as you are describing. There are a number of people that gould greatly benefit by a small amount of income that can be gained by having a site that makes some money.

I would be interested in a system that not only invested in domains/sites, but also people. Some visitors seem to have problems just getting enough money to buy a .info domain when it's on sale. I assume they are not just extra cheap, but truely do not have much in the way of resources. I would like to see a system that helps honest people much the way that microloans do.

We could buy domains, plan and construct sites, and set up new site owners with a "rent to own" plan. If the site owner learns what to do from us "experts" and works hard, then they will earn some money and over time pay back the "loan" with some interest of course. The investment group would own the domain and have an agreement to transfer it to the renter at some point.

A renter could even apply for us to buy or program a script for them that would have to be paid back. If the person has the right background then they may be worth more of an investment. But if they have a good idea for a site and not just another game site, then we would become something more like a business "incubator" that helps small business owners get started. Like those that provide venture capital, I guess, except that we would want to have some control over our investment in the beginning.

This may be too complex and full of problems for us to do, but I like the idea of not just lining my own pockets, but helping others as well. And if you are greedy you should quickly see that a system like this could grow to be VERY large, since your pool of possible "investors" would be great.

 

[Randall]

I agree. That people should also get money and should be a part of our profits in someway or the other.

First of all I thought that if this gets started we will have more jobs and work for people who are willing to work. Most of the investors will not be working on their own sites.

Your plan also looks nice. I am just new to this microloan format I read the wiki article but still have some questions.

We purchase the domain - We develop the site - We set an admin or lets say some caretaker person for it - He works hard and we can make revenue and also give him the revenue share from it.

Complicated part for me is how and when we will hand over the site to the guy. Lets say someone didn't worked hard enough and then we replaced him. He will get hurt and problems might start. I am not so literate in legal matters so if someone from the group can take the responsibility to research this dimension then it will be very nice plan.

 

[nielsencl]

You just make the terms of the agreement as simple as you can and very clear.

"Renter will work to promote and improve the web site and keep 60% of the revenue. When the amount of $xxx has been earned by the investors, the renter will earn 90% of the revenue. Then after 6 months the domain ownership will be transfered into the renter's name."

Something like this. You can also say they have to link to an investor site if you want to.

The main thing would be to figure out what all the "risks" are. If they use spam or do other things, the domain could be taken away or the hosting account closed. But beyond that I don't think there is too much risk finantially because you own the domain and web site. And the web site could be encoded in a way to only allow it to run on the one domain, so they would not be able to easily take it somewhere else.

 

[Randall]

Nicely explained nielsencl, Looks really nice idea.

Website encoding will do the trick. Another way would be that we can only give administration access. Not any cpanel access.

If it is dynamic website we can get the backups sent to us in emails and that emails can just sit in the inbox. Maybe we will never have to use them. But just in case.

If the domain name is taken away then it will be a loss but it will still depend on the money we spend on getting the domain names. If some premium domain goes off then it will be a bigger loss. I think we will solve it out. We can look at the background of them and assign the work according to their history and their expertise.

Lets think on this. I will also be thinking on it tonight. Soon we can take the discussions in private room and decide the initial deposits and roll it on in no time.

My first concern is always going to be to reward the investor group the amount they have invested in the group funds. After that I will have some peace of mind. :grin:

 

[getaddicted]

hello guys,

Yes the Idea what admin is trying is really coool. But implementing it and then getting into work is main thing.. Now here we all are expert in some or the other things.. What i would like to suggest is this..

Now say suppose We collected say $500 as our investments.. now everyone should be expert in some or the other thing to get the money growing.. Say im good at domain parking and given $100 to be i would get domains and get them going into parking.. In 2 months i could get the investment back and then 10 months of earning.. this is just an example...

Admin and nielsen are good in sites and developing. so you get some money and try to get profits.. We would be like a small company kinda and every1 or the other doing there part and getting out the money.. Some one would be good in affiliate things.. So they could get the funds for it and get the affiliate thing going.. In few months we have the idea about who is doing well and who is now.. So we can work it out with the things.. And if we see we arent getting any returns from 1 side we could stop and could get the other money going in some other developing..

We should be like a company where we all work and get our investment grow. And i purely suggest That once we start.. we all should be expert in some or the other thing initally.. People who have the power to grow money should only join before. So that it helps us to grow things.. As soon as we get going then possible we could get other peoples in who are kinda new bie.. Coz first thing we need to get the base developed.. once we are sure about things we can do lods of things.. but as we start.. the person should have good knowledge in 1 or the other things..

 

[Randall]

Exactly. We just don't want money investing persons. There are lots of them who can invest and make profits but then all the work load will come on others. We surely require the experts in some thing or the other. The people who can contribute the ideas and are wise enough on making decisions.

Other then that we cannot take a person in group just for his investment of $100. That anyone can do it on his own by investing more money instead of getting one more investor involved in this. Talented investors would be a great choice. :grin:

This is like a journey but we won't have to carry someone on our back thinking that he is newbie and cannot do this or that. I know that everyone is capable of generating more business on his own. So a group of this kind of people would surely bring great results.

Implementing part is hard. But lets rehearse it.

Group formation process.
- 5 investors - $50 each = $250 funds.
- We decide on domain names, look out for good ones, get one for the group.
- Thinking and pondering time again for the development or parking or reselling it.
- If parking then discussing things that should be taken into consideration for it.
- If developing then features list, development process, server, monetization and then marketing (Can use the microloan idea nielsencl suggested)
- Reselling. We can discuss the profit and if it looks good then sell it and make the profit and move on to next one.

Group funds will have the amount and we can see what else needs to be done now.

 

[nielsencl]

Perhaps we should take this off-line at this point? I am getting some strategy ideas that are best discussed behind closed doors I think.

It seems like there is a lot of serious interest, so I think a "members only" topic may be in order?

 

[getaddicted]

yes nielsel is right...

Please Admin make a topic where only people who we think are capable can only talk and see the topic . if we are serious then lets do it invisblebly just need to be way from red glasses lol......

 

[Randall]

Got it. Lets just hang this here so others who are interested to join can see it.

Lets start the thread in private area. :grin:

Thanks.

 

[jignesh]

Hi,
sorry for late reply, i found it from discussion portion. i go through whole post and found it really interesting.
i m very confident with SEO things and as far as programming concern i m beginner and it will take some time to get expertise in programming.
But i can handle SEO ( every thing like onsite and offsite optimization)

i hope admin and other member will allow me to take part in this great idea.

thanks

 

[Randall]

Hello Jignesh yes you are most welcomed.

You have the access to the private section. We are happy that you as an SEO would also join us in it.

Thanks.