Getting A Handle On The Idea Of Fractional Domain Ownership…

The concept of Fractional Domain Ownership caught my attention big time recently when Domain Hall of Famer Sahar Sarid of Recall Media Group termed it as an emerging “new industry” in a posting on his blog.

Sahar was referencing the purchase of the Cowboys.com domain name at the Moniker/T.R.A.F.F.I.C. East Auction in Miami in October by a group of investors (including himself) who pooled their resources for the $370,000 winning bid. He wrote that because of the publicity surrounding the purchase, he believes the event will be the cornerstone of this new Fractional Domain Ownership industry.

I agree. The idea that investors can own a fraction (percentage) of a domain name or names is exciting for both domain buyers and sellers. For buyers, it makes purchases of premium domain names potentially affordable and could lead to alliances where synergies enable the members of the ownership group to each benefit by much more than the sum of its parts. For sellers, it offers possibility for realizing higher value for their domain(s).

Under a Fractional Domain Ownership scenario, a domain investor can perhaps decide to purchase a small fraction of many premium domains rather than 100 percent of fewer domains, thus spreading his or her risk/reward potential while associating with other co-owners who each bring their own knowledge, experience, skills, and resources to the venture(s).

When someone who has been as successful in the domain industry as Sahar has been publicly identifies what he sees as a growth area – and backs up his claim through his participation as a Cowboys.com participating investor – I think what he suggests is worthy of thoughtful consideration.

Because the concept of Fractional Domain Ownership is so relatively new, though, it can be difficult to fully grasp both what it is and what it can be. Early movers are likely to be learning as they go. Trust in co-owners would seem to be of paramount importance. Sahar wrote that the Cowboys.com purchase came together very quickly on the strength of the credibility of former Bulkregister GM and current DomainsForMedia.com Founder Eric Rice, who organized the group. The ownership entity, Cowboys.com Group LLC, will doubtless face many questions among the fractional owners as they move forward logistically to plot a course of action and to determine how their group will function in the weeks and months ahead. Likewise, the domain industry will have many important questions to ask and resolve as Fractional Domain Ownership gains traction.

As any regular reader of Sahar Sarid’s blog will attest, he freely offers great insights into many topics pertaining to the world of domaining. His initial posting about Fractional Domain Ownership was an important introduction to a potentially huge growth area, and it attracted a number of positive and enthusiastic comments from readers. But like other valuable postings in an active blog, it quickly gets obscured despite its value. That’s a shame because the topic deserves much more attention.

I have launched this Fractional Domaining Blog as part of an effort to provide regular focal points and resources to help the domaining community to get a handle on – and to aid participation in – the many components of Fractional Domain Ownership. As stated in the sub-title, this blog is intended to be “A Look At The World Of Buying, Selling, Owning, Developing, & Monetizing Fractional Domains”. I will be announcing the launch of other web sites about fractional domaining to complement this blog in the near future. If the concept and/or practice of fractional domaining is of interest to you, please don’t be a stranger! Bookmark this site and/or subscribe. I invite your comments and regular involvement. Let’s learn and prosper together!