Friday, November 21, 2008

Would Selling A Fraction Of A Domain To A Great Marketer Interest You?

It could be a great WIN-WIN... Your undeveloped or underdeveloped domain(s) matched with the development, monetization, and marketing skills of a great marketer... If you sold fractional interests -- even majority interests -- in one or more of your domains to a great developer/marketer(s) in exchange for some upfront cash, some continued equity, and ongoing income based upon the success of the sites, would it be better for you than having the domains remain as they are or than selling the domain outright?

Or, if you are a proven site developer/marketer who has a successful track record of monetizing sites, would it be worth it to you to acquire fractional interests in some great domain names (and having to share the fruits of your efforts with the seller) versus perhaps having no chance to acquire -- and benefit from -- the names at all?

As domainers talk about reducing the size of their domain portfolios, opportunities to arrange WIN-WIN fractional deals could emerge -- especially if either the seller or the potential buyer suggests such a scenario. For sellers, accepting less cash upfront could ultimately lead to more cash down the road than would have been possible otherwise. For buyers, spending less upfront for acquisition of single domains or domain groups could enable them to leverage their budget and skills over more Internet properties, leading to economies of scale and greater opportunities to bring in new revenues.

No matter whether you are a seller or a buyer of domain names, Fractional Domaining is something you may find is worth considering.

9 Comments:

At November 21, 2008 at 3:25 PM , Anonymous Anonymous said...

Funny as just last night I get a proposal like this:
- We create an LLC with you where you put your popular city domain.
- We develop and market your site (need 6 months).
- We split 50/50 the benefices.

I get this proposal by a person having a successfull city site for this same country.

I declined the offer as he did not wanted to tell me how much he was doing with his own site to have an idea of how much I could make.

Francois

 
At November 21, 2008 at 5:17 PM , Blogger Unknown said...

this sounds great if you can find someone to use the names i have selectwidgets.com gossipmerchant.com
ihollywoodrestaurants.com does anyone want to develop any of these names please,

 
At November 22, 2008 at 7:23 AM , Anonymous Anonymous said...

You could also rent a out a subdomain of your main domain to gain extra money, like at domainsforlet.com.

 
At November 22, 2008 at 8:13 AM , Blogger HavanaJournal.com said...

I have given serious thought to this concept following the cowboys.com deal but I have not been able to overcome the details in the contract that would bind all parties.

What happens when someone wants to sell out? Who makes the development and revenue decisions?

You would have to start an LLC for each domain so there are start up costs before doing anything.

I would love to hear more and see a contract.

 
At November 22, 2008 at 8:44 AM , Anonymous Anonymous said...

My slant on this would be Condomains.com - the condo conversion of internet real estate - domains. 5 leading businesses in a given market (RE, AUTOS, FOOD, HOTELS, NEWS) buy and develop a domain, each owns their unit representing 20% interest, ea gets 20% of the marketing space on the home page. They allow other ads throughout the site which pays for the whole thing, perhaps makes a profit since these leading local companies create a dominant local portal. Each pays condo fees. And each can sell their "unit" for a profit should they leave the market. Another twist would be for a company to "buy" specific add units (condomains) on select sites. Now you have fixed long term cost and have 100% control of the ad units you want to be on. Imagine the classified ad network one could put together by securing the right collection of ad units. Accounting for the subdomains, a Boston dor com could sell Boston.com/RealEstate to Century21, this version is called CondoNames.com.

 
At November 22, 2008 at 8:48 AM , Anonymous Anonymous said...

You could also rent a out a subdomain of your main domain to gain extra money, like at domainsforlet.com.

November 22, 2008 7:23 AM


Depending on what the name is this is not a bad idea for a "lower end user"

As far as fractional domain programs I have been spinning this idea in my head for several years now. It is a good solution, Some good geo sites have been made like this. This idea is a "PLUS+" if you know your coding with lots of domainers that don't code work their own sites. Maybe soon we will see new categories on eLance or other freelance sites with equity split and deals made.

-Brian

 
At November 23, 2008 at 12:42 AM , Blogger Unknown said...

I own the below "Fractioned/Fractionalized" domains, but none of them concern domains, although maybe the 11th one in the list might "stretch" into domains, too?:-(:

FRACTIONALHOLDINGS.COM
FRACTIONALHOMEBARGAINS.COM
FRACTIONALHOMEBUYS.COM
FRACTIONALHOMEMORTGAGES.COM
FRACTIONALHOMEOWNING.COM
FRACTIONALPROPERTYHOLDINGS.COM
FRACTIONALPROPERTYINVESTMENTS.COM
FRACTIONALPROPERTYOWNING.COM
FRACTIONALREALESTATEBUYS.COM
FRACTIONALREALESTATEDEALS.COM
FRACTIONEDINVESTMENTS.COM
FRACTIONEDOWNERSHIP.COM
FRACTIONEDPROPERTIES.COM
FRACTIONEDREALESTATE.COM

Dave C
davec@san.rr.com

 
At January 3, 2009 at 12:05 AM , Anonymous Anonymous said...

Regarding the formation of LLCs to handle this... I'm not an attorney (was a former financial/investment advisor), but I would check into Delaware LLCs. They have the ability to use one "master" LLC and then spawn any number of "child" LLCs within the structure for very little additional cost.

I read about it a bit with this concept in mind and it sounds like the only way to go if you're handling very many domains. Each child LLC can have different ownership, share amounts and even management structure.

It sounds amazing to me. Do a Google and you will find a firm that has a set price and they knock these out all day long.

Ed
ed@edkilby.com

 
At January 5, 2009 at 3:10 AM , Anonymous Anonymous said...

I would really be interested in selling my domains / fraction of my domains to marketers... do let me know if anybody is interested in following domains for development and spliting on 50/50 basis..

hrwebsite.net
lawyerforhelp.com
tunebudget.com
tradeandgrow.com
myfinancialwoos.com

Regards

 

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