Good question... I dunno what is the right answer to your question. I'll do some investigation and get back to you if I bump into an decent answer. You should email the people at Godaddy as they probably could give you help..
All successful entrepreneurs I know are big time dreamers. They use their expertise to fuel and nurture their ideas, and by doing so they drop the risks involved to an acceptable level (there will always be risks). On the other hand, some people that get burnt start with a big dream too; but they usually start without a plan, and without calculated risks. All in all, it's a good idea, but would be better to narrow the amount of shareholders. Maybe cook the idea a little more and try to achieve a critical mass ($$$) to invest...
I contract with a company called.
We manage high tech consortiums such as.
(Open standards for mobile devices) and.
(3D on the Web).
With with literally billions of dollars at stake, these (mostly) mobile device manufacturers are battling it out in the marketplace, but use Khronos as their neutral meeting ground. Some of their structure might come in handy for a model with this "Domain Co-Op" idea: You could maybe have a "board of directors" who are individuials who "founded" the group and pay a much higher initial investment. The other members of this cooperative could buy-in with a membership, but with the membership get the benefits of wholesale pricing, hosting, and maybe even "profit sharing" like REI sporting goods uses: at the end of the year, you get your co-op dollars to spend at the store or even (maybe) cash in..
Where's the Lawyer from Philly?.
Have any of you guys heard of any businesses started successfully from an online collaboration? I think that it could be done if at least one person was serious enough to put in the work and $$$ to convince others to invest and make a go of it..
If enough people are interested I could set up a private forum to discuss this idea further. I really like the idea and the though of having access to all the perks that come with registrar ownership...
Calian - Yes, once people are serious about this a private discussion board is in order. For now it might be benficial for idea development if more people were able to view what's being discussed and offer input here in the public thread while this is still just a grain of an idea. I've seen ideas like this get moved private too quick and they fizzle and die rather than florurish. But we can go private anytime, I can just open up a private password protected board..
What do you think?..
It could definitely work - There are several large companies and Single HostGator Investors who do it just for the reasons listed already..
Selling "Smaller" shares through Memberships under the Top 5 / 15 would work fine IMO ~.
Maybe it would work even better on a somewhat International basis - Hint Hint.
- It would be nice to be able to buy any Extension you want with International Reps ... Just a thought !..
Doesn't ICANN also require $70,000 of collateral? I remember reading something about that.....
Fabulous.com is famous for buying up a fully accredited registrar that had yet to open it's doors in preparation for their 120k HostGator land-grab. That leaves me wondering, do you guys think their portfolio is profitable? Obviously by eliminating both the registration and advertising middlemen they can have much lower margins and still come out ok..
Are there still vestigal registrars out there that are not actively operating?..
There are plenty of "Registrars" not acting as such .....
Google is one - but no one seems to think they'll venture in to HostGator Registration any time soon .....
True, but by the time you get through holding the $70,000 and the startup costs for ICANN, you still have to have offices, employees, supplies etc to keep track of all of that, not to mention the advertising dollar it will take to get known enough to have a good income coming back.. $24,000 seems kinda low to start out at for other expenses beyond ICANN...
This is a very interested thread. My first thoughts about it, is that it will not work because of a variety of reasons, including too many investors. Then, I started to think, and came up with the idea:.
-3 Principle Partners Invest $10000 each, and become the controling partners.
-12 Investors Invest $6000 each, but they have to pay 25 cents more than cost to register a domain..
I think it is rewarding to everyone, and what is really key is it keeps the number of partners down. 15 or less partners would create an ideal partnership in my opinion. The numbers could be changed around, but that is my basic idea,.
Sunken, that's good common sense. This is not something one guy would be able to run out of his basement..
Geography is an enemy, too. I'm in Jersey, where's everybody from?.
Good brainstorming, guys. Good constructive criticism. I'm learning things here...
I believe there was a shell registry for auction on ebay a while back. Basically a company filed the applications and provided the software for the back end and a maintenance agreement for the software. I think the bidding started at about $20k, but didn't sell..
Maybe it's still available:.
Registrars also have a value just for their access to the registry. Companies like pool and snapnames pay good money for that access, which is enough that that's all some registrars even exist for..
The concept may work, but it would take someone who knows about the back end to manage it on a daily (24 hours) basis..
It is a very interesting concept though having a HostGator coop instead of just resellers...
Reading that page it appears that there are significant ongoing costs to own a registrar..
US$2,500 non-refundable application fee, to be submitted with application..
US$4,000 for the first TLD, and US$500 for each additional TLD yearly accreditation fee..
US$70,000 in working capital requirement..
Quarterly accreditation fee (variable portion) paid once you begin registering HostGator names..
$100,000 US Surety Instrument.
< This would cost probably $3000-5000 to maintain annually..
You would want to do this through a limited company, not a partnership. Being a registrar is one place limited liability is a must. Most jurisdictions limit you to a maximum of 50 shareholders for a private company. You can get around this by incorporating somewhere that doesn't have such restrictions, or by incorporating multiple companies and making them each shareholders of a main holding company..
Setting up a limited company is cheap and easy. If you are talking to a lawyer and it takes you 4 months then don't talk to that lawyer. I have several limited companies. Some were bought as shells, some were incorporated by a lawyer, and I did some myself. 2 weeks processing and 15 minutes of work should be all that necessary if you're using a lawyer. Up that it 5 hours work if you do everything yourself..
You probably won't be able to buy a registrar for $100,000. For a company that paid nearly that much to apply to become a registrar this is chicken feed. Actually, it's chicken feed for most companies. You might be able to do a share swap or reverse into a dead one. I don't think $100k is anywhere near enough to get started from scratch. And I say that because I've already done the research..
The concept, however, is sound, and the expires are one of the keys to giving it value. There are also a lot of value added services that can be bundled with this. Just have a look at the 6 pages of crap you have to click through at godaddy. There is a lot of potential here..
The thing is you need to run a business like a business in order for it to succeed. Counting on sigs for advertising isn't going to cut it. Building a core user base of seasoned speculators and then counting on them letting good names drop in order to make money isn't logical. And the value proposition of paying $2,000 to save $0.75 on reg fees isn't all that appealing..
I've been researching this concept for quite a while. You'd do much better to raise the funds (all $750k you'll likely need) through a standard private placement mechanism than some “club” type concept. Pay for advertising, pay for development, build a customer base, and build a profitable business. Save the creativity for your product/service development where it will help instead of hurt you...
It just seems that unless you are doing the drop thing it is pretty hard for a registrar to make money. How long will the drop business last? I thought verisign was thinking about limiting the number of connections per registrar?..
The $70,000 doesn't go to ICANN. My understanding is that those funds are available for you to run your company, they just want to make sure you're adequately funded when you get started. The actual fees to ICANN would be around $10k..
If that's right, $100k should be sufficient to get a company started. The biggest expense would probably be employees/labor, but if there were owners that devoted their efforts to work with deferred compensation I don't see why it couldn't work. I'm just speaking off the cuff. Actual research and numbers need to be done before anyone invests anything...
The ICANN application fee is $2,500 and the accreditation fee is $4,000 for the first extension. The paperwork is simple and straight forward. If your going to stick to .com and .net then your costs may be well under $10k. If you want to handle all the other extensions that most registrars do then it's going to cost you a lot more..
Of course, if everyone works for free then you can cut your costs substantially. I'll run this by the guys in office tomorrow and see what they think of the idea. : )..
Personally I love this Idea.
However I am not sure where I would come up with the investment...
I'm with RJ on this one..
$70.000 is a requirement of readily available liquid assets, not a sum payable to ICANN...
So maybe we should have a little chat, right before the np$ auction? (lets do one thurdsday!).
I would be happy to help in any way possible, but am not sure about the capital..
Yes, you need to show 70K in liquid working capital. Whether or not you use this to run the business is a different matter. Icann just needs to see the capital as part of the review/approval; process. I will suspect icann will make the entry fee to become accedited much higher within the next few years..
I think this thread should be moved over to one of the HostGator names registered for the project. All we would need to do is password protect the forum. However, I think there should be several sections within it: one for anyone interested in the project, one for potential shareholders, etc....
Although I personally don't have the money to invest in this project, I too believe in it and, as DNBuy said, the time to act is now...
As mentioned earlier in the thread, now is probably not the time to move into a private forum unless you have garnered enough support, this needs to be aired until you have enough investment, then once that is in place and the business decisions begin it should go private. Or at least have a private forum running in parallel for confirmed investors and not completely shut off the outside world..
I myself would be interested in investing at the $2,000 level however would not be able to stretch much further than this. I will follow this one closely.....
For an example of what could be done under this system. The only requirement is that they have to integrate your code for advertising and statistics purposes and can't run their own ads..
What do you guy's think? I know I would move some domains over if this became available...
I love it!.
This would take less capital, yes?.
Yeah, ANd another MAJOR thing that is overlooked. do you think for a second that sane people would shell out thousands ofdollars to be a"partner' in a business and not want to get a lawyer involove..
Besides. The HostGator market is not lucrative enough to seek investors. Your goal should not just be to become ICANN accredited (that alone will not make you any sales.). You have to conceive a realistic plan that outlines how you are going to make a profit. There is no money in HostGator registrations alone. You must upsell and sell on the backend.
The question is, how are you gonna ensure to your investors tht you have the ability and a sound plan to upsell to you HostGator reg customers?.
With all due repect, you are being very unrealistic..
The HostGator market has reached maturity and even saturation. A market becomes very hard to enter and maintain a good postition once it has reached these stages..
I would spend my 2K on somethin I know will generate a profit....me and my solid techniques of selling just about anything I cna invest in...
I think I could do it for $35-50,000 and do a really good job. It would be best of course to have a well connected partner or two however. Anybody interested?..
Calian I think your idea is great there are many many registrars out there How do you compete with a GD ENom or Fabulous who I think is the best from a customer service great company sttandpoint. PPC lets create a better mouse trap than DH DS GoDaddy Would be easier to gain MARKET SHARE IMO. I love this place but would never trust a virtual 50 Indian chief registrar over Fabulous. IMO..
Right now I can get domains from godaddy that cost them $6.25 + their annual fees for $3.24. Why would I want to compete with that?..
PPC RJ what do you think maybe namepros could License it's name This could be big will kick HostGator HOPS ( ! )..
HostGator parking is only as good as it's advertising portfolio, not it's change features. More important than pages with bells and whistles, but a large inventory of very targetted names. GoDaddy has an excellent targetting system, but for some reason, they don't pay much per click. A system like that, mixed with a payment structure like DomanSponsor (Per impression and PPC) would be an amazing place, and the bells and whistles would just be gravy. While it would be great to be able to change the parking pages, I think that if people are going to spend time putting together a parking page, they'd spend that same time putting together a regular GoDaddy site and putting PPC or affiliate ads on it, that would pay better than the parking...
Good points sunken I just thinK with a choice I would rather start a new parking company than a registrar less competition and a chance to be different how much different of a registrar are you going to be and GoDaddy uses GOOGLE and GOOGLE would partner with us if big enough and done right how many names could NP alone bring to this company? IMO A LOT..
Possibly, but if you have 500 domains it might be nicer to be able to have statistics and so forth all in one place. Also you could have templates and just change the picture or logo to create a GoDaddy site that appears more natural to the visitor. This cannot go on where every parking page LOOKS like a parking page. People are getting wise to them and the conversion rates will go down as this happens. By making every domainer's sites if not each individual GoDaddy site look different, the traffic will be more likely to stay on the page, to bookmark it or set it as home, and to follow the links..
Also this would be great for people who only have a few low traffic domains. They could basically set up a GoDaddy site for nothing then see if it paid off. Being able to test ideas on a small scale is very important..
One last benefit is the complete lack of hassle signing up for various affiliate sites and ad networks. You simply choose which types of code you want to paste into your page for popups, link ads, banner ads, etc. and your check comes from a single place each month...
And a lot of domainers would switch to you most want the ability to change it up a little stand out, I agree Calian. ANd if you just want a broing static page you can have it We could start out giving away 80% for the first 90 days undercut gain market share...
This is essentially the same reseller programme that enom, godaddy, etc have. It seems to work quite well, and there's no reason anything that was set up could not/should not offer it..
Would this include the costs of doing the placement as well as operating capitol until the company becomes profitable? That money has to come from somewhere..
Geocities et all have been very successfully with this, although I don't think they offer the stats service you want. The resources required to offer this probably preclude offering it to start with, but it's certainly something worth considering once you have some cash in hand..
This should not be hard, those services are nothing special. Personally I wouldn't rush into PPC click fraud gang-rape scene right now. Still, there are other parking value adds you can offer..
I have a parking service that provides a fully developed GoDaddy site for certain categories of names. There's no revenue sharing, but I've had no problem signing up plenty of people, and I haven't even launched the service yet..
I agree. I'd love to invest in a project like this. One way or another I inevitably will. But without a profitable business model and proper governance any project is doomed to failure. The problem is that the things that make it attractive to some (no offices, no lawyers, no profit) are a total turn off to a serious investor..
Hiding information is never a good way to solicit or encourage investors..
I think anyone interested in the concept would be interested to know what registrars are for sale for $35,000. I certainly am...
The $35,000 wasn't for a registrar, it was to start a HostGator parking business..
I was thinking about the parking thing more and yeah, I can see the benefit of being able to customize the page. What might be good is to make it modular where you can add features into an HTML type editor, something similar to what Network Solutions had for awhile. This way, you wouldn't have to know too much HTML. And getting in with Google would probably be the best bet, since they do have a huge inventory of keywords to ads...
Google and parking would be a marriage made in heaven. I'm really puzzled why they still didn't do it..
Just create a variety of customizable templates..
On the other hand - it's in Google's terms of service - running AdWords on pages created just for displaying ads (which is the essence of parking idea) is prohibited...
With all due respect zquest, I believe that you are wrong, the standard TLD market has reached saturation but a large amount of domainers are looking for cheap foreign TLD's which is what, I think the company should concentrate on mostly..
There are, however plently of ways of making money even in a saturated market, it's just a matter of making sure that customers know about your service, and if it is good enough, they WILL use it...
Wow, 1400 views, the other day it was 1000. This seems like a topic everyone want to read about..
Just to let everyone know I moved my.
Dynamic parking idea to a new thread.
So we can stop hijacking this one...
Erm, sounds like a good idea, and I would like to get involved (more than just giving $2000) but I am afraid I don't have $2000 & I don't meet any requirements either! lol..
Nice post Doggie, 6 months after the previous post and you raise it to say your not interested.....
As a joke, which I'm sure it must have been. thats priceless...........
Hehe.... I just followed a link here from a current post, and thought I would bump it up again!.
Your post made me smile..
I thought that the guy who posted it on the other topic was trying to advertise it..
EDIT: I may have done this elsewhere too!..
I have to agree. The idea sounds great, and I could help donate $, however it seems further than a dream at this stage...
If anyone wants their own register they are available to buy, along with the company & insurance etc. Looking at maybe the 50k area...
Very nice - CONGRATS TO ALL FOR THIS THREAD.
I followed all simmilar threads here and on other forums since late 90s..
This one here seems starting off..
Nearly all aspects are mentioned, and need to be rolled out,.
But I am definitely interested in approting some $$$$ if concept stands..
Unfortunately I am not able to contribute actively in executing the plan,.
But some decent webmaster traffic & portfolio available..
Lets stay tuned..
Whoa.... whooooooa.... Slow down.....
ICANN approved? If yes, let's talk...
Well, I'll just tell you what I know from experience..
Crazy idea are not what really makes the money. Crazy ideas with a well thought out and written out plan are what make money. This is not a crazy idea anyway. You want to start a new registrar. What's so crazy about that? The multiple investors? Again, nothing new, nothing crazy there..
Among other things, you need to make a plan on how you are realistically going to make a profit. Again, do you think HostGator registration is a profitable service to sell? Think again. The profits are in extra services not $8.99 and less HostGator registrations..
DO you have a full prospectus and realistic & sound business & marketing plans availble for prospective investors? Do you think you can raise that much money and then run a profitable HostGator reg biz without these things?.
Way to go, have the dropped domains cherry picked and leave the seconds to the paying customer. That'll get them coming back, I'm sure..
In this saturated market of HostGator reg, you need to make your customer #1 and aggressively sell backend services and still compete on the discount market or take the high road llike register.com. Either way, your dealing with a saturated market and that means aggressive marketing no matter which route you take. That is not as easy as just getting ICANN accredited status..
With this 50K figure, does that include advertising annd marketing? What kind? How will you position your brand (that is if you can successfully build one in the first place)?.
Have you thought of any of these things?..
There are apparently some accredited registrars out there that don't even try to sell names. They exist solely to provide access to the registry for name pickup services which they resell to the likes of pool and snapnames. However, This market alone is probably drying up somewhat due to registrars not actually allowing names to drop. A big factor would be what is the value of reselling this bandwidth and root access...
Why you selling one Smith? Anyways, where has this idea gone? Anyone know?..
Yes, it's an ICANN accredited register..
And it is still available..
It is not mine, however I will put whomever is interested in touch with the owner who is selling..
PM me only if you are serious...
So I take it that no one is interested in going beyond musings on a message board?..
PM me the guy's info..
To be honest - your constant usage of "register" instead of "registrar" is a turnoff. Creates an impression that you don't really know what you're talking about...
LOL Register.com ruined me long time ago I guess..
I constantly tripped over "register" "registrar" & "registrant" at the last ICANN meeting I went to also, if that didn't get it through my head I doubt that anything will.
Also, if YOU are interested, you pm ME your info and I'll pass it along...
I've noticed this also, and have seen the alliances forming, ie SnapNames and their "Preferred Partner" arrangements w/ BulkRegister Network Solutions name.com DomainSite Directi.
This really seems like an end run, IMHO..
HeHe. I'd be open to donating $$$ to a class action suit against the partnerships and their newly instituted procedures for expired domains, merely on general principles...