Ok, I've got a domain name that I want, and have a great idea how to develop it, and I know it would take a while to get off the ground, but am confident the value of the domain would continue to rise, and the start-up would eventually turn profitable... Now... The domain has been reg'd for like 8 years, and the guy will sell it to me for under 10k (it's a very nice looking domain name)... I figure there are a few options... 1) use something like prosper.com to take out a loan, and pay it back over time (the domain will belong to me) 2) get a few buddies to chip in, each pay 1-2k (the domain belongs to the group) 3) hope that my online earnings go up soon, and he doesn't sell the domain to anyone else... then buy it myself (domain belongs to me) 4) a buddy suggested looking into incorporation, allowing investors to supply startup funds... (a business, owned by me, owns the domain) Any other ideas? Right now I'm thinking #2 is the best option... I'm hoping someone's been in a similar situation before and can shed some light... Thanks
You can ask your buddies but make sure you can prove it is worth the money. Number 4 is last resort in my mind.
Are you mad? You're looking to spend $10k on a domain for a site which you haven't even started and has no proof that it will make back the money? You know that noone really cares too much about domains, some of the best web companies could've chosen 100 different but similar ones for $7 at godaddy? Sure you may get a lot better SERPs with an 8 year old, keyworded domain, but $10,000? If you're confident enough the idea will work, then it should work with any domain really. You could always switch in the future if you do infact make the money you intend to. I just don't think taking out a loan to buy a $10k domain for a brand new site is a really good idea.
i totally agree with blitz, if you are not a 100% sure that you will get a return for the amount you invest i guess its not feasable to invest in a domain for that high of a price. Also its outrageous to take up a loan for it. i would prefer that you start something on some crappy domain and optimize it, if in the future your revenue increases and you think that you can afford 10k, then go ahead with it. Otherwise DONT
Umm... Yeah, what they said. 10K better get you a heavily trafficked and revenue-generating domain. No one here knows what your plans are, and they may be greater than we can possibly anticipate, but, remember, if it falls on its face, it's your capital that went into that name. If you have a great idea, then almost any name will do: zillow, flickr, botw... As long as it's short and memorable and useful, people will like it and you won't owe anybody anything. BTW, jettle and zench dot coms are available for a mere 5k via PM.
I agree, unless this domain is ultra-necessary for your idea can't you come up with a few different names yourself and invest your 10k into your website design, promotion, etc??
i would build a test version site get all the hard work done then think of the domain last. you don't want to end up with a 10k domain and the idea never took off.
Like everyone else, I would suggest that you just don't buy the domain. You can come up with a new domain name for less than 10 bucks. That's a bad idea, in my opinion: Investments From Friends And Family Thanks, Scott
I would never ask friends to fund a possible business that may never work. If you fail, it can end up bad. Also, if you haven't researched it yet, Incorporating a business is actually a sensible idea. you still are taxed the same as a partnership and you have your assets protected. Let's say you get a loan under your name or business name if you are a sole proprietor. Your idea never takes off and you are left owing the money and lets say you default for some reason. now the loan company is allowed to take YOUR possessions to pay back the loan. if you incorporate, and the same scenario happens, then the loan company cannot take your home or car, but they can only take what the business is worth. Think about it.