I am copping some heat on another thread regarding my use of syndicates to buy and sell domain names!

Putting that particular issue to one side on this thread, let me tell you that IMO, syndication is one of the greatest unused and misunderstood tools available to the domain industry.

There are so many facets to syndication - and so many benefits to a lot of parties. (Domainers, end-user buyers, sellers, investors and newbies wanting to get their toe in the market).

Here is just one example. It allows like minded people to combine resources to buy (and ultimately sell) domain names that you wouldn't normally be able to buy. One recent example is Townsville.com.au - I put a 3 person syndicate together to try and buy this domain. Quite simply, we wouldn't have been able to buy it on our own. But alas, in that instance, we weren't successful - but we could have been. Some may say we should have been!

I have created a blueprint for successful syndications, and I am happy to share my knowledge with like minded people. This covers how to set syndicates up, legal structures, management etc.

Please PM me if you want further info.

Cheers, Ned

Ned
Thanks for the info


Syndication is the Heart and Soul of a lot of investments.

Most racehorses are owned by syndicates.
Most Maxi Yachts are owned by Syndicates.
Just to name two well known Syndicated investments.

With Premium domains approaching the value of Maxi Yachts and RaceHorses, it makes sense for domains to be owned by syndicates or companies.

After all owning 10% of ReallyGreatname.com.au is better than owning 100% of AllYouCanAfford.com.au

__________________
Managing Million Dollar Sites since 2004

who said syndicates are wrong ? the other thread is about disclosure, i suggest

__________________
Dieters.Tv + Speculate.Tv | Blonde |World News
Business Show | 3DTV |888tvcn
Electric Guitars | Acoustic Guitars|Video Real Estate
A world of .........video sites

Nobody is stating that there is a problem with syndicates. As spacey says, the comments about Ned in the other thread are about him working for the seller but not disclsing his interests in the purchaser. It really is nothing to do with syndicates. If he owns 1% or 100% of Domain Syndicates P/L, there is a clear conflict of interest.

However as this thread is about syndicates, I would suggest that the normal way to set up a domain purchasing syndicate would be as follows:

1) Each member commits $X into the venture
2) A new company is created with shareholdings split as per the contributions
3) Domains are purchased in the company name

Simple.

PS anyone interested??

__________________
CocktailRecipes.com.au ★ Photographers.com.au ★ DebitCard.com.au ★ Hockey.com.au ★ Boxing.com.au ★ DomainName.com.au

Domain name syndicates have worked quite well overseas. The major issue is the $$$ to entry - just last year I was speaking to some guys from Europe about their model. Their entry fee was US$1m and they were not accepting new members.

Happy to go 99% / 1% with you David. ;-)

__________________

**

Race Horse Sydicates are regulated by the State racing aurthorities .. and ASIC .. you cannot just form a a race horse syndicate with out meeting the criteria set out by the governing bodies, to form a Syndicate is a complicated legal procedure that requires due diligence by all parties concerned ...

Partnerships are a slightly different matter but still require regulation and legal stucture .. 10 entities used to be the maximum number of enties/people to form a partnership (this may have changed in recent times, dunno) anything over 10 becomes a syndicate and that is expensive to stucture ...

Advertising regulations also enter into the above .. you need a prospectus (legal) to advertise a syndicate ...

There was a question posed about Real Estate Agents buying a listed property themselves or selling to vested interests within their family and or family companies/associates .. this is illegal .. within certain limitations .. they can lose their licence and also face very heavy penalties for such actions ...

If you delve into syndication or partnerships tread carefully and obtain the best legal advice ... this applies in Australia, the rest of the World i have no knowledge of .. an example of a syndicated domain is Cowboys.com ..

Yes I do know there are rules and regulations governing corporate structures including partnerships & syndicates.

As for real estate agents doing what is technically illegal, they would never do that

__________________
Managing Million Dollar Sites since 2004