Like many business ventures, domain investing is an activity designed to challenge the skills of one.
While there are many universal principles guiding the methods of investing in domain names, a lot of personal input is driven by the investor's own preferences, likes and dislikes, and overall intuitiveness. These personal choices indicate that, for the most part, domain investing is a solo game.
But it doesn't have to be.
As with every challenge in life, one's own brain power runs out and steam can be "leaking" out when trying to address domain investment issues. Seeing the challenge through another person's eyes can help solve the issue quickly and with a higher rate of success. Two minds are better than one, they say.
Joining forces with another domain investor, whether it's done part time or full time, can be beneficial for everyone involved, as long as there are rules in place set from the very beginning.
On paper, it's a great idea to share brain power, time and resources with someone, but there are dangers lurking. As opposed to a solo game, one party's actions affects all other parties involved. Decision making can reap huge benefits but it can also lead to disastrous outcomes.
Always team up with someone that complements your skill-set, while being your equal at the other skills. Joint ventures aren't educational courses for one's training, they are meant to leverage the resources of two or more individuals in order to seek and produce successful outcomes.
The biggest obstacle is trust and like any other union, you have to fully trust the other person and provide the same in return. Regardless, keep records of anything that's been discussed and decided upon, to ensure transparency, honesty, and efficiency. As they say, trust but verify.
The number of practical issues that might arise can be overwhelming at first.
For example: Should a party invest in acquiring new assets on behalf of the team without explicit agreement, or such an agreement is needed every time money is involved? Should there be a common pool of funds to tackle such investments?
What are the legal ramifications of domain management in registrar accounts that might get compromised? And is the cost of handling legal threats, such as a UDRP, to be treated as a joint loss?
These are questions that need to be pondered and decided upon well in advance. Prior to hitting these unexpected walls, and even before success milestones are reached, the respective losses and earnings must be identified and so should be the method of financing or managing them.
It's easy to wake up every morning and go about your day with your solo cup of tea. Your decisions are yours, your losses are yours.
When involving another person as a partner, or a team even, a business agreement is necessary. That approach indicates that forming a corporation or multi-member LLC would be necessary. And when the partnership is done remotely or from different countries even, one has to question their ability to communicate well and perform equally well in a partnership, as they would for themselves.
At the end of the day, whether you keep domain investing as a solo game or you take the partnership approach, a testing period should show you what the future holds. Don't overly invest at the beginning, and gauge the other party's intentions and commitment to the domain game. Whatever you decide, Uniregistry is on your side!