Is the world ready for the Web’s first Domain Stock Exchange?
Using the concept of the traditional stock exchange, Fusu (in public beta) is giving the domain name industry a platform to buy, sell and invest in a domain name’s success.
Owners of premier domain names get an additional vehicle to monetize their Website, without having to turn over any editorial control or sell the name.
When someone “invests” in a dot com, they will receive a fraction of the sales revenue when that domain name is sold. You’re probably thinking, ‘what happens if the domain name stays put?” Good question. We’re guessing you’re screwed.
Just like the traditional stock exchange, Fusu is the clearing house, providing a platform for owners, shareholders and investors. Also, like the real stock market, these are high-risk investments.
Among the domains currently accepting investors are: Warning.com, Recycle.it, Ground.com, TopHotels.com, and Hot.tv.
Just like an IPO, domains go through a process known as the Fusu Initial Domain Offering (IDO) Auction. This will determine market interest and preliminary valuation.
Fusu isn’t shy about their desire to grow. “Our goal is to reach a market volume of over $10 million by the end of the year,” says Fusu founder, Tobias Ratschiller.
Domain owners can list up to 45% of their domain name on the public market. Domains are kept at Fusu Certified Registrars, meaning that Fusu must approve any owner change or transfer. This means that sellers can’t circumvent investors and sell behind their backs.
Investors pay a 1% transaction fee (maximum of $50) whenever they sell or buy shares.
Proceed with caution. I’ve never had any luck with real stocks, so I’ll be sitting on the sidelines for this one.