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legal Balance of payments issue from leading industry domainer/broker Kevin Leto

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DomainScoop.Com

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Right on. This is So True Kevin.

To the OP- If you want to be successfull business man, LEARN how to deal with issues, Nothing will be perfect as you want it to be. You have to be patient, the guy had already made you so many payments, so be patient.

You are so impatient, I can tell you now that it may ruin your relationship with many people. Relationships in business are very important, which you may not understand but will regret later. Try not to think that everything is perfect, things comes up, delays etc, but try to cope up with them maintain good relationship, that is what is going to count in the end and help you become good businessman other wise, you are in the wrong profession buddy!
 
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razorblade

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You really have no idea whats going on behind the scene. There are confirmed reports of others taking much bigger losses.

Relationships are important - you are right. So is integrity. Signing a contract used to mean something too.

So if this is 'business as usual' then you are right, i want no part of it.
 

razorblade

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I guess the editor of DNW also doesnt have a clue about the domaining industry. Thanx Acro for the link.....

Fixed Income Domains Were Too Good to Be True
Monday, March 14th, 2011

The old saying applies to domain names as well.
There’s an interesting thread developing at DNForum right now about “Fixed Income Domains” that were offered in the Big Ticket Domains email newsletter.
Big Ticket Domains is a domain brokerage with a frequent newsletter run by Kevin Leto. In December 2009 the newsletter started touting a new option — “Fixed Income Domains”.
The idea was that you would buy a domain name for a fixed price and then Kevin would then pay you that much income back over a certain period of time. Big Ticket Domains would develop a site on the domains and generate ad income for itself, then you could keep the site running with the ads afterward.
Curious, I plunked down $750 for GolfingVideos.net. Kevin was to pay me $50 a month for 15 months, totaling $750.
Now this domain name really isn’t worth much money. But I was curious to see what the hook was. From a business perspective it would be a 0% return plus a domain name after 15 months. For Kevin he would basically pocket the money he earned from advertising over those 15 months. It seemed a little suspicious, but I figured I’d see what it was all about.
But then alarm bells went off in February 2010 when Kevin started offering domains for $1,000 that would pay back $1,300 in 13 months.
That’s a 30% return in just over a year.
Then in August the newsletter offered a $1,500 domain that would pay $2,400 in just 12 months.
That’s 60% in one year.
0% a year is intriguing. But 30% or 60% in a year is a problem when the typical guaranteed investment is paying around 1%. Why would someone offer a 60% return? If they could actually make that much money with the domain in one year then they’d develop it themselves and keep the 60% profit.
It was then that I received an email from someone who noticed I’d bought one of the Fixed Income Domains. He said he hadn’t received all of his promised payments yet. Over time this person just passed it off as a bad call and moved on.
I talked to Kevin this afternoon and he says few people bought the fixed income domains. He says 10 people are owed money from the program.
When you see something that seems too good to be true, it probably is.
You’ve heard it a million times. And it’s true
 

KRL

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Domain Name Wire editor, Andrew Allemann appears to have had his own personal experience, which makes his post very informative.

Andrew made $550 so far on a $750 domain. I had a phone call with him today. He wanted to do an article in a business manner and explained it was not to attack me like is being done here.
 

Theo

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It's very clear from Andrew's article that his concerns run very deep.
 

KRL

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Right on. This is So True Kevin.

To the OP- If you want to be successfull business man, LEARN how to deal with issues, Nothing will be perfect as you want it to be. You have to be patient, the guy had already made you so many payments, so be patient.

You are so impatient, I can tell you now that it may ruin your relationship with many people. Relationships in business are very important, which you may not understand but will regret later. Try not to think that everything is perfect, things comes up, delays etc, but try to cope up with them maintain good relationship, that is what is going to count in the end and help you become good businessman other wise, you are in the wrong profession buddy!

Thank you SIKHboy. I just got back online after a couple hours sleep.

---------- Post added at 01:30 AM ---------- Previous post was at 01:23 AM ----------

You really have no idea whats going on behind the scene. There are confirmed reports of others taking much bigger losses.

Relationships are important - you are right. So is integrity. Signing a contract used to mean something too.

So if this is 'business as usual' then you are right, i want no part of it.

What's going on is you are defaming me. Why you won't get on the phone to discuss your gripes in a civil, amicable, and professional manner
is not understandable to me. I've talked to a lot of people on phone calls and I'm not going to post things being said about you since I don't want do you any harm
like you are continuing to do to me. I've got work to do.
 

nam6641

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KRL - answer the question... What did you tell people you were going to do to earn them their money back, and what did you attempt to do? You have contradicted yourself quite plainly in this thread, see post #100 for example of how you claimed to be making their money back. You even went as far to say "Whoa is me, the economy is in the sh1tter so not my fault". The economy was in the sh1tter in 2008, when exactly did you take these people's money? Pre or post 2008? This whole business model stinks and the KRL posts in here stink even worse when you add them up.
 

Theo

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I think the argument here goes as such: the OP wants the delayed payments and to end the exchange, Ken cites 'bad economy' as the culprit.
 

KRL

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This thread and talking on the phone and e-mails has consumed enough of my time today. I've got a ton of work to get back to.

I'll be back on here in a few hours. Kevin
 

razorblade

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What's going on is you are defaming me. Why you won't get on the phone to discuss your gripes in a civil, amicable, and professional manner
is not understandable to me.

What should we discuss? The weather? You have had my paypal details since day 1. Paying me my money that you owe me leaves no room for discussion.

As for the defaming, just want to tell you that i have been approached by a couple people to form a joint lawsuit against you to get our money back. And my exposure to you is more than just 2 months payment.

The money you owe my clients will be paid for by me till they get all their money back. Because i gave my word.
 

nam6641

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I think the argument here goes as such: the OP wants the delayed payments and to end the exchange, Ken cites 'bad economy' as the culprit.

Agreed, but to me the bigger issue is that Ken told customers that he would monetize their domain with ads in order to pay them back. Then in another post he admits pooling together the monies collected to attempt to buy and flip a premium domain and use those funds to pay back the people. He wanted to play ball with other people's money and when he didn't hit a homerun everyone is now stuck on the bench. It is shady and it stinks. Even if he repays everyone's money tomorrow, doesn't change the fact that he said one thing and did another... guy has ZERO cred.
 

razorblade

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I will give you the update on your payment schedule so call me or I will call you if you give me your new number.

please 'update' me by email or facebook. things have gone too far now for us to talk on the phone.
 

KRL

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James,

You made $5350 so far from the Fixed Income Domains program.

You got 4 domains which you paid $4,950 for.

So you are already in positive money not negative.

Your 2 clients have received $1800 so far in 8 months and got 2 domains
which they paid $3000 for. That's a FANTASTIC ROI!!!!!!!! And they will
still earn $1800 more on top of that.

So I am doing a good earn for you not a bad one. I told you very clearly
when all the dynamics of the concept were impacted by the changes in
the market values I needed to restructure and recapitalize the program
to complete all the 10 client's remaining payments and then after that
either re-evolve the platform with a more workable ROI adjusted to the
changed market valuations and do some component tweeks
or just complete the payouts and not continue doing the program.

That is what I am doing.

---------- Post added at 02:36 AM ---------- Previous post was at 02:33 AM ----------

And I didn't include the other $1750 you made from the domain sale I got us, which I agree is
a separate deal, but still money I got you.

I have no desire to do you wrong in any way so chill out on this attack and be smart and let me
get my work done so I can get everything completed for you.
 

Theo

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My head just spins from all this. I still can't understand the concept. In my opinion it's flawed as domains don't have an intrinsic value, unlike real estate. Liquidity can affect domain selling prices much more than what a real estate bubble would.
 

KRL

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I want to speak with you directly. I talked to Andrew today and we had a good call together. And I would like to have
a good call with you also. I'm not going to yell or scream at you for taking this public approach to our issue. That is not my style so don't worry about
that. I just do not like typing phone call length conversations out and printing business conversations, ideas, plans, on a public message board.
Plus my hands are sore from all this. LOL You have my number. It's nearing 3AM here and I'm rested and working away like always.

---------- Post added at 03:02 AM ---------- Previous post was at 02:40 AM ----------

My head just spins from all this. I still can't understand the concept. In my opinion it's flawed as domains don't have an intrinsic value, unlike real estate. Liquidity can affect domain selling prices much more than what a real estate bubble would.

Acro I hate like hell giving out so much of my ideas cause I know someone will end up copying them
but here's how the idea evolved.

Many of my brokering clients wanted to find a way to monetize their domains that would
produce more steady and predictable income than PPC does and enable more sales on their domains and
at better prices than the market was providing.

So I went to work trying to innovate a solution. I figured the best way to create a platform to enable
this was to look at real estate platforms and wall street platforms and see if anything could be adapted to
domain monetization platforms.

That's how the idea for taking the real estate Sale > Leaseback monetization platform and adapting it to domains
came in my creative thoughts.

In a sale leaseback deal a company sells a property asset and then leases it back. So the company has now
generated a capital inflow for their business and continues to use the office space in the building.

I then looked at modifying that for a domain monetization concept and figured why not sell a domain in the same
way, generate a capital inflow, then generate a greater long term capital ROI than the monthly cost of capital during
a set period of 1 or 2 years. This would create a way to enhance the values for domainers and provide a way for them to
sell more domains since with this type of fixed income flow the domains would have a more predictable monthly income vs.
the variable flow of PPC and the like.

Then you could achieve the greater ROI by either profitable domain sales during the year term, plus ad sales, and other
rev generators with strong ROI's.

From my side it would create a great network of domains to eventually broker for clients down the road as well as increase
the client base by providing a new way to make more money than PPC. And the risk
was relatively marginal since during the 1 year beta it was a limited amount of domains to work with.

The clients would end up getting each domain they bought at for free as it would be a zero cost acquistion by the end of the 1 year term.
And then as Andrew illustrated I tweeked the concept to add an extra period so they could have a profit also of at least 20%.

And that is the platform's concept in a nutshell.

I agree with what a couple people suggested it would also work better with higher value domains to lessen the risk from my side.

---------- Post added at 03:20 AM ---------- Previous post was at 03:02 AM ----------

And for bigger 6 and 7 figure domains there is way to enhance sales, domainer income and portfolio values by integrating advertising agencies, wall street funds, and end users into a more complex variation of the platform that I think would work really well.
 

eq78

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Larger names could mean larger problems, if this started last year why blame the economy ? You started all of this in a bad economy, if anyone wants to take Ron Jackson's story that there is great optimism for domains by those in the industry, not sure why that would be an excuse. I have never dealt with you but I have heard good things it does not seem like a scam. But it does seem hard to pull off in domains, Acro is 100% correct domains have no intrinsic value like real estate. I think the thing to take away from this is that people always like to say "Domains are just like real estate" NO they are not just like real estate. Domain metrics and variables are totally unique. Again IMO
 

KRL

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xnx the domain market was not as challenging as it is now as a year ago. Auctions have floundered. It's a buyers market.
The economy impacted the domainer's mindset. I deal with all levels of domain investors from small to some of the biggest
domain owners in the business and even my big guys are selling now at discounts to keep their cash flows strong. PPC
has dived off the cliff. There are still a lot of buyers but they want great deals and high quality domains. The lower tier
market is dramatically weaker. I have brokers e-mailing all the time now about how slow and their sales are. Everyone seems
to be very frugal with their domain investments and rightly so. I've always been frugal myself and treat every dollar with respect
when buying anything.

But I'm an optimist and the Internet for the long haul keeps growing and that is good for us in domain investing. And large sales
still happen and I'm closing one this week. So domains do have intrinsic value because they can produce traffic for no cost via
type-ins if the keywords are solid and meaningful.
 
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