Domain Raffles?

[Melly]

I was just curious about this. Not sure if its a horrible idea or an okay one. Anyways has anyone ever done domain raffles or domain packages.



For example lets say I was selling xxx.com or 20 domains in a package.


Then 30 people would each pay $20 dollars for a raffle ticket. Then a number would be selected and the winner would get the domain.


So this way if its a really good package they have the possibility of buying it for cheap. Of course if they don't win they lose their money but its kind of like a game.


Good idea or bad?


Just wanted feedback on it.

 

[Kventures]

...

 

[Melly]

Well see I thought it would be a great way for people to sell domains they aren't using or just want to unload. You could set a minimum amount of raffle tickets to be sold and then let it run for like 3-4 days and then sale.

This gives the seller a little extra money and the buyer a good deal.

 

[Melly]

Well it would have to be worked out so each person got their own number and then a legit way for the raffle number to be called of course. I was just wanting to get feedback on what other members thought about it...


Me personally I would like to use the system because it would give me the chance to get rid of domains that I no longer need or have no use for. Then on top of it it allows buyers to have the chance to grab something for pretty much nothing.

 

[ddaybofb]

im down

 

[Bill Roy]

I hate to do this but I will act as Devil's Advocate.

It is a good idea, unfortunately though only in principle I think.

It would be considered gambling by some stiff-necked types, and that could lead to a lot of legal requirements in some jurisdictions. Here in the UK to actually run it for example one would need a license from the local Council. I think the same is likely true in the US and Canada.

No doubt as a small operation with just a few involved it could succeed, but really you need to get as many people as possible to enter and buy the raffle tickets.

I hope I am wrong, I really do, it would also be a great idea to introduce a lot of people to domaining by raffling off some decent domains. But as I say above I fear legalities may creep in and spoil it.

 

[Kamloops]

Funny I just asked the exact same question over at the other domainer forum on 02-21-2008,

 

[Melly]

Great minds think a like? LOL

 

[tinner666]

Nothing illegal about it. Good idea.

 

[HomerJ]

Nothing illegal about it. Good idea.

no, it is not quite that simple and Bilbo is right. I looked into this idea last year during the WSOP i was going to raffle off 10K seats to the main event. the idea was huge and I probably would've gotten more traffic in a day then facebook but it is definitely not legal without a permit. and the penalties were stiff from what i remember.

 

[kylewill]

Nothing illegal about it. Good idea.

I'm pretty certain this is illegal, unless it involves "profits" going to charity. And that isn't easily measurable with domains.
Raffles are extremely complex in the USA.

 

[MCDomains]

Yes, it's like running your own lottery or other gaming outlet if the proceeds aren't going to a charity.

I love the idea, though!

 

[tonyfloyd]

sounds good..

 

[Melly]

okay so its illegal. Oi. Guess i wont be doing it.

 

[tinner666]

My bad. Some clubs I'm a member of do it without permits. As far as I know. And in some businesses, a few folks would do a raffle for something we all wanted.
I figured that a small group of Dnf 'Club' members could do it selectively.
Say a privet forum or website area open to only a select few, 10-25 members ONLY, by invite only.
20 Members, $10.00 raffle ticket, guarantees the seller $190, for his/her domain..

For instance, in the $100. and under area. "arbt.com" private sale" The invited members ALL send seller $10.00 and "PM Sent" notice. When all 'tickets' have been paid, seller picks a name from the hat, with buyer ID, and Posts "Sold to ssss".

(figures used are examples only. The select few will be trusted members. I may or may not fit in that category because I don't use any aliases on the web. My home addy is everywhere on the web!)

 

[Focus]

I planned to do this with high value 3 letter .com's and sell tickets for a few hundred bucks each...I contacted a lawyer and was enlightened thoroughly on the major road-blocks legally in doing this as it is considered a "lottery" in the USA and there is quite alot that goes along with that finance wise. Remember, it's not that you have a problem with the ONE person that wins the domain..it's all the others that don't win and having an impartial and safe, fair drawing is something that nobody would trust or believe over the Internet imo...and that's where you run into alot of problems and claims..i.e. people wanting their money back or disputing the winner/results..conflicts of interest because you know people or have done business with them before and you run the drawing, etc.

 

[kylewill]

What you could probably get away with, is doing this in a game .

Maybe.. World of Warcraft?

1000 gold buys you a raffle ticket for whatever.com.

Then you sell your gold after the raffle is over.

HOHO!

 

[DirectoryNetwork.com]

I'm working on something for a try with low value domains. The drawing will be done automatically by the script available in VBCredits mod. I send an email to the developer to include domain names instead of virtual money drawing.

Is there any problem with a Raffle if there is no profit?

If you sell tickets for the value of a Domain (Exemple : 25 tickets of $10 for a CCC.COM witch $250 is a bottom value on the market), there is no real profit...

 

[Focus]

profit and value is all relative, plan on paying taxes on everything in any raffle

 

[DirectoryNetwork.com]

Taxes.... Woow, this is a hard game. Maybe auction is a safer way to sell Domains...

I'm from Canada. I'll have a check on that.

Thanks Focus