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advice To lease or not to lease

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ScalableDomains

ScalableDomains.comEstablished Member
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Good morning everyone.

My business model has been to turn-and-burn if possible. Cashflow is important which keeps the inventory rotating.
I have recently been approached with a lease option for a Crypto domain name which organization is willing to pay ($XX,XXX) full price however it is for 24 months lease period.

Pros:
1. Pay full price
2. Monthly cash flow of X dollars
3. If payments default, keep domain name and traffic

Cons:
1. Time Value of full payment is not realized
2. Locked into the lease. Cannot sell at full price or more later to another buyer.
3. Value of domain name may be worth more for in 24 months.

If you have some experience with this or any feedback, it will be greatly appreciated.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Lease it, but execute proper contract.

1. Value: could be more, could be less. You don't know, so let's assume same

2. Time value: just look at it as 20%-30% discount. There is no guarantee that the name would sell within 2 years and then your time value from this transaction would be better.
 
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I would lock in the deal now if it is at a price you are happy with. Who knows if the crypto market will be hot in two years (and especially the crypto domain market).

Things heat up with domain categories all the time, but tend to cool abruptly.

I say lock it in. Make sure there is a default contingency and escrow in place and collect the payments.

I would however be reluctant to do 24 months on anything less than 6 figures (or at least close to it)

Payoneer escrow has a great service for domain installment escrow.
 
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The whole cryptocurrency craze could flop very soon, even if it persists in a different form.
I think you should strike the iron while it's hot with these kinds of names but I'm saying this without knowing the name if it can make any difference.
 
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I would lock in the deal now if it is at a price you are happy with. Who knows if the crypto market will be hot in two years (and especially the crypto domain market).

Things heat up with domain categories all the time, but tend to cool abruptly.

I say lock it in. Make sure there is a default contingency and escrow in place and collect the payments.

I would however be reluctant to do 24 months on anything less than 6 figures (or at least close to it)

Payoneer escrow has a great service for domain installment escrow.
Thanks. Makes sense.
 
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The whole cryptocurrency craze could flop very soon, even if it persists in a different form.
I think you should strike the iron while it's hot with these kinds of names but I'm saying this without knowing the name if it can make any difference.
Thanks
 
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