question Best option for LTO/Lease recurring payments?

[Recons.Com]

I have my own lead that is willing to pay $500/month total for 2 domains over 60 months (LTO).

I was planning to use Dan, but $500/mo meant that Dan would be charging $780/mo including 30% surcharge for 3+ years leases and another surcharge for VAT in Europe. Or, basically, with 500$ capped, I'd be netting only under $350. But for the sake of ease, let's just keep grossing it up and assume $500 is my net, and the customer pays surcharge.

So, the same deal at escrow.com would mean $500/mo would turn into $720/mo, better, but still sucks for something as simple as collecting and disbursing, plus holding the name (i.e. just provide access to ns changes, plus 1 hour of total work for transfer in and transfer out).

Does anyone know of any other option that is more adequate? Basically, if nothing, I will set up my own recurring payments via stripe or similar, provide access to ns for the names, prepare an LTO agreement, have parties sign via docusign and keep my $150/mo for 5 years for couple of hours of work.

 

[korganian]

I have my own lead that is willing to pay $500/month total for 2 domains over 60 months (LTO).

I was planning to use Dan, but $500/mo meant that Dan would be charging $780/mo including 30% surcharge for 3+ years leases and another surcharge for VAT in Europe. Or, basically, with 500$ capped, I'd be netting only under $350. But for the sake of ease, let's just keep grossing it up and assume $500 is my net, and the customer pays surcharge.

So, the same deal at escrow.com would mean $500/mo would turn into $720/mo, better, but still sucks for something as simple as collecting and disbursing, plus holding the name (i.e. just provide access to ns changes, plus 1 hour of total work for transfer in and transfer out).

Does anyone know of any other option that is more adequate? Basically, if nothing, I will set up my own recurring payments via stripe or similar, provide access to ns for the names, prepare an LTO agreement, have parties sign via docusign and keep my $150/mo for 5 years for couple of hours of work.

I have always set up a Paypal subscription for lease or LTO deals. You can type in anything you want and the customer reads it and accepts the deal through Paypal email.

 

[Recons.Com]

I have always set up a Paypal subscription for lease or LTO deals. You can type in anything you want and the customer reads it and accepts the deal through Paypal email.

Thank you. Can you share step by step instruction or link to such instruction please? And can the client use his credit card for auto-charge?

 

[D Haynes]

So Dan would charge more than the agreed monthly payments?

I had a 10 month LTO with Dan and there were no extra charges. Just the sales amount devided into 10 minus their commission (9% at the time).

 

[Recons.Com]

So Dan would charge more than the agreed monthly payments?

I had a 10 month LTO with Dan and there were no extra charges. Just the sales amount devided into 10 minus their commission (9% at the time).

Two things going on here. +30% interest for 36+ months deal (not sure why they make extra interest, since they are not financing). Plus, another whatever % the buyer saw for being in Europe (and Dan being there too).

 

[D Haynes]

Two things going on here. +30% interest for 36+ months deal (not sure why they make extra interest, since they are not financing). Plus, another whatever % the buyer saw for being in Europe (and Dan being there too).

Wow that seems extortionate. I think Dynadot offer 60 month LTO's so might be worth checking their fees otherwise it sounds like setting something up yourself might be the preferable option.

 

[Recons.Com]

Wow that seems extortionate. I think Dynadot offer 60 month LTO's so might be worth checking their fees otherwise it sounds like setting something up yourself might be the preferable option.

yeah, I didn't realize this was this bad either. So their commission for bin is 15%. For 24 mo, they ask for extra 10% from client, they keep 5% of that, and 5% goes towards reducing buyers fee by 5%. Then, next 24-36, another 5%+5%, and another 5%+5% for 36+. But the question is why GD is entitled to extra interest if the seller is the financer? GD should be getting its 15% and that is it.

It seems also that Godaddy hasn't thought it through just using Dan for LTOs and thus subjecting all EU customers to extra 20% or so on top of other extra fees. They could have used Dan's tech for this, but setup a US or offshore entity to handle the legal side of it.

 

[Future Sensors]

+30% interest for 36+ months deal

During the LTO period, DAN will pay the renewals for the domain name, even when it's an expensive registry premium domain (which can be costly). DAN also has more costs/banking fees for processing monthly payments.

Furthermore, 50% of the LTO-markup is paid to the Seller (info from 2020, don't know if this percentage is still accurate).

Below is more information from a 2020 blog post, percentages may have changed.

https://medium.com/undeveloped/introducing-domain-financing-2-0-cd82edbb79c4

 

[Recons.Com]

During the LTO period, DAN will pay the renewals for the domain name, even when it's an expensive registry premium domain (thich can be costly). DAN also has more costs/banking fees for processing monthly payments.

Furthermore, 50% of the LTO-markup is paid to the Seller (info from 2020, don't know if this is still accurate).

Below is more information from a 2020 blog post, percentages may have changed.

https://medium.com/undeveloped/introducing-domain-financing-2-0-cd82edbb79c4

Show attachment 257761

1. it is irrelevant for .coms. I don't mind them taking renewal from my portion but not charging the extra 15%. Over 5 years, that is just $50, while 15% even on 3k name is $450. Are you saying that if I do LTO for $100 name for 5 years, they will charge me $30, but renew it for 5 years? That could be a great deal ))) We could all LTO our own names ))

2. I am sure they won't pay your $1000/renewal because "it is included". There must be some fine print somewhere there.

2. banking fees part doesn't make sense either. Whatever their fee is, it is the same for $200x24 as it is for $2400, except, maybe the first 20 cents. So over 24 months that adds up to $5...

No matter how you spin it, they are not entitled to the portion of interest.

 

[Future Sensors]

it is irrelevant for .coms

DAN makes no difference between type of TLD.

 

[Future Sensors]

No matter how you spin it

I was just trying to be helpful. Sorry.

 

[Recons.Com]

I was just trying to be helpful. Sorry.

I don't mean you by "you" )) Read it as "someone".

 

[Recons.Com]

DAN makes no difference between type of TLD.

I get what they state... And I am sure they will distinguish once it doesn't work in their interest. But, again, if the buyer is financing, the buyer should get all/lion's share of it.

 

[Future Sensors]

I'm now checking DaaZ, it has the following LTO markups:

0-12 months: 0%
13-24 months: 10%
25-36 months: 15%

 

[korganian]

Thank you. Can you share step by step instruction or link to such instruction please? And can the client use his credit card for auto-charge?

Paypal
Business Tools
Subscriptions
Get Started
Subscription Plans
Create Plan
Create A Subscription Product

After you type in the domain name in the Product Name box and the terms of the lease in the Product Description box, you can get a link to email the buyer to click on to agree to the terms of the lease and make their payments to Paypal

 

[Gabriel360]

You may also look into Atom.com. Their rate is around 7.5%.

 

[biggie]

I have always set up a Paypal subscription for. lease or LTO deals. You can type in anything you want and the customer reads it and accepts the deal through Paypal email.

pay $500/month total for 2 domains over 60 months (LTO).

Hi

i have used Paypal for 3 year LTO.
agreement was written in notepad, notarized and snail mailed to buyer.
also added 5% compounded interest, per year, to agreement.

Good Luck!

imo...

 

[Bravo Mod Team]

Does anyone know of any other option that is more adequate?

Our LTO option for NamePros Parking will handle this scenario perfectly where it will allow you to use PayPal and handle the rest yourself, if you choose. We can also add Stripe support if you want.

It's completely free; we don't collect any commission or fees from it.

The good news is that our LTO feature is finished, but we haven't released it just yet. It should be released sometime this month.

Keep an eye out!

 

[Recons.Com]

Our LTO option for NamePros Parking will handle this scenario perfectly where it will allow you to use PayPal and handle the rest yourself, if you choose. We can also add Stripe support if you want.

It's completely free; we don't collect any commission or fees from it.

The good news is that our LTO feature is finished, but we haven't released it just yet. It should be released sometime this month.

Keep an eye out!

That is awesome. I think I will allocate few hundred names to give your landers try. Let me know when it is ready. Stripe would be good. Paypal isn't supported in lots of countries and their gateway might also be problematic.

 

[Bob Hawkes]

So with Atom Pay now out, does anyone know if it handles LTO or just one time purchases?

Also, does Efty Pay, when it actually releases, handle things like this?

As someone mentioned, as a standard listing at Atom the LTO is an option and the commission is just 7.5%. One thing, though, the buyer will be able to stop payments, and lose use of domain, at any time. I had one start a few months ago but just lasted one month.

If the name could be registered at places like NameSilo or Dynadot you can do LTO, but I think limited to 12 months (I might be wrong).

It is fantastic that the NamePros landers with LTO are essentially ready and we will be seeing them soon. Great job on all aspects of that initiative by those involved.

Bob