advice Better to add payment installments to generate more sales?

[Domain Redux]

In your experience, is it better to add payment installments or just have the buyer pay the full amount? I understand that this could vary based on the price on the domain (e.g. <$500 wouldn't need installments as opposed to a domain that costs $4,500). This could also be entirely up to the buyer's budget.

A few variables noted above, but maybe nice to have the option just in case? What are your thoughts?

 

[topdom]

You mean rent to own. Allowing rent to own is a good thing, because then people who can't pay the full amount would consider renting, while those who can pay the full amount would probably still pay the full amount.
I like Namesilo's rent to own, because it is safer(, but it didn't work so far). Epik's version is slightly riskier (because whois doesn't change during lease period), but if the buyer is a good person/company then it doesn't matter.

 

[Domain Redux]

You mean rent to own. Allowing rent to own is a good thing, because then people who can't pay the full amount would consider renting, while those who can pay the full amount would probably still pay the full amount.
I like Namesilo's rent to own, because it is safer(, but it didn't work so far). Epik's version is slightly riskier (because whois doesn't change during lease period), but if the buyer is a good person/company then it doesn't matter.

Well said! I hadn't seen the term "rent-to-own" in a good bit. Makes total sense.

Great insight. I definitely appreciate it!

 

[Internet.Domains]

I said "yes."

The "rent to own" concept has worked for many things such as furniture to homes. I see no reason it can't work for domains.

 

[Domain Redux]

I said "yes."

The "rent to own" concept has worked for many things such as furniture to homes. I see no reason it can't work for domains.

Have you had any issues with payments?

 

[Bob Hawkes]

I have not offered it until very recently, but I think it is an excellent idea that help sales close, and have recently added it as an option on a number of my domains using the Epik, NameSilo and DAN payment options.

As a seller i actually would love if a few domains sold that way so I had a little bit of regular revenue to cover renewals and registrations.

I too like the Rent To Own term, and wish they used that instead of payment plans. Thanks for thread and contributions of everyone.

Bob

 

[Ayman Hafez]

What will happen if buyer no longer pay or cancel after months?

 

[Bob Hawkes]

What will happen if buyer no longer pay or cancel after months?

If the buyer no longer pays, then the domain name reverts to you as the seller. While the instalment buyer can use the domain name, they are not the registered owner until all payments are made, at least I think that is how it works at all of the places I have started using it. After all payments are made, then the domain is owned by the buyer. Note that Epik provide both rent/lease and payment plans, which are different things. The site (e.g. Epik or NameSilo) handle the regular collecting of payments.

 

[Domain Redux]

Thanks for the contribution, @Bob Hawkes. I'm starting to consider it on the sites that offer it as an option.

Great point, @Ayman Hafez. I was thinking this as well if the buyer bails at any point.

 

[Internet.Domains]

Have you had any issues with payments?

I have not done one yet, but I hope to soon.

 

[DNWon]

I just so happened to sell a domain today on Dan.com that I don't think would have sold without the offering of an installment plan. As much as I would like to have had the whole $2,400 up front, The $200 per month for the next 12 months will help with renewals and other business costs.

 

[Abdullah Abdullah]

You mean rent to own. Allowing rent to own is a good thing, because then people who can't pay the full amount would consider renting, while those who can pay the full amount would probably still pay the full amount.
I like Namesilo's rent to own, because it is safer(, but it didn't work so far). Epik's version is slightly riskier (because whois doesn't change during lease period), but if the buyer is a good person/company then it doesn't matter.

It will be good in large sales but for small sales I think it is a waste of time. Speaking of Epik, why is it riskier? I thought Rob said they close many leases , @Rob Monster

 

[Tunababa8v]

I voted yes. I think it will forster relationships between domainers and buyers. It will help build trust and also help remove the notion that most end-users think domainers are "cybersquatter". It will help them see us more as businessmen than "cybersquatter".

@robmonster, can payment plan only be activated on names registered on epik? Because I wasn't allowed the option.

 

[topdom]

At Epik whois info doesn't change, and if if a crime is committed using the domain during the lease period, then the seller would suffer from lots of headache at least.

 

[Bob Hawkes]

At Epik whois info doesn't change, and if if a crime is committed using the domain during the lease period, then the seller would suffer from lots of headache at least.

Something I had not thought of. Do you know if that is only for the rental/lease or does it apply to the payment plans at Epik as well? I am tagging @Rob Monster so we can get Epik's view on this.

 

[topdom]

I think in both cases (rent or rent to own) whois doesn't change (at Epik).

 

[saintpro]

I did a $ 1,200 sale on Dan.com recently. Buyer owned the .Net also & was looking for my .com name.
I lowered my asking price from $ 1,800 to $ 1,200. Still, he couldn't pay. He's a small-time developer, not a big business. After more than one year of back & forth, I converted him to monthly payment plan cause I wanted the sale.

$ 100x12 will cover some of my renewal cost at least. So far 4 payments received.

The domain is with Dan in their escrow & once all the payments are received, the domain will be transferred to the buyer.

The only major downside to payment plans or rentals, the buyer can walk away at any time. Maybe he had a change of mind, business not running as expected. But you can keep your domain & the payments made till then.

Payment plans do work. The Globe runs on leverage.

Can you imagine a world without a credit card?

 

[Larion]

In your experience, is it better to add payment installments or just have the buyer pay the full amount? I understand that this could vary based on the price on the domain (e.g. <$500 wouldn't need installments as opposed to a domain that costs $4,500). This could also be entirely up to the buyer's budget.

A few variables noted above, but maybe nice to have the option just in case? What are your thoughts?

This is what HugeDomains is doing (Payment Plan / 12 monthly payments), even if the BIN purchase price is only around USD 2K

Example:
https://www.hugedomains.com/payment-plan-setup.cfm?d=PumpChump.com&action=paymentPlan


I think marketplaces like @Sedo and other platforms should implement a similar model.
e.g.: 12 monthly payments / 24 monthly payments / 36 monthly payments, etc.

It will definitely increase domain-sales.

In fact, I am wondering why Domain-Marketplaces have NOT implemented such options until now ?
It's actually crazy not to provide such options to the buyer. Have you ever heard of "car leasing" ?

 

[Domain Redux]

I think I may give this a shot and see how it goes. Definitely some downside to this method, but if all goes well, then it was worth it. Easier for both sides and nice to have some [guaranteed] cash flow for coming months.

Everyone has been super helpful. Always appreciated!

 

[eurorealtor]

In your experience, is it better to add payment installments or just have the buyer pay the full amount? I understand that this could vary based on the price on the domain (e.g. <$500 wouldn't need installments as opposed to a domain that costs $4,500). This could also be entirely up to the buyer's budget.

A few variables noted above, but maybe nice to have the option just in case? What are your thoughts?

Yes, and I believe escrow.com offers this service as well.

 

[topdom]

Question is: Does Dan.com change whois during lease period? In other words Is it like Namesilo or Epik?
I didn't know Dan.com allowed financed sales. One more reason to switch from Sedo to Dan.com, if they change whois.

Any superiority of Dan.com over Epik? I think Epik also allows external domain sales.

I think big companies don't buy domains themselves, and instead hire a broker , who place 100 fold gap between buying and selling prices, and this makes domain business unprofitable. I'm very paranoid about this because both Afternic and Sedo insist on not showing visitor or bidder IP. How to fix this: I don't know. If I had some programming skills I could do much better in this business.

It is extremely abnormal that I don't receive any offers at Afternic, and only get price requests. If I get real offers, will they appear as a price requests? If I will give price to some unknown party, who is known to Afternic only, maybe that party is Afternic itself already, then I should get something in return, like IP number, or get real offers after responding to price requests, or a comment like, my budget was this much, out of my range etc.

I hate people who claim to be intermediate between people and God, and unfortunately most people trust such evil intermediate people, and direct connection between people and God (which doesn't exist but this is another topic) becomes impossible. I prefer direct connections. For some reason most people never connect directly as if it is illegal. Someone is playing a nasty game to block communication, or monitor and manipulate communication whenever it happens.
I really don't understand why people act like this , and voluntarily prefer being slaves to being free individuals.

 

[topdom]

One trick I learned by coincidence. Let's say you get an 100 usd offer at Sedo and you counter 1000, and they change price to 101 and it goes nowhere. After several months you add a buy now price of 100. Previous bidders will be informed. If the offer came from a real buyer, then they will immediately accept the bin and pay for it. If it was a broker/middleman's offer (such as an offer made at Afternic transferred to Sedo quitely and with big multiplicative factor) then domain won't sell, because the actual buyer will have lost motivation and won't pay 4-5 figures for it, and ignore middleman's negotiation efforts.

 

[Bob Hawkes]

This is possibly a dumb question, as I use both and maybe am just missing it, but do Sedo or Afternic offer any kind of purchase plan (or lease plan)?

I might try to put together a little rundown of the various options. I know that the following have some sort of payment plan:
NameSilo
DAN
Epik
(Escrow.com, I think >> I need to check details)

Who else offers payment plan options (other than individual domainers)

Thanks,

Bob

 

[Domain Redux]

@Bob Hawkes -- I don't believe SEDO and Afternic offer this type of sales method. Great idea putting a list together for those that do.

 

[Embrand]

Brandpa offers payment plans as well. Up to 24 months. I think DomainAgents does as well, but using Escrow.com.

To answer OP's question, I think offering payment plans is a great feature. I use DAN's with up to 24 months. Epik's are more customizable, though. They let you add interest and different kinds of plans and time spans.