advice Better to add payment installments to generate more sales?

[deleted1234]

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.

 

[deleted1234]

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.

 

[deleted1234]

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.

 

[deleted1234]

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.

 

[Abdillahi Abdillahi]

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" ?

 

[deleted1234]

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.