Domain leasing question

[mallikrao79]

Some company approached me to lease one of my domain names to them. The proposal they came up with is to establish a price and then pay me monthly for 18 months. After 18 successful payments they will become owners of the name. If they default on any payments, i will get to keep the money paid sofar and the name i will become the owner.

They want to make an agreement and also get me the power of attorney for the name.

has anyone tried this kind of thing before? what is your advice.

thanks you in advance for your suggestions.

 

[TCK]

My take is if they really want your domain, they will pay for it.

 

[TheBulldog]

Are you a lender?

Tell them to buy it.

 

[lzy]

Hmm, read something about this some time ago.

For example, the agree price is $200x18=$3600

What if the market changes/improves within this long period of 1.5years? Then it'll be too late to back out of the deal (depending on your agreement with them of course).

Just a noob's opinion.

 

[mallikrao79]

is it OK to transfer the name to them after a written agreement as i stated above? safe?

the reason they want to pay in installments is because they don't have budget for upfront costs. they are starting up something new. that's what they are saying.

 

[Broker]

List your domain through leasethis.com and set your pricing in your account with an option to buy at the end of your contract. This way you get the lease money and you can still sell it at a later date for even more profit but your not obligated to.

 

[-NC-]

rent it to them for a monthly fee, and give them first option to buy (you won't sell it to anyone else without giving them a chance to beat the other offer).

if their business does well, then they can buy it from you outright.

the lease to own deal sounds to me like you take all the risk:

their business does well = they have a guaranteed price for the domain
their business does badly = they simply default on the payment, no sale for you

don't transfer the domain to them, just tell them you will set the DNS to whatever they ask.

 

[markmiddleton]

has anyone tried this kind of thing before? what is your advice.

thanks you in advance for your suggestions.

I have heard of a few people doing it with political names for campaigns (from the moniker radio show) Also I have a friend doing this with a daycare name I believe.

I personally plan to rent out GoodsSupply.com and GoodsSupplies.com for their generic appeal too. I think your onto a win win, provided you carefully read the contract. You get all the traffic/PPC in the end if they don't buy.

Buy to let can be a great concept in the housing market, because people often end up not buying the property and you get to take the initial deposit + any rent payments, while still having the asset. Also the demographic that do this are more likely to default than someone with the money to not have to rent.

Transfer this to the domain market and you hopefully have the same equation. Ask for a decent deposit initially, to cover your risks and set a monthly price, if they fail to make a payment (or two your choice) then the contract is terminated and you can do the same again. Sometimes with the same 'tenant' in properties case....

Just read the contract very carefully, i'd even word it myself or pay an associate to.

Good luck on a new domaining concept

 

[Spade]

Honestly, dont bother with this. This is basically a lease to own, and the buyer has all the bennefits. Typically in this case, you "rent" the domain name for a period of time at a fixed rate per month, at the end of the term they have an option to buy....

If they want to buy the domain, but pay installments, tell them to get a credit card... I wouldnt bother with this kind of deal, unless it was hugely bennefitial for me... I dont see this working out well for you though.

Justin

 

[verbster]

If you do decide to go with a lease, stay in charge of your domain and the agreement. Do not give them power of attorney.

Make the lease payments higher as a total than the selling price today. If it's worth $1000 today, lease it to them for $150 per month. You are trying to make money, not be their lender.

Lots of ways to go...just don't give up control of the domain. If you do, and something goes wrong, it will be a mess.

 

[markmiddleton]

Lots of ways to go...just don't give up control of the domain. If you do, and something goes wrong, it will be a mess.

Absolutely I should of added this, while you own the domain I would keep control of it at all times, unless perhaps the deposit they gave me was substantial and the company reputable. Also you might follow the route of credit checks and such if your in any doubt.

 

[mallikrao79]

thanks everyone for your valuble inputs. The sale price is in mid $xx,xxx. Buyer seems to be interested in using Moniker's lease to own escrow service. Any thoughts on Moniker's service?

 

[Broker]

I didnt know moniker had a lease to own program? Anyone have info on that?