Domain Name Layaway

[kev]

Ok, Im about to complete a sale for one of my names using this method. This is where the buyer pays a set fee a week until he has paid off the sale price. For example, if the sale price was for $1820, he would pay $35 a week for a year (35x52=1820).

Is there any drawbacks to this method, apart from the delay in payment?

I remain in control of the name until he was paid it all, but he says he will pay more some weeks and the base rate the next so he might end up needing only 5 months to pay the balance. (e.g. maybe he will pay $300 one week, $35 the next, until its paid off).

With the credit crunch, is this a good way to offer your names for sale? Should contracts be signed in this case?

if you have any experiences of this Id love to here 'em!

cheers
kev
:tu:

 

[.jd.]

You should have a contract for that no matter what. Although your pretty safe if you keep the name until its fully paid.

 

[DotWeekly]

Contracts are always the safe route to go, but saving the emails you had to the agreement and those kinds of things are a safety net as well. I think there is much more of a risk for the Buyer then the seller... the buyer is putting a lot of trust in you and I'm sure they never met or spoke with you before. lol

Layaway is pretty much like Lease-to-own but it's also not a bad approach to selling a domain right now...

I think I would offer to forward or set dns for the domain to keep the buyer happy, but I would also be very clear that the money they are paying is Nonrefundable if they decide to not finish payment.

 

[dbtbandit67]

this isn't something that i would branch out into. you don't need to make things complicated with contracts, and if this buyer needs to turn to you to credit that most likely means that he has poor credit elsewhere, increasing the likelihood that he will default on his payments.

but you were still in control of the domain, so all is not lost right? maybe

but it's something i'd rather not deal with, esp. if you could have shopped that same domain to another end-user for the same price or higher. and plus, this buyer probably won't be too happy about the fact that he shelled out cash for nothing, despite it being his fault. it's just better to avoid un-necessary anxiety.

 

[Michael]

I would have a contract, and in that contract I would state penalties for late payments. I would also have a stipulation in there that if he changes his mind or stops paying altogether, how much of his payments are refundable (or just make him start with a fairly large non-refundable deposit).

I would also be very, very weary about letting him use the domain before it is paid off. If he used it to scam/spam people, or put up illegal content, you could be held responsible. If you do let him use it before it is paid off, which I wouldn't if I were you, set very strict guidelines as to appropriate use, etc.

Like Julio said, if he needs to essentially finance from you, that could mean he doesn't have a credit card and can't get a personal or business loan.

 

[ecalc]

if you have any experiences of this Id love to here 'em!

A NP user recently bought a $100 name from me on layaway and paid before the promise date. I pushed the name after the final payment. PM me if you want to know his username, it might be the same person.

 

[NetOctave]

We call it "installment schemes" here in India and is useful while buying costly electronics.

Only issue here is to gain the trust of buyer. What if you default ?

I feel, if you rent the domain on a monthly basis and let the renter buy the domain any time in the middle of lease by paying balance amount. This would be more convincing for the buyer. The rent can be variable and calculated by the domain value.

But, here the problem is with breaking the lease. But you will still have the name and also some month's rent.

Or, better yet to have an auction for highest renter.

 

[VisualArtistFrankBonilla]

Ok, Im about to complete a sale for one of my names using this method. This is where the buyer pays a set fee a week until he has paid off the sale price. For example, if the sale price was for $1820, he would pay $35 a week for a year (35x52=1820).

Is there any drawbacks to this method, apart from the delay in payment?

I remain in control of the name until he was paid it all, but he says he will pay more some weeks and the base rate the next so he might end up needing only 5 months to pay the balance. (e.g. maybe he will pay $300 one week, $35 the next, until its paid off).

With the credit crunch, is this a good way to offer your names for sale? Should contracts be signed in this case?

if you have any experiences of this Id love to here 'em!

cheers
kev
:tu:

I don't think the reasons a buyer can't buy it outright matter. As long as you hold onto control of the domain until it is paid, it shouldn't be a problem. As stated above, you should still draw up some type of contract. This would be especially important if the buyer doesn't finish paying, or then asks for more time. Of course, more time would be up to you. What if he changes his mind, and wants his money back after 3 weeks, and 1 payment? Would you have to refund it all? Maybe you could have a $100 charge no matter what.
If it works for you it's good, but it could also open up a can of worms!
Good luck.

Frank

 

[shockie]

for higher priced domains (like your case), i would definitely consider this form of payment. just make sure that the price is adjusted because of the time value of money, and that certain payments are non-refundable (perhaps all).

 

[weblord]

domain is a commodity. contracts are very important in these types of transaction, as long as there is good cash flow, why not?

these are hard times, we need to innovate.

 

[RicoShay]

Some great points raised and advice given. I'd agree with most of it, definitely keep emails and better still make a contract with guidelines as members have mentioned before me.

I have done this with a $500 domain earlier this year, but it was over the period of 5 weeks (5 weekly payments of $100). The domain was forwarded to the buyers myspace page until payment was completed in full - I later pushed the name to his account.

I felt comfortable doing it like this because I knew the buyer through a friend and besides I had the domain in my possession until it was fully paid for, so that helped ease any anxiety.

I don't know if I'd be comfortable doing this for any longer period than 3 months unless I knew and trusted the buyer. ie there are members on this forum that I have known for a while and would trust...

Anyway, good luck with this and let us know how it goes.

 

[cache]

without a contract, the buyer has more disadvantage compared to the seller.

 

[kleszcz]

Leasing or credit card companies have these kind of options with legal contract. It's better to have agreement for your transaction to protect each other.

 

[acronym007]

I have done it, actually I am in the middle of one now. Just write up and agreement between the two of you and always keep control of the domain. Put in the amount weekly, the total amount, the date the amount is due by and perhaps a grace period.

I see no negatives except for delayed payment.

 

[kev]

does anyone know how to set up standing orders in paypal? (i.e. so the $35 comes off automatically into my account?)

 

[deu12000]

does anyone know how to set up standing orders in paypal? (i.e. so the $35 comes off automatically into my account?)

Yes it's called a subscription.

You can go into Merchant Services where it says Create Button click on Subscribe. Set up the monthly or weekly billing and price and you can get a payment button or link for your buyer to sign up. You can also set it up so that the billing stops after a certain amount of time (ex. when it's paid in full).

 

[kev]

Yes it's called a subscription. PayPal has the option.

Cool, I managed to find it. Is there any charge associated with it if you know? couldn't find any details about the charge

 

[deu12000]

Sorry I edited my post with all the details a few seconds after posting. It's the standard paypal charges.

 

[kev]

He's able to pay with Masspay (zero fees) so will that remain chargeless even with the subscription service?

Rep+ for your help

Thanks mate

 

[GF]

I think this is a great idea. Have a written agreement - but it's a win-win: you get paid, and the buyer gets the domain eventually!