Imagine if you will..
Jane, a women selling widgets, paying 20K a month for PPC advertising split between FB, G and Bing.
Her average CAC was $450. Margins were good and there was plenty of profit to cover operating cost and make a good living.
Then, growth slowed, PPC cost were rising. Even if she wanted to buy more PPC ads, people were becoming ad blind. Some even started using an evil app called "ad blocker"....
Joe, an insightful domain investor, purchased widgets.com years ago. Even thought he appreciated the income shared by the not so benevolent parking company and even less benevolent Google.. He always felt he was missing out on something.
Then one day this lucky fellow met a women selling widgets. They quickly recognized opportunity knocking and struck a deal.
Joe relied on the income from widgets.com and didn't want to sell his wonderful domain so he LEASED the name to Jane.
Jane a shrewd business women, demanded "first rights" to buy widgets.com, using a mathematical formula to calculate the price, if Joe decided to sell.
Joe agreed, in exchange, the price of the lease would increase every year based on a similar mathematical formula.
Jane sold many widgets. She was amazed that people would just type-in the domain name, find a widget and BUY IT! CAC was lower then ever.
Joe threw a big party when he got his first check because he made 25X more money!
The end.
P.S. Joe and Jane laughed at the people who said they were crazy and it would never work.