How do I lease a domain?

[Carbill3]

Hello all. I currently have a multimedia brandable domain for sale. I currently have 2 end user prospects inquiring about this domain via email. I recently heard about leasing domains. How do I go about doing that? What numbers or percentages are adequate for this option? Is this a suitable option for an end user?

I was also considering selling the domain at a slightly cheaper price, and asking for a percentage of monthly revenue. Is this also a considerable approach? What is a good percentage to ask for? Or is this the same as leasing?

Then again, I could just sell it, but I would really like some type of monthly cash flow.

I need as much insight as possible on this subject before I respond back to them. I look forward to all your responses. I posted this in Domain Dicussions & received no input. Hopefully I can get some responses in here. Thank you.

 

[nielsencl]

I don't think leasing domains is very common and when it does happen I think the purchase price of a domain is very high. The person that wants to use the domain may only have a short-term interest in it or may want to "try" the domain before investing in it.

You will have to decide what the price should be for the domain and that will give you a base to set a monthly price. And what ever you ask the potential lessor may or may not agree.

While renting or leasing can make an expensive domain available for those with a limited budget, they may also make them dependent on keeping that domain for their business. If they later cannot renew the lease or come up with a purchase amount, their entire business could be at risk.

I would advise a site owner in most cases to not take that risk, and get a cheaper domain. They can then spend the money they would have used for domain payments and buy marketing and promotion for the domain they buy. Often they will have to pay for marketing ANYWAY even if they have an expensive domain. Type-in traffic only goes so far.

Asking for an equity stake is also a great idea, but you and the buyer will have to agree on what the "real" value of the domain is and what they will be paying you. If you keep your expectations reasonable then that could work out well, but the site owner may ask you for some future way they can buy the domain and also include stipulations that will prevent you from just taking your domain back if you become unhappy with them for some reason.

Make sure these people asking about your domain are not domain appraisal scammers to start with. Then see what you can negotiate with the buyers and see what's possible. Most serious business owners are just going to want to buy the domains and keep their costs down.