How to structure a lease deal?

[weebobby123]

Hello

Firstly, thank you for taking the time to read my first ever message. I write to you as I have an opportunity to lease a domain name after approaching the owner. The owner doesn't wish to sell the domain or enter a joint venture. The owner of the domain has asked me to suggest how to structure the terms of the lease.

I am based in the UK and it is a .CO.UK domain. At the moment I do not want to reveal the domain but lets say it is TABLETS then the web address is TABLETS.CO.UK Currently sales globally for this product are increasing year on year and are projected to reach $10bn worldwide by 2016, and is £200m in UK (where I live) alone in 2012. There isn't a specific stand out website marketing this product although it is marketed globally (I would be surprised if you do not own the product and regularly change the product) I am looking to set up a website selling various different brands/types I think there is a gap in the market for a company specializing in offering an extensive range of different types of the product and different brands . A platform offering in depth comparisons between the different models , pictures, suitability , customer reviews etc etc. Currently the product is sold on many platforms and people may go to to Amazon , Ebay , Play.com etc or to the individual brands but there is no stand out UK/European store specializing solely in the product.

Can anyone suggest a good structure for the lease?
How much should it cost me? (I appreciate I have not told you the name but TABLETS.CO.UK would be relatively close to the caliber of the site in question.

Regards

Weebobby123 (Belfast ,UK)

 

[Greg]

Welcome to Namepros....I have no experience with name leasing but the main thing that I would consider is the length of the lease and lease renewal terms.

I would think you would need 5 years with another 5 year option.

I'm sure much more knowledgeable members will be around shortly to provide more responses.

 

[weebobby123]

thanks grina much appreciated

 

[biggie]

The owner doesn't wish to sell the domain or enter a joint venture. The owner of the domain has asked me to suggest how to structure the terms of the lease.


Can anyone suggest a good structure for the lease?
How much should it cost me? (I appreciate I have not told you the name but TABLETS.CO.UK would be relatively close to the caliber of the site in question.

Regards

Weebobby123 (Belfast ,UK)

Hi

I suggest you find another domain, if the owner does not want to sell.

you "do not" want to enter a lease deal on a domain, with no hope of ever gaining ownership....especially if you plan to develop that domain into commercial website.

why?

mainly because any development on your part, increases value of his domain.


there are too many uncertainties that could arise, if you get into long term lease and the website fails.

or if the site is a success and you didn't lock in long term lease with low monthly fee, then owner can increase fee based on your success, when you want to extend the lease.

it's more than just a notion, when owner doesn't want to part with the domain.

which makes drawing up such an agreement, complicated.


imo....

 

[alien51]

Leasing is a very bad idea.

Why not just buy some reasonable domains in the aftermarket? I have seen keyword-combination domains in the vicinity of $1,000+ in Andrew Reberry's guantanamo cells.

Afterall, if you are businessman, you can recover the cost of the domain from your profits and you don't need to split the revenue with someone else.

You don't need killer one-word keyword domains.

You can reg a tweak version of the keyword domain, if you want.

iTablets
eTablets
goTablets
myTablets
coolTablets

All of these are taken, but you get the idea.... you can be creative for the price of reg fee.

Whether you want to buy cheaper domains in the aftermarket, or you want to be creative with hand regs, the bottomline is, leasing domains is a terrible idea.

 

[weebobby123]

thanks guys i have decided not to go ahead with the lease. I am instead studying researching getting on the other side of the trade and looking at domaining for a living

 

[alien51]

and looking at domaining for a living

That's a very bad idea, as well.

There are millions of Domainers in this planet (not counting the Chinese). If you are just starting now, don't pin your living conditions on domaining for profit.

I would suggest you keep a stable day job, and do Domaining as a hobby or sideline venture. Give yourself a year, and then proceed from there.

 

[biggie]

There are millions of Domainers in this planet (not counting the Chinese). .

:talk:

lol

why you not counting the Chinese?

 

[Name Trader]

@biggie Maybe because Alien51 doesn't have a handle on how many of them are domainers. Nothing against the Chinese, because they are the future.

WeeBobby123 I'm very happy to see you have taken the very good advice you were given, that developing a domain you don't control is a very, very bad idea. Good luck with becoming a successful domainer. It's a very hard row to hoe.

 

[biggie]

:talk:


i'd like to point out that:

leasing a domain is not a bad option, when it's favorable to both parties.


I have created "lease to own" deals and agreements, which give the buyer possession of the domain, after an "interval payment schedule" has been completed.

imo....

 

[alien51]

"Lease-to-Own", is okay. In fact, we have plenty of people doing that outside the cyberworld, like lease-to-own houses, cars, buildings, even appliances.

If you are entering a contract for such lease-to-own in the internet, you have to make sure the contract is legally enforceable, or you have the means to pursue any possible litigation, and the other party is traceable (that means, he doesn't belong to any Nigerian royalty).

ditto... if i included the Chinese, that would have been Billions of domainers (with a capital B). lol