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discuss If you do use lease to own domain sale listings, how successful is your strategy ?

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Sheogorath

Top Member
Impact
1,587
Hello everyone,
I noticed that there are many lease to own listings in dan.com and that many people in the Domaining industry adopt this sales strategy.
I'm considering to change some or all of my sale listings to exclusively lease to own type due to a possible much higher sales rate.

If you do use lease to own in dan.com or on other marketplace/s, please describe how successful it is for you compared to the traditional make an offer and/or buy now listing types.
Also, did you encounter any difficulties or problems from lease to own listings ?
Do most or all buyers pay in time ?
The domains were not devalued from a possible improper usage ?

Please share your thoughts, thanks :)
 
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Robert27

Established Member
Impact
345
Haven’t really looked closely at this but aren’t the commissions higher eg Dan?
 
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Robert27

Established Member
Impact
345
As an update - on Dan if you lease to own over 1 year its the standard sales commission but they go up sharply as the term gets longer.
 
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Sheogorath

Top Member
Impact
1,587
Haven’t really looked closely at this but aren’t the commissions higher eg Dan?

The commission is very low.
The sale commission is 9% at dan.com.

As an update - on Dan if you lease to own over 1 year its the standard sales commission but they go up sharply as the term gets longer.

It is still 9% commission.
The buyer picks the period and monthly price that matches their budget.
Sellers could allow buyers to extend payments over 12 months. The new financing tool extends this to up to 60 months and adds a premium if buyers extend payments more than 12 months. The premium ranges from 10% to 30%.
The service fee is added to the total sale price and is equally split between the seller & Dan for managing the transaction.
 
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Sheogorath

Top Member
Impact
1,587
Quote from dan.com TOS:
"7.2 Any commissions may be subtracted from the payment, instalment payment or rental payment and, if these payments are not sufficient, from the subsequent payments. In the event that the domain name is purchased in instalments or rented, the commission subtracted will be limited to the secured instalment or rent payment (e.g.: if the commission is 9%, and the instalment price $100, the Contractor only subtracts $9 from the payout of the Provider for each instalment)."
 
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Yes that is right and that is why I said that lease to own is a good option. If they buyer keeps making payments, ownership is transferred when payments complete. If they stop paying, the domain goes back to control by owner, along with payments already made, minus commission. Your post title is on lease to own, and I think that is wise.

But the reply from intop mentions rentals, another option.

Some places also allow to offer a rent option. Dan used to, I am not sure if it is still an option under Dan 2.0. Epik still offer rental or financing (lease to own) options. Rental is something different. Under that there is a monthly payment, but it is to rent the domain name, not to ever own it. That is what I said was not, in my opinion, in the best interest of the buyer in most cases. An exception would be some sort of short term need, but I have difficulty thinking of many realistic cases.

DS were talking about sale, lease and rental options for domain names at least as far back as 2011, so the idea or renting or leasing is not new, although has become much more common since Dan.

So we are in agreement on lease to own.

Bob
 
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There are some short-term rentals that might make sense for CTAs for a digital sales campaign, e.g., learnmore, takethechallenge, signuphere, getmorefacts. I've seen a lot of this approach lately.
 
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jag81

Established Member
Impact
45
I have had mixed results with it. Few of my payment plans defaulted but on the positive side I recovered more than what I paid for the name and still kept the name. In one case the name sold again via outright purchase few months after the previous lease to own defaulted. So all in all, I think it is a good strategy
 
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frank-germany

domainer since 2001 / musicianTop Member
Impact
14,206
in my experience for low budget domains that would fastly result in abandoned lease
 
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I use the installments program at DAN. I've had 23 such sales thus far. 12 have completed, 9 are in progress, and 2 were abandoned.

I generally do not do them on names under $1,000 as I am too lazy do do the extra recordkeeping and accounting for small sales, and figure under $1,000 affordable for most.

Love DAN, by the way. Nice site, low commission, pretty flexible sales pages, and fantastic customer service.
 
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Rgv89

Established Member
Impact
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What if somebody lease a domain and trademark it?
 
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enterscope

Domain InvestmentsTop Member
Impact
1,283
I haven't had the best experience with lease to own. I get late payments almost every month, and I have since removed payment plans on 80%+ of my domains. Only domains that are 5 figures or more have payment plans and 12 months max. Most are only 3 or 6 months.

My reasoning is that startups can get funding and buy the domain outright. Or secure their own financing and pay in full, that way I end up with the payment and don't have to stress about defaults.
 
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I just decided to turn the "Lease to Own" option OFF for all of my names except the most expensive ones.
Dane, I'd be curious to know the thought process behind your decision. Also, when you say "except the expensive ones," what does that mean in numbers? I'm not challenging your decisions, just thinking it through for me as well. Thx
 
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Dane, I'd be curious to know the thought process behind your decision. Also, when you say "except the expensive ones," what does that mean in numbers? I'm not challenging your decisions, just thinking it through for me as well. Thx
Actually, I have since decided to completely turn off Lease to Own, on all names, regardless of price. I switched to having a BIN price plus Make Offer. If I have to suggest Lease to Own to close a deal during a sales negotiation, I can. But I'd rather it be a last resort sort of thing.

What I would REALLY like is a way for a potential buyer to be able to communicate with us by just clicking a button and sending us a message. I'd also like a way to send a message to a buyer who has submitted an offer before having to submit a counter-offer. Currently we have to submit a counter-offer before we can send a message.
 
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I'd also like a way to send a message to a buyer who has submitted an offer before having to submit a counter-offer. Currently we have to submit a counter-offer before we can send a message.
Agree with this option!
 
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Agree with this option!
Come to think of it, I would really like to find a way that we could communicate with our potential buyers a little bit better. Anyone know of something similar to Efty but not as expensive?
 
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As a developer I would never be interested in renting any domain.

Why? You put all the best effort to go up a proyect with a domain that is not me. The power for all proyect stay in the domain name.
Your leasing to own the domain name.
It's even better for developers..
because if your projects work you will own the domain
If your project fails- you ca stop paying and close the project without losing thousands on the domain that you will no longer use.
 
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frank-germany

domainer since 2001 / musicianTop Member
Impact
14,206
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what if somebody doesn't lease a domain
and trademarks it?
That happened to me. That's when I removed the installment option from all 4,500 names. Forget it.
 
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