advice Lease a domain

[dorje]

hello folks,

I am new in domaining and I need your advice!
i have a 2-word domain...the one word is one of the top cryptocoins, but not bitcoin, and the second word is a good financial word.
so , someone contacted me and he really wants my domain in order to develop it!
i am not interested in selling it right now, because i believe that this domain will increase its value through time and at the moment he is not intended to pay much!
But i proposed to him that i could lease him my domain for couple of years and then he will have the option to buy it!

I have 2 questions:
- what is a fare annual fee to lease a domain ? can i estimate a percentage of its value?

- how i can proceed with the leasing? do you have a sample of a contract and what information shall be included?

thank you in advance!
dorje

 

[Mister Funsky]

When I have the chance to lease, I move the domain to epik (unless it is there already) as they have a great leasing option available that is VERY easy to use. You can set the amount and term (ie. $100 a month for 2 years) and can even have an option to offer it for purchase if you want to offer it to them.

My rule of thumb is 1/100 of the value of the domain paid on a monthly basis.

 

[MapleDots]

If it's a good domain save yourself the trouble and tell him to come back when he can afford it. I know some domainers lease but if I was going to do lease it would only be lease to own. Establish a fair value and divide it into 12 monthly payments. Tell him you will transfer the domain when it's paid off. Also tell him if he fails to make a payment the contract is null and void with no refund.

Good luck

 

[dorje]

@Mister Funsky @MapleDots thank you for your replies!

i had no idea about the epik option!
I really like the idea to transfer it there, and then lease it, because i avoid the contracts etc.

my intention is to lease to own later it to him!
just to help him with his project at his first steps, and then later when he has fully developed it and have some income, he can pay the amount I want.

Any more ideas are welcomed...
thanks again

 

[frank-germany]

I had an offer of $4K USD on a domain
I accepted

he found the lease feature on my page
he leased it for $167 USD
and cancelled after 1/2 a month

I disabled the lease feature

 

[dorje]

@frank-germany thanks for sharing your experience!
Good to know!!

 

[garptrader]

Domainers often like the concept of leasing because it allows a means of monetizing a domain and covering one's portfolio renewal costs. I would look for a quicker payback - say desired price divided by 50 (i.e. $5000 target sales price translates into $100 monthly payments).However, what we often find is that buyers aren't looking to spend $100 monthly on a domain. They are looking to buy the domain outright for $100. While I have offered this option to potential buyers and at times even had it listed on my website I have only had one taker - which only made payments about a year before disappearing. Certainly you want to retain ownership of the domain - just changing the nameservers so the other party can use it. As I mentioned leasing just generally does not work out. There are administrative costs if you have to follow up with a buyer who does not make timely payments. They could get your domain penalized by Google for black hat SEO techniques - what do they care since they are only paying $100/month? In most cases you probably just need to wait for another buyer.