Leasing A Domain

[Magicpig2]

Does anyone here lease their domains or know anything about it? Had an inquiry on one of my domains and the buyer along with asking for a price, wants to know how much it would be to lease the domain. If the price is $5000 for the domain, what kind of price should I be quoting him to lease?

Thanks.

 

[jideofor]

Divide that by 12 months for one year lease and see what the figure might give you. Also factor in the possiblity of it being sold wth that time frame wherein the leasing deal would tie it down.

That's why after division, you should add some other related cost... However, be considerate as well.

 

[chickenfillet]

Divide that by 12 months for one year lease and see what the figure might give you. Also factor in the possiblity of it being sold wth that time frame wherein the leasing deal would tie it down.

That's why after division, you should add some other related cost... However, be considerate as well.

You don't lease a domain name by dividing the cost of the domain name by 12 months. That would mean the leased domain would make the cost of the domain name, in just 12 months which is $5,000. Clearly you've never leased domain names before to people with half a brain.

The person renting the domain might as well get a loan from a bank and pay it that way, instead of renting it for $416 per month. Don't rip off people like that, I doubt anyone would pay $416 per month to lease a domain that costs $5,000, unless the buyout price is something like $6,000.

 

[DomainBFF]

I don't even bother with "leasing" per se. In my opinion the best option is to give them the option to finance it. I use Epik and have absolutely 0 complaints.

So if I was in your situation for example, I would sell it to them for $5,000 with these terms:

$500 initial payment via paypal to being the agreement. Then once payment is received, set up the lease in Epik. You can choose between 1 month and 5 years, which is up to you to decide with the buyer beforehand.

Say you decided on 1 year, you would set the monthly payments to $375 with the option to buy out at $4,500. Then for additional terms, "The cumulative lease payments will be applied to principal at the time of the purchase."

So now you don't have to worry about a potential buyer coming along while the domain is being leased. And if for some reason the buyer backs out or doesn't make payments, you still have the domain + $500 + any payments that have already been made.

 

[Name Trader]

$500/month for 12 months, plus a buyout price of $500 for all the admin hassles. But I would also recommend they simply finance the purchase. So be ready to recommend a financeer if they ask. But if they need to base the loan on the domain alone, it implies that they simply cannot get a personal loan. Which might mean a risky transaction. They could simply purchase it on their credit card, provided you protected yourself from any chargebacks.