Pitching the Lease

[Spade]

I get offers from time to time. Lately, most of those offers are in the low to mid xxx range. If I find someone I'm willing to negotiate with, but we cant quite seem to meet the right number and Im starting to pitch a possible lease.

I mean, why not? If the are willing to go for it - it should always bennefit you.

For example, I am working on a deal right now where the potential buyer claims to only need the domain for a short while. Their best offer is $300. My asking price was $500. They also claim they only really need the domain for two months, so they don't want to pay that amount.

I countered back with a lease arrangement. For $120 for the two months and $60 for each month after. I also included an option to buy within a certain time frame (12 months).

Bennefits:

1. More Reoccurring Revenue. The domain makes little parked, so $60 per month is a drastic increase.

2. Even if the domain is short term ($120 for 2 months). It returns to my portfolio only to be sold again.

3. New owner even if he only uses it temporarily, builds value by creating traffic.

Downside:

1. Making sure the client pays. Most domainers dont have merchant accounts and thus would need to accept payment via paypal. (although, setting up a subscription button for this would seem like the best approach).

2. Your locked to the contract. If another party comes along that wants to buy, you must wait for the contract to expire or if the lessee breaks the contract.


In economic tough times, I think leases might be a nice secondary pitch if an end-user isnt willing to pony up the money. Dont be afraid to push it, that may even make them want to just buy at full price!

 

[kev]

Another technique is to agree upon a price and get him to pay it in installments over maybe a year. Ive got two on-going deals like this

 

[Ms Domainer]

Another technique is to agree upon a price and get him to pay it in installments over maybe a year. Ive got two on-going deals like this

*

Do you retain ownership of the domain until it's paid up?

I would think that if the buyer defaults, you would have a default clause in which you retain ownership should the buyer stop making payments.

*

 

[End User King]

Another technique is to agree upon a price and get him to pay it in installments over maybe a year. Ive got two on-going deals like this

Definately retain ownership. Kev btw, would you barter for those
MJ tickets?

 

[garptrader]

Another possibility is to forward the domain traffic to the leasee's existing site or any domain they wish. That way you retain control but they can still market the name and utilize existing traffic during the lease term.

 

[Steven]

How much will all the legal fees cost to make a legit contract, get it reviewed, etc?

How would you go about doing this? I'm interested in this concept.

 

[banners]

Just have him pay. Agree to point the domain where ever he wants it while it is being leased. Just make arrangements so that you can redirect the domain name in a timely manner if needed.

I see no problems with something like this. IMHO you really do not need to waste your time with legal BS with such a small fish deal. They can rent it for the 2 months or whatever. Just make sure they are not going to do anything shady with the domain name.

This is really simple if you ask me.

 

[Ms Domainer]

Another possibility is to forward the domain traffic to the leasee's existing site or any domain they wish. That way you retain control but they can still market the name and utilize existing traffic during the lease term.

*

You could even change the nameservers to the buyer's website, while still keeping the domain in your name and account (during the length of lease or until the buyer pays for the domain in full).

Of course, this assumes a trustworthy seller and buyer.

Still, a contract that would protect both buyer and seller would be needed.


*

 

[Spade]

How much will all the legal fees cost to make a legit contract, get it reviewed, etc?

How would you go about doing this? I'm interested in this concept.

Frankly, I would simply create a reocurring subscription through Paypal. Simple enough. Worse case scenario, I would find a generic contract if need be.

*update

The domain will not be leased, we are still hammering out a sales price. But the pitch for lease may have helped up the final sales price.