Renting domain names

[qpone]

Does anyone know of guidelines for the pricing of renting a domain name? What is a reasonable price to charge/to pay on a monthly basis and how long is the normal contract.

Any thoughts?

Thanks.

 

[Spade]

Its a difficult question to answer, simply because domain values are highly subjective.

First, you need to value the domain name. Lets say hypothetically, the domain name is valued at $5,000. Thats making the assumption that I would sell it at that price instead of leasing.

If the customer wanted to lease it, I would divide the sales price by 24. Breaking it down over 2 years. This leaves you at $208 per month based on that pricing schematic.

Personally, I wouldn't go less than $200 per month, simply because it becomes a bigger hastle to collect money then its worth for anything less. I would also put an air tight contract in place, that covers all circumstances, its a problem I ran into on a payment plan earlier this year.

 

[Kamikaze]

...I would divide the sales price by 24. Breaking it down over 2 years. This leaves you at $208 per month based on that pricing schematic.

Spade, why 2 years and not one ?!

 

[Spade]

Spade, why 2 years and not one ?!

The lease doesnt have to be a 2 years, but if I am a customer and I am paying the same price to buy the domain name over a year, I would likely just purchase the domain name instead of leasing. If its going to cost me 24x my monthly payment to buy, Im likely just sticking with the lease.

 

[InternetMoney]

I would like to lease domains to others. For many reasons I think it hasn't become very popular. First, domains are relatively cheap, not exactly as expensive as realestate that is often leased.

A few problems come to mind. You mentioned the obvious of price. But other problems such as, what if the one leasing does something to degrade the domain, like spamming or criminal activity.
Why would someone put a large some of money building the domains traffic particularly if it's near when the lease ends? Or creating a lot of unhappy customers that want to contact the owner which is the domain owner particularly after the lease ends.

If a good model for leasing can be created it can be a good deal and would increase the values of domains.