Renting domains

[Kingslayer]

How does this work? What is the price you should generally charge for renting domains? I know the price would vary depending on the quality of the name so:-

1) Price of an average domain name per year?
2) Price of an ultra premium domain name per year?

Thanks.

 

[Bram C.]

My monthly lease price is around 1/50th of my BIN price. So for example if I want to sell a domain for $2,500 my lease price would be around $50/month. I do use psychological pricing so I won't ask $50/month but I will ask in that case $49/month.

 

[hxp]

IMO:

Average Name: $xxx-$x,xxx/year
Ultra Premium Name: $xx,xxx/year

When I offer a "lease-to-own", I just take my asking price and divide by 12 or 4 (for monthly or quarterly payments). You could do the same for rentals I suppose. But, maybe divide the answer again by 2. Since they'll never actually own the name.

 

[Domain Lead Finder]

Has anybody actually had any success in renting a domain here? Just curious.

 

[omelet]

How do you manage the cash flow, such as monthly obligated charge/ automatic deposit, and domain ownership issues during the lease/ rent periods.

 

[omelet]

If I sell a $2000 domain to someone, and we come into an agreement that buyer would pay me $200/ month for 10 months. How do you suggest to execute it?Is there any website/ financial service/ domain lease tech company can help do this?

Obviously I cannot push the name to buyer before full payment received, then, how to grant buyer the right to use the name, but not ownership yet.

A lot of questions here. thanks for your help

 

[Jv1999]

renting domains sounds like a good idea. You get some money and the buyer isn't pressured to buy the full price of the domain.

So he can quit renting, and you get to keep the domain + income. And he got to use the domain while not paying full price

 

[hxp]

If I sell a $2000 domain to someone, and we come into an agreement that buyer would pay me $200/ month for 10 months. How do you suggest to execute it?Is there any website/ financial service/ domain lease tech company can help do this?

Obviously I cannot push the name to buyer before full payment received, then, how to grant buyer the right to use the name, but not ownership yet.

A lot of questions here. thanks for your help

You point the domain to their servers, but you don't push/transfer until payments are complete.

 

[WatchDogue]

We took our lowest " acceptable sales price " for a domain and divided that price by 24 - the 24 representing 24 months or 2years.

For a simple example, if the lowest price we would accept to sell an EMD was $2400.00 , we divided that $2400.00 purchase figure by 24 months, or made the domain available to rent for $100.00 per month.

As an aside we preferred to be flexible / agile and in control of domains with our name attached and were in and out of domain name rental agreements rather quickly.

Best wishes!

 

[Jv1999]

You point the domain to their servers, but you don't push/transfer until payments are complete.

But why would buyer agree to that (if it's rent-to-own). I mean you could legit keep taking his $200 / month, then run away with it before the last payment by cancelling.

 

[hxp]

But why would buyer agree to that (if it's rent-to-own). I mean you could legit keep taking his $200 / month, then run away with it before the last payment by cancelling.

Why would a seller agree to transfer the domain before all payments are received? The buyer could pay the first $200, then run away.

I think 99.99% of sellers would have no problem selling a domain for the price that they agreed on. For the last 0.01%, you can draft a legal agreement.

 

[omelet]

this is how I feel. Some even more expensive names such as $20,000.00, buyer pays $1000/month for 20 months.

In which ways of operation can make both buyer and seller out of worries and finally reach into happy business?

Buyer may worry seller not transfer the name in finally; seller may worry something else...

But why would buyer agree to that (if it's rent-to-own). I mean you could legit keep taking his $200 / month, then run away with it before the last payment by cancelling.

 

[omelet]

I mean the domain rent/ lease operation must reply on some third party platform to hold the domain, while manage the cash flow for both parties...

Is there one?

 

[hxp]

I mean the domain rent/ lease operation must reply on some third party platform to hold the domain, while manage the cash flow for both parties...

Is there one?

https://www.escrow.com/services/domain-name-holding-escrow

 

[omelet]

I purchased a name from hugedomain, they actually leased the name to me. They push the name to a third party registry, then offer me right to use it. In the mean time, they charge my credit card monthly..

Domainnamesales/ uniregistry operated similar..

 

[omelet]

https://www.escrow.com/services/domain-name-holding-escrow

thank you

 

[Jv1999]

this is how I feel. Some even more expensive names such as $20,000.00, buyer pays $1000/month for 20 months.

In which ways of operation can make both buyer and seller out of worries and finally reach into happy business?

Buyer may worry seller not transfer the name in finally; seller may worry something else...

Well I see it like buying a car (if the domain is that expensive) or a laptop.

The car/laptop is in your possession while you're making monthly payments.

The same goes for rent-to-own homes. You can't exactly "yank" a house away :P.

But an expensive domain is kind of different. You're letting them use it, yes, but the buyer takes all the risk. You have all their money and you're still holding the property.

If the domain name is worth $2,000, not sure the buyer is willing to go through the courts. Probably small claims court, but that requires going to your physical location....

It feels like the best way to do this would be through escrow, but i'm sure none of us would be happy for a 20-month escrow :/, the buyer can still run away there...

i'm glad you guys found buyers who agreed to the deal, but if I was the buyer I'd be kind of hesitant.

 

[omelet]

https://www.escrow.com/services/domain-name-holding-escrow

but look like little expensive

 

[omelet]

does paypal offer monthly automatic charge?

 

[hxp]

but look like little expensive

$25/month is pretty cheap, IMO.

You're most likely going to rent domains at $xxx-$x,xxx/month. If the rent is $xx, you might as well buy it.

Also, you don't have to use/pay for the service. The escrow service is an option for the buyer, if they don't trust you. It should be the buyers responsibility to pay for that option.

 

[joro001]

Renting domains is something i've personally tried on a number of occasions to do for some projects I was working on and contacted the domain owners asking if they would lease the domain/s in questions. The general reaction was maybe if you prove what you will build on the domain and pay xyz per month (big 4 figures).

I can tell you even then with the best marketing strategy in the world provided, owners of premium domains prefer on the whole to not lease their domains out even if they would make more money that way then by parking. I guess they are scared the domain won't be used as stated or prefer to have it forwarded to a landing page they can control etc.

Had 2 attempts fail this month alone so can safely say it's not easy to secure as a buyer. As a seller with the ultra premium domains it's easy to do as inquiries will come in anyway and if you're nervous you can use escrow.com's service. Up to mid 4 figures monthly would work for great names with substantial type in traffic, and less for premiums and then even less for average names of course.

 

[WatchDogue]

We had several keyword / EMDs in a niche marketplace and declined several straight out " rent " offers
( not rent - to - own offers ) as we were concerned about - how/ what content / links - would be developed on a name we owned but whose content wasn't ours.

We did "rent" as I recall for short periods by simply pointing / re-directing niche EMDs to existing websites in line with the EMDs.

 

[Bram C.]

It's important to make a difference between lease-to-own (which is basically a payment plan) and simply leasing a domain (which can go own forever).

For payment plans (lease-to-own) I take my asking price, divide by 11 and let the buyer do 12 monthly installments (so I basically get some additional money since I'm not getting it in one lump sum).

For leasing I take my asking price and divide by 50.

I have both options on my landers.


So let's take the example of a domain with a BIN of $2,500:

Lease price in this example would be $49/month. Nameservers will be changed after first monthly payment so the buyer can immediately use the domain. Buyer continues to pay this monthly fee until he doesn't want to use the domain anymore, after that the domain is mine to sell again.

Payment plan (lease-to-own) in this example would be $229/month for 12 monthly installments. Nameservers will be changed after payment of first installment so the buyer can immediately use the domain. After all 12 payments have been made the domain will be transferred to the buyer. If he stops paying (before all installments have been fulfilled) the domain is mine again as well (I make sure the buyer signs a contract that stipulates that).


My sales terms and lease contract state the following:
Spam, abusive or illegal content are not allowed on any of our leased domains and can be reason for immediate termination of the lease contract.

I make sure the buyer agrees to that before I change the nameservers.

 

[Bram C.]

Has anybody actually had any success in renting a domain here? Just curious.

Edit: I just checked. I'm currently leasing only one of my domains. The lessee of another domain that I was leasing stopped paying a few months ago so that lease contract stopped. But I have leased many domains in the past.

 

[BrandClub.com]

If I sell a $2000 domain to someone, and we come into an agreement that buyer would pay me $200/ month for 10 months. How do you suggest to execute it?Is there any website/ financial service/ domain lease tech company can help do this?

Obviously I cannot push the name to buyer before full payment received, then, how to grant buyer the right to use the name, but not ownership yet.

A lot of questions here. thanks for your help

We offer Rent-To-Own payment plans for all our domains and all managed via ESCROW.com
See more here: https://www.escrow.com/services/domain-name-holding-escrow

Hope this helps

The buyer can start using the domain immediately by pointing the Name-Servers to his hosting.