question Renting/Lending Domains

[Steven McEvoy]

Hey NP,
Just had a few questions about this subject it's new to me.
Why would someone rent a domain?

Has anyone had experience with this?

Is there a lot of business that would actually rent a domain?

 

[mhdoc]

I think it sets up a legal limbo where there is little case law and tons of risk. I suspect it makes the most sense for expensive premium domains where there is enough money involved for all the parties to spend serious money on legal representation.

I read a thread, I think on NamePros, where the buyer structured a 10 year lease/purchase that let him spread out the cash flow requirements to make an otherwise unaffordable domain possible.

 

[SpareDomains]

Rent can be used for seasonal domains or as a test run, heard of these happening but never done any.

Lease to own have done a few mainly as a way for them to afford a good domain when they don't have the entire purchase price upfront. Can be done through...

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

Stick the holding fees on the buyer and an iron clad contract doesn't hurt as well to protect yourself.

 

[mhdoc]

an iron clad contract doesn't hurt as well to protect yourself.

I guess I spent to much time around creative real estate financing and sub-prime auto lending to have much faith in the value of "iron clad contracts". If they can't pay they won't. If they won't it costs to much and sucks to much energy to be worth chasing them.

Certainly contracts have their place in preventing misunderstandings, but they don't offer nearly as much protection as I once thought.

 

[infosec3]

I liked the idea when many in the industry started to promote it, but due to the lack of evidence of good results, I no longer believe in it.

 

[biggie]

Hey NP,
Just had a few questions about this subject it's new to me.
Why would someone rent a domain?

Has anyone had experience with this?

Is there a lot of business that would actually rent a domain?

I have leased a few domains in the past and here are some basics:

domains are rented/leased to an entity when that party cannot purchase the domain outright.

the owner will structure a term and interval of payments, typically for a few years and payments are scheduled to be made on a monthly basis.

there are benefits for both parties, as the leasee can utilize the domain with less upfront cash, while the seller will receive monthly payments (+ interest) for the duration of the lease.


if the buyer fails to pay full amount (per agreement terms), buyer keeps the domain and all payments.

imo...

 

[dannyinpt]

I have leased a few domains in the past and here are some basics:

I was thinking about offering one of my names to an Australian chap, who says he cannot afford the asking price but wants the name.

Is there a fairly standard agreement/contract available anywhere online?

What would happen if for whatever reason the name got blacklisted by Google? This has to be a fairly big risk, depending on use and if he were a bit click happy.

 

[biggie]

I was thinking about offering one of my names to an Australian chap, who says he cannot afford the asking price but wants the name.

Is there a fairly standard agreement/contract available anywhere online?

What would happen if for whatever reason the name got blacklisted by Google? This has to be a fairly big risk, depending on use and if he were a bit click happy.

you can search GooG for "lease agreement" and tailor it to your needs.

if the domain is being used within the context of it's keywords, then blacklisting shouldn't be an issue.
but I don't see it being that risky, because the buyer would jeopardize his investment.

imo...