Renting Your Domain Names?

[Big Mac]

Hello everyone. How are you? I've been a longtime lurker here at NamePros. I have three questions for everyone -

1. Is there anyone here at NamePros renting out their domain name? If you are, how is it going for you?

2. Are their any sample contracts available for anyone who wants to start renting their domain names to potential clients?

3. It does not seem (maybe I wrong) a lot of domainers are engaged in renting their valuable domains to potential clients. I understand many want to sell for a high price, but why not rent out? Why not rent your domain names for $500 a month or $1,000 a month to potential clients (corporations, small businesses, local businesses, new startups, etc.)? Is the rental process complicated, too much work or is there honestly no market for renting domain names? I'm thinking besides developing your domain name, renting your domain name will provide long-term residual income, month after month and year after year for you and your family.

I own bunch of domain names (mostly keyword and geo cctlds) and besides developing some of those names into full valuable websites, I also want to start renting out some domain names to diversify.

Thanks For Your Time

 

[Sparhawke]

The main issue I would guess at is the contract and terms as you already brought up, a sale is a sale and the money gained from that can be absolute. there is no messing around trying to convince someone why your domain is worth renting, and no messing around with putting other sites of companies on either.

Once they own it they own it.

One thing that might be of worth though is offering someone use of a domain for a short time, maybe on a wordpress setup that they have the ability to change and let them see the benefit of having a good domain and if they wish to keep on using it then you can work out a deal.

Domains unfortunately just do not have the same image that land does, as the spaces are thought to be infinite (even though they are not)

Even bad land on the top of a mountain will always be desirable to someone because when the floods come it will offer someone a way to keep their toes nice and dry. For the most part people seem to think that if a domain is taken they can throw together any random set of words and have the same experience as enjoyed by others.

 

[GreenGambler]

I have thought about this many times in the past but never really got around to developing the contract or terms and conditions. It is a good idea for some premium domain names though and names that would be used for contests or other temporary promotions.

 

[EGS]

I've wanted to rent some domains from people but it's just absolute BS all the way around. It's hard to gain trust from potential buyers & then again people can always get a domain name that they can own.

Either sell or buy. Renting is inferior in this market unfortunately. Maybe in the future it will have opportunity.

 

[grottofromcanada]

i agree with EGS

you either have it or you dont and the laws of capitalism prevail with domains

 

[SiberForum]

I suppose if you are doing serious business that is not good idea at all to rent domain name.

 

[Big Mac]

Everyone, thank you for the comments. You all gave me something to really think about. However, I think I'm going try my hand at renting. I know, it may be a waste of time, but I have to give it a honest shot.

I may start engaging in renting out some of my domain names sometime in 2011 and that's if I can get my new websites developed properly without to many hiccups.

Thanks again for the great comments

 

[symboldomain]

I think that most companies are reluctant to 'rent' as they would want to invest their time and money in to marketing the domain, and this is a value that the owner could easily benefit from once the rental period is over.

Leasing a domain (i.e. a longer period) makes more sense, but then the domain market isn't mature enough yet for there to be a real market in this. The company who is interested in leasing would also need to pick the name very carefully, and it would probably have to be e.g. a generic, with existing traffic, that could serve to 'help' an existing brand and not become one in its own right.

Other people may have different ideas on this 'though....

 

[GoQuickly]

I thought about this recently too, but what happens in the case that a renter sandboxes your domain name.

 

[main]

I've thought about the concept of renting names too. I don't think any one has mentioned this, but one factor is that whoever you rent it to might be able to build a lot of backlinks whether intentionally or naturally thus increasing the value of your domain for you.

 

[snoop]

This is not something that is straightforward and only works for a limited number of domains in my view

1. Names with type in traffic that an advertiser wants to monetize.
2. Names that the person really wants to buy but can't afford. ie probably names that you paid a fair bit for.

In case 1 the rental price is going to need to make sense, ie a reasonable amount of traffic and the rental price probably need to be roughly in line with revenue now. ie if it earns $5 a year parked then a contract to rent it for $200/mo probably won't last longer than a month.

In case 2 there will need to be a buyout option and the name probably needs to be a category defining type name for it to work. Most people are not keen on the idea of leasing and will only do it if they really have to, if there is no good alternative. It is probably going to happen when the buyer can't afford or justify the kind of outlay required right now but might be able to if the name proves its worth.

Taking main's comment,

"but one factor is that whoever you rent it to might be able to build a lot of backlinks whether intentionally or naturally thus increasing the value of your domain for you."

....webmasters/corporations all know this, they aren't interested in adding value to your domain without the option to buy.

 

[adinfinite]

try rootorange.com. It is a domain leasing service.

 

[cache]

it sound ok in theory, however people rarely do it.