NameSilo

To lease or not to lease

Labeled as advice in General Domain Discussion started by ScalableDomains, Jan 29, 2018.

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  1. ScalableDomains

    ScalableDomains ScalableDomains.com

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    Good morning everyone.

    My business model has been to turn-and-burn if possible. Cashflow is important which keeps the inventory rotating.
    I have recently been approached with a lease option for a Crypto domain name which organization is willing to pay ($XX,XXX) full price however it is for 24 months lease period.

    Pros:
    1. Pay full price
    2. Monthly cash flow of X dollars
    3. If payments default, keep domain name and traffic

    Cons:
    1. Time Value of full payment is not realized
    2. Locked into the lease. Cannot sell at full price or more later to another buyer.
    3. Value of domain name may be worth more for in 24 months.

    If you have some experience with this or any feedback, it will be greatly appreciated.
     
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  2. Recons.Com

    Recons.Com Top Member VIP

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    Lease it, but execute proper contract.

    1. Value: could be more, could be less. You don't know, so let's assume same

    2. Time value: just look at it as 20%-30% discount. There is no guarantee that the name would sell within 2 years and then your time value from this transaction would be better.
     
  3. indiegrind

    indiegrind Established Member

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    I would lock in the deal now if it is at a price you are happy with. Who knows if the crypto market will be hot in two years (and especially the crypto domain market).

    Things heat up with domain categories all the time, but tend to cool abruptly.

    I say lock it in. Make sure there is a default contingency and escrow in place and collect the payments.

    I would however be reluctant to do 24 months on anything less than 6 figures (or at least close to it)

    Payoneer escrow has a great service for domain installment escrow.
     
  4. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    The whole cryptocurrency craze could flop very soon, even if it persists in a different form.
    I think you should strike the iron while it's hot with these kinds of names but I'm saying this without knowing the name if it can make any difference.
     
  5. ScalableDomains

    ScalableDomains ScalableDomains.com

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    Thanks. Makes sense.
     
  6. ScalableDomains

    ScalableDomains ScalableDomains.com

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    Thanks
     

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