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Leasing Or Selling domains? What's Best?

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Does anyone lease domain names?
 
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I've never even heard of the term "leasing" domain names. Can you explain how that would work?
 
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I have occassionally seen ads (usually in forums) where someone offers to lease a domain name for a fee for a fixed period. It isnt very common.

In essence every registration you make is really a lease, with an option to re-lease if you wish at the end of the term The "property" in the domain is never really relinquished by the registrar.
 
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never heard of leasing either, if their is leasing then i would lease cause if a domain would get popular you can overcharge or take the domain away :). that would be bad for the people that lease it
 
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domain licencing

i have a couple "leased" or "licenced" and i think its going to be a good option in future for really top quality domains.

mine are geographical domains but i cant disclose which ones unfortunately.

it costs about 3,000 in legals to set up an agreement.

basically they pay you a yearly fee + 5% annually to use the domain name.

i am leaning more and more to this system, but as you can imagine its tough to convince people.

hi redz,

you agree on a yearly fee (forever) at the beginning say $100 and add 5% for inflation and away you go. it can only be taken back if its used in bad way such as child porn or a racial hate site etc etc.
 
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o ok, tnx for informing me, didnt know about leasing.
 
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Hi Folks,

You can also lease a domain with a option to buy.

For example say you have a domain you are asking $5,000 for, someone approaches you to use it.
You agree to lease the domain to them for $500 a year, during this time you agree not to sell the domain. Also the can at anytime during the lease agree to buy, in which case you subtract the amount them have paid in leasing ( less a processing fee in some cases ) and that is the price they buy at. So if they had leased it for 3 years they would have paid $1,500 so can then buy the domain for $3,500.
This gives them the chance to see if their business works without investing the full amount straight off.

Please note that this is only a very rough example just to give you an idea, the actual numbers would most probably be different.

Wishing you all the best

Richard
 
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i like it!

thanks richard,

i will try that approach on few domains, it seems like a good sensible option. i should have thought of it before.

thanks again :great:

p.s richard i also live in a "shack on the beach", i love my turtles :)
 
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Interesting thread. Never knew of 'leasing domain names' before.
 
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Not a bad idea to lease domain names :imho: I might consider that.
 
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mine are both australian, but i ithink the lawyers could work something out for an international agreement depending on the countries, i guess.
 
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I'd be surprised if anyone would want to lease a domain, unless it was very long term. Other you'd be just creating traffic for the owner to make use of when the lease was up.
 
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I am almost certain that beef.com, for example, was leased for a while.
 
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People don't want to build a site on a name that is leased. It doesn't make sense for someone to build a brand and cultivate traffic to a name they don't own. It's too risky. However, if you have a name with good targetted traffic, you may find someone who will lease it on a monthly or yearly basis for more money than you make in PPC revenue. They will in turn forward the domain to an existing site of theirs, thus milking your domain. If the traffic doesn't convert for them, they will quit leasing rather fast.
 
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newyork.com

hi bill,

your probably right but imagine if you owned newyork.com or london.com and they really really wanted to use it. and the only way they could was to lease it from you. :)

they would have no choice really :imho:
 
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billinchina said:
People don't want to build a site on a name that is leased. It doesn't make sense for someone to build a brand and cultivate traffic to a name they don't own. It's too risky.
I do not agree. Little signed agreement will beat the risks. As previous poster said, sometimes leasing is the only way of using domain name.
 
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Most people will find an alternative name they can own, believe me. Leasing to own is also a possibility, but that is usually just for the sake of financing their purchase. Even with signed agreements, things can go wrong. When everyone starts to realize the true value in domains, like they do 5th Avenue, then perhaps there will be more people willing to lease names.
 
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You might be so attatched to a domain name that you would wish only to lease the domain name and continue to have full ownership of the domain name.

It probably depends on how valuable the domain name is to you, as an asset.

- Luke
 
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