Leasing instead of selling domain
 

Hi folks,

I had a decent offer come in through sedo on a cam related domain I've had for a few years which I was planning to develop and am retiscent to let it go. While toiling with the idea of letting it go I wondered if anyone had gone down the route of leasing a domain instead of selling it? I'd be happier with some kind of nominal revshare arrangement than to get rid of it completely all the while it is not being 'used'... but I guess that doesn't exactly favour the buyer - it'd have to be a pretty long term arrangement with no nasty surprises.

Not being particularly well versed in the domain industry, does this sort of thing go on, or is it all just sales? Aside from having to get a lawyer onto the fine print, is there anything fundamentally wrong with the idea of leasing a domain?

Thanks for any help.

HuntingMoon has dozens of active & completed Lease-to-Own deals out there. If you are just leasing and not selling then you could run a test with a sponsor and sell them the traffic for a monthly fee, or pick a flat fee per month to offer your name at.

I don't see how the lease would be beneficial for the other party.

I see how it could work great for you, you get revenue now and get to keep the underlying asset, but I don't see how it would work in their interest to develop a domain that they won't ever own.

Thanks for that. I guess ultimately I don't want to sell it short. Fundamentally that means I should really develop it myself so the income is whatever I can produce but it is tempting to sell off... at the right price. Hence why I thought leasing it would give me a slice of someone's else's efforts, which is perhaps a bit cheeky.

Thanks for the link...

The domain is camfun.com FYI... traffic very light (nearly all google) as site is literally one page of links currently. I wonder what you guys think it's worth?

Hi Pat,

I can help with the contracts for rental...lease...lease to buy etc and valuations...shoot me over your details to [email protected] or icq 494318698

Ps.. I have camsfun.com if it interests you.

Thanks

You should make a white label website using VideoSecrets they look great and convert sales. For example here is one that I launched live this week. WebcamCams

Your domain is pretty good since it is a short 6 letter domain, can also be brandable, not sure what it would be worth to someone. As far as someone leasing it from you, if the domain had traffic someone would, but I doubt anyone would long term...since they would not want to build a brand with someone else's domain. for example allposters. com used to lease posters .com for type in traffic, but still kept their brand allposters. I would try the white label to see if traffic builds.

I actually just realized you could consider a domain similar to commercial real estate...

I wouldn't say domain leases never happen, but they are a rarity. The main reason is it is risky for a lessee (tenant) to develop someone else's domain.

Domain law is still evolving. The law surrounding real estate is far better settled.

Which is why anyone with half a brain would never go this route, because they know the minute they start to monetize the domain, the owner will probably pull a fast one and pull it back.. :2 cents:

There would probably be some tax and cash flow benefits: a monthly service fee that can be deducted rather than getting a loan for outright purchase, fiddling around with depreciating an asset over time, etc.

As a "tenant" you'd probably want an ironclad contract and the owner's legal jurisdiction being close to yours...

This is basically the way I saw it yeah. I'd not want to allow someone to develop it then steal their content, that's clearly not right - hence why it'd be long term and with a set of suitable 'get out' clauses which doesn't hurt either business. It's funny, next week I'll be signing a lease as a commercial landlord for the first time, so I must be obsessed with holding onto things right now.

Nice to hear from you rowan btw, it literally has been years.

Hmm what to do... anyone here want to beat the offer ($10k)? :winkwink:

If the offer is 10k take it unless you have major plans for it....then hit me up for camsfun.com :winkwink:

What's the domain?

The domain Pat is talking about is camfun....

Hmm not necessarily major, but it's doing relatively well in the search engines considering it's one page - if I made a little content there's some definite webcam cash in it...done it before, and made more than the offer in a month, I'm just slightly lacking motivation right now :)

Saw your asking price for camsfun.com... does make the $10k seem fair for camfun.com. I might let the offer slide and hold onto it for a bit, but thanks for the :2 cents:

I would be interested in leasing a cam domain specifically. Revshare would not be a problem if the domain brings something to the table.

Please ICQ me at 597472742 or let me know an email where I can reach you.

Looking for long term of course.

Thanks

You should purchase camsfun also if you have the opportunity now if you plan on developing it in the future. Otherwise someone might be able to take advantage of some of your traffic. Even more so if you plan on a mainstream site. :2 cents:

Leasing a domain would make sense if 2 things are present a) it is a typein or branded domain that already gets some highly targeted traffic and b) you have a tight contract with whoever is leasing so neither party thinks of brutally inserting his penis in the other party's anal orifice (without consent, of course).

Hey $5, how many hours do your $175 leased writers work?

It also happens that sometimes a company doesnt have the large one off amount required to buy a name and finds it easier to spread it over a period of time.....Another reason is thta someone may wish to try a project and is not totally 100 percent confident in its success , so in leasing a good name they can try it and if it fails they dont get left with a expensive domain.......

Aha, I just figured out who pat is... took a bit of head scratching until I loaded up camfun.com and recognised the look n' feel. It HAS been a while. :D

If anyone is interested in camsfun ,let me know as its going off to auction today....thanks

Yes many domainers treat and deal with domains as if its real estate ...both share simlar attributes..

My layman guess is a strong contract could overcome all legal issues. Check with your lawyer. If you need a good internet lawyer, email me for a recommendation.

Once you consider the fees on a lawyer worth salt-- it's not worth it.

Leasing a domain can be worth it to the leasee, and I'm not talking about developing I'm talking redirecting it straight to parking or to CPA. Often it's a lease to buy situation that's beneficial to both parties.