news An installment buyer stopped paying and I’m fine with that

[amplify]

Andrew Allemann reported that he had a buyer for one of his domain names. The BIN was set at $3288, but he allowed for payments of $150 per month over 24 months. The buyer chose the latter and started the payment plan.

After the buyer completed the two-year payment plan, the domain name would then be theirs. However, they only made 4 payments.

Andrew stated that he was fine with it as it took the domain name off the market for 4 months and still let him keep $600.

This got me—and another commenter—thinking about what had just happened.

The buyer got ahold of the domain and had control of it for 4 months. Over that time, it doesn't seem to have done anything, archivable, with it. Though, there could be an unseen toll done to the domain: It could have been used in other manners that got it all sorts of blacklisted. Hopefully, that's not the case.

This all should be thought out when establishing the price and term for installments. While you can still keep the domain name if a buyer fails to complete the payment plan, what they do with the domain in the meantime can have an adverse effect on the domain that could make it undesirable in the future.

If you're going to sell your domains in installments, be sure to price in the worst-case scenario.

I personally would have suggested a 1-year $300 payment plan. This figure is between a family plan for a mobile carrier and the monthly payment on a 5-year loan for a new sedan. What I'm trying to say with that, is that it's in a comfortable region for most people to pay.

Do you accept payments for your domains and how do you price your monthly installments?

 

[Biggie]

Do you accept payments for your domains and how do you price your monthly installments?

Hi

yes, i accept installments and pricing is based on BIN or settled amount and divided by number of months that buyer is able to pay

had a $10K sale, and divided payments over 3 years, plus 5% interest, per year.
buyer paid via paypal.

imo...

 

[amplify]

had a $10K sale, and divided payments over 3 years, plus 5% interest, per year.

So right at about in that "comfort zone" for I'd say, arguably, most people that are in it to start a buisness (around a $300 per month).

I'm interested to know whether they paid it off early or went the full 3 years? Seems to me that a business should be doing well enough about halfway through to get it off the balance sheet and allocate that funding elsewhere.

 

[Biggie]

Hi

they went the full 3 years.

from a business perspective,
making the monthly payments are much lower and may fit better, within their overall monthly expense budget.
in comparison to a larger expenditure, that may put constraints elsewhere

it was an incoming phone call and initially they offered to pay $100 a month for 12 years!


imo....

 

[amplify]

making the monthly payments are much lower and may fit better, within their overall monthly expense budget.

In most cases, right. Personally, I like paying down debt sooner. However, I know that the money can work better for me by not doing so. There's a point where that becomes moot though.

 

[DomainsGENERAL.com]

Though, there could be an unseen toll done to the domain: It could have been used in other manners that got it all sorts of blacklisted. Hopefully, that's not the case.

This all should be thought out when establishing the price and term for installments. While you can still keep the domain name if a buyer fails to complete the payment plan, what they do with the domain in the meantime can have an adverse effect on the domain that could make it undesirable in the future.

Interesting though. Especially as I have myself a domain sold on a 12 months instalment plan (sold through SquadHelp). SH asks for a very first down payment, of it seems 10% of the price, and the rest is spread over 12 month. So initially the buyer has to pay the down payment + the first month, which is 10% + 1/12 of 90% (=7.5%).

17.5% at first, then 7.5% per month (which makes the remaining 82.5% over 11 months). There is some interest (8% of the overall price less the initial 10%?) which comes on top of the monthly payments.

Anyway, their system is a little more though out than just dividing by 12. The 10% down payment may mitigate a little what is raised here, and customers stopping to pay quite quickly. Maybe sellers should implement initial down payments for instalments. It's not as good from a customer POV, but it's better from a seller POV.

As for what may happen to the domain in the meantime, it is probably more a risk with people potentially getting the domain for nefarious purposes (this could make sense: You want to spam like crazy, or use the domain for something illegal while having a great name? You know this won't last. Get the name on instalments!). With "normal" legitimate users, I would think the risk to be quite low. And the potential consequences not too important. It is hard to who may be who, though.

The real question I guess, is how much "permanent" damage can really be done to a domain? The name stays the name. Blacklistings and such can probably be worked out with some time and efforts. Even a well known (bad) incident with the website sitting on it could be seen as advertisement and be used afterwards. "'There is no such thing as bad publicity".

 

[Sumeeth]

Andrew Allemann reported that he had a buyer for one of his domain names. The BIN was set at $3288, but he allowed for payments of $150 per month over 24 months. The buyer chose the latter and started the payment plan.

After the buyer completed the two-year payment plan, the domain name would then be theirs. However, they only made 4 payments.

Andrew stated that he was fine with it as it took the domain name off the market for 4 months and still let him keep $600.

This got me—and another commenter—thinking about what had just happened.

The buyer got ahold of the domain and had control of it for 4 months. Over that time, it doesn't seem to have done anything, archivable, with it. Though, there could be an unseen toll done to the domain: It could have been used in other manners that got it all sorts of blacklisted. Hopefully, that's not the case.

This all should be thought out when establishing the price and term for installments. While you can still keep the domain name if a buyer fails to complete the payment plan, what they do with the domain in the meantime can have an adverse effect on the domain that could make it undesirable in the future.

If you're going to sell your domains in installments, be sure to price in the worst-case scenario.

I personally would have suggested a 1-year $300 payment plan. This figure is between a family plan for a mobile carrier and the monthly payment on a 5-year loan for a new sedan. What I'm trying to say with that, is that it's in a comfortable region for most people to pay.

Do you accept payments for your domains and how do you price your monthly installments?

I would say installments is good option but installments period should be less like 6 to 9 months in my opinion

 

[Biggie]

The real question I guess, is how much "permanent" damage can really be done to a domain?

Hi

the real answer is....
you include usage stipulations for the domain, within the context of the agreement.

also, for descriptive domains like geo's, exact match domains and domains that "speak for themselves", then -
it doesn't make sense for the buyer to use the name in any other way, if they want to capitalize on the market that the name is geared to.

while the domain is still in your possession and until it as been paid in full,
then it is still your responsibility to monitor usage.

if buyer breaches the agreement, then accordingly, you will have rights to take punitive actions, as stipulated in that agreement.

imo...

 

[amplify]

I would say installments is good option but installments period should be less like 6 to 9 months in my opinion

It would all really depend on the price of the domain. Something in the 1000-3000 range could easily be priced as such, but $15,000 is a bit harder as that may be the difference between strategic growth with another partner or not.

Sometimes, you have to work with people too.

I would definitely want a bit more upfront than 10% on a $15,000 name though. I would think an upfront cost of $3000 (20%) is reasonable with $500 + interest over 2 years as that could be a typical business expense to incur monthly. I don't want to burden a business as to not secure a sale, but I also want to maximize the amount received over the shortest period of time because a dollar is worth more today than it is tomorrow, which helps my growth.