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I was attempting to purchase a domain from someone who had inherited it so to speak from his father. There is no site and it is not parked.
He wanted more than I felt the domain was worth on the open market but I am able to monetize it very well as it is one of the products my stores sell. it is a generic, single word product name.
At any rate he wanted to lease it to me for a year (minimum) with a buyout price at the end of the year. Further he wanted to participate in the profits during the first year.
So I offered to pay $600/month and 20% of the net profit with full disclosure. At the end of the year I would be able to purchase the name for low $xxx,xxx or I could simply walk away.
The amount I offered as the buy out was close to what the seller was looking for but a little less however the lease payments and the profit sharing would probably bring the total to more than he was originally looking for.
He decided that he wants to simply lease me the domain, participate in the profits and NOT sell.
He also stated that to make sure I am serious he would like the first couple of months to be low $xxxx and lower profit sharing and then lower the lease payment and raise the profit sharing.
I am wondering if I should just go ahead with it? I know I can monetize it very well. In fact I am sure I can do at least $100k per year to start however I will also be branding the crap out of the name. It will be in all types of national media and I can just about guarantee it will go to the top of all the search engines due to my content etc.
So, if you are familiar with domain leases please share your insight.
Thanks very much.
John
He wanted more than I felt the domain was worth on the open market but I am able to monetize it very well as it is one of the products my stores sell. it is a generic, single word product name.
At any rate he wanted to lease it to me for a year (minimum) with a buyout price at the end of the year. Further he wanted to participate in the profits during the first year.
So I offered to pay $600/month and 20% of the net profit with full disclosure. At the end of the year I would be able to purchase the name for low $xxx,xxx or I could simply walk away.
The amount I offered as the buy out was close to what the seller was looking for but a little less however the lease payments and the profit sharing would probably bring the total to more than he was originally looking for.
He decided that he wants to simply lease me the domain, participate in the profits and NOT sell.
He also stated that to make sure I am serious he would like the first couple of months to be low $xxxx and lower profit sharing and then lower the lease payment and raise the profit sharing.
I am wondering if I should just go ahead with it? I know I can monetize it very well. In fact I am sure I can do at least $100k per year to start however I will also be branding the crap out of the name. It will be in all types of national media and I can just about guarantee it will go to the top of all the search engines due to my content etc.
So, if you are familiar with domain leases please share your insight.
Thanks very much.
John