way to sell domains...

Varchar · Feb 5, 2007

Just want to see what your thought is. I have done this couple times already and it seems like it is a good way to sell domains.

The way it will work is that we would need to first come up with a selling price. For example, $750. I will then expect the buyer to pay me 20% down to use the domain for 12 months; 30% down for 24 months. Within the 12 / 24 months before the lease term ends, anytime buyer can pay the difference and I will change the ownership of the domain to the buyer. If after the lease term and the buyer decides not to buy the name, I will simply take the name back and the buyer will own me nothing.

I also request that the sedo/afternic commission (if any) will have to be split between the buyer and I 50/50 as we both will need to take the risk that the sales will not go thru by the end of the lease term.

This is a great way for buyer to test out the domain before commiting to buy it. What do you think...?

Thanks.

Varchar

mulligan · Feb 5, 2007

And if you suddenly 'disappear'?

You get a big offer for the domain from someone else, meanwhile the person with the 'lease' has built a site on it?

Bill Roy · Feb 5, 2007

There are a few problems with the system, nothing that cannot be overcome (unless outright fraud is attempted by either party).

1) The point made by mulligan above could be solved by the domain name could be 'held' by a 'respected' holding company.
2) The domain would have to be pre-registered for at least the erm of the lease by the owner.
3) Safeguards against misuse of the domain (such as phishing, etc.) would have to be mean immediate cancellation of the lease and a penalty imposed leading to the immediate compulsory purchase of the domain by the leasee.
4) Your lease terms seem to be very generous to the leasee, I would suggest 30% - 33.33% for a one year lease, 50% for a two year lease.

Just my 2 cents worth, but otherwise there is nothing inherently wrong with such arrangements.

Duckinla · Feb 5, 2007

Your terms are overly generous unless your selling price is high.

Is Billbo indicated, you would need to think a few steps into the future. Assume all possible scenarios and all things that could go wrong. And draw up a contract accordingly. Without rock solid contracts something like this could end up in litigation down the road for a number of reasons.