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  1. #1
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    Domain Name Leasing

    Over the past few years, I've purchased a number of domain names of which I've developed some, parked some, and allowed others to remain dormant if they stand no chance of generating any parking revenue. I had initially registered all my domains with the intent to develop, but as the saying goes about best laid plans.... life caught up with me and my pace has slowed considerably.

    I've received offers for a number of my dormant/parked domains and have generally declined because I do intend to develop them "some day". Since so many people see domain names as real estate I started thinking about the possibility of leasing domain names to interested parties rather than selling outright. That way, I could generate some income from the name while still retaining the rights should I ever come around to developing.

    Without arguing the merits of taking the cash now for a domain that produces no income, does the concept of leasing domain names exist and has anyone had any success with it? If so how were the terms structured. Any limitations that particialuarly stand out?

    The downside I see is to the lessee, should I decide upon lease expiration to take the name back.

    I always see great insight posted on this board and welcome your thoughts on the topic.

  2. #2
    phpLD Fanatic bronze trophy dvduval's Avatar
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    I think the hardest part of the sell is convincing the buyer to devote a lot of work into a site they may have to give up later that you might then profit from them. I could imagine a turn key type leasing program working where there is already a profitable operation in place.

  3. #3
    SitePoint Evangelist Fergal's Avatar
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    Quote Originally Posted by dvduval View Post
    I think the hardest part of the sell is convincing the buyer to devote a lot of work into a site they may have to give up later that you might then profit from them...
    Very true, but isn't this similar to what happens with real property? Eg if you rent a bar to someone and they build up a quality trade to that location.

    Perhaps a long term lease backed with a legal contract could overcome this.

    I work in a real property business and am very interested in this subject.
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  4. #4
    Programming Since 1978 silver trophybronze trophy felgall's Avatar
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    You have only leased the domain in the first place. All country specific domains belong to the appropriate authority in that country and all international domains belong to ICANN. Since you have to pay an annual fee for the lease you would have to make sure that you have leased it far enough in advance before you sub-lease it to someone else for that period.

    Also note that some countries do not allow domains to be transferred or sub-leased as they are only aloowed to be used by the original leasee.
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  5. #5
    phpLD Fanatic bronze trophy dvduval's Avatar
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    If the domains are super good, you might have a little more success too. For example, I know a guy that had diamondrings.com for a while. that sort of domain would be more leasable.

  6. #6
    SitePoint Enthusiast rj2kix's Avatar
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    just get into something where you have the control you desire in your terms specified

  7. #7
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    I agree with dvduval, this is fesable only if the domain names are really good.
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  8. #8
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    I think that in order to make this work, you do need to grant some kind of first buying rights to the lessee, otherwise I can't see anybody invest time, effort and money into a website with the risk of losing it all if the owner feels like it. I wonder if leasing domains is legally waterproof.


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