Business, Investment

Domain Name Leasing

Domain name leasing is better than renting out a house or shop. There is nothing to repair, and the cost is only an annual registration fee of $35 or even lesser amount depending on the registrar.

Why does anyone consider leasing?

  • Could not afford to pay the high price to acquire a very valuable domain.
  • The domain owner has no plans to sell but will consider leasing.
  • The domain name must be inherently valuable, such as a short one word domain name and related to a lucrative product or business sector.

This seem to work very well in the early days of dot-com peak, and an example is Nick Koustas’s deal with Xpays in 1996, a major porn company, to rent the domain name Smut.com for the next 20 years. According to Koustas, he has earned more than a few million dollars, in the form of monthly fees and percentage of the website revenue.

One word domain is easier to market and remember, especially when it creates value and good reasons for visitors to go there. It is like, once you know Amazon.com, you do not need to go to Yahoo.com to search for it.

Which Website Platform Support Domain Leasing?

So far we only came upon one Registrar that seem to take domain leasing seriously. Epik has a blog about domain name leasing, and their marketplace has the leasing function built-in, so sellers and buyers have a choice to lease or rent a domain.

This looks rather impressive, and I am considering to move all of my parked domains over to Epik.com.

We found another few websites at BuyBrands which deal with domain name leasing:

  • Dan.com
  • Escrow.com

The above is only for future reference, as I have not checked them out yet.

Once a while, we also stumble upon websites where companies offer to lease their domain names. 

Is It Easy To Find People To Rent Domain Names?

Domain name leasing sounds like an easy way to make passive income, but in reality getting a domain name leased is very hard unless it is the rare few generic words that is in a lucrative business sector. This could explain why we could not find marketplace websites that specialized in providing a platform for users to lease their domain names.

Most of the people would simply select another domain name and invest the money into marketing instead. The advantage is that at the end of the day, the marketing effort goes to promote the value of a domain name that you own perpetually.

Are Generic Domain Names Really Help Make More Money?

Those domain name that reference directly to a specific product category seems to be worthy, such as cars, bikes. However, some company may even point a generic domain name to an even longer domain name. For example, bread.com pointed to http://www.innovativebakeryresources.com

Some companies even pointed a generic dot.com domain name to their country level domain name, probably because they only serve the local market. By putting in local domain name, e.g. .AU for Australia, it may get better attention from locals.

On the other hand, adjective names may depend on the word. Most of the time, it requires the website to create special value out of it.

The following are very straight forward. You know what they have by just looking at the domain name.

Some of these names may be hard to lease out because they will be very expensive to lease, but yet we do not see any reason for the owner to go cheap either. As of this writing, the following have no takers yet.

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