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: AntiCybersquatting Consumer Protection Act Blog

Domain Name Lease with Option to Purchase

By Enrico Schaefer

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Elliot?s Blog » Blog Archive » Lease to Own a Domain Name

In a situation like this, I think a lease-to-own offer would be a smart way to negotiate to buy the domain name. I advised the potential buyer that it might make sense to offer the owner $7,500/year for 3 years with a $100,000 option to buy in year 4. I would imagine this would placate the owner because he will eventually realize his asking price, and he will also earn 50% more revenue for the next 3 years. The buyer would then have 3 years to try and monetize it better to justify the asking price. If he fails after a year, he can revert to the owner?s parking strategy and lose just $5,000 in years 2 and 3, as the name would earn $10,000 and he is on the hook for $15,000. If he had originally agreed to the asking price, he would be out $100,000.

Full post as published by AntiCybersquatting Consumer Protection Act Blog on February 19, 2008 (boomark / email).

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