Domain Name Leasing: A Growing Business Model

Who leases domain names? From Silicon Valley startups to the President of Spain, domain leasing is a valuable option for success. But here is a larger question: Will  domain leasing become the norm? Most businesses lease, rather than own, their brick and mortar presence. We believe premium domain name acquisitions will be transitioning to more lease models as well.

Business owners invest significant funds not only in leasing commercial property, but also in customizing that space for their use. Domain leasing is a natural, valuable decision for many cash-strapped startups or temporary marketing campaigns for larger corporations. Domain leasing is often the best match for a company’s given resources and online needs.

As you may know, working with a domain broker involves flexible terms for the given situation. You may not realize that financing options are almost always on the table. Typically, options also include outright lease of domain names or lease to own. Domain brokers negotiate prices and terms for sales and acquisitions, including domain leasing or lease to own.

Media Options regularly negotiates domain leasing and leasing to own, as well as financed deals and lease with option to buy. We structure deals tailored to the buyer and seller’s specific funding scenario. While almost all of our transactions are private, we are able to share a few domain leases which we have brokered within the last year. We brokered domain lease to own agreements for Bnf.com, Law.net, InternetMarketingSolutions.com & TheNet.com. We are also able to divulge that we brokered pure domain leases for Ppi.com and iHospitality.com.

Is it safe to lease premium domain names?

Because domain names are not tangible assets, sometimes a business is hesitant to lease. All Media Options leasing is transparently secured by the Domain Name Holding Service at Escrow.com.

Is Domain Leasing only for Startups?

Well, Target rents & customizes its properties for tens of millions per year- and they’re no startup! No, domain leasing is not only for cash strapped startups. Domain investor Adam Dicker leased a very rare two character .COM domain, ZP.com, to the President of Spain for his successful 2008 re-election campaign.

With the advent of the internet, online leasing and asset sharing are booming business models. Some of the hottest startups today are booming precisely because they are giving a fresh twist on leasing. You can lease movies (Netflix), jewelry (Adorn.com), toys (Pley.com), and bedrooms (Airbnb), so why not domains? How many public corporations do you think are privately leasing premium domain names? If domain leasing will add value for you, let us know, and we’ll work out the details.

 

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