Downside Of A LTO Sale: Investor Bought It And Relisted The Domain For Sale (6.Viewing)

If the domain was leased from atom, then buyer isn't allowed to relist it for sale at any marketplace. Good policy


I don't know where the buyer leased the domain from: Domain is at GoDaddy

silentg said:

https://twitter.com/x/status/2042292125279133884

Click to expand...

Probably leased by someone with insider knowledge, knowing the company can pay a bunch more than the current price. So if you're a board member or CEO or CTO or whatever, you lease the domain, jack the purchase price, approve the sale with corporate money, then pocket the difference.

Can you try to sell a domain you bought on a lease-to-own plan?​

Atom’s terms forbid it. GoDaddy’s terms don’t.

Can you try to sell a domain you bought on a lease-to-own plan? - Domain Name Wire | Domain Name News

Who's right GoDaddy or Atom?

I don’t see an issue with it. Have done it with huge domains

On the surface, its the kind of thing where you might say, what's the big deal, the original seller gets exactly what he asked for, and the middle man is arbitraging a potentially underpriced asset, and paying for that privilege. Win-Win. Right?

However, there are two potential issues, one you might care about, and one you SHOULD care about.

1. The scenario where a person is injecting themselves as a middleman and taking a cut of the sale. If its a common commission, I guess then its not a big deal. But if its a CEO who approves the final price for the company buying it, and he's the secret lease holder and seller, then that's scammy and I wouldn't really want to be a part of it, even if it doesn't affect me. Basically its a scenario you may or may not care about. You may just be happy for the sale.

2. If the lease holder is contacting trademark holders for outbound sales attempts, you could get hit with a dispute, and they could use that against you - its not a situation you want to get pulled into and risk your asset. If it does, who do you go after, the platform or the lease holder? Sounds like a nightmare to me.