Domain name rental instead of sales. (1 Viewing)

789xyz

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I prefer to rent out domain instead of selling them because I view domain as collectibles rather than commodities. AI and Web3 are developing much faster than I imagined, and the value of high-quality domain is bound to skyrocket, becoming true “Virtual Real Estate”.

With the rise of artificial intelligence, blockchain wallets, Web 3.0, and the Internet of Things, domain names will become one of the most valuable virtual assets. They possess global uniqueness and serve as the trusted gateway for potential customers, representing your online brand, customer service contact, or even company payment or donation address.

I hope everyone will advocate for the concept of domain name rental instead of one-time sales.
 
Well, I think rental might work for some limited scenarios, but not for most.

For example, some generic keyword domains, so say you're in the insurance business and you have an existing brand, but you also want AutoInsurance.ca - kinda like TravelInsurance.ca is operated by a big brand insurance company (I just looked and its Allianz). It's a massive company and brand. But believe it or not, I've bought travel insurance from them on multiple occasions and yet I can never remember the name allianz - but I always remember to simply go to travelinsurance.ca. So in a rental scenario, a company like that could justify renting out a domain like AutoInsurance.ca, but I think they'd insist on some serious caveats, such as IF and ONLY IF they were given the option for a long term lease with known price increases. They're not going to want to hitch their name to the domain name to only have it go to their competitors site a year later, or have the price jacked 100X a year later either. So they would want guaranteed right to renew and probably pricing security as well, and of course a ROFR to buy it if the owner does decide to sell it. So a rental scenario could make sense for a major brand with these constraints.

If the rental agreement is for a domain with traffic, then most companies would prefer an affiliate program rather than renting a domain, this way they confirm the traffic converts to sales, not just buying crap traffic. So I don't think a rental would work in that case because they'll always want to use the affiliate type arrangement to guarantee they're not getting played.

For a brandable 1-word dictionary word domain, there's no way most businesses would ever rent out their primary brand name. It takes a serious investment to educate the public about your brand and what you do, and they're not going to commit all that to a name they don't even own. Big businesses rarely seem to even entertain the idea of a lease-to-own let alone a straight rental agreement. There's just too much at risk, too much invested in the brand to let its ownership lay in some domainer's hands.

Rent might work for low level domain names. Lets say you've got {smalltown}Insurance.ca. Maybe they can't afford to pay a $10K asking price. And maybe even a $400/mo 2+ year payment plan seems steep to them as a new business. But maybe you're willing to rent it out for $100/mo (or whatever) indefinitely, maybe they would agree to that? I seriously doubt it still because in my experience even small businesses don't want to invest in their brand and not own it, but maybe? Like maybe they only plan to be in the business short term anyways? I don't know. I'm skeptical on that one. It's a hurdle to get them to be trusting enough to agree to a payment plan. A rental plan raise that hurdle even higher.

What has been your experience renting out domains? Please give examples (not exact domain if you prefer, but type of domain, similar to, etc, etc) and the pricing levels you're talking about. I would be curious to know if anyone has ever had any real success with that model, and in what scenarios does it actually work.
 
Well, I think rental might work for some limited scenarios, but not for most.
好吧,我认为租赁可能适用于某些有限的场景,但不适用于大多数。

For example, some generic keyword domains, so say you're in the insurance business and you have an existing brand, but you also want AutoInsurance.ca - kinda like TravelInsurance.ca is operated by a big brand insurance company (I just looked and its Allianz). It's a massive company and brand. But believe it or not, I've bought travel insurance from them on multiple occasions and yet I can never remember the name allianz - but I always remember to simply go to travelinsurance.ca. So in a rental scenario, a company like that could justify renting out a domain like AutoInsurance.ca, but I think they'd insist on some serious caveats, such as IF and ONLY IF they were given the option for a long term lease with known price increases. They're not going to want to hitch their name to the domain name to only have it go to their competitors site a year later, or have the price jacked 100X a year later either. So they would want guaranteed right to renew and probably pricing security as well, and of course a ROFR to buy it if the owner does decide to sell it. So a rental scenario could make sense for a major brand with these constraints.
例如,一些通用的关键字域,所以假设你从事保险业务,你有一个现有的品牌,但你也想要 AutoInsurance.ca - 有点像 TravelInsurance.ca 是由一家大品牌保险公司运营的(我刚刚看了一下,它的安联)。 这是一家庞大的公司和品牌。 但信不信由你,我曾多次从他们那里购买旅行保险,但我永远不记得安联这个名字——但我总是记得简单地去 travelinsurance.ca。 因此,在租赁场景中,像这样的公司可以证明出租像 AutoInsurance.ca 这样的域名是合理的,但我认为他们会坚持一些严肃的警告,例如 IF 和 ONLY IF 他们可以选择长期租赁,已知价格上涨。 他们不会想把自己的名字挂在域名上,只在一年后让它进入竞争对手的网站,或者一年后价格被抬高 100 倍。 因此,他们希望有保障的续约权,并且可能还需要定价证券,当然,如果所有者决定出售它,ROFR可以购买它。 因此,对于具有这些限制的主要品牌来说,租赁方案可能是有意义的。

If the rental agreement is for a domain with traffic, then most companies would prefer an affiliate program rather than renting a domain, this way they confirm the traffic converts to sales, not just buying crap traffic. So I don't think a rental would work in that case because they'll always want to use the affiliate type arrangement to guarantee they're not getting played.
如果租赁协议是针对有流量的域名,那么大多数公司更喜欢联盟计划而不是租用域名,这样他们就会确认流量转化为销售,而不仅仅是购买垃圾流量。 因此,我认为在这种情况下租赁是行不通的,因为他们总是希望使用联盟类型的安排来保证他们不会被玩。

For a brandable 1-word dictionary word domain, there's no way most businesses would ever rent out their primary brand name. It takes a serious investment to educate the public about your brand and what you do, and they're not going to commit all that to a name they don't even own. Big businesses rarely seem to even entertain the idea of a lease-to-own let alone a straight rental agreement. There's just too much at risk, too much invested in the brand to let its ownership lay in some domainer's hands.
对于一个可品牌化的 1 字词典词域,大多数企业不可能出租他们的主要品牌名称。让公众了解你的品牌和你的工作需要大量的投资,他们不会把所有这些都投入到一个他们甚至不拥有的名字上。 大企业似乎很少考虑先租后买的想法,更不用说直接租赁协议了。 有太多的风险,太多的投资在这个品牌上,不能让它的所有权掌握在某个域名所有者的手中。

Rent might work for low level domain names. Lets say you've got {smalltown}Insurance.ca. Maybe they can't afford to pay a $10K asking price. And maybe even a $400/mo 2+ year payment plan seems steep to them as a new business. But maybe you're willing to rent it out for $100/mo (or whatever) indefinitely, maybe they would agree to that? I seriously doubt it still because in my experience even small businesses don't want to invest in their brand and not own it, but maybe? Like maybe they only plan to be in the business short term anyways? I don't know. I'm skeptical on that one. It's a hurdle to get them to be trusting enough to agree to a payment plan. A rental plan raise that hurdle even higher.
租金可能适用于低级域名。 假设你有{smalltown}Insurance.ca。 也许他们付不起 10 美元的要价。 甚至可能是 400 美元/月的 2+ 年付款计划对他们来说似乎很陡峭,因为这是一项新业务。 但也许你愿意无限期地以 100 美元/月(或其他什么)的价格出租它,也许他们会同意吗? 我仍然对此表示严重怀疑,因为根据我的经验,即使是小企业也不想投资他们的品牌而不拥有它,但也许呢? 就像也许他们只打算在短期内开展业务? 我不知道。 我对此持怀疑态度。 让他们足够信任以同意付款计划是一个障碍。 租赁计划将这一门槛提高到更高。

What has been your experience renting out domains? Please give examples (not exact domain if you prefer, but type of domain, similar to, etc, etc) and the pricing levels you're talking about. I would be curious to know if anyone has ever had any real success with that model, and in what scenarios does it actually work.
您出租域名的经验是什么? 请举例说明(如果您愿意,不是确切的域,而是域类型,类似等)以及您正在谈论的定价水平。 我很想知道是否有人曾经用这种模式取得过任何真正的成功,以及它在什么情况下实际上有效。

thank you for your reply. In fact, last year I rented a four -letter XYZ domain on Dan.
Although it is only 3 months, the model is feasible as long as the domain name is high quality.
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Another problem with domain rental apart from what rlm has mentioned is, if the person who rented the domain misused it and later dropped it it will affect the domain name.
 
Another problem with domain rental apart from what rlm has mentioned is, if the person who rented the domain misused it and later dropped it it will affect the domain name.
Yes. But generally speaking, domain names rented at high prices will not be abused. If you abuse it, there is no need to rent it, just register a cheap domain name.
 
Yes. But generally speaking, domain names rented at high prices will not be abused. If you abuse it, there is no need to rent it, just register a cheap domain name.
Yes. Risk is very low when the rental is high. But when the name is very good and using it could help raise lot of funds significantly higher than the rent or used for other illegal purpose there is a risk. They can register a cheap name, but they convince people easily using a good name. Again, chances are low but I wouldn't risk a good name.

May be if we have some data about how many domains are being rented, their price range and end usage we can get a good idea.
 

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