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New business idea for Domain Owners

Shaun

Top Contributor
Hi,

Just a thought and interested for your feedback.

We all dream of leasing our names to tenants but the main reason we don't is the fact the tenant has no control and if they build it to #1 then you (domain owner) may take the name back from them.

However, what if you were to get your name to #1, then lease it out?
 

WG2010

Archived Member
Makes sense to me but it's very difficult to convey the value a #1 site has to potential customers as you would be very well aware. Then again, I don't have a broad range of niche/industries to tell if I should expect the same from other businesses.

I'm going to do this with the dresses website, time will tell.
 

Timmy

Banned
IMO - I would think that a name @ #1 should be an easy sell??? Any business owner should know the 'real life cost' of every lead they generate in the off-line world, so if you build a site that generates leads then a value could be easily shown.

Show decent analytics and display that basic SEO goals have been achieved and are sustainable, add their reputable brand and custom unique content and products and it should be reasonable to assume any business owner would want to dominate the industry.

In my experience, the average business owner is becoming increasingly aware and educated on the importance of harnessing the interwebs - while some will never get it, there are plenty of end-users that would jump at an instant lead generating vehicle.

It's all about transparency and educating end-users, I would always pay an inflated price rather than lease anything, but in saying that I live by the adage; If I can't afford to pay cash, I can't afford it.
 

Shaun

Top Contributor
As many of you know, I buy and develop names purely for lead generation.

In essence selling leads is a type of "lease" arrangement, however this concept would be allowing the business who leases your site complete control over it.

You would also need to maintain the #1 position for them.
 

soj

Founder
I would definitely stay away from the "maintaining the #1 position for them" part. Especially if you have no control for anything on the site. How can you guarantee a top position in Google?
 

Shaun

Top Contributor
I would definitely stay away from the "maintaining the #1 position for them" part. Especially if you have no control for anything on the site. How can you guarantee a top position in Google?

Soj, you'd have to guarantee the #1 position for them or they would not continue to lease the site as the value would disappear. Perhaps you would need to work with the client to advise them of a "best practice" so you had more of a chance to maintain #1.
 

Timmy

Banned
Like I said, sell the entire lot - "It's all about transparency and educating end-users", there's no need to maintain the #1 spot for them, I have 5 'SEO Experts' within walking distance of my apartment, all with SEO/SEM plans ranging from $100 - $2500 per month.

Educate the end-user to appreciate that this is a business model in itself and that they'll need to maintain the sites authority.
 

Shaun

Top Contributor
Like I said, sell the entire lot - "It's all about transparency and educating end-users", there's no need to maintain the #1 spot for them, I have 5 'SEO Experts' within walking distance of my apartment, all with SEO/SEM plans ranging from $100 - $2500 per month.

Educate the end-user to appreciate that this is a business model in itself and that they'll need to maintain the sites authority.

You're right, personally though I would maintain it for them and charge them a fee to do so.
 

Rhythm

Top Contributor
Perhaps charge a base rate + seo/ranking rate? sort of like a tiered rate.

eg $100/month +

$ 100 if site is ranked 1st
$ 50 if site is ranked 2nd
etc
 

Shaun

Top Contributor
If you get the site to #1 it's going to be due to a few things but let's say content (what you have on the site) plays a part.

When leasing the site you are going to be leasing it to a RELATED business so even if you do "update" the content it's not going to be worlds apart.

It should keep it's #1 ranking.
 

shags38

Top Contributor
Your idea seems pretty logical to me Shaun - but with some of the comments like educating a "potential" end user customer - huge task, climbing Everest may be easier.

The first thing is to find an interested end user whether for a domain name or a functional website, that person has to have a need (desire, want) - if you find one then it would suggest that they recognize they have a need otherwise they would not be interested. So if they know they have a need why would you (anyone) even think about getting off the main railway track of "selling" (whether that be a name, a site, a lease, a half eaten banana) and go into a siding? That is just where the prospect will take you if you are not in control - you have the fish on the hook, bring it into the boat then decide how you want to cook it.

If the prospect is in fact interested before you convert him from being a dumbass then why bother turning him into an educated interested prospect - turn him into an interested "customer" - i.e. after the sale. A lease is a conditional sale - so put conditions on it, detailed conditions legally binding, regarding ranking etc to protect your asset not to satisfy the lessee - try leasing anything else, a factory, an office, furniture etc and have the agreement favoring the lessee, not likely. A website is internet "property" - read a business property lease and see how much the landlord offers the lessee, nothing more than to send an invoice on time and fix what is broken (in their own good time after they have argued that it is your fault that it got broken in the first place). You built the site, it is in a prime position and attracts lots of lookers - I want that site so I can get some extra customers on the back of your work. I take it based on what is on offer today, not yesterday and not 12 months time but today - if someone else builds (or renovates) another shop up the road and starts to eat into my traffic I can't go to the landlord and blame him, so if websites ranking falls I cannot go to the owner and blame him unless he hasn't maintained what I paid for ..... if I want extra, like a big neon sign out the front, an extra level or a mezzanine floor etc like the shop down the road now has then I have to negotiate that with the landlord. So maintaining PR1 is the prime responsibility of the lessee and he needs to ensure that it is done, either doing it himself or by paying for it, if not he has broken the lease and either pays a penalty, buys the site or is now out on the street.

Take this as experience from someone who has been down the "educating the prospective customer track" - not with domains or websites, in hi tech industrial selling - if they do not ask to be educated then do not offer !!! as soon as you offer, they begin to learn, then they get smarter - not good Jan - often case they end up being someone elses customer because you made them smarter :) After they are your customer, after they have parted with their cash, then by all means educate them, either to nurture repeat business or to make ongoing revenue by charging a fee, sell one razor to sell bunches of razor blades.

et domine et filea sanctus espritu - there endeth the lesson - go in peace.

cheers,
(arch bishop) Mike
 

snoopy

Top Contributor
Enjoyed the post shags.

So maintaining PR1 is the prime responsibility of the lessee and he needs to ensure that it is done, either doing it himself or by paying for it, if not he has broken the lease and either pays a penalty, buys the site or is now out on the street.

I think at that point very few people would sign, who is going to agree to a penalty or obligation based on how google decides to rank a site in the future?
 

Australian Adult

Regular Member
If you have a really good domain, wouldn't that be good enough to "sell" a lease to a customer, who would be after your particular domain for their use.
Why not just lease the name, especially if its speciffic to their needs
 

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