If you have considered selling your domain, you may have also thought about the possibility of domain leasing. While an outright sale might be your first choice, domain name leasing is an alternative that offers both advantages and disadvantages. Depending on the lease agreement, the leasee, and what you want out of the deal, leasing might be a viable avenue worth exploring in your quest to sell your domain name.
Pro: Leasing serves as a stepping stone for purchase.
As a seller, you want to make the highest possible profit on your domain sale. While it’s important to know the value of your domain and have an ideal selling price in mind, you’ll need to find a buyer who is willing and able to pay that price. By finding a buyer who equally values your domain, you’ll have the opportunity to make a great sale, but sometimes a few extras months to raise funds is necessary. So instead of walking away from purchase potential, allow the prospective buyers a lease to buy agreement that gives them time to come up with the appropriate amount of cash to buy the domain outright after the lease term.
Con: You cannot accept other offers for purchase.
Unless you’ve included clauses in the lease agreement that allow you to break the lease to sell to a higher bidder, you are stuck in your current lease situation. Even if a new buyer presents an offer you can’t refuse, you’ve already made a commitment to your leasee and if they have intent to purchase at the end of your leasing term you’re not missing out on a sale completely.
Pro: With new development, your domain gains more exposure.
While you remain the sole owner of your domain through the entire term of the lease, your leasee will have the rights to develop your domain in the way they choose. By correctly developing the site and working to draw traffic to it through SEO or PPC campaigns, your domain will gain more visibility and credibility. This will be especially beneficial should the leasee back out at any time, which will give you the opportunity to put it back on the market.
Con: Domain development may harm your domain’s value.
Domain development does offer the opportunity to increase visibility, but it also runs the risk of damaging your domain’s “reputation.” If your leasee develops the domain in an inappropriate manner, whether including illegal material or spam, your domain runs the risk of losing value. In order to avoid this, you should include a clause in the lease agreement that prevents the leasee from incorporating any damaging material on your domain.