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UK domains - leasing ?

Discussion in 'Domain Name Rentals' started by woopwoop, Apr 9, 2009.

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  1. woopwoop United States

    woopwoop Well-Known Member

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    I've too many decent domains sat around so am trying to either sell them, partner with someone for development and maybe lease them.

    If anyone's interested in this, PM me or reply here.
    A list of most of my UK domains are here.
    I don't know if leasing is popular... are many people doing this?
     
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    Acorn Domains Elite Member

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  3. GreyWing

    GreyWing Well-Known Member

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    For anyone thinking of getting involved inleasing, one thing always stands out and that is that the person leasing the name from you, always always always wants a buying price or takeover price at the end of the term.

    Nobody is going to bother developing a name from scratch only to hand it back at the end of the lease. So if you offer a final buy now price, You have a much better chance of leasing them out.
     
  4. woopwoop United States

    woopwoop Well-Known Member

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    Hi GW yep I think that you're right.
    There is one exception though and just like any opportunity - if it's cheap and money can be made during the period, then some people might see leasing as a possibility.

    But if there's a buy out option at the end that's probably a better idea if the brands important and it's not just milking a domain for the keyword value or typeins etc.

    I must admit I'm not that fond of it but we'll see. It's not my main push. Ideally I'd like the partnership idea to work. I just have so many names that I need to do something with even if it's leasing them at £10-50/month or whatever, depending on the name.
     
  5. Shogun

    Shogun Member

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    Money to be made during the duration would come from you having a high end domain that was not available any other way. For example if you have creditcards.co.uk, you could partner/lease and then it could rank for "credit cards" and rake the money in. Looking at your domain list, I would say you are going to struggle to get anyone to lease any of them from you for £10-50/month - there is no upside to the person rather than doing the same project on a newly registered domain and retaining absolute, full ownership of the project.

    You might not agree with me but just thought I'd give my perspective on it - my company has entered into various partnerships with domain owners but they were all on 50-50% splits and the retail value of the domains if they had been outright purchases would all have been $5000+. We always prefer to buy domains outright but there are only 4 tld's that matter and if they are all tied up or not available then sometimes a partnership with the owner of keyword.org is the only way into a market as a late entrant.
     
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  6. golddiggerguy United Kingdom

    golddiggerguy Well-Known Member

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    The company that might want to lease a domain/mini site may already have a main company site and will use the generic or geo generic to advertise. It would just need all their details adding, customising to them and the ads removing.

    So they won't feel that attached to it and feel they don't want to buy it as nothing has been produced or pushed by them for that domain (letterhead paper, email addresses etc). Plus it must be cheaper than local radio or news paper advertising surly and I was thinking more like £100 a month!

    If you have a mini generic site on there like my HullSecurity.co.uk and it's performing well for seaches like.

    • * security firms in hull
    • * hull security
    • * 24/7 hull security
    • * security hull
    • * security companies in hull

    The unique hits are increasing it must look shiny to companies in the specific area. I know i might have side stepped by adding mini sites but it must help in getting the domain rented out?

    ;) worth a thought and something i'm trying at the moment!

    ADDED - £25 - £50 a month does seem more of a realistic amount as clients could get a site built for the 12 x £100 I mentioned above.
     
    Last edited: Apr 11, 2009
  7. Shogun

    Shogun Member

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    Yeah but using your example, their are multiple hullsecurity.tld domains available - there is absolutely no reason to rent when you can buy one of those and you own the site - it can never be pulled out from under you or sold to a competitor etc. Some of my sites have dozens of minisites, some of them have hundreds. And I control my own destiny because I own every single one of those minisites.

    I still think there is only value in leasing when it involves a premium domain. Going back to credit cards, I would happily lease creditcards.co.uk because to start a site today having an exact match domain is the only way possible to rank for it for me.
     
  8. woopwoop United States

    woopwoop Well-Known Member

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    From the names I listed I would probably agree with you.

    Just to clarify things a bit though - my original post was to test the waters nothing thought through and I hadn't thought about how much I'd lease a name for. The figures 10-50/month came after I was thinking about GW's post. I wasn't thinking specifically about those listed but more about average domains with keywords, and what the range could be.

    Let's face it what would be the point of trying to lease a name for less than £10 a month?

    But to add a few rough figures to this I have 3 minisites with similar domain quality to those listed (so pretty average you might think) but they are each bringing in > $150/month in PPC+affiliate revenue

    Each of the sites were built in 1 day and it took another day to do some seo and get backlinks.

    Now I'm not saying that all attempts to do this will be successful. I've tried and had very poor results with other names. But if someone thinks that a domain available for lease can offer a higher PPC than if they used a free to reg name then £10/month is cheap isn't it? If depending on their skills/domain they can make $150+ like my example above...


    Food for thought. I don't know anyone who has a name leased but I think that if this does happen it probably is with much bigger names like your example of creditcards.co.uk - but that certainly will be a lot more that £50/month..


    I know you didn't think much of my domain list but take a closer look there are some nice names on there. A few which are XXXX+ names: (liam.co.uk, studentbooks.com, londonstudent.co.uk, morecambe.co.uk...) They aren't all that bad :rolleyes:
     
    Last edited: Apr 9, 2009
  9. Shogun

    Shogun Member

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    Well thats the beauty of working on your own sites. If you built 260 of them in a year (one per work day) and only 10% of them made $150/month, the following year you're on $4k a month without any further work. Not long in quickly building up a nice passive income.

    The thing is with most of your domains I honestly don't think there is any advantage to building a site on them over a freshly registered domain. If it was £10/month its not even the price thats the deciding factor - its the fact you now don't own your own income stream. There are already enough factors that could get my passive income taken from me (google algorithm changes, link buying penalties, interlinking penalties, etc etc) without adding another one of a person just deciding they dont want to work with me any more and going out on their own.



    We've got some big domains leased, though joint ventures would probably be a better description. The sites are doing low four figures a month in profit, the domain itself would probably be worth £6000-7000 a month were it not for the profitable site already on it. My company done 100% of the work on it - the domain owner does nothing but bank his money. It suits us both though as he's already made more than if he'd sold the domain outright, and now owns half of a website that would probably sell for low 5 figures as well. It suited me for two reasons, the first was that at time I couldn't have bought a £6000 domain because I didn't have £6000 :D. The 2nd was that in order to rank and make that money, an exact match domain was required. Since there is only a .com, .net and .org (.co.uk in uk too) that have any value whatsoever, partnerships like these are the only way to even get in the game at times.


    Liam.co.uk is a great domain if you're called Liam. It has no value purely from an seo point of view - people searching for "liam" can't be monetized. If you gave me pick of those domains, the only one I see value in for developing would be the Morecambe one. I'm surprised how little search volume there was for "student books" though - I'd have thought that was your best domain from that list. For the right buyer Morecambe might be a xxxx domain, I've no idea on the size of that town so wouldn't like to guess. If I was called Liam (I'm not) I'd pay £1k just to have that for an email address/personal site. Studentbooks and londonstudent are xxx, imo. Of course we can both say what something is worth, but ultimately its worth what someone else is willing to pay for it at that moment in time.
     
  10. woopwoop United States

    woopwoop Well-Known Member

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    Again I don't necessarily think that leasing is the best idea but I think GoldDigger's points are pretty valid and I see your side too.

    Playing devils advocate on some of your points...

    Well you couldn't be stitched up because there'd be a contract so as long as the person leasing saw it for what it was then there wouldn't be any surprises.

    Depending on how it's structured there could be a massive difference between leasing and a joint venture.

    Gosh Shogun, I agree with some of what you said earlier but I think you are really out of touch with this last chunk of stuff you typed.
    StudentBooks.com and LondonStudent.co.uk xxx ????
    Morecambe.co.uk 'might' be an xxxx domain ???

    Wow. If only you knew the offers I'd had for these domains.
     
  11. Shogun

    Shogun Member

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    I didn't say Morecambe was or wasn't - I said I have no idea how many live there. I know its not a london.co.uk or manchester.co.uk but being North of the border I honestly have no idea what size of place it is, which would directly influence the value.

    edit- ok I've just searched wiki, apparently it has 45k people living there. If I lived in Morecambe I'd maybe consider it a £1k domain but that would be pushing it.

    If you offered me londonstudent.co.uk and studentbooks.com for £1000 each I wouldn't take them. For me 99% of my sites are seo plays, if I ran a student book shop then maybe that domain is worth more but to an average seo guy its not even close. Personally I've bought way better domains for under £1000. I bought livefootball.net for about £1k, quickly and easily developed it and ranked it and recently turned down a mid 5 figure $ offer for the site. I honestly don't think I could easily do the same with the domains you are valuing in the same range. Live Football has search volume and is easy to monetize. Once you rank for "london student" what are you going to do with that traffic? What were those people searching for exactly?

    Good luck with the domains, but it honestly sounds like you missed the boat by turning down offers that should have been accepted, imo.
     
  12. woopwoop United States

    woopwoop Well-Known Member

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    Thanks for your comments I will keep them in mind.
     
  13. charlie United Kingdom

    charlie Well-Known Member

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    Making lots of sense there Shogun. :cool:
     
  14. Rich United Kingdom

    Rich Active Member

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    The solution to that is to have some sort of guaranteed renewal set up which will effectively allow them to keep leasing the domain for as long as they require or a long term lease (say 99 years) with option to break after say 3 years
     
  15. golddiggerguy United Kingdom

    golddiggerguy Well-Known Member

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    My idea was it was an extra site/domain to drive more traffic towards a clients business i.e.

    • Phone calls
    • email enquires
    • visits to a show room
    • hits to thier ecommerce shop

    Since we own the domain still, the offer is that we carry on SEO'ing it, tweaking it to thier specific area.
    • Relaxants.co.uk
    Could home in on maybe "muscle relaxant drugs" for the client so as well as the domain you offer SEO service built in. It's in your interest for it to rank high too as this adds sale value.

    What do you think about that take on domain leasing / site leasing?
     
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