Dan.com offers the option to sell a domain using the BIN, negotiate on a domain’s price, lease-to-own over a period of several months, or rent it out.
The latter is an option that many domain investors might not be familiar with and it’s a rare option indeed.
A domain investor shared news of renting out his domain name, DanceUp.com, for $50 dollars a month. He explained that the same person who rented it in the past came back for more of the same.
Here are some pros and cons of renting out a domain name via Dan.com.
Pros:
- No need to sell the domain, thus generating passive, recurring income.
- The domain acquires traffic and SEO juice due to development.
- More customers might be willing to rent out a domain due to its low cost.
- Eventually, one of the renters might decide to buy the domain.
Cons:
- The renter might use the domain in ways that the registrant might dislike. Although the terms of use include general references to abuse, not every possible use is covered.
- Even nominal use by a third party might trigger a UDRP scenario, as in the famous case of Canvas.com.
- Short term rental periods of e.g. a month trim off a minimum of 48 hours for DNS propagation, as far as the buyer is concerned.
- The domain’s acquired backlinks and traffic become recorded metrics, possibly complicating a future sale.
We would not rent out a domain without specific terms of use and a strong, custom-written agreement. But if you want to test your luck try it out at Dan.com.
I get the “Lease-To-Own” option, but I just don’t get the “Rental” option. I really don’t see how this option truly benefits the owner of the domain or the renter. The owner is potentially missing out on a sale, and the renter is building something on a name they don’t own.
As a domainer, my goal is to SELL my domains … outright, or lease-to-own.
Exactly @MarkMajor and yet Venture.com entire business model is renting domains. They’ll eventually change that. I would never rent a domain. Ever.