There are many reasons why you might choose to rent a domain from your portfolio. The shortest answer is simply that by renting a domain, you allow an interested third-party to begin using your property for immediate income while you await the potential sale of your digital asset.
In today's modern marketplace, domains, especially premium domains and ultra-premium domains are extremely valuable assets. However, as with any valuable item, not everyone can afford to purchase a premium domain which means domain owners must wait, more often than not, for long, lengthy periods of time to try and attract an offer for their property. By renting your domain, you achieve instant passive income which is good for your economy, and at the same time, you enable a user to begin using your domain which increases your chance for eventual sale.
When someone rents your domain, they have already shown interest in it, but more than that, they have made a commitment to invest and build something with it.
Not really. In effect, they are simply two different ways to reach the same goal. Someone choosing to buy a domain outright has the financial resources to be able to buy what they are looking for. Someone renting a domain, simply doesn't have the necessary financial resources to purchase the domain immediately. They want the domain and need to begin using the domain but might be unable to purchase the domain immediately due to other budgetary priorities.
No, but in a vast majority of cases, yes they do. Everyone's needs from a domain vary enormously. Some individuals want to build a long-lasting brand, others need a premium domain for a campaign that would run for a limited duration, and in such cases, long-term ownership would be an unnecessary and costly investment.
A domain's market value can vary quickly, both positively and negatively for the domain owner. A domain that remains unused for a long period of time, or is parked for a lengthy duration can begin to lose value due to factors such as traffic and search engine ranking. When someone chooses to rent your domain, they opt to pay you a fixed monthly fee in order to use the domain actively which can help maintain your domain's value, and on occasion, even increase it.
No, not at all. Actually, when you list a domain on domainAlot.com, you can opt to:
The short answer is control and money. You keep control and you earn more money by renting your domain on doaminAlot.com than on any other domain marketplace.
On domainAlot.com, you decide and control everything about your domain. We do not force Appraisal Values upon you, or restrict how your domain must be listed. You decide and you choose. In addition, when your opt to offer your domain to lease, you can choose the allowed length of any rental contract you wish to offer:
At domainAlot.com, we don't charge any commission fees. That's ZERO Commission. Meaning, if you choose to rent your domain for $100 USD per month, then you earn $100 USD per month. We don't take a cut, a slice, or a chunk of your revenue. At domainAlot.com, you keep it all.
When you list you domain for renting, or leasing as it is also called, you as the domain owner and lessor agree to the terms and conditions of the domainAlot Domain Leasing Agreement (DLA). The Domain Leasing Agreement simplifies the rights and obligations that you as the domain owner and lessor have, and those that your lessee have. The Domain Leasing Agreement is a legally binding contract that ensures that both parties involved in the leasing of the specified domain, understand and accept the obligations that are expected from them.
When you add your domain to your portfolio, you are required to set an asking price for your domain. The asking price, differs from the domain appraisal in that the appraisal value is what you believe your domain to be worth, while your asking price is the figure for which you are willing to sell the domain. Your expected annual rental income is set to ten percent (109%) of your asking price, and your expected monthly income is derived from dividing this figure by twelve.
To offer value to your lessee. If a lessee commits to providing you with long-term income over two or three years, then the lessee receives a discounted rate from you, calculated at five percent (5%) for each additional year beyond the minimum leasing term of one year (12 months) that they accept.
If a user decides to rent your domain for two or three years then they are committing to using your domain for longer in advance. That commitment means guaranteed income to you with no down time, re-listing, or waiting to find a new lessee. In addition, their commitment is a strong indicator that they are also extremely interested in purchasing your domain outright.
Yes, but not at the agreed monthly rate. The Domain Leasing Agreement (DLA) provides every lessee with the option to purchase the domain they are renting at any point during their lease, and to do so up to, but no longer than, fourteen (14) days prior to the date of the lease's expiration. In order for the lessee to purchase your domain, the difference between your asking price and what they have paid up until that point is calculated and must be paid in full in order for the lessee to exercise the Buy-Out option.
No, not at all. Domain Leasing differs greatly from our Domain Payment Plans (DPPs) which provide a user interested in purchasing your domain with the chance to do so through convenient fixed monthly down payments. While the user is free to update the relevant Domain Name server (DNS) settings of the domain following their first payment, it is only after their final down payment is received that ownership of the domain is transferred to the user. Domain Leasing differs in that a user commits to using your domain for a specified and limited time frame. Should the user wish to purchase the domain outright from you while leasing, they must pay the sum that is outstanding between your asking price and what they have paid to date in rental fees in one payment in order to do so.
When someone renting your domain makes their first monthly payment, this is defined as the date of activation, or the date at which the Domain Leasing Agreement is active. The lessee agrees to pay the agreed monthly fee on the same day of each monthly for the duration of the lease in order to comply with the terms and conditions of the Domain Leasing Agreement. If the lessee fails to make a payment, domainAlot will inform the lessee of their oversight and expect payment to be made to you within five (5) working days of notification. Should payment not be made within this time, the lessee agrees that the Domain Leasing Agreement is invalidated and the terms of the lease null and void.
No. Absolutely not. If for whatever reason, including but not limited to payment failure, the lessee has failed to comply with the terms and conditions of the Domain Leasing Agreement then you are no longer bound by the terms of the agreement and the current Domain Leasing Agreement is considered null and void.
When your current Domain Leasing Agreement expires you are free to adjust the details of your domain including asking price and rental monthly rate.
No. Absolutely not. In fact, that would be impossible. When you agree to allow someone to rent your domain, you in effect grant them access to use. This access requires them lessee to provide you with various Domain Name server settings that you, as the domain owner and lessor are obliged to update in accordance with the Domain Leasing Agreement. During the lease and time that your lessee is renting your domain, they are never granted, nor allowed access to your domain registrar settings which are yours alone to control.
When you rent your domain, you agree to allow a third-party full use of your property in accordance with the Domain Leasing Agreement. In order for your lessee to be able to use your domain, you must update various Domain Name server settings such as A Records with the IP address that should point to your lessee's web pages, and MX Records that allow your lessee to communicate through email. When the lessee enters details for the domain into their Account dashboard, these details are also updated in your dashboard, along with a reminder sent to inform you of the need to implement the requested changes to your domain as quickly as possible.
No, they cannot. Your domain is your property. It is registered to you through ICANN, and remains your property unless the lessee has exercised the Buy-Out option and made payment in full to acquire the domain from you. You are only required to update Domain Name server settings related to the domain and its use, such as its A Records, CName Records, MX Records, TXT Records, etc.
With the domain registrar with whom you registered your domain. When you log into your domain registrar and select your domain you will find available settings for your domain including those of the Domain Name servers themselves.
If you feel that a lessee is in breach of the Domain Leasing Agreement, is abusing, or otherwise misusing your domain, you must first file a complaint for your domain using your Account dashboard to alert domainAlot of your concerns. domainAlot will then investigate your complaint and if in agreement, will send the lessee an immediate cease and desist notice. Your lessee with have twenty-four (24) hours to immediately remove and/or desist from offending activity with the domain if they are to remain in accordance with the Domain Leasing Agreement. If the lessee fails to take appropriate action, the Domain Leasing Agreement is deemed null and void, and your obligations to the lease are terminated.
Well, we certainly hope that never happens and that you understand the Domain Leasing Agreement is a set of binding terms and conditions designed to protect both you, and the lessee of your domain, ensuring that the provisions set out and agreed by both parties are fair and reasonable to each. That said, as the lessor, should you choose to break the Domain Leasing Agreement and invalidate your lessee's right to use the domain for the agreed term of lease, or attempt to set other restrictions and/ or prohibitions beyond those defined and agreed to in the Domain Leasing Agreement, then it would naturally be impossible to continue as a lessor. In such event and in accordance with the Domain Leasing Agreement, the conditions of invalidating the agreement would apply.
Once your commitment to the lessee has ended, you may reset/ update your Domain Name server settings so that they no longer point to your former lessee's requested settings. As your Domain Leasing Agreement will have expired, you are no longer bound by the obligations of it and are free to re-list your domain, adjust your pricing, or redefine your maximum leasing terms for the next lessee.
No. Once your Domain Leasing Agreement is active, the terms and conditions of the agreement are binding and you may not update any aspects of the lease, which includes pricing, during the duration of the lease.
Yes, of course, in so long as no one is currently leasing your domain and there is no active Domain Leasing Agreement between you and another third-party (lessee), you are free to update your domain listing to "Sale Only", which will remove your domain from any renting options on domainAlot.com.