We love the fact that domain financing generates recurring revenue. In fact, this is one of the reasons we made the switch to Dan.com for our parked domains. If you aren’t familiar with domain name financing, we have it broken down for you to understand it better.
In short, domain financing is a “lease to own” option. Furthermore, this option connects sellers to potential buyers at an affordable rate. In short, if you have a great domain name priced high, you can offer it as a lease to a buyer at a more affordable rate. So how does the financing model work at Dan.com? Glad you asked, just take a look at the model below.
- 2-12 months – no markup added
- 13-24 months – 10% markup
- 25-36 months – 20% markup
- 37-60 months – 30% markup
One key point that is suggested is to offer your leased domain for 5 years. This way you can sell more domains and generate more monthly revenue.
So what do we like best about the domain financing option? Just as they explain, this eliminates negotiations. Think about this. You have a domain that you value at $20,000, a buyer values it below that. In the past, you would exchange a few emails, they still aren’t convinced it’s worth that much and they walk away. What’s more, you are left with that domain and you aren’t earning any revenue with it.
The domain financing options now offers a way for the buyer and seller to be happy. Moreso, generating more monthly revenue should make the domain name seller very happy with this model. Domain financing generates recurring monthly revenue on those domains and with that money, it gives you more options for marketing or buying new domains.
Let us know what you think about the domain financing option offered at Dan.com on our Facebook page @BrandableDomainGuide. As always, you can stay updated on other blog posts related to all things Domain names by clicking here today.
