Frank has rolled out a what he calls an Automated Finance System DomainNameSales.com which sounds like a lease to own system where buyers make a down payment and monthly payments thereafter which would result if all payments are made with the buyer getting ownership of the domain name.
All on their credit card.
Of course like all such programs, ownership of the domain stays with Name Adminstration pending completion of the final lease payment.
Upon making the last payment the buyer will get ownership of the domain name.
There is no minimum or maximum dollar transaction to use the lease to own program.
The amount of the Down payment that will be required, the length of the lease and therefore ultimately the monthly lease payment will vary from deal to deal.
The Lease to Own program is going to be offered only on Name Administration domains initially, but will be made available to selected domain holders who have opted for DomainNameSales to be their broker in the future.
I reached out To Frank Schilling and asked him for details on the new system:
“”DomainNameSales.com has developed an automated finance system to allow prospective purchasers to spread their costs over time.
We all frequently encounter buyers who are sold on a domain name, love a particular domain but are unable or un-willing to make a large upfront purchase.
Traditionally the options have been to either substantially discount the sale of your domain name, walk away from the sale, or use an outside 3rd party service to assist in the financing.
We have developed a very flexible solution, where the terms of the payment are almost entirely up to the domain broker and owner of the domain.
There are no minimum down payment requirements and the term length is adjustable from 3 months to years in length.
As with all DomainNameSales.com functionality, the entire process is seamless and completely transparent to the domain name owner. The only requirement is that the buyer has a valid credit card to make monthly payments from.
To facilitate the transaction and cover administrative costs, DNS will be charging a financing fee which is amortized into the payment schedule and disclosed to the domain name’s purchaser and seller.
In order to make the process secure and sensible for both the buyer and the seller DomainNameSales.com will allow the buyer use of the domain during the payment period, but will retain ownership of the domain until the repayment terms are met. This allows the buyer use of the domain but also allows for a safe return of the domain to the rightful owner if the terms are not met.”
The program is currently being tested with Frank’s own portfolio and DomainNameSales.com plans on offering payment plans to a small number of larger consistent DomainNameSales.com users in the coming weeks.
“We expect this integrated finance feature to result in a doubling of sales and the creation of more consistent payment streams for our name-owners and parking clients.”
Here is an example of a landing page you might see in the on one of Frank’s domain names (Domain is real, prices are not).
Looks like everyone is jumping on the leasing bandwagon.
Congrats to Frank!!
Only gives the leasing model more credibility.
Great Day!
Congrats!
This is called seller financing ~rent to own or sale with a payment plan.
Since we secure such deals at ECOP.com I suggested several times to Frank to propose this in his marketplace because this should strongly increase liquidity:
Nobody buy a home with a credit and domains is the same!
I predicted before the end of the year all the marketplaces will have their own seller financing solution, I am glad DNS have been reactive.
For me as a buyer (and the client SHOULD ALWAYS BE KING if you want to make more sales) it’s better than a leasing deal, because all the money you pay is to reduce your payment balance. At the same time it allows to reduce risks and give some breath when you launch a new service, product, …
Really a step in the right direction, taht should help to multiplicate sales, the proof?
I was very tempted to buy NOTE.com
But unfortunately this is only offered to American because from France, the sale page only suggest a 100% money down sale, except there is a small bug to fix.
Congrats again!
F-
As I said in the post the numbers for Note.com were not the actual numbers.
I missunderstood the post, I thought it was live, not it was a project. Sorry.
By the way, it’s not the best sample for DomainNameSales.com when I just read Amanda Lucas Waltz and Tessa Seelos Holcomb are promoting in Facebook a PR saying NOTE.com is now under exclusively brokerage with DomainAdvisors:
http://www.reuters.com/article/2013/03/13/domainadvisors-sale-idUSnPnNE75936+160+PRN20130313
Well, this not change anything to the fact that seller financing support is a very good thing!
5% of all transactions at ECOP.com last year were seller financing deals and apparently this amount is significantly raising this year, so it’s a move in the right direction, and when up this will give DomainNameSales.com an advantage even if I will bet Sedo, Afternic, Atermarket, … are now actively building their own solution or doing partnerships to also provide financing.
Leasing isn’t new and I know many who have been doing them for years, but Kudos to Franky for being the first to put together a system that makes it possible, safer, easier, and more efficient for all of us!
Big difference between seller financing and leasing. One is temporary, the other is selling but letting people pay over longer periods of time.
F-
Yes I think Frank is allowing other brokers to sell his domains and this is not a new thing and they can probably offer financing to buyers
However my understanding is that for the rest of us, we will have to use domainnamesales.com to do the financing system
Yes Shane, leasing (with exclusive option to buy) and seller financing looks similar but it is not the same.
Leasing should only be used when one want to lower installments otherwise the leasing route make no sense, as with seller financing you deduct payments done to the balance.
Leasing should be prefered when the domain is very expensive or have a low cash flow or want reduce risk at the minimum, otherwise seller financing option is better.
I take this opportunity to say a big THANKS to Rick for all the tremendous communicaion job done to promote leasing. Most domainers use to think sale was the only option.
And I remember or inform Donna, there is now +2 years we secure leasing and seller financing through ECOP.com 😉
F-
So on eCop how do buyers fund their monthly payments?
ECOP.com invoices are paid with Paypal, credit card or wire.
Hello MHB,
R. E. = ” Why Build a Brand When You Can Buy One ? ”
PRICELESS
Open up the flood gates, to the most rapid expansion of Capital Market Structures in History!
Way to go Frank !
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)
F-
Do you do auto rebill for the monthly lease payments on the CC?
Hello MHB,
I would just like to add, that With Rick Schwartzs system, the all inmportant Total Return On Investment for both sides of the equation will be far superior for both End-User and Virtual Business Foundation Holder.
Both strategies will build out the Webs infrastruture, to lead to historically High Productivity. The ingredients are uncorking the genie from the bottle.
Gratefully, Jeff Schneider (Contact group) (Metal tiger)
I imagine DNS will try the leasing system on the Name Administration names first, work out all the bugs, and then offer it to everyone once it’s streamlined.
I think the second half of 2013 will see a lot of news on actual domain lease deals that get completed, given that more domain sales platforms are offering it.
@ Jeff
“The ingredients are uncorking the genie from the bottle.”
Seriously?! Who writes/talks like that? I think you’re Seinfeld character Jackie Chiles in disguise.
Here, let me write your next comment for you. The mellifluence of .Com will experience joyous returns that will live on in perpetuity. You too can drink from the chalice of success. Buy or lease my .Com domains to experience returns that will not be bested. The nectar of profit will flow sweetly.
Seriously, are you in marketing or used car sales? Sorry, perhaps you caught me on a bad day. I’ll give you the last word. Just try to make your last word less smarmy.
P.S. Did you know you are now praising the same man who is heavily invested in the new gTLDs. So which is it? Do you like Frank or don’t you? I guess it depends which way the wind blows.
to some outsiders it might read as :
I couldn’t sell it hence great news … it’s for lease!
I also don’t find wise to lease an ultra-premium blue-chip domain unless you are certain the project will NOT only succeed but it will also add intrinsical value to the property/url itself.
You might end with a lemon un-saleable asset ….
let the stoning begin! 🙂
Michael,
There is no auto rebill, we remind the buyer to pay his invoice. This way if he wants to cancel or accelerate payment or change the payment method, it’s easier to manage. Now if there is demand for auto rebilling then we will add the feature as an option.
Personally I think auto rebill is a must especially when your dealing significant volume.
Bill and collecting from hundreds of people on a monthly basis is a huge time consuming practice
The lack of interest for auto rebill comes to the fact the deals established by sellers/buyers for seller financing are never monthly or quartely payments but a serie of few significant payments before the term (generally less than 2 years), so nobody never asked me for the moment to have such payment automatically charged. If things evolve and the deals start to be paid though monbthly or quartely low payments then I am agree with you that it will make sense to automatically charge the cc or paypal acount of the buyer.
F-
I would say its not often that buyers bring up the topic of how they want to pay.
they are generally just paying when they feel like it
I’m just saying not having any horse in the race that as a seller I would much rather have the billing process automated so i don’t have to chase people for payments and keep accounting of who paid, when they paid and when they have to pay next
We take care of this at ECOP.com, you do not have to remind the buyer to to pay any payment. And trust me, the fact they can lost the domain and the money paid if they fail a payment involve they use to be extremely reactive!!!