Domain Name Renting: A Good Or Bad Idea?

Fairly recently two articles written by Daniel Saul and Allan Taylor the good & bad points towards renting out domains. This article is to help you decide domain name renting is good or bad from our point of view.

Introduction

Due to our website and another (DomainsListing.com) they have become a recent debate into is domain renting a good idea? Daniel Saul writes on his blog that the idea is a good one for domain owners who may be struggling to sell their domains. They now have the chance to rent them out instead and earn money. While on the other hand Allan Taylor disagrees with the idea, he thinks renting out is not the way to go and the only option is to just sell out right, less hassle. Allan does point out renting will only work if the domain owner only rents out a subdomain.

Renting, The Bad Points

If you are considering renting out your domains then here are some bad points you may want to consider first:

• There is a risk the person or company could have your domain name blacklisted.
• If your domain has a high pagerank that could be lowered or even lost due to the renter.
•  The renter might not keep up with payments.
• They may abuse the contract.
  

   

At this point you may be thinking renting out is not for me and you will like to stick to selling out right instead. Your reasons may be that your domains have a high pagerank, large backlinks, you have a website with advertisements you earn from them, you don't want the hassle going through the procedure filling in a contract form and risk not receiving missed payments. If you are thinking all of this then renting is not for you, move on and stick to selling instead.

Renting, The Good Points

To DomainsForLet, renting out domains is like renting out a house, you will have good and bad points. But renting out can be good, here's how:

•  A nice steady income per month/annum into your bank account with no hassle at all.
• You can choose who rents your domain if person or company by vetting them out first.
• If they start to abuse the contract you can inform them first before taking major action.
• Your domains are in use gaining better pageranks, backlinks, etc..
• Over a period of time they will be worth more.
• Selling them will become much easier with or without a renter.
• You can offer an SEO package to help them out.
• Offer web site design and diagnosis if needed. 

A lot of money can be made from renting, but since this is a fairly new idea it will take time. When it does take off it will be a very lucrative business added on to domain selling business sector.

Many domain owners will be able to sell rented out domains while under contract, how? Well there is no stopping them from doing so, but the contract must state to the renter if the domain owner was to sell while under contract then either:

•  The contract must end after a certain period of time, e.g. a month just help the person or company find a new alternative domain name.
• The new owner must carry on the contract for either a certain period of time or for ever.

Conclusion

The idea of domain renting could be another lucrative business for domain owners. They earn extra money and buy more to rent out, just like a property developer. Allan Taylor did mention in his article 'Seriously, who would want to rent bornunderaluckystar.com or 184u.info.', he may be surprised someone out their might actually want to, they may have some ligament reason to do so, for a company name or a personal blog? Who knows.

Domain renting is here.