Just a thread for thoughts about renting a domain instead of buying one or renting a domain to place your ads/links on for SEO. Here's an example: The domain name naturalgas.com is for sale for $5,000,000, you own an SME gas distribution business but there is no way you can afford to pay that much for this domain. Instead, you can rent it for $5000 per month and have all your content there; much more affordable for you and lets the owner make some money from their domain at the same time. Please post your thoughts and opinions.
It'll be a smart move for the renter, but for the owner, not so smart. Renter: -Gets a domain that is already advertised and has high traffic. -Can use the domain to catapult users to a new domain. Owner: -A domain is worth something for a reason, profitability. If it is worth plenty already (ex: $20,000), then it possibility could get more ($1,000/m) from its regular operation then from renting. -The domain could lose its worth and search engine placement due to renters having bad content.
well but it will bring a constant stream of income to the domain owner which might be good if the domain is not worth a million but still more then people are willing to pay
The owner may get a constant cashflow but that may not last long. If a domain loses search engine position, PR, and links to it, then it will be worth less. So, if the owner charged a renter $2,000/m for a domain worth $20,000, when that renter leaves the owner will have to look for another. If that renter had bad content, then that domain is no longer worth $20,000 and the owner might find it hard to get $2,000/m again from another renter. Two ways a renter can basically destroy a domain's worth is to: (1)Redirect it to another domain both in a search engine's Webmaster Tools and on the webpage itself. (2)Getting the domain banned from search engines with illegal content or banned from ad companies. Yes, its possible the owner can stop these actions by keeping a close eye on the domain, but things can be easily hidden from the owner and the owner might not see an issue until it is too late.
ok, that's a point I didn't think about. But I still think it's worth a try especially if you can't sell the domain for the price it's worth
If you do rent out your domain, just make sure to have a well-written, legally enforcable contract that bans redirecting and illegal content. Also, if it doesn't cost too much, include an advertising plan in which you advertise their website/your domain. This will be a good incentive for people to rent from you, and would keep your domain's worth up.
well you could use a contract to make sure the renter is only using well-written articles or if he ruins the domain he has to pay for the financial damage he caused. The advertising plan is a good thing to do and yes it will even bring the domain more value