Development Lease with Owner Keeping Improvements

[hittjw]

After responding to another post about available domains; I got an out of forum request "since you have hosting and domains, but no time" to lease out the domain for development.

The offer was "you own the domain, provide limited hosting, and I'll develop the domain." They would then keep 100% of the revenue paying only with improvements in domain pagerank and analytic insights.

At a certain page volume hosting would be reevaluated. Personally, I'd also like to cover hard costs like domain renewal and hosting up to a certain point.

Has anyone done this kind of deal? What kind of domain joint ventures are you currently doing?

I'm always looking for new ways to create revenue over parking ... especially since I can only develop so many domains at a time.

Best,

Justin

Ps. This is similar to a commercial real estate lease where property is improved with a generic type of building and the property owner keeps any improvements after the lease term. Most of the things that work in real estate work in the domains market.

[copper]

Yes, but, this person is keeping 100% of income where real estate lease, property owner is getting paid.
You should get either flat monthly/yearly fee or % of revenue.

Your so called "improvements in domain pagerank and analytic insights" disappear quickly when domain user quit with no more site.

[cashads]

get free improvements like links is nice but will they last if they are only renting links then you will get nothing. If they develop a brand then that is something.

For hosting and domain use you should get something percent of revenue right to add links or monthly fee they should get a discount for improvements that will last

[hittjw]

Great points. I'll stick with my revenue splits or rental to cover hard costs plus a margin. I didn't think about how fast things may go down hill if they post something on my hosting that gets me shutdown, content issues, or they do some bad SEO to screw the URL. I need something to cover my costs (and not just the analytics and possible pagerank.) Thanks for the second opinion.

Sincerely,

Justin