Monetization by leasing Premium Sub Domain Ex: Seattle.RealEstate.com - Feedback?

[SanDiegoTodd]

Hi Everyone - As a monetization strategy - does anyone have experience creating sub domains with their premium domains and licensing them to end users for an annual or multi year fee?

(Example: Subdomain.PremiumDomain.com / Seattle.RealEstate.com / Portland.RealEstate.com / LosAngeles.RealEstate.com / etc. )
I would think this is an ideal opportunity to create multiple products from one domain, create highly targeted premium names for end users and create a strong residual income. What am I missing?

If it's such a great idea why aren't more domainers doing it? I've seen LeftOfTheDot.com - and they have a great concept, but why aren't more domainers pursuing this model?

I'd appreciate any feedback or insight you have.

Thanks!

--Todd

[David G]

Don't think it will work in real estate in particular (maybe in other categories it could) because Realtor's are normally a hard sell and very cheap and buy few services plus they already have websites - typically 3 or 4 sites, or more, a. their own agent site. b. their brokerage firms site. c. their listings on realtor.com - free or premium service. d. many other large real estate sites where Realtors can have their own page, sometimes free.

[barrysanders]

Well, if one of the subdomains gets a Google penalty wouldn't that hurt the entire domain and other subdomains on it? Or if a subdomain had content that got the domain delisted on Google, etc...

Also, why would people want to build a property on someone else's domain? I wouldn't. Why build a mansion on rented land. Then you are forced to keep paying the land rent (which could go significantly up in the future) in order to keep your mansion.

[katherine]

The domain leasing concept has virtually no market, because nobody wants to develop and enhance a domain that they do not own.

Domain leasing is only good for time limited campaigns when the domain is ultra-premium and preferably with traffic.
It's a very small niche.

Realistically, you won't get many end users to sign up so the domain will always be underutilized.
It will be a waste of a premium domain and as long as you have 'tenants' your hands are tied and you can't resell the domain or put it to a better use.

[SanDiegoTodd]

Thanks David.

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Thanks Barry.

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Thanks Katherine.

[hugegrowth]

I think it could work but it has to be a very premium domain, like how Chicago.com is able to sell email addresses. There is a good example of people promoting a domain (in their email) that they don't own and are willing to pay for it. Millions of people do it by using hotmail, gmail, yahoo or their internet provider company in their email, but it helps that its free.

Facebook.com and Twitter.com are getting huge promotion from companies directing people to their company pages on those sites. These aren't subdomains but it's the same idea, promoting someone else's domain.

I think if you could sell the subdomain and also do the website building, or provide an easy site builder for them to do it, subdomains like plumber.chicago.com or tickets.chicago.com could be sold. If it gives someone an ego boost or credibility they might do it. Or, give free subdomains but put your own ads on the site. Again, it has to be a very premium domain with wide recognition.

[ryanmlanane]

Agreed - I think if you can sell geo e-mail addresses you could sell geo sub domains.

normal sub domains, not so much ...

My only worry about leasing a domain outright is I have heard legally they can then sue you and win the domain having paid just lease fees for XX months. I heard either 6 or 9 months and they could claim right. Am I wrong ? Are their leases that get around this issue - because I have had 2-3 situations where leasing a domain would have worked, and now the domain sits on the shelf when it could of been bringing residuals.

I think it could work but it has to be a very premium domain, like how Chicago.com is able to sell email addresses. There is a good example of people promoting a domain (in their email) that they don't own and are willing to pay for it. Millions of people do it by using hotmail, gmail, yahoo or their internet provider company in their email, but it helps that its free.

Facebook.com and Twitter.com are getting huge promotion from companies directing people to their company pages on those sites. These aren't subdomains but it's the same idea, promoting someone else's domain.

I think if you could sell the subdomain and also do the website building, or provide an easy site builder for them to do it, subdomains like plumber.chicago.com or tickets.chicago.com could be sold. If it gives someone an ego boost or credibility they might do it. Or, give free subdomains but put your own ads on the site. Again, it has to be a very premium domain with wide recognition.

[eeedc]

I think many people thought of it years ago, and a few may have tried it without success.

The weakeness is that it's easier for someone to buy and a customer/client to remember "JohnDoeRealEstate.com" than to remember "JohnDoe(DOT)realestate.com"

in addition to other problems mentioned above.