Domain Lease & Rev Share

[gmac17]

I'm working on a long term lease on very nice geo name. The payment will be a rev share between the owner and I. I will be doing all development, content etc.

I was going to propose a 50/50 split, but I'm worried that is unfair to me. The guy is doing nothing with it, so it is all gravy to him -but he has the prime piece of real estate.

This is nowhere near the name, but would you put your time and resources into hawaii.com for a 50/50 split?

Any thoughts on a fair split?

 

[BiggieBiggie is verified member.]

no, not if I'm doing all the work and providing the capital.

I would be seeking 65% > 75% of all revenue.




that's the biggest problem with leasing a domain to develop... the more YOU put into it, the more valuable it becomes.

the time and money you spend on a lease, could possibly be put into a hand reg or a lower cost aftermarket name.

I have leased out a couple of names in the past and each time the leasee ended up buying the name, as 99% of the time after they've put in money and time they don't want to let it go.

 

[gmac17]

He won't sell it. It is a great name that I think I can put a bunch of time into now, and then make some nice money over the next 10 years with a few hours per month.

Will I be annoyed in 8 years when I realize the money is going away? Definitely.

Would I have been able to build the site on any domain with the same results? Almost definitely not.

I think the 65%-75% is a better idea and your rational is right on.