closed Leasing My Domain, Help Sought

[waterguy]

I own www.watercooling.com and would like to know what value to place on leasing the domain on a monthly basis for a period of 2 years with the option to renew for another 2 years, etc.. I do not want to sell the domain: I just don't have time to develop it. My target audience would be computer stores that sell watercooling equipment and from what I have gathered from 12 years experience in the PC industry is that a domain like this one in the right hands could be worth $500,000 a year in sales from watercooling equipment. I am however, looking to provide the lessee good value so I am open to suggestions/comments about how I should proceed and the agreement I should draw up. Thank-you for your comments.

 

[draqon]

sounds like you are riduculously overvaluing the domain to me. No way is a domain as weak as watercooling.com gonna get enough traffic to get 500k in profit per year, unless someone spends several hundred thousand dollars developing and advertising it.

 

[Kid Kool]

Originally posted by waterguy
I own www.watercooling.com and would like to know what value to place on leasing the domain on a monthly basis for a period of 2 years with the option to renew for another 2 years, etc.. I do not want to sell the domain: I just don't have time to develop it. My target audience would be computer stores that sell watercooling equipment and from what I have gathered from 12 years experience in the PC industry is that a domain like this one in the right hands could be worth $500,000 a year in sales from watercooling equipment. I am however, looking to provide the lessee good value so I am open to suggestions/comments about how I should proceed and the agreement I should draw up. Thank-you for your comments.

i would lease it for $25 a month

 

[waterguy]

Interesting comments: if I were selling watercooling gear, I could have done at least $20k in the last two weeks, but that doesn't interest me. $25 a month? Amusing. You're obviously unaware that on average a watercooling kit sells for around $175USD per unit. 3 units a day? Any one in this business can do that on a monthly basis. I am not trying to bloat my domain, I am merely trying to get constructive dialogue to help me offer a fair price to a potential lessee.

 

[Wot]

Hi,

I note you said sales of 500,000 not profit.
There is already a site up at Google, in fact it is nuber one and there are 1.5 million results for water cooler.

I have no idea about rentals but youmight try a figure of 100 to 150 a month or whatever. Offer it to the Google water-cooler.comor others who are on the first few pages.

 

[Bob]

When leasing, I take my asking price, increase it by 25%, then divide by 36.

So, if I want 10,000 for a name, adding 25% yields 12,500, divided by 36 is about 350/month.

Reasoning: I look at this as a lease to own type of deal (even though they might not own it at the end of the lease period). If they made monthly payments over a 3 year period, I would get all of my asking price.

Why add 25%? Loss of time and purchsing power (i.e. Inflation). The buying power of a dollar diminishes over time, so I add 25% over the 3 years. Additionally, I am losing cash on what I could have invested the purchase price for three years of time. Average returns should be about 8-10%.

When working on a lease, I demand a 6 month minimum, with 3 months up front. Each payment must be made by the last day of the month for the following month. Any delay of 10 days is subject to immediate termination of the lease. In a rent-to-own situation, I make sure to state if the agreement is breached, then all money paid to that point is FORFEITED.

Leasing is a pain in the butt, but if done properly, you can make more from leasing that a sale (but you do have to be into the name long-term). The problem is, if people are serious about a name, they will be more apt to just outright purchase it.

The lease price all depends on the value you put on your domain name (at least for me it does).

Good Luck.

-Bob

 

[draqon]

waterguy, what leads you to believe that you could have done 20k worth of sales in the last month?

 

[Kid Kool]

Originally posted by waterguy
Interesting comments: if I were selling watercooling gear, I could have done at least $20k in the last two weeks, but that doesn't interest me. $25 a month? Amusing. You're obviously unaware that on average a watercooling kit sells for around $175USD per unit. 3 units a day? Any one in this business can do that on a monthly basis. I am not trying to bloat my domain, I am merely trying to get constructive dialogue to help me offer a fair price to a potential lessee.

well maybe you could lease it for around 100-150 dollars a month.
If you feel you could make more than you should do that. the age when "potential" for revenue determines value is long gone in this industry.

How much traffic does the name currently get? how much revenue has it generated in the last several months? if the answer to those questions is zero, then you're probably not looking at much value...especially since you're only talking about leasing the name. A company would have to spend time and money marketing a name which they would eventually not even own.

 

[DryHeat]

"Water Cooling" does seem to be a pretty good business; many sponsored listings for the term on both Google & OVT, the latter starting @ $1.30. All major extensions taken (except .US) and established site @ .org extension with one coming @ .Biz. So all in all it'd like a very specific niche area.

Sorry, I'm not qualified to offer you input re. proper lease amount for the domain, but I can offer you some DnForum Bucks since I just registered WaterCooling.US...


P.S. I'd be happy to lease it for $5/month...

 

[Kid Kool]

Originally posted by DryHeat
"Water Cooling" does seem to be a pretty good business; many sponsored listings for the term on both Google & OVT, the latter starting @ $1.30. All major extensions taken (except .US) and established site @ .org extension with one coming @ .Biz. So all in all it'd like a very specific niche area.

Sorry, I'm not qualified to offer you input re. proper lease amount for the domain, but I can offer you some DnForum Bucks since I just registered WaterCooling.US...

yes and it does appear he has a developed site with a top 10 rank on google for the term watercooling which is great

 

[waterguy]

Originally posted by draqon
waterguy, what leads you to believe that you could have done 20k worth of sales in the last month?

<p>
I've been getting email requests every day for a price list, some inquiries sound almost desperate. The enthusiasm for watercooling your PC right now is incredible. I based my 20k projection on those mailings and my recent experience with my other internet businesses. Thank-you for your reply.

 

[TexasFilly]

Watercooling.Com is brought to you by The Upgrade Path®. Located in Victoria, BC, Canada, The Upgrade Path® is a manufacturer of precision crafted computer components and enclosures.

**************************************************

I'm impressed...... keep up the great work.. you'll find a buyer or leasee.. n/p
and the .com is the best extension of all..

goodluck!

 

[peter]

waterguy: stop lying.

Why would people email you and be desperate when there are literally thousands of online-shops selling watercooling gear. I know, since I run a computer-website myself.

And you making $20k in one month? SURE. Parhaps $20, tops.

Good luck pal =)

by the way, I dont think anyone would want to lease (?) your domain for anything more than $200 a month

 

[garyted51]

I think this discussion is in the wrong room.

 

[rcristel]

"I could have done at least $20k in the last two weeks, but that doesn't interest me. "

I wouldn't be interested in a measly $20k either...

 

[waterguy]

Originally posted by rcristel
"I could have done at least $20k in the last two weeks, but that doesn't interest me. "

I wouldn't be interested in a measly $20k either...

It sounds amusing, but I already have a successful on-line business and working both isn't possible at this writing.

 

[peter]

waterguy: take your BS somewhere else and stop wasting everyones time

 

[DomainSage]

stop advertising and go get a life. Don't you know everyone here is cheap? This is a domain wholesale place, not for stupid newbies in the market.

 

[waterguy]

Originally posted by icehole
waterguy: stop lying.
Why would people email you and be desperate when there are literally thousands of online-shops selling watercooling gear. I know, since I run a computer-website myself.
And you making $20k in one month? SURE. Parhaps $20, tops.
Good luck pal =)
by the way, I dont think anyone would want to lease (?) your domain for anything more than $200 a month

Thank-you first for your constructive comments toward my original query. I am in the process of designing a new waterblock which I have recently put on hold because of time contraints. Yes, some enthusiasts have expressed great interest to the degree I mentioned previously. I would use the word desperation again without reservation. $200/monthly is a pittance I wouldn't consider as I know from past experience that the domain lease is worth more than that, at least in my mind. I don't mean to sound brash, but a good retail site on this "name-estate" would see ROI the first day in business. I think that I would be happy with $400-$600/month, perhaps with a lease to own clause, so you're not too far off the mark. Thanks again for writing.

 

[waterguy]

Originally posted by DomainSage
stop advertising and go get a life. Don't you know everyone here is cheap? This is a domain wholesale place, not for stupid newbies in the market.

Thank-you for writing. I was merely seeking advice with regard to leasing my domain.