I’ve only gone and done it! – leased out my first domain
After my shenanigans with replica weapons I got the wife on board so that she could research and email companies and we signed up a deal that rewards all our efforts very well indeed.
Leasing a domain is something I am going to put more effort and time into, I think that if I can gather a good collection of domains just now and rank them in Google then they could be promoted and leased out for a couple of years at a time whilst still owning them and offer a stable and long term income and at the same time if chosen wisely the domains themselves will appreciate in value.
The market is still quite young and it isn’t the easiest thing in the world to do but it is very rewarding. Better than owning houses and leasing them, domains are low maintenance and have the potential to rise in value faster offering an ultimate exit strategy at some point when they could be sold off as either a going concern or individually.
Do you know what the real killer is about doing it this way? – Rank a domain with a mini site on it and you can get 3 to 4 times more profit by leasing it to the right people than you can by traditional methods of either PPC or selling it.
You can buy a domain to lease at reg fee like I did, so about $10
Trying to sell the domain just as a domain would get me around $200 for it, profit but nothing great.
After registering the domain comes the task to rank it consistently in Google, the domain once ranked brought in traffic and generated ppc income of around $500 per month, very nice but changeable and unreliable. If I tried to sell this as a website in the average webmaster community I would be looking at about $6000 to maybe $12,000 tops for it. Great profit but I am looking for better longer term income rather than a quick cash boost.
By leasing the domain to someone who was involved in the industry they can better monetise the traffic and value the site more than a domainer or a typical webmaster, this means the return is greatly increased and you can aim for something like $12k a year lease rather than as a one time payoff. Leasing out your domain even with an option to buy built in can treble or quadruple the value of your site and domain name to the right people.
I intend to be more selective about the domains I chase now, having value in the domain itself is a better starting point rather than looking for reg fee domains for me, if the domain is valuable then ranking that domain makes it extremely valuable.
Product based UK domains which are applicable to the UK market are where I intend to devote my time. Why? Because it is easier to concentrate on a geo location like Google.co.uk for rankings rather than worldwide products or services that may need to rank in Google.com.
The other added bonus is that if you find & buy an excellent domain name and manage to rank it you get to earn from the traffic with Adsense or the like while you actively contact businesses to seek out a lessee.
I have also refined my search process which has itself turned up some new genres, sitting down and deciding that your willing to spend a budget on a domain to rank it and earn from ppc while you look to lease it out is a great strategy, but deciding upon the niche and finding the right domains for sale is a task in itself. There are tools available that make this a bit less of a stab in the dark and I’ll go through what I am doing now in another post.
So first one leased, a new business started and another set of tax returns to do next year , the joys 😉 I’d also like to thank Rob from Hey for organising a lease agreement for me, having a well written lease is extremely important as it protects yourself and your investment.