For those of you keeping up with my domain leasing attempts I have 2 more leased out in the last couple of weeks, both @ £50 per month, one on a 2 year lease, the other on a 3 year lease, one domain was caught for £5 the other cost me £700. That takes the total to 5 domains leased out @ a total of £775 coming in per month.
Overall thoughts on buying domains to lease recently are pretty much unchanged:
1. Make sure the domain encompasses a whole or substantial part of a business, it has to be attractive to an end user to build a second store front on, don’t try to get into too small a niche.
2. Make sure the niche you choose has a lot of players or potential end users, your going to need a big audience to find the right person with vision, I sent out around 30 emails last week and in one reply where I was asking for £75 per month the reply stated he would buy it for £75! When speaking on the phone to another potential end user he was shocked the domain I was trying to lease cost me over £1000, those are hurdles that still need to be tackled.
3. Again if there is a fee paid for the domain which is usually the case with good domains I try and get that back or most of it back within 12 months and therefore look to lease out for 2 or 3 years.
4. The domain needs to be ranked for it’s name, of the 5 leased out, only one was not ranking top 10 for it’s name, it’s that added value that helps make a deal just now.
That’s probably all the progress I’ll make with that side of my business this year, next year I need to crank it up and I have a lot in the pot that I have been working on all year quietly so I really want to aim to take it above £1k a month and towards £2k a month. it’s certainly not get rich quick but once the time & effort is invested if I have 10-20 valuable domains leased out in the future making an income of 4 figures a month it would make that side of my business pretty valuable considering the investment would have paid itself back within 12 months, that business would be valued on a multiple of it’s income and the fact that the capital assets appreciate in value each year. It may be an option to sell the busines as a going concern one day or just live of the income.
Recap/timeline on the last year for domain leasing.
- It was August last year I made my first post where I considered the idea: Become an internet landlord
- 2 months later in October I had my first domain leased out
- In January 2008 I put in my to do list for the year “I would like to progress with leasing a bit more so would look to have at least 2 domains or sites leased out on long leases to expand on what I have started there and prove to myself it can grow.”
- I knew ranking and buidling some value into the domains would take time and hamper progress in 2008 so it was nice in May to lease out my second domain.
- After leasing out the second one it really opened my eyes to the added value this gives a good domain.
- It would be November before my 3rd, 4th & 5th lease would come, no surprise, I expected a year of buying and working on them before I could get down to realising them as assets.
All in all from a standing start around a year ago to get to £775 per month is fair enough, the first year is certainly the hardest and next year should offer more opportunities with more money being spent advertising online. Almost all my domain buying has been done in the last 12 months – it’s been a big shift for me but I think the fact that I have detailed a great deal of it on this blog shows it’s certainly not too late for anyone, there is opportunity if you have motivation.