Premium .com Domain Names: Rent, Lease or Buy?
There has been much talk about domain leasing services throughout much of this year as the world wide web anticipates the release of 1,900 or so new generic top level domains (gTLDs).
In today’s post, I hope to shed a little light on the premium .com domain names and the various options you can take now in terms of renting, leasing or buying.
No one knows the future of .com or gTLD’s.
In my humble opinion, I think it is safe to say that .com will be around for years to come.
Rather than waiting on the new gTLD’s to be released, you’re better taking action now to rent, lease, or buy a premium .com domain name for your business when given the option too.
Will new gTLD’s increase the value of premium .com domains and domain leasing?
If you haven’t heard about the new wave of gTLDS and the next web beyond .com, then simply put, the new gTLDs are looking to heavily compete with the current TLD “king of the ring”, .com.
Essentially, the new gTLDs will allow for greater flexibility to the right of the dot.
The opportunities are endless although the risk is great that 34% of the online world will make the change at once, moving away from .com.
It’s very unlikely although I think there will gTLDs to win the battle, but not the war.
There are many conversations happening around how successful some of the gTLD’s will become although most are not expected to do as well as .com or any of the rest (i.e. .net, .org, .co, .me, etc.).
So what does this gTLD talk have to do with domain name leasing you ask?
Well, for one, since opportunities are open with gTLD’s, there is a chance that many investors and business owners will roll the dice on gTLD’s rather than spending thousands on premium .com domain names for their line of business.
This could prove to be a smart move, yet it could also prove to be a costly should the new gTLD’s not garner success or traction of any sort.
See, the new gTLD’s could very well increase the cost of premium .com domain names.
If this is the case, then investors and business owners could be shooting themselves in the foot by taking a chance with the new gTLD’s and not locking in a very attractive and affordable rate for renting, leasing or buying premium .com domain names now.
That said, many questions loom in the minds of those on the fence of waiting for the new gTLD’s to be released, or renting, leasing or buying a premium .com domain name now and reaping the rewards of increased value possibly.
What is the best action to take?
How the scarcity of premium .com domain names increases opportunity for domain leasing services
Most of us know that premium .com domain names are hard to come by due to a number of companies using premium domain names, and domain investors owning them.
If you don’t believe me, then simply open a web browser and type in one or two keyword phrases that describe your line of business to see if their domains are taken.
Nine times of out ten, those domains are not only taken, but have been for 10 or more years.
Sometimes premium .com domain names have business websites developed on the domain while others are simply parked and showing ads with the occasional “This domain name is for sale” option available for those with deep pockets and who dare to enter into joint ventures or negotiations to purchase the premium .com domain name of choice.
Premium .com domain names are quite expensive due to the supply and demand nature of domain names and how the internet works.
Premium .com domain names are very much like one-of-a-kind treasure.
There can only be one domain and because of this, premium .com domain name values skyrocket to incredible levels when the premium .com domain is placed on the market to be rented, leased or purchased.
Most premium .com domain owners are rarely looking to sell their lucrative pieces of virtual real estate.
Most owners typically are looking to rent or lease premium .com domains.
You may find this somewhat appalling, but truth be told, there are benefits to being the first to identify and see the value.
Much like physical real estate, many domain owners, also known as domainers, will hold to their valuable land to hopes of selling it for a handsome profit or even striking a deal that will provide them with passive income for years to come.
Don’t think that renting or leasing premium .com domain names is a one way street of benefit to the domain owners. In actually, domain renting or leasing offers very lucrative benefits to all parties involved.
However, leasing is considered better than renting because it comes with an option to buy.
If your business does well financially using the premium .com domain name, then you can easily pay the buyout price, owning the premium .com domain name for the lifetime of your business.
And I know the thought as to why someone would want to pay 10 to 20 times the registration fee of a regular domain name to rent or lease the domain name has crossed your mind.
Well, the answer is quite simple.
Investors and business owners want to make their unique ideas online wish to have the most ideal domain names, premium .com domain names, for whatever business they have in mind.
Premium .com domains are not just any ole’ domain, they’re ideal domains for businesses wanting to dominate their market, industry or niche.
In addition and more specifically speaking to the value they bring to online businesses, premium .com domain names are category-defining domain names and business owners of online businesses have come to understand that their customer use generic words when search for a variety of products and services using search engines.
Not only are you able to take advantage of boosted search rankings with premium .com domain names, but there is also hidden exponential value in type-in traffic such domains receive.
Why domain leasing of premium .com domain names is becoming popular
It’s not always possible to buy the premium .com domain name you want.
That said, domain name leasing of premium .com domain names has become very common for investors and business owners looking to take their business towards greater customer growth and revenue.
That is why a lot of companies, including Kickstart Commerce, have actually adopted it as a business model to assist investors and business owners in securing premium .com domain names for their business.
With very few drawbacks, domain leasing of premium .com domain names is becoming popular based on the following top three domain leasing reasons:
- Leasing is the safest and cost-effective method for getting one’s hands on a premium .com domain to prove a business model. The good news is that the business can always opt out of the lease it when the lease contract ends in case the business fails.
- Leasing a premium .com domain name for a newly established business is less expensive than making the financial investment upfront for an unproven business. This allows for efficient and effective capital use in launching the business, or taking the business to the next level. This savings in capital allows for spending on other useful activities such as development, advertising, marketing, or search engine optimization.
- Blocking competition from securing a premium .com domain name, business owners are afforded the opportunity to outright purchase the leased domain at fair market value when funds are available to do so.
Is leasing a premium .com domain name right for your business?
Only you, the investor and business owner, know whether or not a given premium .com domain name is worth leasing.
There are many domain considerations to be made in terms of renting, leasing and buying premium .com domain names.
With the release of the upcoming gTLD’s coming into the domain marketplace, they’ll make for interesting times ahead in terms of the buying and selling of domain names for all extensions.
However, seeing the past release of other non .com gTLD’s, there is really not too much concern for .com domains, especially premium .com domains.
My guess is that .com domains will increase in value, but again, that is only a wild, left-field guess and roll of the dice.
But one thing for sure is that there will be winners and losers on both sides of the gTLD fence.
I hope the resources provided above will help you make an educated and informed decision when it comes to buying, leasing, or renting a premium .com domain name.
No matter what happens in the future, always remember to do you due diligence before signing any lease agreements, reading all terms and conditions thoroughly and carefully.