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Glad This Sale Wasn’t an LTO

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Sometimes, the most obvious use for a particular domain name is in a manner that would either be offensive, controversial, or negative. This will probably be common sense for most people, but it is a good idea to keep the lease to own option off for domain names that could be used in a way that could damage its future usage.

I recently sold the a two word .com domain name that was acquired by a political campaign. The domain name was first used as a forwarder to a YouTube video, but it now hosts a landing page with that video. The title of the video matches the domain name without the extension. I would classify this as a way to cast an opponent in a poor light.

An Active Credit Card Doesn’t Solve Business Continuity

Domain investors with valuable domain name assets need to have a solid business continuity plan. Simply having domain names on auto renew connected to an active credit card with a far out expiration date doesn’t solve the issue of domain name renewals in the short term.

In order for a credit card to continue functioning, monthly payments need to be made. Monthly credit card payments can be set to auto-pay, so domain names continue to be renewed and the credit card is automatically paid each month. However, in order or all of that to work, there needs to be enough cash in the connected bank account to cover the bill each month.

Keep an Eye on Your LTO Deals

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I saw some good advice shared on X that should be considered by domain investors who have ongoing Lease to Own deals:

When a domain name is sold on a lease-to-own (LTO) payment plan, the buyer typically gains use of the name before paying in full. While most buyers use the domain name as intended, it’s a good idea for domain investors to periodically check how their leased domain names are being used to ensure they aren’t being used in a way that would violate any laws or the LTO agreement.

The primary reason for checking on these leaed domain names is risk management. If the buyer uses the domain name for something illegal or illicit and against the terms of the agreement, it could draw unwanted legal attention or harm the reputation of the domain name. Not only could it cause issues for the domain registrant in the shorter term, but it could hurt the value of the domain name in the longer term.

How Buyers Find Domain Names

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When someone decides to acquire a domain name, the process usually falls into one of three main paths: they have a brand already in mind and want to secure the matching or a similar domain name, they start their search from scratch using a platform to generate brand and domain name ideas, or someone reaches out to sell them a domain name.

In the first scenario, a buyer has already established (or is in the process of establishing) a brand name. They might be launching a company, introducing a new product, or rebranding an existing business. The brand name is already chosen, and they want to buy the matching .com domain name.

Thoughts on Domain Name Appraisals

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There are numerous automated tools that attempt to place a value on domain names. They use various sets of data, artificial intelligence, and machine learning to estimate what a domain name could be worth. Some sales platforms and marketplaces show appraisals on a purchasing or bidding page, which implies authority. Domain name appraisals are often treated as validation tools by domain registrants and dismissed as irrelevant by buyers.

Some of the most popular and widely used/cited domain name appraisal tools include the following:

Atom.com Featured Sales Include LTO Deals

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Over the last several weeks, I have been adding more domain names to my account at Atom.com. I have just shy of 250 domain names listed for sale along with some that are pending review. With another lease to own sale started last night, I currently have 4 LTO deals in progress at Atom. Two are .com, one is .AI, and one is .xyz.

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