DAN.com just announced an automated lease to own option that its domain name sellers may employ on their DAN.com marketplace listings. By enabling this option, sellers will allow buyers to lease their domain names for a set time period on the way to executing a sale at the buy it now price. This new domain financing option was announced this morning in a blog post shared by the company via Medium.
DAN.com has offered an installment plan where sellers could allow buyers to pay for a domain name in up to 12 installments. For instance, a $60,000 domain name can be acquired for $5,000/month for 12 months. With the new lease to own option, a buyer can stretch out the payment plan for up to 60 months. Sellers can choose how long they will allow a buyer to stretch out payments in their account settings. This option can be helpful to cash strapped businesses and startups that will use the domain name as a springboard to building their business and pay it off over time.
One major difference between the lease to own plan and the current installment plan is the escalating purchase price for longer payment periods (can also be looked at as an early payment incentive). The longer the payment term is extended, the more expensive the domain name is. Here’s how the markup works, according to the blog post:
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