I received a GoDaddy Domain Broker Service (DBS) inquiry for one of my favorite domain names. The offer was $25k, which isn’t enough to start a conversation. The broker understood this, likely because he can see at least one higher offer for this name and several other offers in the database. I joked with him that GoDaddy has made more money on DBS lead fees than I’ve made from this name – yet.
In speaking with the broker, he indicated that the buyer – whose identity and other background information was not shared with me – would be a good fit for the domain name. When I shared what it would take to get a deal done, he did not sound too optimistic about the buyer having the budget. Whether this is true or a negotiation tactic to get a better deal for his client is neither here nor there.
As we were finishing the conversation, I asked if DBS brokers are permitted to offer a lease to own (LTO) purchase option to the buyer as a last resort. GoDaddy owns Dan.com, where LTO deals have become more commonplace. In addition, GoDaddy has been offering LTO deals to buyers if sellers are willing to offer it.
The broker told me this is possible, and I let him know of my willingness to do a LTO deal on this name. I would be content to get a deal done at the price I want with a payment plan. If the buyer defaults, I would be happy to get the name back and keep the payments.
I am not sure if GoDaddy brokers are incentivized to offer a LTO deal, but it would be wise if they were. This would better align interests. Obviously, it would be nice to get a strong deal done with a single payment, but I would imagine a broker can present a compelling case for the benefits of utilizing a payment plan to build a business on the perfect domain name.
I just purchased a name recently for $100k (Registered city name since 1996). It did not have an LTO option on it to begin with. I asked my Godaddy rep, if he can be the broker, and can allow an LTO through this channel. He said yes and was surprised the seller, who he spoke to, knew nothing about the LTO. He proceeded to educate the seller on the benefits over several days and the seller agreed. It’s a 60 Month plan that’s in place. Kudos to my broker who has done this twice for me now ๐
Domain Brokers usually make a rental agreement once the domain sales price has been agreed, the last one was $750K
They weren’t from Godaddy.