I have the lease to own (LTO) option enabled on nearly all of my inventory-quality domain names. The maximum length of the lease term is generally set based on the price of the domain names. There is one category of domain name I won’t offer LTO on – trend domain names.
For trend types of domain names – either a hot topic or something along those lines, I want people to pay in full before using my domain name. I don’t want them to pay a fraction of the cost, use the domain name while the topic is hot, and then dump the domain name back to me once the trend has subsided.
One broad example of a “trend” domain name I wouldn’t offer LTP on is political related. I wouldn’t want someone to lease a $5,000 domain name for 24 months a few months before an election. They could use the domain name in an attacking or pointed manner, pay for 3 months, and give up the lease. At that point, I might be left with a “poisoned” domain name that nobody else will ever want for a brand.
If I think a domain name can be used in a negative light – particularly for a very short term gain – I most likely won’t allow someone to LTO it. When I see a timely / trend domain name in my portfolio that can be used for a short term bump and then is returned back to me, I will turn off the LTO or at least set the terms for such a short periord that it will be profitable very quickly so it lowers my risk.
That’s a good approach, thank you for sharing, Elliot.