GoDaddy/Afternic are going to be rolling out a lease to own option. In a blog post today at Afternic.com, James Iles laid out all the details.
One of the things to pay attention to is the fees associated with the new offering.
Service Fee and Discounts
Afternic’s Lease to Own provides buyers with the ability to pay for domain names long-term, but as with similar payment plan models, buyers will pay an escalating purchasing price for longer Lease to Own deals, also known as a service fee.
For sales between 2-12 months, no service fee is added. Between 13 and 24 months, there’s a 10% service fee, while 25-36 months is a 20% service fee. For longer term deals between 37 and 60 months, buyers will be charged a 30% service fee.
This service fee will cover payment processing fees, renewal fees, buyer DNS support, and more over the term of the deal.
Sellers will benefit from commission discounts for longer term deals. A seller will get a 5% commission discount for deals between 13 and 24 months, a 10% discount for deals between 25 and 36 months, and a 15% discount for deals between 37 and 60 months.
For example, a seller that lists their domain name for sale using one of Afternic’s approved nameservers eligible for a 15% commission rate, sells a domain name via Lease to Own for $30,000 with the buyer selecting a 37-month term. In this instance, the seller would receive a 15% commission discount, which would result in a 0% commission rate.
With Afternic and Dan.com, two GoDaddy brands, both offering Lease to Own, the platforms aligned the service fee and commission discount to simplify these for domain investors. Dan.com announced that it will be moving to the same service fee and commission discount structure. So no matter whether you sell a domain Lease to Own on Afternic or Dan.com, you can be sure of your commission discount.
The technology and capabilities of Dan.com, a GoDaddy brand, have been vital to the launch and implementation of Lease to Own. Afternic and domain name sellers can now benefit from the company’s expertise with Lease to Own as it is enabled for a wider audience.
Check out the blog post to find out all the info and what you need to do to offer lease to own.