Step-by-Step Guide to Lease-to-Own with DomainEasy

Created by Dennis Burch, Modified on Sun, 12 Jan at 1:55 PM by Dennis Burch

What is Lease-to-Own (LTO)?

Lease-to-Own (LTO) is a flexible payment plan that allows buyers to pay for a domain in manageable monthly installments over a specified period. Buyers gain immediate access to use the domain while paying it off over time, making premium domains more accessible.


How Does It Work?

  1. Sellers Enable Leasing:

    Sellers can decide whether to enable leasing for their domains. This flexibility allows sellers to make their domains more attractive to buyers who prefer installment payments.

  2. Leasing Option Availability:

    If leasing is enabled by the seller or negotiated during a purchase, buyers will see the Lease-to-Own option for the domain.

  3. Choose a Lease Term:

    Buyers can select a lease period that best fits their budget or negotiate leasing terms directly with the seller.

    • 0-12 months: No service fee (0%)
    • 13-24 months: 10% of the domain price
    • 25-36 months: 20% of the domain price
    • 37-60 months: 30% of the domain price
  4. Calculate Total Cost:

    • The service fee is added to the original domain price to determine the total cost for the buyer.
    • Example: For a $2,000 domain on a 60-month lease, the 30% service fee is $600, bringing the total buyer cost to $2,600.
  5. Set Monthly Payments:

    • The total cost is divided into equal monthly payments.
    • Minimum Monthly Payment: $50. If the payment falls below this threshold, the lease term is adjusted automatically.
  6. Complete Checkout:

    After choosing your lease term and reviewing the payment plan, complete the checkout process to start the lease. The first payment is required upfront.

  7. Start Using Your Domain Immediately:

    Once the lease begins, you’ll have full access to the domain while paying off the balance.


Detailed Example Scenarios

Example 1: $2,000 Domain on a Lease

  • Domain price: $2,000
  • Service fee (37-60 months at 30%): $600
  • Total buyer cost: $2,600

If you select a 60-month lease:

  • Monthly payment = $2,600 ÷ 60 = $43.33
  • Adjusted lease term: 52 months to meet the $50/month minimum payment.

Monthly Payment Breakdown:

  • $50 total payment
    • Credit card fee (~3.5%): -$1.75
    • DomainEasy’s share of the service fee: -$5.77
    • Seller’s earnings: $42.48 per month

Total Seller Earnings:

$42.48 × 52 months = $2,208.96


Example 2: $10,000 Domain on a Lease

  • Domain price: $10,000
  • Service fee (37-60 months at 30%): $3,000
  • Total buyer cost: $13,000

If you select a 60-month lease:

  • Monthly payment = $13,000 ÷ 60 = $217

Monthly Payment Breakdown:

  • $217 total payment
    • Credit card fee (~3.5%): -$7.60
    • DomainEasy’s share of the service fee: -$25.00
    • Seller’s earnings: $184.40 per month

Total Seller Earnings:

$184.40 × 60 months = $11,064.00


Benefits of Lease-to-Own

For Buyers:

  • Affordable entry point: Spread payments over time instead of paying upfront.
  • Immediate domain use: Start using the domain after the first payment.
  • Flexibility: Choose or negotiate a lease term that fits your needs.

For Sellers:

  • Enable Leasing at Your Discretion: Decide which domains have leasing options to attract more buyers.
  • Higher total revenue: Earn 50% of the service fee in addition to the domain price.
  • Consistent income: Receive monthly payments over the lease term.

Key Notes to Keep in Mind

  1. Service Fee: Based on the lease term and spread across monthly payments. Sellers earn 50% of the service fee, and DomainEasy takes the other 50%.
  2. Minimum Payment: The minimum monthly payment is $50. If payments fall below this, the system will adjust the lease term automatically.
  3. Fees: Credit card fees (~3.5%) are deducted from monthly payments before disbursement to the seller.

How to Get Started

  1. For Sellers:

    • Enable leasing on your domains through your seller dashboard.
    • Negotiate terms directly with buyers if needed.
  2. For Buyers:

    • Sign up or log in to your DomainEasy account.
    • Browse domains with the Lease-to-Own option or negotiate terms with the seller.
    • Choose a lease term and review the payment breakdown.
  3. Complete Checkout:

    Make your first payment to start the lease and gain immediate access to the domain.

  4. Manage Payments:

    Payments are automatically processed monthly until the lease is complete.

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