4 Main Benefits of Domain Name Leasing Over New Domain Name Registration

Domain Name Registration

Buying an established and unique domain name instead of getting a new domain through domain name registration can be expensive. In the course of your routine search for that perfect domain name, you might stumble across a unique domain name you’ve been looking for- to check if the domain you are thinking of is available, but the price quoted could be way beyond your budget. There is one way you can still acquire that domain name temporarily: Leasing. Just like paying a monthly fee for leasing a house, you’ll be required to pay the lessor (domain owner) a monthly or quarterly lease payment amount until the end of the lease term (typically 2 to 10 years). This is a convenient way of using the domain and acquiring it later on a permanent basis once you have the money. Domain leasing has many advantages. Let’s look at them:

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Gives you a whole lot of anonymity that doesn’t come with new domain name registration

If you don’t want people to know that you’re the owner of a website, domain name leasing is an effective alternative. Since the domain name is registered under the lessor (domain owner), there is no chance someone will know that you own the website. Details of the domain are usually from the owner of the domain.

  • You incur fewer upfront costs as opposed to deciding to buy a domain name yourself

Registering and buying a domain name is costly, especially if you want the .com domain name. Some entrepreneurs choose to buy expired domains if their preferred .com domain name has already been taken. Expired domains are even more expensive than registering a domain. A top-level and unique domain name can cost upwards of $5000. This price is insanely high for first-time online entrepreneurs. The most convenient alternative is leasing the domain; as you’ll be required to only pay small amounts every month as the lease payment.

Leased domains tend to be highly SEO optimized compared to new domain name registration

The majority of leased domains are usually top quality, which reflects on their costs. They are usually expensive because the owner optimized them for search engines. They also tend to have authority backlinks and high page ranks. This means that your site will appear on top of search engines without any of effort on your part. All these aspects can get your business up and running in only a matter of days because organic traffic will automatically start coming to your website.

  • Reduced risk to your online business when you lease a domain as oppose to new domain name registration

Let’s admit it; many businesses fail today than ever before due to fierce competition in the online space. In fact, statistics show that 60 % of new businesses never make it past their first anniversary. So if you bought a domain name at $5000 and the business fails to take off, this will be a huge loss to you. Leasing a domain name alleviates this risk, as you’ll only be paying small amounts as lease payment each month. When the business fails to take off, you can discontinue the lease payment and return the domain name to the owner. Even though the lease agreement can be ended mutually, you will need to incur some penalties. However, the total cost of penalties is way less compared to the cost of the domain if you could have bought it at $5000.

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You can take steps to cushion yourself from high penalties by making sure you read the lease contract to the very end. If the penalties are so high, it’s best to look for another lessor. It’s also highly recommended that you engage in short leasing contracts such as 1 year or a maximum of 2 years to avoid overly high penalties when your business fails to take off.

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