Financing domain names

According to statistics, over eight million domain names are being registered every three months, with 44 million for top-level .com and .net only. It is also known that almost all four-character English word domains have already been registered and searching for a good name may seem impossible. Today, businesses and individuals are fighting to get the best domain name for their company, even if it means paying a lump sum of dollars for a five-character domain name. Because of this, premium domain names have increased prices dramatically, ranging from $5,000 up to $300,000, while extremely premium domain names (those with four or less characters) could fetch upwards to $1 million and higher.

In response to the growing domain name buy and sell marketplace, financing of domain name purchasing is one of the newest services that leasing companies offer to assist businesses that want to acquire high-value domain names. They can provide a working capital so that one can purchase domain names with a potential, existing or increasing value.

Since domain leasing has become one of the fastest growing niches online, many companies are offering businesses with financing options for domain name purchases. They cater to domain names priced for as low as $2,000 or more and have payment options such as twelve months payable or longer, depending on the price of the domain name.

Due to the growing number of high-value domain transactions month after month, plus the capacity to drive continuous revenue through domain parking, financing of domain name purchases is probably the next rational step for the domain buy and sell market.

Domain financing services can cater to domain portfolio owners, potential domain name owners, as well as domain name brokers and domain registrars. For volume domain owners, financing of domains can help them reduce marketing costs and use the capital to obtain new and strategic domains or invest their existing domains. When they opt for financing for a premium, top-level domain, their portfolio will easily gain popularity.

New businesses often come a little too late to develop an online presence, making their preferred domain names unavailable; but with financial services for domain name purchasing, new businesses can have the capital they need to acquire the ideal and strategic domain names that have the potential to increase in worth.

Such financial services can also help domain registrars sell their high-value premium domains, especially when a potential buyer desperately wants to purchase a particular domain, but doesn't have enough funds to close the deal. Leasing companies can step in and provide the necessary financing the buyer needs for his or her purchase. For auction companies, brokers and domain name registries, this much-needed financing option can expedite the closing of purchases and domain name transactions. It is a value-added service that will help not only the buyer, but the seller as well.

Since leasing companies now offer financing of domain purchases, everyone, including businesses, individuals and investors can purchase even the highest valued domain names without having to come up with a huge amount of money, or make a hefty cash-out.