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Types of Domain Name Acquision Deals

There are a few types of domain name acquisition deals. Some of them are “standard” deals that are used by most of the investors and buyers. But sometimes they make a personalized deal that corresponds to the needs and wants of both sides. A creative deal can add value to the seller and give the buyer flexibility.

 So here are the well-known types of domain name acquisition deals:

  • Standard Acquisition – This is the regular type of domain sale that most people use. The process is very short and consists of a buyer agreeing to pay a certain amount of money to acquire the domain, and the deal is completed after one payment.
  • Financing – A seller or third-party can help buyers finance the purchase of a domain website. In the case of seller financing, a buyer can pay for the domain purchase in certain installments for whatever period of time is agreed on, with a set rate of interest. In most cases, an escrow service like Escrow.com will hold the domain name in escrow while the buyer completes the payment. The third-party financing works like a loan, where a company like Domain Capital purchases the domain and technically owns it until the buyer is ready to pay off their loan.
  • Lease to Own – This is very similar to seller financing. Here, a seller is leasing the domain name for a certain period of time with a set rate, and the buyer gets the right to own a domain after they paid off the lease. If the buyer stops paying those set amounts, the domain goes back to the owner and the seller keeps the money paid until that point.
  • Option to Buy – A buyer and seller can agree on a “locking” price that will allow the buyer to pay the locking price and be able to pay the full price of the domain after some time and get the ownership rights. Basically, a seller reserves that domain name for that particular buyer. If the buyer does not pay the full price after a period of time, the seller keeps the option fee.
  • Sale with a Resale Bonus – Seller deals in a domain name under a condition that if it is subsequently sold by the buyer, the original owner of the domain will get a percentage from every sale deal.
  • Equity Exchange – In this case, the buyer subsidizes the purchase price with equity in the company that will be using the domain name. Instead of cash, the seller will get equity on the buyer’s company/organization or the company that is built to use the domain name.
  • Trade of Services – In this situation the buyer company is not paying in cash, but instead provides particular services of the same price as the domain, to the seller. For instance, a building/place renovation company installs cupboards in the seller’s place.

All other types of domain name acquisition deals are considered creative and can carry any terms in them, whatever is agreed on by the buyer and the seller.

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