How to purchase a domain name with little down?
Is the price of your domain name keeping you from locking it in?
If you look at the path of most startups it involves launching on a shoestring budget.
What this means is that most startups are unable to acquire their branded domain name.
For example….
If you call yourself Quilt.com you would add words on the front or the back that are not registered.
Maybe a GetQuilt.com or Quiltinc.com.
But there is a way to lock in your domain name for little down.
Why you should buy your domain name.
Before we go to deep down the path of buying your domain name it is important to understand WHY a startup should own their branded domain name.
For starters domain names are the new bedrock and foundation for branding.
Your brand is a way that your company is differentiated from the other companies in the market.
When you have multiple companies calling themselves the same keyword or market it creates confusion.
Now, I know what you are thinking.
We have a trademark .
That is true, but there are forty five different trademark classes.
What that means is that other brands can also use your same keyword for their brand.
So…
Who really owns the brand online.
The company and brand that owns the raw version of the keyword.
I will leave it there for now but you can find more info on a video I did here and here.
Ways to purchase a domain name
So now what do you do?
Most startups simply can not afford to purchase their domain name.
This creates a challenge.
There are three basic ways to purchase your domain name.
- Buy it outright
- Lease option
- Finance thru a third party.
Many investors are understanding the importance of domain names and are willing to give money to finance the outright purchase.
How do you lease a domain name?
If you are in-between funding rounds you may need to look at different options to purchasing your domain name.
One option that we see picking up is a lease option.
This is very similar to a lease option to buy with real estate.
The basic formula is like this:
- Initial investment
- Monthly payment with a time limit
- Ability to purchase the domain name during the lease period or contract period.
Not all domain owners will go this route.
This method limits the risk and maximizes the reward for many startups.
If their company does take off they can execute on the contract to purchase the domain name.
but…
If they are not successful they can exit out of the lease with limited exposure.
You can find more information on leasing a domain name here.
How to purchase a domain name with financing.
If you do not have the funds and the owner does not want to lease the domain name you still have an option.
There are several companies that will finance your domain purchase.
One of the top companies in this industry is domaincapital.com.
Conclusion
If you launching a serious business you will want to lock in your domain name as soon as possible.
There are three main ways to purchase a domain name
Outright purchase, Financing, lease option or owner financing
Whatever way you go lock it in before another brand acquires it.
If you are looking for help acquiring a domain name you can find more information on my domain broker page.
