[hackerboos]

1.Lease domain to customer

2.Let customer spend a ton of money on marketing/advertising said domain

3.Hold customer to ransom when they renew the lease

4.Profit!

[mcyger]

It can also be:

1. Lease the domain with a small cash outlay per month

2. Prove your business model

3. Make money

4. Make a balloon payment for an agreed-upon purchase price (prior to the contract signing) at the end of, say, 3 years term.

This gives the buyer a way to walk away if the business doesn't work out, but lock up the domain from others buying it out from under you in case your business is getting traction.

[pan69]

The way I understood is that you're not leasing the domain, you are actually buying it but you pay for it with installments over a period of time. After you've made all your payments, you own the domain.

[mcyger]

You are correct.

It's a financial agreement. Once you make all the payments, you own it. It's up to to you negotiate a payment plan that works for your business.