Afternic will leverage Dan.com’s existing LTO system but will tap into GoDaddy and its brokers for greater distribution.
Lease-to-own (LTO) options for Aftermarket domains are finally coming to Afternic and GoDaddy.
The company has said the feature was on its roadmap, but some of the details of the rollout show that it’s a bit more complicated for the company to implement than just flipping a switch.
First, some of the big details:
- Sellers can opt-in for any domain priced between $495 to $100,000.
- Sellers can set a term of up to 60 months.
- Buyers will pay added service fees for terms greater than 12 months, and GoDaddy will share some of these fees with sellers through reduced commissions (similar to how Dan.com splits fees). For deals greater than 36 months, the effective commission from your asking price will be 0% assuming you use a GoDaddy/Dan nameserver.
- The minimum monthly payment is $100, so if a domain is priced such that monthly payments would be lower, Afternic will automatically decrease the term option available to the buyer.
- Afternic brokers can offer LTO (on opted-in domains) to help close a deal. This is the case even if you don’t use the LTO lander.
In order to launch LTO as quickly as possible, GoDaddy is leveraging Dan.com’s existing LTO system. This means a couple of things:
- If you want your LTO option to show on your sales lander, you need to select the Dan.com lander option. It looks just like existing Dan.com landers.
- If someone buys a domain on LTO through the GoDaddy search path, they will be sent to Dan.com to complete the purchase rather than through the GoDaddy checkout.
Some good news around that last bullet point…yes, LTO will show as an option when someone searches for a domain at GoDaddy. For now, it won’t show as an option for other Afternic partner registrars.
The rollout of LTO will occur in phases. Starting today, sellers can opt into LTO and choose maximum payment durations through the Afternic dashboard. This can be done domain by domain or in bulk. You can also set it as a default for domains you add to Afternic in the future. Sellers with more than 10,000 domains can contact support for assistance.
A few weeks later, Afternic will start to roll it out to buyers.