Give a loan by mortgaging domain names - Good or Bad ?
Hello guys,
What do you think about this idea ?
The ideas is about giving a loan by mortgaging domain names.
Who need money for advertising or anything else, can easily take a loan by parking his domain.
There are companies that already do this - lending based on domain value. DomainCapital.com and Lendvo.com are two of them.
They typically will only lend against true premium domains. If you own Cars.com you could get a loan, if you own TotallyAmazingCars.com you probably wouldn't get a loan - even if you think the name is great.
Lendvo seems pretty much it, thank you for links.
Seems a pretty terrible idea. Domain valuation is speculative at best, and there's no legal framework or escrow system that would support it.
haha :) it could be
That'd be interesting to see. The only thing I'm wondering is how would you implement this? If a domain is registered by someone, technically, they own all rights to the domain (until it expires).
Not sure how you'd be able to "park" the registrant ownership?
If you do manage to find a way to hold a domain as collateral, until loan is paid back, look into getting into .realtor and .realestate tlds. https://www.get.realtor/
I mean the domain should be transferred before receiving the loan The owner will still be able to use the domain and its DNS but it is the guarantee until loan is paid back.
Who would cover the domain transfer to your account and then when they finish paying, transfer fee out of your account?
One thing you may want to consider is the domain's value, which is subjective. I've heard of domains being purchased for 1 million, but if you were to give me a loan of say 5k just to simply hold my domain, I'll be buying up as much domains to get the 5k/domain.
Lots of risk involved. Interesting idea, nonetheless.
Yeah agree with you , there are a lot of risks. Usually transferring is free, but the owner have to cover renewing his own domain while transferring. As you know every domain has a value, according to its age, traffic, .. etc. So, only valuable domains will be eligible to get a loan, otherwise the value of fresh domains is not more than $1.
I'd classify that as more of a pawn loan than a mortgage.
Domain name liquidity seems problematic. Also, not sure domain names have the same value they used to. I wouldn't loan out money on one. But, if you put out a free tool to check the value you would loan I would certainly check and see how much I could get.
Yes every domain has a value, surely not every domain could be eligible to get a loan.