When you rent
a domain name (sample domain name renting agreement),
you avoid the financial risk associated with buying your own
domain name. Depending on the rental company, domain names
can start at about $20 a month. Compare that to the cost of
a “good” domain name, which might cost hundreds or even
thousands of dollars. When starting a business, less capital
expenditures can be critical.
a domain name rental, you have the flexibility to cancel the
monthly commitment at any time. If your business doesn’t
work out, you will not have lost much.
other hand, if your business flourishes, that flexibility
can become a huge liability. The person who owns your domain
name can also cancel the contract at any time. Imagine, for
example, that the site you created has started to generate
some good traffic. The owner of the domain name might decide
to monetize the domain themselves, ending the rental
agreement and leaving you out in the cold.
domain name brands your company. If you build a successful
company on a rented domain, you would not have full control
over your own brand.
alternative to renting a domain name is leasing.
With domain name leasing (sample domain name
leasing agreement), provisions can be
included in the agreement that benefit both
parties. This gives you more security because,
depending on the terms, the owner of the domain
is not able to take the site away at any time,
as is the case with a rental contract. (Of
course this means you are also not able to
cancel at any time.) Most leases are for one
year and cost about $200 to $300 a year.