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Still on the fence about offering payment plans?Picture of one hundred dollar bills with the words "lease to own"
Adding payment plan options (lease-to-own) to domain names can drastically increase the amount they sell for, according to data from domain marketplace Squadhelp.
Squadhelp CEO Darpan Munjal tweeted today that domains on its platform that allow buyers to pay them off over time sell for 32% more than Buy Now domains:
Although payment plan come with a cancellation risk, they expand the overall buyer pool, resulting in a higher average purchase price AND better STR
Based on our data, Domains purchased on payment plans achieved 32% higher average purchase price vs BIN price sales pic.twitter.com/rOwUCceO7i
— Darpan (@darpanmunjal) October 20, 2022

I asked Darpan if this might be because people are more likely to need a payment plan for more expensive domains, but he stated the company sees similar distribution of payment plan vs buy now purchases at all price bands.
“My interpretation of this data is that enabling a payment plan might allow sellers to increase the domain price by 20-30% without hurting the expected STR [sell-through rate],” he tweeted.
Combine this with data about how adding “make offer” to a domain dilutes its sales value, and it seems like a winning combination for many domains will be buy now + payment plan options.
Categories: Domain Sales
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