New Feature: Fully Flexible Financing

In order to minimize any roadblocks from the buying process, we are pleased to announce a new Flexible Financing option for Premium and Standard listings. This option will allow buyers to choose a monthly payment amount that fits their budget.

Down Payments

  • For longer payment terms, the buyers would be required to pay a minimum down payment amount, so that they are more committed to the purchase and sellers receive a reasonable amount of payment with the initial purchase.
  • The minimum down payment amount will be automatically calculated based on the domain price as well as the length of the payment plan.
  • For high priced domains (typically above mid to high five figures), the down payment amount will be optional even with longer payment plans.

Extended Installment Plan Surcharge

  • For longer payment plans (typically above 12 months), there will also be a surcharge % added to the purchase price. This % will be calculated automatically based upon several factors (downpayment amount, length of the payment plan, domain selling price).
  • If a buyer puts in a higher down payment amount, their surcharge % will be automatically reduced.

We believe a combination of down payment and surcharge % will create incentives for buyers to pay more upfront, while giving them full flexibility to customize their monthly payments based upon their finances.

We will share additional details when this feature is live later this week. If you do not wish to participate in flexible financing, you do not need to take any action. If you would like to enable it for your domains, you will be able to make that change from your Marketplace Preferences section.

3 Likes

Grant, who gets the surcharge, SH or the seller or both?
I have thought all along that sellers should be paid interest on payment plans, since we are financing people’s businesses in part. I also believe SH should get interest because of the work involved. But right now, we sellers are just doing it for free.

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@Commulinks For seller owned listings (Premium and WLM), the surcharge will follow a 65/35 split. 65% will be paid to seller and 35% to SH. For SH registered domains, the surcharge split will be reverse (35% to seller and 65% to SH).

We will be publishing these terms and other details shortly when the feature is activated.

4 Likes

Excellent! Thank you!

2 Likes