Renting a Domain? Four Things You Need to Know1st October, 2019
Over half a million small businesses are started by entrepreneurs every year in the United States, and in order to succeed in today’s economy a business must have an online presence. The importance of location to a brick and mortar store applies the same to the internet, but online the location is your domain name. A domain name can identify your business, products or services offered, and imprints the quality of your goods with that domain name. Once you have determined the domain name for your business, the next question is whether you choose to rent, lease, or buy the name. For more information about establishing an online domain for your company, call or contact ESQwire today for a free consultation.
Renting a Domain is Not the Same as Leasing or Buying
The question of rent, lease, or buy applies the same to a domain name as it does to a physical location. It is important to understand the differences between the three options, as it can have a significant impact on your business. Renting a domain name typically occurs on a monthly basis, where your business pays for the rental of a domain name already owned by another entity. Leasing a domain name operates similarly but with longer rental terms of usually a year or more. Buying a domain name can be expensive and places the liability of the name on your company, but you also own the domain name outright.
Avoid Liability Issues with Domain Rental
One of the biggest advantages to renting a domain name is avoiding legal liability for any issues that arise with the name. If another company has a similar domain name, products, or business similarities that could cause confusion to the normal consumer, a lawsuit can be brought for infringement of intellectual property. By renting the domain name, you avoid any direct liability if the owner of the domain infringes on another business.
Domain Rental Gives Short-Term Flexibility
Domain rental also gives a business short-term flexibility and options that leasing or buying a domain cannot. With month to month rental, businesses that are just starting out can try out a domain name to see if it garners the traffic it wants to the online website. It allows a fledgling business the flexibility to make changes before committing to a single domain name for the company.
Domain Rental Has Long-Term Drawbacks
However, it is important to note the potential drawback of domain rental. Because of the monthly rental periods, the owner of the domain name has the ability to increase rent or terminate the agreement with very little notice, even if your business is doing well with that domain name. In addition, by renting a domain you lack the ability to use the intellectual property as you see fit, such as renting out the domain name to another company if you decide to make changes to your business.
Call or Contact the Office Today
Do you wish to learn more about renting a domain for your business? If so, call the office or contact us today at ESQwire to schedule a free consultation for your online business needs.