Last month I wrote about the website Masks.com going up for sale on Flippa. The starting price was $975,000 and the other part of the equation was that the ownership of Masks.com did not come in the deal.
The entrepreneur running the business (by himself) has a perpetual lease for Masks.com through Kevin Ham’s Venture.com.
The asking price has now been lowered to $750,000 or make an offer. If you are signed in the listing does make it clear the domain is leased.
It’s interesting Venture.com lists Masks.com under it’s success stories section.
The lease is currently $499 a month, in 2021 it will go to $1k a month, in 2022 $2,500 a month, in 2023 $4,000 a month then it will increase 4% annually.
Brad Mugford said,
With those terms you are acquiring a liability more than an asset.
A lease deal might make sense, but it doesn’t make sense to pay a massive premium for a lease deal on a term that is going to wane in demand as the lease gets more expensive.
The seller believes the business would be nowhere near as good without the domain name.
When asked on Flippa,
It will be interesting to see where this business eventually sells.