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IP Leasing | Current Information About Leasing IPv4 Addresses

Is IP Leasing a Good Venture?

Many people with excess IPv4 addresses approach IPv4 Market Group to decide whether they should lease or sell their IPs. Generally, we feel that an IPv4 sale is preferable to a lease, from the supplier's point of view, and there are several reasons why.

We find that many parties looking for IPv4 leases want them for a short period of time. This is a telltale indication of a desire to "churn and burn," where they probably will use them for spamming or other nefarious activities, resulting in blacklisting and poor IP reputation. It might be possible to clean IP ranges from these activities once, but it is never easy, and it is never good for your company's reputation to have your IPs blacklisted.


IPv4 Market Group’s Findings for IP Leasing

The main incentive for a potential lessor is financial. They feel that leasing their IPs will allow them to generate an income stream over a long period of time, versus a sale is a one-time benefit. However, with IP prices soaring to well over $20/IP and with lease incomes at a hypothetical $1 per month, it would be a minimum of 20 months to earn the equivalent of a sale. Coupled with the unlikelihood of a long-term contract for 20 months and the strong likelihood your IPs ending up blacklisted, leasing does not seem to be as financially lucrative as a sale.


What are the Pitfalls of Leasing IPs?

We caution companies about IPv4 leasing, especially if it is not their area of expertise. You need technical expertise to sub-assign IPs, route small blocks, and provide Letters of Authorization, and you need financial expertise to charge and collect on monthly lease payments. If you are a university, a large manufacturer, or many other kinds of companies, then leasing IPs does not fit with your existing products or services and is not a good fit for you.


IPv4 Leasing Risks

To summarize, IPv4 Market Group generally recommends against leasing your unused IPs because it is not worth the risk. The market is questionable, and blacklisting is common. Financial gains are not overwhelming and are probably not well aligned with your primary business. An IPv4 sale is most often the better approach.