April 11, 2018

The Ultimate Guide to Purchasing a Domain Name

written by

Joe Uddeme

Joe Uddeme

The Ultimate Guide to Purchasing a Domain Name

Getting right down to basics, here’s NameExpert.com Director Joe Uddeme with our definitive guide to buying a domain name. Whether you’re a complete beginner or a would-be domain trader, it’s a great place to start.

 

A domain name is your website’s unique identifier. It is the address people type into their browser when they want to visit your website. For example, typing “nameexperts.com” in your browser leads to this very website.

Most businesses with an online presence need a domain name, but business owners sometimes don’t know how to get one. If you want to buy a domain name for yourself or your business, you’ve arrived at the right place.

Key Takeaways

  • What to do before buying
  • Choosing the right name and getting it registered
  • Buying a domain owned by someone else
  • What to do next

Before Buying Your Domain

Let’s examine the essential steps to take before buying a domain name:

Choose a domain name

A domain is a unique web address, meaning two websites can’t use the same domain name. The first step to buying a domain is to choose the right domain name for your business.

The domain should be brandable and easy to remember. It’s how customers will find you, so avoid any name that gives people headaches when trying to remember it.

The domain should preferably include the name of your business so that people can easily guess the address if they are not sure what it is. Let’s say you run an electronics store named MJ Gadgets; the perfect domain name is MJGadgets.com. If this domain isn’t available, you can look for alternatives like ShopMJGadgets.com, BuyMJGadgets.com, and MJGadgets.net.

Choose a premium domain name if you can afford it, as they are short, catchy, and memorable domain names that draw valuable organic traffic. Most successful online businesses use premium domain names.

Choose an Extension

The extension is what comes after the dot (.) in your domain name. “.COM” is the most popular domain extension and should be your first choice. If “.COM” isn’t available, you can pick alternative extensions like “.NET,” “.ORG,” and “.CO.”

Google and other search engines have confirmed that your choice of extension doesn’t impact rankings. However, it significantly affects consumer perception. People generally don’t trust uncommon domain extensions like “.XYZ,” “.BLOG,” “.WEBSITE,” etc.

Understand How Domains are Valued

Before making a final decision, you should understand how domain names are valued, especially if you plan to sell the domain later. Many factors contribute to a domain’s value, including:

  • Length: The shorter a domain’s length, the easier it is to remember and the more valuable it becomes.
  • TLD (top-level domain): Some domain extensions are more valuable than others, such as “.COM” “.NET,“ .AI,” “.IO,” etc. The more popular the domain extension, the more valuable it is.
  • Length of domain history: The longer a domain name has existed on the web, the more likely it is to command a high value.
  • Keyword popularity: Domains with generic keywords people frequently search for tend to have high value, e.g., “Amazon.com,” “Stripe.com,” “Square.com,” etc.

Verify if it is available

Considering the above factors, it’s time to check if your desired domain name is available. You can do this by simply going to any domain registrar and typing the desired name in the search box.

If the domain is available, the registrar will offer to sell it to you. Otherwise, the registrar will notify you that someone else has already registered the domain.

To demonstrate, let’s search for a random domain, “ournameexperts.com”, on Namecheap, a popular domain registrar. Namecheap said this domain name is available, and we could register it immediately.

Now let’s search for “nameexperts.com.” Namecheap said this domain name has been registered by someone else since 2000. Of course, that’s the domain you’re currently on, so you can’t register it for yourself.

If your desired domain name is available, move to the next section on how to buy a domain name outright. If it has been taken, move to the ensuing section on how to buy a domain name that is already registered.

 

How to Buy a Domain Name

1. Choose a domain registrar

Any domain name must come from an accredited registrar, such as Namecheap, Dynadot, Hover, Bluehost, and Domain.com. Over 2,400 domain registrars are accredited by ICANN, the governing body of the global domain registration system, so finding a suitable one shouldn’t be an issue.

You can see the full list of all ICANN-accredited registrars here. Any supposed registrar not on this list is illegitimate.

2. Select your domain and extension

The next step is making a final choice about the domain and extension for your online business. We’ve discussed the factors that should influence your decision, but it’s worth reiterating that “.COM” is the best extension. This is the first extension most people consider when looking for a brand’s website.

If a random person wants to guess your website name, they’ll likely type the name followed by a .COM and hope their browser will show your website.

The .COM extension is easily recognizable and helps your website rank higher on search engines. Domain names with this extension also command a higher resale value, giving it a competitive edge over other domain extensions.

3. Select How Long to Register the Domain

Domain name ownership isn’t etched in stone. Every domain has an expiry date, although you can renew the registration for as long as you want. You can register a new domain for up to 10 years, with each additional year carrying higher upfront costs.

The bright side is that you don’t need to bother about short-term price changes once you’ve registered a domain for many years.

If you want to build a valuable long-term brand, 5 to 10 years is the optimal period to register a new domain. But if you can’t afford a long-term registration, you can register it for a year and turn on auto-renew so that the registrar automatically renews it when due.

You can’t technically buy a domain forever, but you can use some workarounds to own it for a seemingly infinite time.

4. Purchase your Domain

Enter the available domain name into your registrar’s search box and click the buy button. On the checkout page, most registrars suggest adding domain privacy to the registration package. Some registrars offer domain privacy for free, while others demand extra fees for this perk.

Do you need domain privacy?

Domain privacy protection means hiding your personal information from the public WHOIS database. This ICANN-operated database contains information on all domain owners and is open to anyone.

However, you might be uncomfortable with your contact information being out in the open. In that case, you can request domain privacy for your registrar to hide your personal details from the WHOIS database.

If you have no issues with your contact information being publicly searchable in the WHOIS database, you can ignore your registrar’s domain privacy suggestion.

5. Complete the Registration Process

Pay for the domain name with a credit or debit card and complete the registration process. Your registrar will ask for contact information, including a name and email address, to register the domain. This information is usually listed in the WHOIS database, but domain privacy lets you hide it.

6. Verify domain registration

Your registrar will send a verification email confirming ownership of the domain you purchased. Click on the link in the verification email and smile because you have formally joined the club of domain name owners.

How to Buy a Domain that is Already Registered

We can predict your disappointment if you find out that your desired domain has already been registered. However, don’t fret—there’s still a way out. You can contact the owner and formally offer to acquire their domain, especially if it isn’t connected to an active website.

Finding a domain owner and making a reasonable acquisition offer can be exhausting, so seeking a domain broker’s services is advisable. Domain brokers are experts who specialize in buying and selling domain names– the internet’s equivalent of a real estate agent.

If you’re interested in a house not publicly offered for sale, you’ll likely seek a real estate agent. Similarly, if you want a domain that is already registered, seek a domain broker to handle the negotiations.

Domain brokers can help you find the owner of a domain even if their information isn’t available on the WHOIS database. Then, they’ll reach out to the owner for negotiations.

This part is critical because domain brokers have proper knowledge and experience in domain name valuation. If you’re negotiating directly, you might underbid a domain and cause the owner to ignore you. Or you may overbid and get played. A domain broker sets a reasonable bid on your behalf and adjusts when necessary.

If the owner agrees to sell their domain name, the broker handles the escrow and ensures you aren’t cheated. Then, they’ll transfer the domain name to you.

Sometimes, the broker will explain that they have found the owner but they don’t want to sell for any reason. In that case, it’s wise to avoid beating a dead horse and seek a new domain name instead – preferably something similar to your first choice.

It can be as simple as choosing another extension – such as saying goodbye to OurNameExperts.com in favor of OurNameExperts.net.

One of the most important things we do for clients is advise them on domain name strategy. We have many years of experience in suggesting and sourcing valuable names that have incredible potential.

Seated man and woman high-fiving in business setting

 

What to Do After Buying Your Domain

You’ve acquired a domain, so what’s next? A lot can happen. The obvious choice is to connect your domain to a website and work on attracting traffic.

You’ll need a web hosting plan from a reliable company. The company hosts your website on its servers so that people can access it anytime, and you’ll pay a fee for this perk.

The good news is that web hosting has become more affordable than ever– you can find hosting packages for as low as $5 monthly.

The type of website you want determines your hosting provider. For example, if you run an online store, you’ll need an e-commerce hosting service like Shopify, Shift4Shop, Squarespace, and WooCommerce for WordPress. If it’s a news site, social platform, booking website, or anything else, you can find endless hosting options for it.

You can also create a professional email address attached to your domain name. Professional email addresses make your business look brilliant and increase the chances of getting a response when you pitch to clients.

You can trademark your domain, market the website, and even sell it later. There are endless things to do after buying a domain name.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

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The bigger the domain name purchase price, the more attractive it is to scammers and fraudsters. Global domain name broker Joe Uddeme shares his top tips for staying safe when buying or selling premium domain names. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain name holders must be vigilant about renewing their domain names to retain exclusive rights. Domain name scams can be difficult to spot, but there are ways to identify them, such as recognizing phishing emails. One domain name renewal scam typically involves urgent phone calls or emails pressuring you to renew your domain names immediately and pay or risk losing your domain. This domain name renewal scam tries to trick people using phishing scams and deceptive tactics when registering names. Awareness and reporting are crucial to protect yourself. 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Scammers may trick owners through fake offers, exploiting confusion around domain registration and renewal. Fraudulent phishing scams often target website owners, too, using tactics to deceive them into believing they owe money or need to make changes to their domain or hosting services.     Understanding Domain Name Renewal Scams A Domain name renewal scam is a type of intellectual property scam or confidence scam that target the owner. These scams can result in financial loss for businesses and individuals. The financial loss can be substantial, affecting both small businesses and large corporations. Domain name scams can take many forms, including domain slamming, false offers to buy or sell domains, and fake trademark protection. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain Registry of America is an example of a fake trademark protection service. 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Set a calendar reminder to be a step ahead Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Verify the authenticity of the email or letter by contacting your domain registrar or reseller directly. Use secure payment methods when you register and renew your site or domain name. Avoid Mail that contains your physical mail address. Address customer concerns by contacting customer support. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Consider adding auto-renew as a double check for registering your asset before it expires. Use domain locking to prevent unauthorized transfers of your registered assets. Keep some money in the registrar account in case you have an issue with your credit card when you pay. Keep your contact information private by using a domain name privacy or proxy mail service. 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Domain Flipping: Our Tips For Buying and Selling Domain Names For Profit

Long before crypto trading, people were making speculative digital bets on domain names. Buying and selling them for profit is still popular, but, as NameExperts.com Director Joe Uddeme warns, you need to approach ‘domain flipping’ carefully.   Wouldn’t it have been great to be ahead of the curve back in the 90s when the internet was in its infancy? With a little foresight and not very deep pockets, you might have snapped up Lime, Lyft, Uber or WeWork.com. And you might even have stolen the march on existing brands such as Shell and Verizon, who both reportedly had to settle with savvy individuals who had registered those domain names. Buying a domain name to trade can be a fascinating – and potentially lucrative – pursuit, but there’s lots to learn before you start reaching for the credit card. This article will rapidly bring you up to speed with the world of buying and selling domain names for profit. 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Are you in the healthcare industry? Do you love cars or animals? Your job of searching for domain names gets a lot easier if you already know about the topic, because you already have an understanding of the potential value a domain name has. Here’s something you should not do: don’t just target buyers based on who you think might be wealthy. If you’re only targeting lawyers or doctors because you think they’ll have more money, you might be missing an opportunity in an area you know better. Also, if you don’t have knowledge of that industry, you might end up buying domains without knowing there are industry-specific rules that limit buyers. Our advice is to stick with what you know. If you stay focused on those industries and areas, you’ll be much more successful and offer a lot more value.   Step 4: Determine if the Domain is Available A key step in the research process is to make sure that the domains you want aren’t already taken. If the names are taken, which is common, you can check the marketplaces to either buy from people who own them, or rebuy domain names that have expired. For premium names costing in the thousands, a skilled domain name broker is your best friend here. They know the marketplace intimately and can advise on current domain name trends and also on strategies to employ when approaching owners.   Step 5: Consider the Price You’ve found the name you want. It’s available. But how do you know if you’re paying a fair price? You can use sites like namebio.com to compare the name you want with similar ones. It has interesting features like entering keywords and finding a list of names that are close to yours that includes what they sold for and when. One service we offer at NameExperts.com is domain appraisal. We’ll help you assess what a name you are interested in is actually worth so you know if you’re getting a good deal – and what the name might be worth to potential buyers.   Step 6: Buying Your Domain Name You have successfully evaluated your domain name and determined a fair price. Now, it’s time to buy it. Your preferred domain can be purchased through a registrar, a marketplace, or a domain brokerage service like NameExperts. When buying through a registrar, the key is to choose one accredited by the Internet Corporation for Assigned Names and Numbers (ICANN), the nonprofit overseeing domain names. Follow this link for the full list of ICANN-accredited registrars. If you want to buy from a marketplace there are many to choose from. These are our top 5 marketplaces – and a quick Google search will yield many other options. Or if you want to have someone take the strain and do the hard work for you, consider using a domain broker. Here’s what a domain broker does and how they can work for you. Step 7: Attract Attention To Your Domains After buying a domain name, you need to attract attention to increase its value. A dormant domain doesn’t achieve much, nor will it have much chance in increasing in value. While there are some examples of dormant domains that made significant profits for their owners when sold, these are the exception and not the rule. Doing something with your domain increases your chances of selling it for significant gain. So what can you do with a domain? To start, you can create a website with it to attract users. It doesn’t have to be a website you actively manage every day. You can fill it with content you only need to edit occasionally. For example, if you acquire “SchoolsInTexas.com,” you can write a detailed list of the best schools in Texas and add it as the homepage. Anyone who opens the domain might like the content and share it with others. As more people flock to the domain, its monetary value increases. In the above example, you could even place advertisements on the content and make money from your domain. The ideal advertisers would be the schools listed on the page. Check out affiliate marketing, too. You can also advertise your domain on search engines like Google and Bing or social media platforms like Facebook and X (Twitter) to draw attention. The good thing about online advertising is that you can do it even with a low budget. The idea is to gather eyeballs to your site to increase its value. If you place content on your domain, ensure it’s optimized to rank high on search engines using search engine optimization (SEO). This involves including relevant keywords, formatting the article neatly for humans and search engine crawlers, and writing helpful content for your audience. It also helps to get inbound links (backlinks) to your site from other similar, authoritative websites. With enough attention and audience, you can proceed to the next step and start thinking about selling the domain. Step 8: Determine Your Domain’s Value You have successfully attracted attention to your domain and are ready to sell. First, you must determine a fair value for the domain. You don’t want to underprice the domain and leave much money on the table or, inversely, overprice the domain and not find a willing buyer. Here are critical questions to help you determine your domain’s value: Does the domain receive any traffic? The higher the volume of traffic to a domain name, the more valuable it is. Showing proof of high traffic can fetch your domain a substantial price. Does it generate any income? If your domain name already generates income from advertising or any other method, it becomes easy for an interested buyer to value it. You can sell the domain for many multiples of its revenue. Does it have any search engine authority? Your domain’s search engine visibility largely contributes to its value. Domains with quality backlinks have more value than those without. Check your backlink profile to evaluate how much your domain name can fetch. If you feel they aren’t enough, you can build more backlinks before listing the domain for sale. Is the domain name brandable? You’re more likely to fetch a higher price for a domain that’s easily brandable. Such domain names tend to be short and easy to recall. Businesses pay top dollar for brandable domains because they draw more online traffic. Does it have a popular TLD? Domain names with popular TLDs like “.com,” “.net,” and “.org” are more valuable than those with less popular TLDs. Pro-tip: If the answer to all the above questions is yes, you’re on the right path to flipping domain names for profit!   Step 9: Selling Your Domain Name You’ve determined a fair price. Now it’s time to sell. Consider how you want to sell the domain and evaluate which route will give you the optimal price. Your best options for domain name flipping include: Private Sale: Sellers can negotiate one-to-one deals with prospective buyers. You’re free to approach any individual or business you think might be interested in your domain name and negotiate a price. Marketplace: You can list your domain name on a dedicated domain name marketplace. It’s easier to find buyers this way because the marketplace already has domain name investors looking to buy. The marketplace will take a cut of your sales for their service. With a Broker: Another effective way is to hire a domain name broker like Name Experts to negotiate a deal for you. Domain brokers are experienced in evaluating the value of domain names and can fetch you the best possible price. The broker handles the negotiations, and the only thing you will have to do is authorize the domain transfer. Auction: Auctioning your domain name is another way to sell it. You’ll place the domain up for auction on a marketplace, and the intending buyer with the highest bid will buy it. Domain auctions usually last several days, so there’s ample time to find a willing buyer and profit from domain name flipping.   Step 10: Use An Escrow Service It’s advisable to use a third-party escrow service when selling your domain name. The escrow service holds the money paid by the seller and releases it after confirming that you’ve transferred the domain. It prevents you from falling victim to fraud, e.g., a buyer refusing to pay after you’ve transferred your domain.   Step 11: Transfer the Domain The last step – all you have to do now is transfer the domain as agreed to the buyer. You’ll need to request an authorization code from your registrar and transfer the domain to the buyer’s registrar account. Note that most registrars require a domain to be at least 60 days old to be eligible for a transfer.   Domain Flipping Tips Building Your Domain Portfolio You can become an expert investor specializing in domain names if you’re willing to learn about the marketplace and create long-term value. Domain names are like any other asset to invest in, but you must do it carefully. Follow these tips to build a good portfolio and make money flipping domains: Understand your strategy: Domain name investors either follow the “quick flip” or “buy and hold” strategy, and these phrases are pretty explanatory. Choose which strategy you want to follow, or use a mix of both. Diversify your portfolio: The portfolio’s value should not be tied up in a single or few domain names because of concentrated risk. If possible, acquire more domain names to balance your risks. Never overpay for an asset: Don’t be the inexperienced investor who overvalues and pays excessively for an asset. Ensure you get third-party evaluations before paying for a domain. This will help you to maximize your profit when you sell the domain. Study and gain knowledge: The domain name investment scene is flexible and dynamic. New events occur every day that affect the value of domain names, so ensure you stay up to date with industry news to avoid getting left behind. Domain Flipping Risks Domain name flipping doesn’t guarantee profits. It carries risks, just like any other type of investment. The main risks include: Low Liquidity: Domain names don’t have as much demand as other assets like stocks, bonds, and commodities. You’ll likely need to wait a while after listing a domain before you find a willing buyer. It’s not something to invest in if you want short-term liquidity. Unexpected Valuations: Domain name valuations can swing high or low on a whim. You might buy a domain, wait a while and list it for sale – only to find the offers are significantly less than you paid for it. Domain name valuation is not as technically grounded as in other assets like stocks and bonds; the value depends significantly on a buyer’s intuition, so be aware of the risks. Other Ways to Make Money with Domains Buying domain names to resell isn’t the only way to profit from them. You can make money in other ways, such as: Domain Leasing: Rent your domain name to another party for an extended period. You’ll be paid at specific intervals such as monthly, quarterly or annually, giving you steady income for as long as the lease lasts. Parked domains: You can keep a domain and make money by placing ads on the homepage with a strategy called “domain parking.” You might also redirect the parked domain to an existing website you operate that generates revenue.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

Two execs – one male, one female – face an open laptop to illustrate blog post about domain names
Domain Name History – How to Check and How to Stay Safe

Ever been tempted by an available domain name that seems too good to be true? Maybe it’s exactly that – with a hidden history that adversely affects its true value. In this post, domain name expert Joe Uddeme flags up the things to look out for when buying a domain name.   Researching domain history is important for businesses and website owners, especially when you wish to buy a premium domain. It’s like wanting to purchase a property and checking the record of its past owners, renovations, and sales history before signing the contract. If you don’t do your due diligence, you might find your dream property was a crime scene six months ago. The same can (kinda) be true of a domain name. You’ve arrived at the right place if you’re interested in digging deep into the history of any domain. This article will give you the relevant knowledge and tools to navigate a domain’s history – and help ensure there are no skeletons in your URL’s closet. Key takeaways Domain history is important – ignore it at your peril A hidden past can help you negotiate a lower price (if you still want it) Discover all the top tips and tools that will help you unearth a domain name’s past   Why Would Someone Want To Know A Domain’s History Domain name history is important in several cases, mainly when someone wants to acquire a domain. For example, you come across a domain you want to buy but don’t know the owner. Investigating the domain registration history can help you find the owner so you can begin inquiring about purchasing the domain. These are typical cases that warrant a domain history lookup: Finding A Domain Name’s Owner You might find a domain that looks valuable for your business, but the existing website has no official information to contact the owner. In that case, researching the domain name history can help you find the owner’s email address, phone number, physical address, or other contact information. Conducting Research Before Buying A Domain Due diligence is critical if you’re buying any domain. Checking the domain name ownership history lets you know its reputation with search engines, which can affect your website’s discoverability and brand appeal. This due diligence lets you know if the domain was previously used for any malicious activity, and you can immediately back out if so. Or, if it has certain questionable connotations you can live with and you feel your name/brand is strong enough to survive the domain’s hidden past, you can use its history to negotiate a lower price. Competitive Research Checking a competitor’s domain name history can reveal valuable information. Who registered the domain? How long has the website existed? How much was the domain acquired for? Has the domain ever been sold? These questions give great insight into your competitors, letting you know how to stand out and win customers.   Checking A Domain’s History The WHOIS database is the first place to check a domain name’s history. This public database contains the information collected when someone registers a domain name. You can use it to find relevant information about a domain name’s owner and operational history. WHOIS Lookup You can query information from the WHOIS database using any WHOIS lookup tool. This database is publicly available, so many websites allow users to type in a domain name and see every information related to that domain in the WHOIS database. Examples of such tools include WHOIS.com, Who.IS, and WHOIS.DomainTools.com. Type a domain into any of these tools, and you’ll see relevant information about it, including: When the domain was first purchased A WHOIS lookup always shows a domain’s initial registration date. This information gives you a clue of how long the website has existed. To illustrate, let’s perform a WHOIS lookup for NameExperts.com. We typed this domain into the Who.IS lookup tool and got the following information:

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