May 13, 2022

What is a Premium Domain Name & Why You Should Buy One

written by

Joe Uddeme

Joe Uddeme

What is a Premium Domain Name & Why You Should Buy One

If you have big plans for your business, you’ll be in the market for a domain name to match. Cheap, everyday domains are unlikely to work for you, which is why you’ll need to get your head around the world of premium domain names, as NameExperts.com Principal Joe Uddeme explains.

 

Domain names are the ultimate authority on the web. They can make or break any business with an online presence.

It’s necessary to pick a suitable domain name if you want customers to discover your website with little stress. Most individuals and businesses understand this rule, and that’s why there’s significant demand for the class of domain names known as premium domains.

There are various considerations to what constitutes a premium domain, but the most important thing to know is that they’re often short, catchy, and memorable.

Premium domain names give you greater recognition on the web. If you’re serious about your business, you’ll want to buy one of these pieces of prime digital real estate for your website.

Key Takeaways

  • What makes a premium domain name
  • Valuations of a premium domain name
  • Long-term financial growth possibilities
  • How to buy a premium domain name
Need help buying a domain? We make the domain buying process easy.

What makes a domain name Premium?

The factors that contribute to making a domain name premium include:

Trustworthy TLD

The top-level domain (TLD) refers to the string of characters at the end of a domain name. The most popular ones include .COM, .NET, and .ORG.

There are thousands of TLDs available on the web, and some of them are obscure, e.g., .WOW.TODAY, and .DOT. Any domain name having such TLDs will hardly or, if ever, be considered premium because people rarely encounter them and thus tend to be skeptical when they do.

Most premium domains end with the popular TLDs that customers trust. The best choice for one would be the .COM TLD.

Length and Brevity

A premium domain name is usually as short as possible. Overly long domain names can be difficult to memorize, so they can scarcely be considered premium – no matter how great their combination of words is. For example, are you more likely to remember (and visit) boats.com or greatboatsforsaleonline.com?

Conciseness is also a vital factor in premium domains. Hyphens or punctuations can make domains difficult to remember, so you want to avoid them.

Generic

Premium domain names typically contain generic words that are easy to recall and understand. The more common a domain name sounds, the higher the value it commands.

Take, for example, Insurance.com, which sold for $36 million, and VacationRentals.com, which sold for $35 million.

It’ll be a great advantage if your company’s domain name consists of a word broadly relating to your industry. If so, it’ll be easier to make a lasting impression on customers’ minds when advertising.

For example, Cars.com is a leading automotive classifieds site with hundreds of millions of dollars in annual revenue. The relationship between its domain name and its business carries weight.

Keywords/Search Engine Optimization

Search engines are the biggest medium through which internet users discover websites. Hence, premium domains typically correspond with common search terms. AirlineTickets.comCarRentals.com, and MovieTickets.com are typical examples of premium domains drawing their significance from search engine optimization.

They also prove that a domain name doesn’t have to be a single word to be considered premium.

Why buy a premium domain name?

There are numerous good reasons to buy a premium domain name, but they all converge on one motive: to bring about more business. Companies would not spend sizable sums on premium domains if they weren’t bringing good returns.

The justifications for buying premium domain names include:

Credibility

A premium domain gives your brand more credibility in your industry. A domain name can provide a hint of how serious your business is about flourishing. Don’t believe it?

Try pitching to business professionals or prospective investors with a questionable domain. You’ll be made jest of or continually dismissed, which isn’t a favorable situation to be in.

The domain name you pick also goes a long way in determining the quality of media coverage your business can get. News and industry publications are more receptive to premium domains than non-premium ones.

Brandable

It’s more feasible to build a thriving brand around a premium domain than a non-premium one. A premium domain is usually short and catchy and, therefore, can stick to customers’ minds more easily.

Many people don’t pay much attention to advertising, so it’s wise to give them something memorable in the shortest possible time.

A premium domain has a substantial competitive edge over non-premium domains in enticing customers to patronize a business.

Stripe.comAmazon.com, and Uber.com are examples of businesses whose highly brandable domain names have contributed greatly to their success.

Uber website screengrab to denote valuable domain name

Improved search engine ranking

The battle to rank high on search engines is very fierce. There are millions of websites competing for limited space on the first page, so you need every possible competitive advantage.

A premium domain is more likely to rank higher on search engines than other domains.

Investment

A domain name is not just a tool but also an asset. There would not be a big domain flipping market if this wasn’t true. The past two decades of commercial internet have seen many domain investments reap big windfalls for their owners.

A premium domain can appreciate in value over short periods of time due to high demand. Hence, it’s a proper medium to park some cash with hopes of getting a significant return.

Let’s say a business with a premium domain fails. That domain can be sold for a high price and give some comfort to the owners of the faltered business. Check out our guide to the most expensive domain names ever sold for an eye-opening introduction to this high-value world.

Blocks of gold bars denoting the value of a premium domain name

Is it worth it to buy a premium domain?

In many cases, buying premium domain names for your business can be a great decision. A good domain name corresponds to a solid online identity, which is valuable for any business.

The competition on the internet is intense, so you should strive to differentiate yourself with a premium domain name.

One of the best online business tactics is to buy a premium domain in a booming industry – mental health and artificial intelligence, for example. Such a domain is likely to bring about a great deal of organic growth for your business – or could have a phenomenal resale value.

Do domain names increase in value?

Very often, yes. A domain name you buy may not be in vogue at the moment, but no one is sure of what the future holds. That domain could be useful in a burgeoning industry, making an organization pay a big sum for it.

Another way for a domain to increase in value is if an established business decides to launch a product or rebrand with that name.

For example, when Facebook, the social media giant, rebranded to Meta last year, it had to buy the Meta.com domain name.

The price it paid for the domain wasn’t disclosed, but the company separately bought some trademarked assets relating to the name for $60 million, giving a hint of how valuable the domain was.

Laptop showing rising bar chart to denote growing value of domain names

How much is a premium domain name?

premium domain name can cost between hundreds and millions of dollars. There’s no definitive price range, as it mostly lies on arbitrary terms between the buyer and the seller.

If you’re buying premium domain names directly from a domain registrar, you should expect to pay a few hundred or thousands of dollars. It gets more expensive when there are direct negotiations involved and the value of the name is irrefutably higher.

Some domain owners demand tens or hundreds of thousands for their domains. We advise you to hire a professional domain broker if you’re to buy a premium domain name directly from the seller.

How to buy a premium domain name

You can buy a premium domain name directly from a domain registrar or the owner. Many registrars offer premium domains to their customers, e.g., GoDaddyDomain.com, and BuyDomains.

There are also sites specializing in auctioning expired or deleted domain names, e.g., Sedo.com.

To buy a premium domain name directly, you can sign up on a dedicated marketplace (NameProsAtom.com, etc.) linking sellers up with prospective buyers like you.

An alternative is to hire a domain broker to find the identity of an existing domain owner and negotiate a possible deal. There are many advantages to using a domain name brokerage service, including saving time and money.

Name Experts, for example, has access to a wide network of buyers and sellers. We’ll also handle the legal, escrow and negotiation on your behalf – resulting in a faster, hassle-free process that keeps you safe and protected.

 

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. Using his years of experience, negotiation skills and little black book of contacts, Joe is an expert at helping clients secure premium domain names. Contact him at: [email protected]

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The Best Places to Buy and Sell Domain Names

Last updated: 10 September, 2025. Got a domain name in your sights? Looking to sell one? Our domain marketplace comparison is just the ticket for anyone looking to buy or sell domain names – as Name Experts director Joe Uddeme explains.   If you’ve found yourself here, you’re probably exploring the world of domain marketplaces or checking out related options. These are online sites where you can buy and sell domain names, and it can be fun typing a name into one of these sites to see if it’s already been taken. What you’ll quickly find is that pretty much every great name is already owned by somebody else (check out our post on what to do when someone else owns the domain name you want). There is a vibrant international market in buying and selling domain names; they’re traded like shares and some go for millions of dollars. Plus, of course, many of the good ones are actually in use. The likes of carrentals.com were never going to be simply ‘parked up’ forever! If you’re looking to buy a premium domain name, a broker specializing in market research, negotiation and transfer services can save you a ton of time and money. But for more everyday transactions – those costing a few thousand dollars or even as little as 20 bucks – a domain marketplace is where you’ll do business. In this blog post, we’ll look at some of the pros and cons of some of the best domain marketplaces, including Flippa and Namepros. Key takeaways Even for a low-value sale or purchase, use a reputable service. When you get into five figures or more, consider using a domain broker. Big names like Sedo and Namecheap are as popular as ever. Check out our FAQ for tips on selling fast, buying expired domains and more.   1. Sedo Sedo is a dedicated domain marketplace (similar to GoDaddy) with millions of users. It has been around for over two decades, making it a trusted marketplace for buying and selling domains. Any domain name owner can sign up for free and list their domain for sale on the website, and prospective buyers can easily contact them through the platform to buy domains. If you need something memorable that you can hang your whole business on, check out Name Experts’ current premium domains for sale. On Sedo, sellers can set a fixed price for their domain, put it up for auction, or indicate that they’re entertaining offers with an unspecified price range. When buyers come to the site, they can search for any keyword and check if anyone has listed a related domain name on the market. If you’re in the market for a premium domain name costing upwards of $10,000, consider seeking out an expert domain name brokerage service. These can help you purchase a domain name at the best price – or sell one without leaving money on the table. Sedo Search Sample: When we typed in ‘bikes’, the first three results were bikes.org, bikes.co, and bikes.biz, which are premium domain names – although they currently get little traffic. Sedo also includes other domain names that are closely related to your search phrase to sell domains. The first two domains in this example have a Make Offer button next to them, while the last has a Buy It Now button for your popular domain. This indicates that the domain sellers of the first two domains put them up for auction, while the third domain’s owner set a fixed price for their marketing strategy. As a buyer, you’re free to search for any specific URL and find related domains listed on Sedo to find the perfect domain. Purchasing from the domain marketplace requires added registration and jumping through a few other hoops, but it’s worth it as Sedo has such a large selection of premium domains available for acquisition. Who it’s best for: serious name-hunters who want access to a vast pool of names. 2. NamePros NamePros is an online community for domain name owners to interact and discuss events related to the industry. In the forum’s early days, users commonly posted they had domain names available for sale and wanted to connect with potential buyers. Observing this, the owner of the forum launched an official domain marketplace section for buying and selling domain names. On NamePros, any registered user can list the domain names they have available in a forum post. To make the domains easy for prospective buyers to find, NamePros has formal categories that users can attach to their posts to find the perfect domain. How much is it worth? Namepros can also share pertinent details of recently sold domains that are similar in nature to your domain search. Domain name valuation is a complex area, so tread carefully! Because it is a forum, NamePros only helps buyers and owners find each other and it’s up to them to negotiate and decide how they’ll handle payments for the domain. This is unlike Sedo, which facilitates payments and domain transfers for its users among other services. When using NamePros to buy a domain you should be more careful about your purchase. Set specific terms with the seller before proceeding on any deal and use a trusted online escrow service (e.g. Escrow.com) to ensure that the payment goes through only after the seller has transferred the domain name to your preferred registrar. You can find a large variety of domain names for sale on NamePros, making it one of the best domain marketplaces in the world. Who it’s best for: industry players and those looking to strike up a relationship with fellow domain traders. It’s by no means the easiest marketplace to use! 3. Flippa Flippa is a marketplace competing with GoDaddy for buying and selling online properties, including websites and domain names. The platform has facilitated millions of dollars in domain name sales since its inception in 2009 and has built a reputation as one of the most trusted domain name marketplaces to find the perfect domain name. The most expensive domain name deal arranged on Flippa was StockPhoto.com, which sold for $250,000. Any domain name owner can sign up on Flippa and list their domains, but it requires a payment of $29 for a base listing and $99 for an enhanced listing. Sellers often pick the second option because it makes their domains more visible to potential buyers looking for a great domain name. As a buyer, you can create a free account on Flippa and find domain names matching your taste. You can then search for a specific keyword and find related domain names listed by domain owners to buy domain names based on cost, features and budget. Easy to use To demonstrate, we searched for “cars”. The first three results were OldCarsForSale.com, acars.com, and fastsportscars.com, listed for $5,000, $100, and $1 respectively. OldCarsForSale.com is a premium domain worth its higher price. It’ll be a very good domain for anyone who wants to sell used cars online without a specific destination. Check out our post on choosing a good brand name for some further thoughts on this. Fastsportscars.com seems like a good generic domain name, but it can easily be mistaken for fastsportcars.com, giving it a disadvantage. It’s likely why it’s listed for a very low price and shows that you can find a good deal on a domain name for personal use. When you’re ready to make an offer or buy a domain on Flippa, the platform handles the entire process for you. They have been around for over a decade and built a reputation on the internet as one of the most trusted domain name marketplaces to find the perfect domain name. Who it’s best for: anyone wanting to sell quickly (choose an enhanced listing for maximum visibility). 4. Namecheap Namecheap is one of the most widely-used domain registrars, serving over 2 million customers and giving GoDaddy a run for its money. It also has a premium domain marketplace as well as business resources and forum support for its customers. Popular domain names Namecheap has an internet marketplace where domain name owners can connect with and manage potential buyers. Only domain names registered on Namecheap can be listed for sale, however, and owners can list their domain names at a fixed amount or put them in auctions. If a seller lists their domain at a fixed price, you can purchase it immediately, just like you would purchase a new domain on Namecheap. Auctions If the seller puts their domain up for auction, you’ll have to participate in a timed bidding process if you want to try and secure it. If you’re the one doing the selling, Namecheap collects a 10% commission on each sale. You must have a Namecheap account to buy domains from its marketplace and after buying any domain it is automatically transferred to your control. The convenient sale process makes Namecheap one of the easiest domain marketplaces to use over other domain marketplaces. Who it’s best for: amateurs and serious pros – Namecheap has something for everyone. 5. Atom.com (formerly Brand Bucket) Each premium domain is carefully reviewed by branding experts to ensure it meets high standards of originality, pronunciation, and memorability when selling domain names. This makes Atom.com a little different in the domain marketplace arena. Names often have five- or even six-figure asking prices. Visual Identity Package Every premium domain listing includes a professionally designed logo for your organization, providing a cohesive domain brand package that helps with your company identity. User-Friendly Search and Navigation Advanced filtering lets you search domains by industry, point, style, length, and other attributes to find the perfect match. Who it’s best for: anyone looking for a brandable premium name. They even mock up logos for available domains to give you a taster for what’s possible.   FAQ About the Domain Name Marketplace   Where can I sell my domain name fast? If you have a good name available and want to raise funds quickly, you can quickly sell it any of these marketplaces. A large platform such as SEDO, GoDaddy, Afternic or Namecheap offer great options for buying domains quickly – and also boast a fast transfer process.   How fast do domain names sell? Domain names take anywhere from hours to days, months, or years depending on the demand for them. The amount the domain is listed for also plays a role in how quickly it will sell. If the price is too high relative to its value, there may be no interest from buyers, especially for a premium domain. If a domain is listed on the wrong marketplace, it may not sell, too. We recommend using a large marketplace like GoDaddy. Check out our post about domain flipping for some extra tips.   Where do I buy expired domain names for sale? Many domain registrars host auctions for expiring domain names, including GoDaddy, Namecheap, and Network Solutions to buy domains. There are also websites specializing in auctioning expired domains, such as ExpiredDomains and DropCatch market services for other domain name sales on non-active domains. Domain brokers can help too. They can also help you buy names that are currently owned by someone else – even those already in use, if the price is right.   How can I build or develop my domain? Select a registrar, choose and pay a hosting company to host the domain, and sign up for a web builder interface to develop the site. WordPress or Wix are popular, though Wix is easiest to use if you have no experience. GoDaddy also offers a turnkey solution for your company’s development to make launching online worry free.   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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How to Buy a Domain Name – 10 Tips to Follow Before Buying

Picking a domain name for your brand should be given the respect it deserves. After all, says NameExperts.com Director Joe Uddeme, it could make or break your business.   Among the most crucial decisions in establishing an internet presence is picking a domain name to buy. Ignore the trends and fads of the day and pick a name that makes sense for your company or subject matter a decade from now. When you choose well, you can rest assured that you have a valuable piece of digital real estate that is woven into the overall success of your business. Here are 10 suggestions that will help you to make a fantastic domain name purchase.   1. Do your homework Just a small amount of research can go a long way when buying a domain name. Find similar websites and check out your competitors’ domains using a website like Compete.com. Use dnpric to determine when a domain name was last sold, for how much, and the web hosting agent. You can search by keyword, which will help provide the popularity of particular words in a domain name. While any research is better than none, plan to put aside days or even weeks to properly research the right name for your brand – something that will help it to grow. If you need some guidance and an insider’s eye, an experienced domain broker can help you come up with – and secure – the perfect name for you. 2. Buy a domain name people can remember Even if you’re planning on optimizing the website for search engines so that it can be found when people search for “used boats in Dallas” or “hair styling near me”, you still need a domain name that individuals can remember and type. Anyone hearing your name needs to know how to get right to your business without you having to say things like “the number 4,” and “dash-dash.” It’s also wise to avoid words that have more than one spelling if your customers are likely to be confused and type in the wrong name. Alternately, you can purchase both versions of the name and guide visitors to the one you prefer – safe in the knowledge that your backup site will scoop them up if they make a mistake. Avoid anything mysterious like “voodrifunk” or “flambinastic” that might sound fun but is so out there that people will have difficulty remembering it. 3. Avoid slang terms Stay away from slang terms and instead select a name that will continue to be meaningful in ten years. This may also help your title be known and remembered by non-native speakers. Even if you don’t intend to conduct business globally, this strategy can help your neighborhood audience also. 4. Purchase a domain that is shorter rather than longer The longer your domain name is, the harder it is for people to remember. And the greater chance you have of someone misspelling some of the words. Most good single word domains are long gone (read “what do to if the domain name you want is taken“), but it’s still possible to avoid super-long alternatives by getting a little creative. For those who have one word in mind that’s not available, consider adding an adjective or verb in front of it and seeing if those variations are available. Perhaps not “GetAppple”, as that would likely lead to a world of trademark issues and other legalities, but you get the idea. Think of your domain name as part of your brand, and be sure it matches how you want visitors to consider you. 5. Stick with .com if you’re able to Most individuals assume that a domain name ends in .com – it’s just become the default for most of us. If you purchase a domain name with a different extension or “TLD” as they are known (.net, .info, .org, etc.), you will have some additional work to do if you want to get people to keep you in mind. However, do not automatically assume you should only ever buy .com domains. Many websites have done very well with different extensions – such as last.fm 6. Do not buy trademarked domains Even if you’re not intentionally trying to create confusion, you are most likely to face some legal challenges by purchasing trademarked terms in your domain name. To be safe, look for U.S. trademarks at www.uspto.gov and be sure no one owns a trademark on the name you’re contemplating. 7. Do not buy a domain name that is too similar to an existing website Even if the wording, name or expression in the domain name that has caught your eye is not trademarked, do not buy it if is is merely a variation of some other domain name. This applies to plurals if the singular is taken (mediatemple.net vs. mediatemples.net) and hyphenating a term (media-temple.net). 8. Avoid buying hyphen domain names If you have to go with hyphens, do not buy a domain with more than three of them. It is just too messy. 9. Avoid numbers People may get confused about whether the amount is a digit (3) or a word (three). If you would like a number on your domain name because there’s a number in your organization’s name, purchase both versions (word and digit ) and redirect one to the other. 10. Check availability on social networking sites When you’ve got a name picked out, see if this word or phrase can be found on social networking sites like YouTube, Twitter, Facebook, Instagram, Pinterest, Google+, and Tumblr. Even if you don’t intend on using social media straight away, you will want the option when you are ready, and it is easiest if you can use the identical phrase on each website.   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]

Close up image of a person at a laptop as they investigate a domain name
What is Domain Name Escrow & How Does it Work?

Escrow is important when buying domain names, especially those of high value. Domain name expert Joe Uddeme explains how domain name escrow works – and why you should use a domain escrow 3rd-party when making highly-priced acquisitions.   What is Domain Name Escrow? Domain name escrow is a specialized service designed to protect both buyers and sellers during domain name transactions. In this process, a neutral third-party agent holds the payment and domain information until all conditions of the transaction are met. This setup ensures that the buyer receives the domain name and the seller gets their payment, significantly reducing the risk of fraud and deception. By using domain name escrow services, both parties can enjoy a secure and efficient transfer of domain ownership, providing peace of mind throughout the transaction. A domain name consulting service can help make the process much easier. What Is Escrow? Escrow is an arrangement in which a neutral third party temporarily holds money meant for a purchase until specific conditions are met. The money will only be transferred to the intended recipient when the conditions are met. If the conditions are not fulfilled, the money will go back to the buyer. In domain name and other transactions, the escrow process often involves a lawyer managing legal documents, ensuring compliance with laws, and securely holding the assets and money in a trust account until the terms of the agreement are fulfilled. What Can Escrow Be Used For & Why Escrow is common in transactions where a significant amount of money is involved, e.g., real estate. It is necessary to protect the buyer from losing money in case the seller does not fulfill the terms of the deal. Domain transactions can be pricey, which makes escrow and other services necessary just like with real estate. After all, domain names are online real estate. Escrow protects against: Sellers refusing to deliver a domain despite agreeing to do so. Buyers refusing to pay for a domain despite an agreement to buy it. Payment being made – but the domain not being transferred to the buyer. Secure payment is crucial in domain name transactions, and escrow services ensure that the financial exchange is safe and protected. In short, escrow ensures that both parties in a deal stick to their agreed terms. It is a mediator of the transaction and refuses to complete it until both parties act in good faith. How Does Escrow Work? 1. Agreement on price and deal The buyer and the seller negotiate and agree on how much is to be paid for a domain name or group of domain names. They also negotiate important factors like the date of payment, method of payment, and what currency to use. 2. Buyer places agreement with an escrow company With the deal terms drawn out, the buyer finds an escrow provider and deposits the payment with an escrow agent. Once the payment goes through, the buyer pays escrow company will notify the seller and tell them to transfer ownership of the domain name related to the escrow transaction. 3. Domain Name Is Transferred The seller will transfer the domain name to the buyer. The wire transfer procedure varies depending on the domain registrar, but both parties will work together to ensure a smooth transfer. It is crucial to involve legal counsel in domain transfers to secure the transaction and ensure compliance with legal requirements. 4. Domain Transfer Is Confirmed After the domain is transferred, the buyer will notify the seller and agree with the escrow company that the seller has fulfilled their part of the deal. 5. Payment Given To Seller With the domain transfer confirmed, the escrow company completes the escrow transaction by using a money order and sending the money deposited by the buyer to the seller. What fees are associated with using an escrow service? The escrow usually charges a commission on the value of the deal. Some may also charge a flat fee in addition to a commission. The exact commission may vary depending on the deal volume. Benefits of Using Escrow For Buyers and Sellers The benefits of using escrow for domain names include: Security: The escrow holds the money until all deal terms are fulfilled, so there are little chances of the buyer losing their money without getting the intended domain name. The buyer also feels more secure dealing with a trusted escrow company than with a stranger over the web. Additionally, escrow services safeguard domain transactions by holding funds and domain holder information, minimizing the risk of fraud. Assurance: The buyer is assured that they will get the domain they want, and the seller is assured of payment once the domain transfer is confirmed. Customer support: Escrow services usually offer customer support and can guide the buyer throughout the process of acquiring a domain name. Choosing the Right Escrow Services Selecting the right 3rd-party escrow provider for domain name transactions is crucial for a smooth and secure process. Start by looking for a reputable and licensed escrow company with a proven track record in handling domain name transactions. Evaluate their fees and payment terms to ensure they fit within your budget. Additionally, consider the quality of their customer service and support, as this can be invaluable if any issues arise during the transaction. A reliable escrow provider should offer a secure and transparent process to deposit funds, with clear contractual obligations and a well-defined escrow agreement. Research the company’s reputation online and read reviews from previous clients to ensure you are working with a trustworthy escrow company. Domain Name Transfer and Intellectual Property Transferring ownership of a domain name involves several steps and can be particularly complex when intellectual property rights are involved. A domain name can be considered intellectual property if it is trademarked, which can impact its value and transferability. Before proceeding with a domain name transfer, it is essential to conduct a clearance search to ensure the domain name does not infringe on any existing trademarks. Utilizing a domain name escrow provider can facilitate this process by ensuring that both parties fulfill their contractual obligations and that the domain name is transferred securely. This helps protect best interests of the buyer and the seller, ensuring a smooth and legally compliant transfer of the domain name. Alternatives To Using Escrow Attorney A licensed attorney can draft a sales contract that is legally binding for buyer and seller. If any party breaks the contract, they can be sued for damages in court. The attorney can also act as an escrow organization and only transfer money from the buyer to the seller if the terms of the contract are fulfilled. An attorney is crucial in selling domain names to ensure all legal aspects are covered, and the transaction is secure. Domain marketplace There are many marketplaces where you can acquire domain names. Here, the marketplace acts as a custodian of the domain and only the seller transfers it to the buyer after payment is confirmed, which is then given to the seller. Best Domain Name Escrow Services Escrow.com Escrow.com is the world’s largest online escrow service, and it has specific features for domain sales. The buyer can initiate the escrow request and provide the seller’s contact information for Escrow.com to get in touch. The buyer transfers the agreed sum to Escrow.com, and it is only when they confirm the domain has been successfully transferred that Escrow.com will disburse the money to the seller. Escrow.com charges 3.25% for deals between $0 and $5,000; 0.89% for deals between $5,001 and $25,000; and $162.5 + 0.25% for deals over $25,001. Sedo Domain Transfer Service Sedo is a popular domain name and website marketplace, especially useful for those looking to buy or sell domain names. Its domain transfer service puts it as a middleman between the buyer and the seller. Sedo receives the payment from the buyer and the domain name from the seller. When both ends are confirmed, Sedo transfers the domain to the buyer and the buyer sends the money to the seller. This service incurs a 3% fee on the domain purchase price, with a minimum of $60. Afternic Afternic is another popular domain name marketplace focused on high-value domains. It offers an escrow service to protect both the buyer and the seller. Afternic holds the agreed amount and only disburses it to the former owner or seller when the buyer has confirmed receipt of the domain. If either party breaks the deal terms, the sale will be canceled and the money given back to the buyer minus the escrow fee. The drawback here is that Afternic doesn’t charge escrow fees separately. It takes a 20% fee, which includes both sales and escrow commissions on all domains listed on its platform. Using an Escrow Service It is necessary to use an escrow service if you are paying a significant amount for a domain name and it helps protect you and the seller. If you need guidance in the domain buying process, including escrow, contact us for help. We have negotiated over $150 million in domain name sales and have over a decade of experience in domain name buying and transfers.   About the author Joe Uddeme is Director and Principal of NameExperts.com, 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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