August 27, 2019

5 Things to Consider When Buying a Domain Name

written by

Joe Uddeme

Joe Uddeme

5 Things to Consider When Buying a Domain Name

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Looking for some quick tips about securing and buying a domain name for your business? Here’s our expert guide to domain buying, covering everything from hidden fees to privacy protection.

 

Purchasing a domain name is an exciting thing for a new business, but there’s much more to it than simply finding the ideal name. Before you begin, there are a few things you ought to know.

It’s always worth remembering that not all businesses selling domains (known as domain registrars) are the same. Some use tactics like hiding fees or promoting your data to earn more cash, which may have an enduring influence on your enterprise.

In this post, Name Experts Director Joe Uddeme – a seasoned domain name broker – flags up some common things you should watch out for.

 

1. Look out for hidden charges

As with any purchase choice, cost can be a big element. It is easy to be tempted into buying a domain at a really low cost. But don’t be fooled: a few domain registrars provide promotional pricing at an extremely low price but then hide a lot of fees in the contract, lock you in, and charge high renewal prices.

Generally, be aware that registrars offering rock-bottom domains may have additional, less-than-ethical techniques to make money. These strategies include:

  • Adding in hidden prices: Many registrars rely on the fact that most individuals do not read the fine print. Before you make a domain purchase, review the Buyer’s “Terms of Service” for any questionable terms, duties, or fees. Be sure to check what the renewal rates will be, and be certain you are only buying what you need and want.
  • Making you pay to edit your WHOIS or RDAP listing: Watch out for registrars that charge an “administration fee” when you need to edit your WHOIS or RDAP records. Registrars will often try to “upsell” or “cross-sell” you items you don’t require. For example, they might recommend you purchase extra domain endings that are extraneous instead of helpful (for instance, .info or .co). Or, they might offer to package your domain with a bunch of other services you might never use.
  • Charging transfer charges: Make sure the “Conditions of Service” don’t have “transfer-out” charges for moving your domain name to another registrar. These fees could be exorbitant and they violate ICANN policy (ICANN is the non-profit corporation that oversees the use of Internet domains). Beyond the cost, a few registrars make it nearly impossible to perform a transfer by making the transport procedure cumbersome and hard to navigate. It’s a good idea to check into how easy the transfer process is before deciding upon a registrar.

Blue 'Pay here' roadsign to illustrate the danger of hidden fees when buying a domain name.

 

2. Protect your privacy

Unprotected data is vulnerable to being mined by spammers and scammers. Start looking for domain registrars that offer privacy protection for free. Be cautious about dealing with registrars that charge a premium for “privacy solutions,” particularly any who offer to place their details on these registries instead of yours, which covertly gives them possession of the domain.

 

3. Guard your info

Beyond failing to protect your personal data from public records, some registrars actively sell your information to third parties like marketing associations. Some registrars even mine the WHOIS database and then send false renewal invoices, getting visitors to unknowingly transfer their domains. Be certain to find a registrar that promises never to sell or misuse your client information for marketing purposes.

Close up of a hand above a sketch pad with a yellow post-it saying 'Done' on it.

4. Focus on transparency

Look for registrars that offer transparency in their pricing. You should, for example, be able to readily find your renewal prices, as well as the processes for transferring or canceling your domain name registration.

Some registrars offer cheap registration during the initial purchase, but then charge flat-rate costs to renew your domain the following calendar year. They also might make it very difficult to cancel your order. Start looking for a registrar with upfront pricing info and terms of service to avoid surprises later on.

 

5. Differentiate support from sales

Some registrars don’t have support staff but instead have salespeople who are trained to sell you add-on services you may not need – all in the guise of friendly customer support. Look for a registrar that offers courteous and professional support and help, not one that sees you as a cash register they keep trying to ring.

With careful study before you opt for a domain, you can side-step some unfortunate traps and make sure your domain name — and your business – are in good hands for many years to come.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s top 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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Thus, you can use a research tool to see what similar domain names are selling for and compare them to your own. This will help you select a fair market price. Some sites are free to use while others charge a fee. DN Journal is a good example of a platform that collates sales figures and displays them to readers for free. Namebio, much like DN Journal does a great job cataloging recent names with an easy to use scan tool. They offered a monthly service fee for multiple inquiries. Domain Name Wire is another free resource. You can find blog posts about notable domain sales to help you estimate what you can sell yours for. Godaddy is a great resource to see what names may be available. They also offer a fast transfer service. There are many others, but these a few good places to start. 2. Use An Appraisal Service A domain appraisal service estimates the market value of a name. They appraise a domain based on many factors, including popularity, search engine ranking, social media shares, TLD, and by comparing it to similar domains. These domain appraisal services platforms make it easy to get an educated answer on how much a domain is worth. A free valuation tool can give you an overview of the appraisal value, such as godaddy. 3. Find Out What Others Are Willing To Pay A more direct way to answer the question of “what is a domain worth?” is to understand the domain sales marketplace and see what others are willing to purchase it for. The easiest way to do this is to list your domain on a marketplace like Sedo and Afternic and see what offers you receive to purchase. Create cool landing pages to help drive leads. This data can help set better pricing. You can use the offers as the yardstick for valuing the domain. Combining AI and Human Expertise To accurately determine domain value, it’s essential to combine artificial intelligence (AI) and human expertise. AI searches can analyze vast amounts of data, including market trends, search volume, and similar domains, to provide an estimated value request. They are vast resources for information. These automated tools can quickly process information and identify patterns that might not be immediately apparent. However, human expertise is necessary to interpret the data, consider the nuances of the domain name, and provide a more accurate appraisal. Experienced domainers and brokers can offer insights that go beyond raw data, such as understanding the potential for future trends and the strategic value of a domain within a specific industry. How To Increase Your Domain’s Value There are several ways to boost the value of a domain, including: Search Engine Optimization (SEO) This refers to optimizing a web page such that it ranks high on search engines. You can do this by including relevant keywords in your niche and getting backlinks from other websites. If people can find your website on Google algorithms, they will click on it more often and give you higher conversions, which translates into a higher domain value when you analyze the data. Market Your Site You can advertise your website on appropriate venues like social media services, search engines, or even use free word of mouth for your Company. This lets people know you exist and will likely drive higher eyeballs to your domain, giving it a greater value. Availability of Other Domains People are less willing to pay a high price for a domain if they can get something similar for cheaper elsewhere, e.g., Cars.com > Cars.co. One way to avert this is to buy the keyword across multiple TLDs, e.g., Box.com, Box.org, Box.net, etc. This way, the intending buyer will have less leverage. Build An Online Presence You can create profiles on social media platforms to build an online presence. This gives your domain more brand power and, in turn, a higher evaluation figure. 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Some people may exchange domains with other Internet portfolio investors or team up to acquire a single valuable name for their domain portfolio. Investor estimates pricing between 40% to 60% of retail pricing. Working with Domain Investors and Brokers Domain investors and brokers play a crucial role in the domain name market. They help individuals and businesses buy, sell, and appraise their names, leveraging their expertise to ensure fair and profitable transactions. Brokers, meanwhile, act as an expert go-between the buyer and seller of a domain name. Role of Domain Investors Domain investors are individuals or companies that buy and hold domain names with the intention of selling them at a profit. They often have a deep understanding of the domain name market and can provide valuable insights into the value of a domain name. Investors typically maintain a domain portfolio as part of their business, which includes a variety of domain names that they believe will appreciate in value over time. By analyzing market trends and leveraging their experience, domain investors can identify undervalued domains and acquire them at a lower cost, with the aim of selling them at a higher price in the future.   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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