March 9, 2023

Domain Due Diligence – What to Do Before You Buy

written by

Joe Uddeme

Joe Uddeme

Domain Due Diligence – What to Do Before You Buy

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Before getting excited about the domain name you want being available, ask yourself why it is up for grabs – especially if it appears to be a great name. Many domain names on the open market have a hidden past – as NameExperts.com Director Joe Uddeme explains…

Let’s say you just found out you can secure a domain name that matches the name of your new business. Or maybe you’re doing it the other way around and want to start with an available domain name that you’ll build your business around.

Now let’s suppose it’s one of those short, snappy modern domain names made up of five letters that don’t mean anything.

Now press pause.

Before you plan the entire history of your brand around these five letters, it’s advisable to perform some due diligence – just as it is when buying any domain name.

When buying a car, it’s helpful to have a trusted mechanic perform an inspection and to review the vehicle’s service history before handing over your cash. A similar thing applies to purchasing domain names.

It’s necessary to perform proper due diligence – or you risk wasting money. This article will give you a due diligence checklist to follow to ensure you make a worthy purchase and ensure you don’t buy a domain name with a damaging hidden past.

Key Takeaways

  • Spammy “past lives” of your domain name could damage your reputation
  • Discover the tools that help you discover your name’s true past
  • Make sure there are no trademark issues

Why You Need To Conduct Due Diligence For Any Potential Acquisition

Due diligence means investigating the details of a business or person that you want to enter a commercial transaction with. It’s necessary because it helps you understand the nature of what you want to buy, the risks involved, and anything else that could be a hindrance.

Not conducting domain name due diligence before buying can cause trouble. For example, you may buy a domain that has been blacklisted for spam activities and wonder why your website isn’t getting traffic. Or why any email sent from your domain goes to the recipient’s spam folder.

You could also buy a stolen domain and be subject to lawsuits accusing you of theft – or one that used to be an adult site. The list of potential risks is endless, so always carry out domain due diligence before any purchase.

 

Domain Due Diligence Checklist

WHOIS

WHOIS is a public database containing information about domain name owners. You can run a WHOIS lookup to trace the ownership of a domain name, and it’s advisable to do this for any domain you want to buy a domain name.

Check the WHOIS history for at least a year to see if there were any ownership changes. If you notice any, you can contact the prior owner to ensure that they actually transferred the ownership and the domain wasn’t stolen. Domain thieves try to sell domains in a hurry, and this process helps you avoid buying a stolen domain and exposing yourself to legal troubles.

Because of Europe’s GDPR data protection laws, you may not be able to see details about a domain’s owner (it’ll appear as redacted). However, access is granted to certain licensed third parties that, in turn, offer that data to people for a fee. DomainIQ and DomainTools are two examples of such parties.

Domain History

The WHOIS lookup will help you verify that the domain is owned by a legitimate buyer and not a hacker. After that, the next step of the domain name due diligence is to check how the domain was utilized in the past. What type of website was it used for? Is it something that could have gotten it into a blacklist?

A good website to check a domain’s history and utilization is the Wayback Machine. This is a digital archive that lets you see how the website for any domain looked in the past. The idea is to ensure that the domain was used for appropriate activities.

If it was used for nefarious things like unregulated gambling, domain name scams, or data theft, it’s a signal to stay clear because the domain may have been blacklisted by search engines and email providers.

Potential Trademark Issues

Ensure that the domain name you want to use is not similar to an established trademark because this can lead to infringement lawsuits and a possible court order to hand over the domain. There was a popular case of an entrepreneur called Mike Rowe, who registered the “MikeRoweSoft.com” domain for his software company. Microsoft, the well-known software company, filed a lawsuit alleging trademark infringement, and Mike Rowe had to hand over ownership of the domain in exchange for an Xbox and some certification training.

If the domain name you want to buy is similar to an established trademark, it’s best to avoid it and go for something else.

Search Value

Another important part of the due diligence checklist is to see how the domain name performs on search engines. If you can’t find valid results when you input the domain name of a search engine, it’s a signal that it may have been blacklisted due to past activity. Check if there are backlinks from nefarious sites pointing to the domain because that represents another red flag.

It’s also important to see if a domain has been marked by email blacklists. If so, emails from that domain will likely end up in the recipient’s spam folder instead of the main inbox. Popular email blacklists include Spamhaus, Barracuda, and Proofpoint, and most of them let you run a simple scan to see if a domain is part of the list.

 

During the Acquisition Process

Once you have ticked all the boxes in your acquisition due diligence checklist and decided to proceed with the purchase, there are some essential tips to follow.

Tracking Each Step

You should create a spreadsheet to track each step of the domain name sale. The spreadsheet should contain sections like “current status”, “date transferred”, and “price”. This will help you stay on top of every detail of the imminent domain acquisition.

Setting Up Escrow

Escrow refers to a neutral third party that holds the money before it is transferred from the domain buyer to the seller. It’s necessary to use an escrow service to prevent yourself from falling victim to fraud. The escrow service will hold the money that you’ve agreed to pay for the domain and only disburse it if the seller fulfills all the terms of the deal.

Large stash of US dollars to denote importance of safe escrow services when buying a domain name

 

What To Keep In Mind For the Transfer Process

When you acquire a domain, the buyer will have to transfer it to your registrar for it to officially become yours. A domain must be at least 60 days old to be transferable according to rules defined by ICANN, the governing body for domain registration. The owner will need an authorization code from their registrar to authorize the transfer to your own registrar. Once this is complete, the domain is officially yours.

If you need help with domain name due diligence, you can hire a professional domain broker with experience in appraising and investigating domain names.

The broker can help you decide if it’s a worthwhile purchase and also negotiate a good price with the owner. Check out our post on domain name negotiation tips for further insight into this exciting and complex world!

 

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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In this article, we look at the ins and outs of buying and selling a domain name for your business. Here’s NameExperts.com Director Joe Uddeme to walk you through the process.   Are you new to the industry and need to know how to buy and sell domain names? You’re most likely looking for the best places you can buy domains, where to sell your domains, how to transfer names to your buyer, how much you can sell your names for, and more. At Name Experts, we help corporations and individuals around the world buy and sell domain name assets. It’s what we’ve been doing for more than 15 years, and we have brokered deals worth more than $150m. So you can trust the information in this post. If you need more help, get in touch. We’ll help you navigate the waters – and even help you choose a great domain name for your business at the best price. Here’s our complete guide to buying and selling domain names – updated for 2025. Key Takeaways Buying domain names – everything you need to know Selling domain names – everything you need to know How a domain name broker can be your ‘secret weapon’ when buying or selling   Buying domain names Buying the right domain name for your brand can be a pretty big undertaking. New TLDs like .online or .law are part of more than 1,500 alternative top level domains that can sometimes confuse your customers. How can you know what the right choice is to help your business grow? Or maybe you’re buying domains to turn around and sell them. Whatever you need a new domain name for, having a broker on your side to help you with how to buy and sell domain names and get the domain purchase over the finish line. Especially when it comes to the negotiation process, you’ll want to have an experienced broker who knows what your purpose is for the domain name so that they can plan the proper strategy. We also encourage you to use an accredited, third-party escrow provider. We use Escrow.com as the preferred method for domain purchase transactions because it identifies all the parties involved to ensure proper transfer and a smooth transaction experience. The broker you choose should be able to work with the escrow provider and help you complete the entire domain purchase process. Escrow Process to Buy a Domain Name Here are the general steps outlined below: Buyer and seller agree to terms Buyer selects a payment method Escrow secures buyer’s payment Escrow will prompt the seller to transfer The transfer will occur either by account transfer or authorization code Seller confirms shipment of merchandise Buyer confirms receipt of a domain name in the account Buyer marks the transaction complete Domain Purchase and choosing the right broker Your domain broker should be open to communicating with you throughout this entire process and make sure the timeline is being met – as well as meeting all other expectations. 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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! 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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! 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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. 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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. 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What Are The Best Domains To Buy?

Right at the top of the to-do list for any new business is “launch with a great brand name”. You’ll also need a website domain name to match – which is where NameExperts.com Director Joe Uddeme can help. Find out how to choose and register a great URL for your business in this guide.   For more than 15 years, NameExperts.com has been helping brands buy premium domain names that will help them grow. The issue most new firms have today is that pretty much every great domain name they can think of has gone. But that doesn’t necessarily mean they aren’t available. As well as advising fledgling companies on which great brand names to choose, we spend much of our time tracking down domain name owners and reaching out to them on behalf of our clients. It’s what domain brokers do – we’re your secret weapon when trying to get a great name owned by someone else (and not paying over the odds for it). 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Search engines cater to sites that give the user the best experience, and .com sites are seen as more credible to users and help establish brand authority.   Choose a brandable name If you’re just getting started with establishing your brand, choose something brandable. Think about something unique that your competition won’t have. A brandable name might mean that your name doesn’t mean anything at all, as is the case with Etsy or YouTube. You also want your domain to be easy to remember and easy to pronounce. Something else you’ll want to consider is to not choose something that sounds shady or untrustworthy. The goal is to create something that can be developed over time, so choosing the right name is important.     Keep it short and simple If you’re trying to add keywords (terms people will tap into Google when searching for a business like yours) to your domain name, make sure you don’t go overboard. It’s better to have something short and simple that accurately represents your brand. We recommend keeping your domain under 15 characters and avoid using numbers – unless they are specifically a part of your brand. Try to avoid weird or unique spellings of common words. If your name is Smyth and you want to include that in your brand, odds are that every single person will type Smith. Alternatively, if you’re dead set on using your unique brand that might be a variation of a common word or name, you can work with us to buy the domains that include the common misspellings. That way, even if users type it in wrong, it will redirect to your website.   Avoid double letters and hyphens Another tip we would suggest is to avoid double letters or hyphens in your domain. It makes your domain much more complicated. For example, if your website is classset.com, you will probably lose traffic because of typos. 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You never want your name associated with anything untrustworthy.   Domain names are like real estate Every day, new domains are registered globally. If you find a domain name you want, don’t wait too long! We’ve often described domain names as being similar to real estate. People all over are looking for good brandable names that they can register and then try to sell at better rates later. If you don’t act fast (or consult an expert like us), someone else might go ahead and register your domain name before you do. That being said, not all domain names are worth as much as you might think (or their sellers would have you believe). So don’t just buy domain names just to have them – buy names you actually think you might use in the future. If a name you want is in use, think laterally. Website copywriter Mike Peake, who sometimes helps out on the NameExperts website, had to do this when he tried to register mikepeake.com many years ago, only to discover it was already registered. Rather than choose a .co.uk TLD (he’s a Brit), he went with bymikepeake.com instead.   Make sure you’re set to auto-renew Typically when registering a domain name, you get to choose the registration period – usually a time span between 12-24 months. If you don’t renew your domain after that time, you will miss your window and it will become available to the public to buy. Sometimes, if you fail to renew in the time allotted, brokers and other domain purchasing sites will buy your recently expired domain and then charge you an arm and a leg to get it back. Avoid all that nonsense by setting your payment to auto-renew! Nearly every registrar gives you the option, so better be safe than sorry.   Don’t worry if your domain is taken Honestly – that’s what domain brokers are for! We are in the business of buying domains on your behalf, even if they are already taken. We have a tried and true process that really works. Our service includes a pre-consultation phase, followed by a more detailed consultation and then in-depth research. After that, we contact the seller for you and negotiate the price. We take all the hassle out of the process and make sure your domain gets transferred to you. What are the best domains to buy? It’s all down to you and what you want your brand to represent. But don’t panic if your dream name doesn’t appear to be available. We can work wonders with our ‘little black book’ and negotiation skills – or we can steer you in an exciting new direction if that’s a better route. The goal in both cases is to help you secure the best domain name that works for you.   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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