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

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 SpamhausBarracuda, 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]

Subscribe for More Domain Buying & Selling Advice

Related posts

Google screengrab for article about domain names
How Do You Create a Strong Brand Name (And Secure the Domain Name to Match It)?

From Amazon to Coca-Cola, strong brand names have helped propel businesses to stratospheric heights for centuries. Here’s how to find one that will take yours to the next level and ensure you have a domain name that supports it.  

Currency matrix for blog about the best places to buy and sell domain names.
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]

Default alt text
Startup Domain Names: Buying the Right Domain Name

Choosing a brand name for your startup? Need a great domain name to match? NameExperts.com Director Joe Uddeme shares his top tips.   Having the right domain name for your startup sounds like common sense. However, it can be a challenging endeavor. Your organization’s name might not translate into a good domain name. Or maybe everything suitable appears to have been taken. Regardless of the challenges, it is absolutely essential that you have a fantastic domain name so customers can find you. It can also help increase brand awareness and the long-term success of your business. So how can you actually buy a good domain for your startup? Let’s investigate. Key Takeaways The power of brainstorming The golden rules of a great startup domain name Do your research Consider alternate endings (TLDs)   Brainstorm Your Startup Domain Name When acquiring a domain, you need to start by doing some brainstorming. Consider: What’s the name of your business? What services or products are you selling? What industry are you involved in? Develop five terms or phrases which can best answer those questions and can describe the domain name that you’d wish to acquire. For instance, if you wanted a domain name that involved “advertising,” you could use related terms like “online marketing,” “digital marketing,” “advertising,” or “sales marketing” as a starting point. While this may sound obvious, you also need to remember that your domain name ought to be related to your organization. For example, if your company name is Joe’s Electronics then you would want a domain name to reflect that name. If the website was called joesawesomewebsite.com, clients would not know that it was really an electronics site, which means you’re losing out on business because customers can’t find you.   Keep Your Domain Name Brief, Unique and Easy to Remember While brainstorming domains, you also wish to bear in mind that the shorter the better. Shorter domain names aren’t just easy to type, but also easier to remember. If you heard the domain from a friend or on the radio, would you be able to spell it correctly? Try and settle on a domain that’s unique. The last thing that you need is for your domain to get confused with another site. This will also ensure you won’t encounter any ownership issues.   Research your Startup Domain Name Now that you’ve found a domain that fits your brand, you need to be 100 percent sure it is available. One option would be to explore checkdomain.com, Domjax or copyright.gov. The best-known names are usually .com domain names – these are widely accepted. It also means that they are likely to have a premium cost to them if you are looking to purchase them. Check the whois information on the domain you are trying to buy, or reach out to a seasoned domain name broker who will have years of experience in sourcing owners and negotiating deals.   Add Modest Words Before or After Your Domain While you should keep away from pluralizing or hyphenating words, as that will create confusion (“best” or “top” are also a little overused, too), there could be some minor alterations to make your domain stand out. Let’s say you have a car rental business located in Phoenix. You could search for a domain name that was on the line of phoenixrentals.com.   Use Other Domain Extensions/Endings Ideally, you would like to secure a .com domain. It’s the best option for branding and type-in-traffic, which is essential for any site. However, there are other endings or extensions (TLDs) that could benefit your brand as well. Take the .info extension for example. It could be an alternative if you are running an informational site. Another choice is to localize your own domain. If your site is based out of the United Kingdom, you would want to utilize the .uk or co.uk extension. Not only does this open the door to additional possibilities, it differentiates you from an international website. A website like name.com is an excellent resource for searching for domains and extensions.   View Auctions for Domain Names You can also hit auctions to purchase a domain name which was/is previously owned. There are numerous sites that have been acquired by investors as a means to monetize a site. They will purchase a domain and fill the website with lists and links to other sites simply for lead generation.   Contact A Domain Broker There are instances when somebody had a domain and did not do anything with it – or the business didn’t work out and the domain name has expired. In cases like this, the domain name is now available for purchase. If your preferred domain is not up for auction, you could work with a domain name expert or broker to contact the current owner. If you decide to go it alone, make sure you gather any information that can assist you in ultimately determining if this is the right asset for your brand. If the owner is considering selling the domain, you’ll want to do a little investigating to learn how much it’s worth. Our domain broker services can complete a professional domain name appraisal to determine how much traffic is visiting the website. It may not be the only element in determining the site’s value, but it’s a powerful indicator. Another thing we’ll look at is sale prices of comparable doman names. Some great names, such as Cars.com, have gone for astronomical sums.   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]

Why Work with Name Experts

Name Experts offers personalized domain brokerage services, assisting clients in buying or selling premium domain names with expert appraisal, negotiation, and complete transaction management while ensuring confidentiality.

Some of our most
successful stealth acquisition and sales

Aid.com

Fit.com

Mine.com

GLD.com

Jeff.com

Fora.com

Nori.com

Secure.com

Guitar.com

F*ck.com

Radian.com

MetaData.com

Prize.com

Link.com

Loop.com

Programs.com

Claim.com

Quince.com

Hook.com

QXO.com

NQ.com

Rest.com

Humani.com

Max.com

Need help buying or selling premium domains?