written by
Joe Uddeme
How to Buy a Domain Name
How to Buy a Domain Name Owned by Someone Else
Negotiating a Domain Price
What is a Premium Domain Name & Why You Should Buy One
How to Choose a Domain Name
How to Value a Domain Name
Domain Names for Startups
How to Buy a .com Domain Name
Things to Watch Out for When Buying a Domain
Domain Name Investing
Buy & Selling Domains
Best Domains to 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
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.
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.
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.
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.
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.
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.
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.
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.
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!
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]
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.
The negotiation phase of buying a premium domain name is one of the most challenging steps – and things can easily go wrong if you’re new to the game. Seasoned negotiator Joe Uddeme shares his top tips. Picture the scene: the owner of a premium domain you desperately want to buy has said they will sell, and they’re asking you for your starting bid. At what price point do you enter? If you low-ball them, will they write you off as a time-waster? If you go in high, will you be offering far more than they anticipated? This is where experience in negotiation and a deep knowledge of the premium domain market come in. It’s just a small part of the expertise that a seasoned domain broker brings to the table. To the uninitiated, negotiating for a domain name can be a daunting task. Whether you’re a startup founder, a small business owner, or a digital marketing manager, mastering the art of domain name negotiation is essential. This article provides five scripts that can help you navigate these negotiations smoothly and successfully. Before diving into the scripts, we should discuss why domain name negotiation is important, so we’ll look at the impact of a great domain on branding, SEO and visibility first. Key takeaways Why a great domain name leaves a powerful first impression Strategic domains can help with SEO It’s all too easy to overspend! Preparation is key to great negotiation Use market data to justify your offer
Some things are hard to put a value on. Did Apple need a multi-billion dollar ‘infinite loop’ HQ – or did they get something much more than a fancy address? NameExperts.com Director Joe Uddeme explains how the true value of a premium domain name sometimes runs much deeper than you think. You are likely searching around the web right now for “domain premium names” or some mash-up of those three words, wondering which ones you’re likely to buy for yourself or your company. You’ve already weighed up the pros and cons of choosing a premium domain name over a regular $20 one. First up, well done. You’ve recognised that if you want to buy a great domain name, you’re going to have to pay for it. A premium domain might only cost a few hundred dollars (though it could cost a lot more), but you have at least figured out that it may have a certain value. A domain which has what we call ‘jurisdiction’ is one that already performs well on search engines. A number of the critical indicators that prove that your domain name has jurisdiction are its domain authority, traffic, and links. Usually, premium domains come with an existing domain authority that will enhance your website’s rank with search engines. Here’s why buying a good one can be well worth it. Key Takeaways Save money on advertising with a strong premium domain Expect an instant flow of traffic Get help if you’re not sure where to begin You Don’t Need to Spend Too Much on Advertising Most of us recognize that sites with a fantastic ranking on Google are advantageous for their owners. When the keywords being searched are a specific match to keywords in your domain name, odds are your site will rank quite high on search engines – especially if the content is good and has been optimized for SEO. Many people are harnessing the net by producing multiple domain names in the hope their company will enjoy more exposure. However, the majority of these additional domains provide very little value as most are unsecured. They can also be harmful. Domains which have a recognizable extension like .com or even .net are more reliable and will enhance your website’s click-through rate. Clients Will Find You Quicker Domain names that are brief and contain keywords are in high demand since they help your clients to locate you quickly. They’re also more memorable. It is far better to invest in a premium domain name that’s brief, descriptive and matches what clients are looking for. Every website owner will tell you they spend half their life trying to attract new clients to their website. The battle can be won before it’s even started if you choose the right premium domain name. Expert Guidance for New Domain Name Buyers Experienced domain name brokerages like NameExperts.com are popular among business owners who don’t have the necessary experience or knowledge to confidently make decisions about their domain name strategy. As well as offering expert impartial advice, we can track down owners of off-market names and conduct all negotiations on your behalf. Our clients – which include Tripadvisor, Monday.com and Mark Cuban – regularly tell us our services save them time and money. 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]
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
