August 1, 2017

Stealth Acquisitions Domain Name

written by

Joe Uddeme

Joe Uddeme

Stealth Acquisitions Domain Name

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Some domain acquisitions are straightforward, but others are less so. Joe Uddeme, Director of NameExperts.com, explains what happens when a client wants a domain that seems out of reach – and they want to keep their name out of the picture, too.

 

As a buy-side broker specializing in stealth acquisitions, it’s our job to dig deep and find the rightful owner of a domain name while protecting the identity of the buyer. The problem is that some domain owners make it very difficult to reach them.

What’s the psyche behind this rationale?

For a start, not all domain name owners are equal; some just don’t want to be contacted or have zero interest in selling their domain name. Or perhaps it’s just a case that their whois information is out of date – making it difficult to decipher the current domain owner.

GDPR is another major change. Many countries now adhere to stricter policies related to domain name owner privacy, with many whois entries now redacted for owners’ privacy rights.

But all is not lost. Quietly tracking down “unreachable” domain owners and securing them for anonymous clients is what we do best. And we can do it for you.

Key Takeaways

  • What your broker needs to know to get started
  • Buying a domain name – what you need to know
  • How to choose a stealth acquisition broker

Stealth acquisitions – what to do first

Stealth acquisitions represent an opportunity for a buyer to be protected by complete anonymity. You should understand this before reaching out to a broker, as you need to have an idea of what will happen next.

Try and answer these questions BEFORE making contact:

  1. Have you completed a relevant trademark search around the keyword in question?
  2. Have you established a budget to complete this potential acquisition?
  3. Have you established a timeline for this potential acquisition?
  4. Are you familiar with aftermarket domain name valuations?
  5. Have you thought about viable alternatives if your target might not be available?
  6. What type of barriers do you see in this potential acquisition?

Buy-side brokers need to understand the full story about why you want this domain and anything you have done so far to try and get it, including previous acquisition attempts.

They will then attempt to drill down into the fine details and identify – and contact – the rightful domain name owner. The buy-side broker should also be able to act as a buffer between buyer and seller and remove any emotion from a potential deal.

Black cat ready to pounce, to denote 'stealth' for blog post about stealthy domain name acquisitions

 

Buying a domain name – the steps involved

Here are the basic steps to acquire a domain name:

  1. Identify ownership and research if the name is available
  2. Submit an offer to the owner
  3. Negotiate
  4. Agree on the price and complete paperwork (if applicable)
  5. Set up Escrow for payment
  6. Registrar transfer via push or authorization code
  7. Confirm control of the name
  8. Release funds

Tools to try if you’re trying to track down an owner yourself:

  1. Check the DNS and see where the domain is pointing to. Is there a website, or is it undeveloped?
  2. Whois history is a valuable tool to understand the true history of the domain name.
  3. Check the Wayback Machine to see what other properties have been developed on the URL in the past.

If working with a buy-side broker, they should offer the following upside for any stealth acquisitions:

  • Negotiate with YOU in mind; no dual agency in this scenario.
  • Provide contracts that protect ALL parties involved.
  • Typically save you time and money.
  • Allows for a third-party (non-biased) approach towards the acquisition.
  • Coordinate necessary contractual paperwork between parties.
  • Facilitate and handle smooth transfers of domain names.
  • Offer transparency and full disclosure.
  • Non-disclosure where applicable.

 

How to choose a broker for your stealth acquisition

Start by researching suitable candidates to help with your domain name acquisition. Don’t identify the asset unless you are sure you have found the buy-side broker you’re certain you want to work with. Ask the broker for information about their service and a few names they recently acquired for clients.

Find out how your broker can add value to your potential acquisition; always do a Google search to learn more about the broker you are working with.

Take the time to find an expert that can properly assist you with all of your acquisition needs. Ask lots of questions and make sure you feel aligned with the broker. Hold the broker accountable and require status updates so you aren’t left in the dark as they progress.

In most instances, your stealth acquisition needs to be completed right the first time. Most domain name acquisitions only have one chance to secure the domain name target without leaving extra money on the table.

Stealth acquisitions should only be performed by a seasoned domain name buy-side broker, so choose your broker carefully. You should understand if the broker has certain strengths or weaknesses.

Some buy-side brokers don’t have the tools or knowledge to find the rightful domain owner. Or they lack rich relationships with industry veterans. Other buy-side brokers are excellent at managing the acquisition but terrible at the details.

Details are key when it comes to any domain name acquisition. Contracts and paperwork can take months to pass through the legal channels, so it’s important to find a representative that is fully vested and can assist you with all aspects of the buy-side domain name acquisition process.

Finally, when selecting a buy-side broker, make sure you ask for referrals so you get a feel for how they work. Once you have faith in your broker you can instruct them to make contact with the rightful domain owner and secure the perfect domain name for your brand.

 

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. Stealth acquisitions are his specialty. Contact us at: [email protected]

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Regularly monitoring domain status and using secure payment methods for renewals are also crucial steps in prevention.   Domain Registry and Scams Domain renewal scams: fake notices and invoices Domain scams are a common tactic used by the scammer to trick the owner into paying for unnecessary services or transferring their site to a different registrar. These scams typically involve sending fake notices or invoices that claim the domain name is due for renewal. Often involving inflated prices, notices often appear to be from a registry or a legitimate company, but they are actually from fraudsters posing as an internet registry. Swindlers use various tactics to make these notices or invoices appear legitimate. They may include the domain owner’s contact information and registration details, creating a sense of urgency by claiming that the domain names will expire or be lost if the renewal fee is not paid immediately. They may ask for you to renew your domain and pay an exorbitant fee. This pressure can lead the holder to act hastily without verifying the authenticity of the notice or link. They may also try an inflated price on the renewal scam for your website or use a scare tactic and tell you your name is about to expire if you don’t pay a fee. To avoid domain scams, website owners should be cautious of unsolicited notices or invoices. Always verify the authenticity of the sender by contacting the current registrar directly or checking the domain name holders registration information online.     Domain Scams – How to Stay Safe To protect yourself from domain scams, it’s crucial to be vigilant and take proactive steps. Here are some tips to help you avoid falling victim to domain scams: Keep your domain registration information valid, up to date and secure so it never expires. Simply renewing ahead of time. Set a calendar reminder to be a step ahead Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Verify the authenticity of the email or letter by contacting your domain registrar or reseller directly. Use secure payment methods when you register and renew your site or domain name. Avoid Mail that contains your physical mail address. Address customer concerns by contacting customer support. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Consider adding auto-renew as a double check for registering your asset before it expires. Use domain locking to prevent unauthorized transfers of your registered assets. Keep some money in the registrar account in case you have an issue with your credit card when you pay. Keep your contact information private by using a domain name privacy or proxy mail service. By following these tips, you can reduce the risk of falling victim to domain scams and protect your online website identity for your domains.   Reporting Domain Scams to Your Domain Registrar If you suspect that you have been a victim of a domain scam, it’s essential to report it to the relevant authorities. Here are some steps you can take: Report the scam to the Federal Trade Commission (FTC). Share the information about the scam on social media to warn others. Use the social media links provided to share the post. Report the scam to your domain registrar company such as Network Solutions. Contact the Internet Corporation for Assigned Names and Numbers (ICANN) Complaint department and let them know about the letter or email. File a complaint with the Better Business Bureau (BBB) if the scammer is a business. By reporting domain scams, you can help prevent others from falling victim to the same scam and bring the fraudsters to justice.   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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