The Ultimate Guide to Purchasing a Domain Name

Buying a domain name is an exciting step for a new business. But, a lot goes into buying a domain name to create the perfect internet presence that reflects you and your business.

Buying a domain name is something you need to think about carefully. Before investing, you need to choose a domain name that fits your long-term goals. It should also fit nicely with your brand and business.

Buying a domain name that is catchy, memorable, and captivating can be the difference between traffic to your website and the internet equivalent of an empty room.

To ensure the long-term value of your website, you need to invest careful thought, time, and resources in the domain name.

To make sure you have all the knowledge you require before buying a domain name, I have compiled this extensive guide for you to review.

Let’s start with the basics first.

Choosing a Domain Name

The first step in buying a domain name is coming up with a catchy name that represents your brand. Ideally, the domain name should not be in use already. But if it is, don’t rule it out just because it’s unavailable. You can often buy a domain name from the existing owner when using a domain broker.

It may be tempting to go with the first thing that comes to mind, but deciding on your domain name and how much it’s worth to you requires strategic thinking with a clear objective, and alternative options, if your first choice might not be available.

Having the right domain for your business or startup is essential–this is the foundation of any successful brand.

However, it can be a challenging endeavor. Your company name might not translate into a good domain name. Or someone else might already own it. Irrespective of the challenges, it is essential you have a great domain name making it easy for customers to help you.

Start with thorough research around the targeted keyword, or subset of keywords to generate ideas.

Find similar websites and check out your competitors’ domains. Spend time and research understanding all options at play, so you can might the right decision for your brand.

Prioritize .COM as it is one of the most popular domain extensions. To avoid trademarked terms, look for U.S. trademarks at www.uspto.gov and be sure no one owns a trademark on the name you’re contemplating.

When you’ve got a name picked out, see if you can find the handles is available on social networking sites like YouTube, Twitter, Facebook, Instagram, Pinterest, LinkedIn, and Tumblr.

How to Buy a Domain Name

First, find a registrar that is accredited with the Internet Corporation for Assigned Names and Numbers (ICANN), the nonprofit organization responsible for coordinating all of the numerical spaces on the internet.

If the Domain Name is Available

Once you settle on a domain name, it’s time to buy it.

If the domain name is available, purchasing a domain name is pretty straight forward. You can use registrars like NameCheap, GoDaddy or Google Domains.

You can register a domain name for a minimum of 1 year, but you can register for longer time period as well. Once you buy the domain you must keep the name registration up to date at the current registrar.

If the Domain Name is Already Taken

The other scenario is when your chosen domain name is already taken. If that’s the case, then it’s time to get in touch with a reputable domain broker like NameExperts. We will negotiate the sale of the domain name for you.

A reputable domain broker, or domain expert has the extensive knowledge of past sales, industry-wide relationships with registrars, registries and domain name owners at-large.

A superior track-record of success, and registered with the Internet Commerce Association, and in good standing.

Remember, the internet has been around for a few Decades at this point. While there may have been an abundance of .com domains available in the past, those days are over.

Companies and investors have picked up most of the best domain names, with the aftermarket continuing to produce large sales transactions for the best domains available.

What is a Premium Domain Name?

Premium domain names are short, catchy, and memorable names. They are high-value domains that have the potential to become popular web addresses with solid branding opportunities. Domain names that are dictionary terms, or repeating patterns hold value.

Domains like Loop.com, Connect.com, MK.com and Driving .com are examples of premium domains. Other valuable domain patters would include: LLL.com, CVCV.com, CV.com, VC.com

The cost of a premium domain name ranges from 3-figure numbers to 8-figure numbers, depending on the popularity of the name.

We use the analogy of your beachfront real estate. You build directly on the Ocean with the .com. Every other extension falls in line as inferior to .com. .net/.org are your ocean block domains, while your .io, .us, .info etc fall further away from the beachfront.

All cases are unique, and it should be pointed out that different Companies benefit from different URL and extensions.

A healthcare non-profit would benefit more from the .org; while a tech-startup might prefer the .io extension as a suitable, cost-effective alternative to the .com domain extension.

How to Buy a Premium Domain Name

Premium domains are sold either by their existing owners, investors or by the larger industry players such as Go Daddy with their Name find portfolio, or some of the other registry/ registrar operators.

There are major differences between the pricing and purchase process of both situations. All domain name searches should start with a Whois Search.

You must first find out who owns the domain. Unless you’re active in the domain name world, you might not know how challenging it can be to acquire a domain name owned by someone else.

When purchasing a premium domain, we negotiate a deal with the current owner and provision the domain to your account with no supplementary action required from you. Our process is seamless, while we protect your anonymity and coordination on your behalf.

Buying and Selling Domains

If you are thinking about buying and selling domains for profit, it can be an exciting process. Buying or Selling Domain Names is a process and should not be done in haste.

When buying a domain, make sure you are keeping it simple. Start at the Google keyword planner tool to develop the targeted keyword.

Next, narrow down your focus to a topic or industry pertinent to your brand, and then make sure the domains you want aren’t already taken. Compare domain names you want with similar ones through sites like Namebio.com, or InstantDomainSearch.com.

In the selling process, you will first need to determine the fair market value of the domain name. Evaluating a domain name can be difficult, but proper diligence can help you determine the value of your asset.

Marketing your premium domain name can be tricky, and should be handled by a trusted and well-known broker with a proven track record of success.

Selling a domain name takes a skill set to identify a rightful buyer, and help that buyer understand why the domain name is the right fit for their brand.

Closing all transactions at a reputable, third-party escrow service is critical in any successful transaction. Escrow.com is a reliable source to process transactions related to buying a domain name.

Valuing a Domain Name

Before you think of selling or buying a domain name, it is vital to know its true worth. At NameExperts, we offer domain appraisal services to help you understand how much you can buy or sell your domain for.

While it may be true that the value of a domain name ultimately depends on what the buyer is willing to pay, other factors also determine the price of a named asset.

Domain Appraisals can be used for negotiation and domain valuations and are valuable pieces of information that will help you not leave money on the table.

You can do this yourself, but we provide appraisal insights that give you current market conditions. We offer both insight and expertise on proper alternatives that fit your brand.

We also have the knowledge and tools to help you identify, contact, negotiate, execute, escrow, and transfer your domain name.

You can focus on building your business and let us take the stress off acquiring the perfect domain, even if it’s owned by someone else.

Investing in a Premium Domain Name

The fantastic thing about premium domain names is they are familiar and popular names, and, in most instances, you do not have to make additional investments for advertising. Here are some more reasons you should invest in a premium domain name.

With a premium domain name, you won’t have to spend a lot of money on pay-per-click (PPC) advertisements as these domain names are popular. You will get more organic visitors to your website and get a better site ranking.

Credibility and memorability add a level of value to the brand appeal.

With a premium domain name, there is a higher level of authority and industry expertise associated, making reliable companies link to your site. A short, popular and catchy domain name works well on social media as well. Marketers are always looking to solve problems for brands. In most cases, upgrading to your brands .com will add equity to the brand.

Negotiating a Domain Name

When negotiating for a domain name, there are a few things to keep in mind. First, perform due diligence and search to determine ownership. Make sure if the owner wants to sell the domain, and indeed–is the CURRENT and RIGHTFUL owner of the asset in question.

Before negotiating, you should define the top-end pricing you are prepared to offer, and a walk-away price. It’s essential not to become emotionally attached to one specific asset, as that could become a distraction in the negotiation process.

Never allow emotion to get in the middle of a deal, and utilizing a professional can be the best course of action for most domain name buyers and sellers/Another essential thing to keep in mind is to always use a third-party escrow provider, or someone unaffiliated with the buyer or seller.

Choosing a Domain Broker

Typically, there are two types of domain broker services. Domain buyer brokers represent you as a buyer, and domain seller brokers represent you as a seller.

The goal of a seller broker is to sell your domain for the highest price. They find the right buyers and negotiate the best deals on your behalf and take their commission from the sale of the domain.

The seller broker should easily be able to provide you with a clear marketing plan for the domain name. The broker should align with your strategies and provide updates on progress and activity around the outreach.

Sell side brokerage typically charge a commission on any successful sale. That commission could range between 3-25 percent, depending on the terms outlined between parties. Most sell-side commissions range between 10-20 percent (again, dependent on the domain price and upside.

Working with NameExperts has a number of benefits. On the buy side, we add value to the acquisition process, by understanding the value, and breaking down the anatomy of the domain name you wish to buy. We also provide domain valuation guidance and expertise to guide you in your search.

Spend the time to align with a domain broker that understands your goals and objectives. Don’t jump into any quick and rash decisions, without conducting the proper research necessary.