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

Aerial photograph of the Earth from space with words like .com and .co.uk flying up from the surface to denote the importance of top-level domains when choosing a domain name
Buy Domain Names

Buying domain names – premium or high-value ones in particular – is a process. In this guide, NameExperts.com Director Joe Uddeme helps you navigate all the steps.   Want to buy domain names? You’re not alone! Millions are bought and sold every year. When you know how buying domain names works, a potentially overwhelming process becomes a whole lot simpler – although certain complexities enter the equation when you are choosing a seemingly unavailable premium domain name that is owned by someone else. However, the principles of domain buying are reasonably straightforward. This article will guide you through picking a great name, finding out if it’s available, and registering it. Let’s get started on setting up your online presence! Key Takeaways Selecting the right domain name is essential for online presence, emphasizing simplicity, relevance, and the inclusion of keywords for better SEO. Using domain search tools, including domain checkers and generators, facilitates finding available and creative domain names efficiently. Securing your domain promptly after availability verification is crucial, and protecting it with privacy measures and SSL certificates enhances security and trust. Choosing the Perfect Domain Name

Hands tapping at a laptop keyboard
Can You Buy a Domain Forever?

One of the most common questions we are asked is, ‘Can I own my domain name forever?’ While the simple answer is ‘no’, Name Experts director Joe Uddeme explains a reliable workaround...   While it’s not possible to buy a domain name forever in the classical sense, there are ways to ensure long-term control over your domain. Website registration typically involves leasing a domain name for a specific period, usually between one to ten years. However, some registrars offer lifetime domain registration options or auto-renewal features that can help you maintain ownership for an extended period to buy a domain name. By opting for these services, you can avoid the hassle of frequent renewals and ensure that your domain name remains yours for as long as you need it. This approach provides peace of mind and stability for your online presence, allowing you to focus on building and growing your website without worrying about losing your domain. It’s an especially important consideration when you want to buy a premium domain name.   Key Takeaways Understand the truth about “ownership” of a domain name Know your rights and responsibilities as a domain name owner Learn about settings and protocols that can help protect you

Default alt text
What is AI Domain – And Does the .ai TLD Work for Your Business?

Super-popular since the launch of chatGPT, .ai domain names are an attractive option for tech and machine learning businesses. Domain name expert Joe Uddeme explains the pros and cons.   The .ai domain extension is a top-level domain (TLD – check out our comprehensive guide to domain levels) that originated as the country code domain for Anguilla, a picturesque Caribbean island. Initially designated for local use, the .ai domain has since evolved far beyond its geographic roots. Today, it is recognized as a specialized domain extension tailored for companies involved in artificial intelligence and related technologies. The .ai domain stands as a beacon of innovation and technological prowess, particularly in the realms of artificial intelligence and technology. The .ai domain extension has become synonymous with cutting-edge advancements, making it a sought-after choice for businesses and organizations aiming to showcase their expertise in AI and related fields. In this post, we’ll look at the originals of the .ai TLD and discuss why it might be right for your business when you want to buy a premium domain name. Key Takeaways Origins of the .ai TLD What are the benefits of a sector-specific domain name? Popular .ai brands thriving today Is the .ai TLD safe?   Brief History of AI Domain The .ai domain has a fascinating history that dates back to 1995, when it was introduced as the country code top-level domain (ccTLD) for the island of Anguilla. Initially, the domain was restricted to businesses based in or tied to Anguilla, but in 2009, it was made available worldwide without restrictions. Since then, the .ai domain has gained popularity among tech companies and organizations globally, representing artificial intelligence and innovation. Today, the .ai domain is a sought-after domain extension, with many to establish a strong online presence.   AI Domain Names: Significance and Purpose AI domain names, which end with the .ai extension, are more than just web addresses—they are powerful tools for brand recognition and online presence. For tech companies and organizations, a .ai domain name signals a commitment to innovation and technological excellence. These domain names are particularly valuable for businesses in the AI sector, as they instantly convey a focus on artificial intelligence. By choosing a .ai domain, companies can create a unique and memorable web address that reflects their dedication to advancing technology and AI. This not only helps in establishing a strong online identity but also in attracting a tech-savvy audience. The concept of ‘ai domain growth’ is closely tied to the adoption and future prospects of .ai domains, driven by factors such as innovation in AI technologies, the number of AI-focused startups, and the consumer perception of .ai branding.   Benefits of .AI Domains SEO Benefits for AI-Related Topics One of the standout benefits of .ai domains is their potential to enhance search engine optimization (SEO) for AI-related content. Google treats certain country code top-level domains (ccTLDs), including .ai, similarly to generic top-level domains (gTLDs) like .com, .net, and .org. This means that a .ai domain can be just as effective in reaching users who are searching for AI-related information. By leveraging a .ai domain, businesses can improve their visibility in search engine results, thereby attracting more visitors interested in artificial intelligence. This SEO advantage, combined with the inherent brand recognition of the .ai extension, makes this kind of domain name branding a powerful asset for companies in the AI sector. Anyone involved in domain portfolio management today is quite likely to have one or more .ai domain names in their collection – if only for future-proofing reasons.   Popular AI Domain Examples The .ai domain extension has been embraced by numerous influential companies and organizations within the tech industry. Here are some notable examples that showcase the versatility and appeal of this domain extension: Open.ai Open.ai is a pioneering research organization dedicated to advancing artificial intelligence to benefit humanity. Their website, open.ai, serves as a hub for their groundbreaking work and mission in the AI field. By using the .ai domain extension, Open.ai underscores its commitment to innovation and leadership in artificial intelligence. Facebook.ai Facebook.ai is the dedicated platform for Facebook’s extensive research and development in artificial intelligence. The website provides a comprehensive overview of Facebook’s AI initiatives, including their cutting-edge AI-powered tools and technologies. The .ai domain extension helps Facebook highlight its focus on AI advancements and its role in shaping the future of technology. AI.google AI.google is Google’s showcase for its artificial intelligence research and development efforts. The website offers detailed information on Google’s AI projects, tools, and technologies, reflecting the company’s dedication to pushing the boundaries of what AI can achieve. The .ai domain extension reinforces Google’s position as a leader in the AI industry.   AI Domain vs Other Domain Extensions When it comes to choosing a domain extension, tech companies and organizations have several options, each with its unique advantages. The .ai domain stands out as a niche domain extension specifically associated with artificial intelligence and machine learning. While .com remains the most popular and widely recognized domain extension, .ai is rapidly gaining traction among businesses focused on cutting-edge technology. On the other hand, .io is another popular choice for tech companies, but it doesn’t carry the same strong association with AI as the .ai domain does. For businesses aiming to highlight their expertise in artificial intelligence, the .ai domain offers a distinct and memorable web address that sets them apart from the competition. (Need help securing a domain name that seems out of reach? Check out our guide to the top domain brokers for 2025). Comparison to .com Domain The .com domain is the most widely recognized and popular domain extension, with over 160 million registered domains. In contrast, the .ai domain has around 533,000 registered domains as of October 2024. While .com is a more established and traditional domain extension, .ai is gaining popularity as a niche domain extension for tech companies and organizations focused on artificial intelligence and machine learning. Google treats some ccTLDs, including .ai, .me, and .biz, the same way as .com, .net, and .org, making .ai a viable option for businesses looking to establish a strong online presence. Comparison to .io Domain The .io domain is a popular domain extension for tech companies, but it is not as closely associated with artificial intelligence as .ai. While .io is a more established domain extension, .ai is gaining traction as a niche domain extension for tech companies and organizations focused on artificial intelligence and machine learning. The .io domain has around 1.5 million registered domains, compared to the .ai domain’s 550,000. Why not check out our guide to choosing a domain name? It’s full of helpful tips and advice.   Acquiring and Configuring an AI Domain Acquiring and configuring a .ai domain is a straightforward process. To register a .ai domain, you can search for available domain names on a domain registrar’s website and proceed to check out. The registration process typically involves verifying the availability of the domain name, choosing your registration term, and paying the registration fee. Once the registration is complete, the domain name will be registered and available for use. To configure your .ai domain, you can set up website hosting, email hosting, and other services to establish a strong online presence. By securing a .ai domain, businesses can effectively signal their commitment to innovation and technological advancement in the AI industry.   AI Domain Safety and Security Features When it comes to online security, the .ai domain extension offers robust features to ensure a safe and reliable web presence. Here are some key safety and security measures associated with .ai domains: Overview of Safety Features Domain Name Dispute Resolution Policy: The .ai domain extension adheres to the Uniform Domain-Name Dispute-Resolution Policy (UDRP), providing a structured process for resolving disputes related to domain name registrations. This policy helps protect domain owners from potential conflicts and ensures fair resolution. Domain Name System Security Extensions (DNSSEC): The .ai domain extension supports DNSSEC, which adds an extra layer of security to domain name lookups. DNSSEC helps prevent certain types of cyber attacks, such as cache poisoning, by ensuring the authenticity of the DNS responses. Two-Factor Authentication: Many registrars offering .ai domain registrations provide two-factor authentication (2FA). This security feature requires users to verify their identity through an additional method, such as a mobile device, adding an extra layer of protection against unauthorized access. Domain Locking: Some registrars offer domain locking services, which prevent unauthorized changes to the domain name registration. This feature ensures that only authorized individuals can modify domain settings, reducing the risk of domain hijacking. WHOIS Protection: WHOIS protection services are available through some registrars, which hide the registrant’s contact information from public view. This feature helps protect domain owners’ privacy and reduces the risk of spam and identity theft. Overall, the .ai domain extension is a secure and reliable choice for businesses and organizations aiming to establish a strong online presence in the tech industry. With these comprehensive safety features, .ai domains provide peace of mind and robust protection against various online threats.   Who Uses .AI Domains? .ai domains are embraced by a diverse array of businesses and organizations within the AI and technology sectors. Here are some of the key users: Tech Companies: Many tech companies opt for .ai domains to establish a robust online presence and enhance brand recognition. The .ai extension underscores their commitment to technological innovation. AI Startups: For AI startups, a .ai domain is a perfect fit. It conveys a sense of cutting-edge technology and forward-thinking, which is crucial for attracting investors and customers. Research Institutions: Universities and research institutions often use .ai domains to highlight their work in artificial intelligence. This helps in building a strong online presence and gaining recognition in the academic and research communities. Businesses with AI-Related Products or Services: Companies offering AI-driven products or services find .ai domains particularly beneficial. It helps them stand out in a crowded market and signals their expertise in AI. Domain consultants advise businesses on the best strategy when planning a domain name portfolio. Overall, .ai domains are a strategic choice for anyone looking to make a mark in the AI industry, providing a blend of SEO benefits, brand recognition, and a clear association with technological innovation.   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 – be they .com, .ai or something else from the vast domain name network. 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 your premium domain?