April 1, 2019

How to Negotiate a Premium Domain Name Purchase – 10 Proven Steps

written by

Joe Uddeme

Joe Uddeme

How to Negotiate a Premium Domain Name Purchase – 10 Proven Steps

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What’s the best way to negotiate a premium domain name purchase? In this blog post, domain name expert Joe Uddeme shares the top strategies domain brokers use to secure high-value names at great prices. 

Buy A Domain Sell A Domain

Does this sound familiar? You came up with the perfect name for your website, but there’s one major problem – someone else already owns the domain. You now have two choices: find another name… or enter the world of premium domain name negotiations.

If you choose the latter, you’ll have to convince the owner to sell it to you at a price that works for both of you. The good news? There are proven negotiation strategies that can help.

In this blog post, we’ll break down the 10 steps to successfully negotiating a premium domain purchase so you’ll know what to expect.

Before we jump in, we strongly recommend hiring an experienced domain name broker – especially if the price tag is likely to be five figures or more. Domain name brokers can boost your chances when it comes to premium domain negotiation thanks to years of experience and skill at assessing a name’s true value.

They will handle everything for you, ensuring an efficient and effective premium domain negotiation process. But if you’re raring to go and think you can do it alone, this guide covers everything you need.

Key takeaways

  • Research is critical when negotiating a premium domain name
  • Make sure your preferred name isn’t already trademarked
  • Always get a professional valuation
  • Start with a reasonable offer
  • Think laterally when it comes to financing the deal

Looking for a domain name but it isn’t available?

Tell us what you’re looking for, and we’ll explain how we can help.

Name Experts has helped clients secure more than 200 premium domain names in deals totaling more than $150 million. Many of these domains weren’t for sale when we first reached out to their owners.

Part One – Before Negotiation Begins

Years of experience in domain brokerage have taught us it pays to do your due diligence before making your first move. There’s a bunch of things to cross off the list before showing your hand. These five pointers will keep you on the right track.

1. How much is a premium domain worth? Start by researching its history.

Close-up image of a person at a laptop, symbolising the importance of research when sourcing a premium domain name with help from a broker.

Great domains are valuable, so your broker will start by doing a deep-dive into the domain to gather as much information as possible ahead of the negotiation phase. Among the things we’ll investigate are:

  • Previous Domain History: Using tools like the Wayback Machine, you can view the website’s past content, which can help you avoid domains associated with spam and negative SEO practices.
  • Key Traffic Patterns: We’ll dig into the domain’s history to understand its previous use, traffic patterns, and any potential issues.
  • SEO Performance History: Tools like Ahrefs will help assess the domain’s SEO performance, including its backlink profile and organic traffic data related to a website. This is important because a domain with a solid SEO foundation could bring value beyond its name, while a domain with penalties or poor history might hurt your website ranking. Check out our post on domain name valuation to discover more.

2. Confirm whether or not the premium domain name you want to buy is listed for sale

Next up is performing a domain lookup using tools like WHOIS to check whether the domain name you’re looking for is available for purchase.

It’s possible it’s already up for negotiation, or may have already been sold before. But if it’s registered, you can use a browser to check its expiration status for insight around whether it could be up for negotiation soon.

3. See if there are any trademark issues

Before you buy a premium domain, you need to confirm there aren’t any trademark issues. Ask your broker to conduct a trademark search to avoid legal conflicts.

Domain names that infringe on existing trademarks can cause costly legal issues, so checking databases like USPTO.gov is a key step to avoid additional exposure.

4. Use a domain valuation tool

The first step to securing a favorable premium domain acquisition price is understanding its market value. A great place to start is a domain marketplace.

In addition, valuation tools like Estibot help you understand how much a domain is worth based on factors like the extension (.com, .net), keyword relevance, and previous sales of similar domain names. Domain price negotiation strategy is rooted in your own or your broker’s assessment of what a name is truly worth.

5. Consider monitoring the domain for a while

A pair of hands with a clock face projected onto them, signifying the importance of taking your time when sourcing a premium domain name.

If you’re not in a rush, it could be worth monitoring your premium domain name for a while to get the most favorable price.

For example, domains often get listed on auction sites from either a sale or registration lapse (you can’t actually buy a domain name forever), providing a prime opportunity for you to acquire it at a favorable price.

 

Part Two – How to Negotiate a Premium Domain Name

You’ve selected a domain broker – or maybe you’re confident you can pull this off yourself. Now that you’ve done your domain name due diligence, it’s time to kick off negotiations. Steps 6-10 (below) will walk you through how to optimize the entire negotiation process for the most favorable outcome.

6. Start negotiations with a reasonable initial offer

The first step is to have an initial offer you feel both comfortable and confident about.

The offer should be reasonable and based on comparable domain sales. It also shouldn’t be your maximum offer, as you’ll want to leave room for negotiations. Your broker will then make contact with the seller or selling agent and present this initial offer.

When you email a domain owner to buy a name in their portfolio, a professional tone is key. Check out these 5 domain name negotiation scripts to get you started.

Pro tip: never low-ball the seller. You only have one chance to get it right. Ask, “What is this asset worth to me?” and “Am I open to an alternative if my budget falls short?” You need to be clear on whether or not this is a must-have domain name for your project.

7. Know your ‘best offer’ for a domain name, and be prepared for a counter offer from the seller

It’s rare for a premium domain owner to accept the first offer you present. They know what they have is valuable to you, so they will likely counter your offer with a higher target sale price.

Be prepared to negotiate and remain flexible. It’s common for premium domain negotiations to go back and forth several times before reaching a final agreement.

Pro tip: persistence pays off. The greatest number of contacts with a seller to secure a premium domain name for a NameExperts.com client is 110!

8. Think outside the box – domain price negotiation strategy comes in many guises!

If you’re struggling to come to an agreement, think outside the box and present some ways to sweeten the deal while saving you money.

  • Installment payments: Offering to pay the total amount over time may make a higher price more palatable to both parties.
  • Lease-to-own: This allows you to use the domains while making smaller payments and eventually taking ownership with a larger ‘balloon payment’ at the end.
  • Equity or partnership: In some cases, offering equity in your business or a partnership might appeal to the domain owner selling the domain name.

9. Be patient

Domain negotiations can take time, so it’s important to remain patient and professional throughout the process.

Avoid pushing too hard and always remain interested and available during the active negotiation. You don’t want to upset the seller or selling agent. Keep communication respectful and open to maintain goodwill with the contact.

If you are buying through a domain marketplace, make sure to align with your representative when trying to buy domains. Domain marketplaces are excellent resources for inbound leads.

Places such as SEDO or Afternic provide a market for parties interested in buying a domain by searching available inventory by keyword and TLD.

10. Get the deal closed with an escrow service

If all goes well, you’ll hear back from the premium domain seller that they’ve accepted your offer. That’s great news, but there’s a little more work to do to finalize the deal.

Once your price and terms are agreed upon, your domain expert will draft a formal purchase agreement. They’ll almost certainly recommend using an escrow service, which means the funds are placed in escrow until the domain migration is completed and verified. Then the payment is released to the seller.

Here’s how an escrow service helps keep everything safe when acquiring a premium domain name:

  • Security: The escrow service ensures that the buyer’s funds are only released once the domain is successfully transferred from the seller, protecting both parties.
  • Transparency: All steps are tracked. Both parties have clear visibility into the status of the transaction and deal, leading to the best price.
  • Dispute Resolution: In the event of a dispute, the escrow service can mediate and help resolve issues, offering a neutral third-party service. This can save you money – and headaches.

After the domain has been confirmed, you officially gain ownership of the domain, concluding the acquisition procurement for your site.

Congratulations, you’ve successfully made a premium domain purchase!

A dog shaking hands with a human, symbolizing that a domain name negotiation has been completed with help from a domain broker.

Final thoughts on negotiating a domain name

Premium domain acquisitions can be tricky. Along the way, you’ll likely ask yourself:

  • “Is this premium domain worth it?”
  • “What is a fair price for a domain I want?”
  • “How do I contact a domain owner?” and a dozen more questions.

Which is why having an expert by your side to navigate the process is crucial for success.

Name Experts founder Joe Uddeme has over 15 years of experience helping clients successfully acquire premium domains and is ready to help you do the same, just as he did for Monday.com and entrepreneur Mark Cuban.

 

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. If you’d like help with buying or selling a domain name, contact us at: [email protected]

 

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Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Watch out for fraudulent domain renewal notices that may look official but are not. Domain registrations often come with options for renewal or transfer, so explore these to avoid falling for scams. Always verify the authenticity of the email or letter by contacting your registrar company directly. Be aware of deceptive practices by companies that send official-looking letters from a domain registry, urging you to transfer your registrations under false pretenses.   Protecting Yourself from Domain Scams Always use a secure payment method to pay for domain name renewal. Recognizing legitimate renewal notices is essential to avoid unnecessary fees and potential loss of domain ownership for the customer, so don’t ignore every email you received about your names. Just treat them all with caution. Verify the authenticity of the email or letter by contacting your domain registrar company directly. Scammers often exploit the relationship with your existing registrar by suggesting that a transfer is merely a renewal process. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Scammers use various methods, including urgent phone calls and deceptive emails, to execute a renewal scam. Use domain locking to prevent illegal transfers. Domain hijacking is another threat that can be mitigated by this measure. Registration scams typically manifest through fake renewal notices, creating confusion and unwarranted financial pressure. Keep your contact information private by using a domain name privacy service. Scammers may trick owners through fake offers, exploiting confusion around domain registration and renewal. Fraudulent phishing scams often target website owners, too, using tactics to deceive them into believing they owe money or need to make changes to their domain or hosting services.     Understanding Domain Name Renewal Scams A Domain name renewal scam is a type of intellectual property scam or confidence scam that target the owner. These scams can result in financial loss for businesses and individuals. The financial loss can be substantial, affecting both small businesses and large corporations. Domain name scams can take many forms, including domain slamming, false offers to buy or sell domains, and fake trademark protection. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain Registry of America is an example of a fake trademark protection service. They contact the website owner claiming to have a trademark right or warning that someone else owns the rights to your name. Check your expiration date and make sure your domain information is protected so you don’t lose control of your asset. While you can’t technically buy a domain name forever, you can register and renew for extended periods. Domain name scams often involve unscrupulous domain name registrars attempting to generate revenue by tricking businesses into buying, selling, listing, or converting a domain name. These scams can be difficult to spot, but there are ways to identify scam tactics. Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Always verify the authenticity of the email or letter by contacting your registrar company directly. Be able to recognize scammer tactics by paying attention to blog post and article updates. Customers should also consider adding two-factor authentication for all registered accounts, or hiring a domain name consultant for guidance. Definition of domain name scams A domain name scam is a fraudulent scheme where scammers deceive individuals or businesses into paying for fake registration services, overpriced renewals, or by impersonating legitimate registrars. It often involves phishing, domain hijacking, or misleading offers to trick victims into making unauthorized payments or losing control of their domain Importance of awareness and prevention Awareness is the first line of defense against domain name scams. The website owner must be vigilant and proactive in protecting their assets. This means being cautious of unsolicited offers, verifying the authenticity of emails and letters, and keeping domain registration information up to date. By understanding the risks and taking preventative measures, website owners can safeguard themselves from getting scammed. 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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