Part One—Before the 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 a buyer shows their hand, and these five pointers will get you off on the right foot.
1. Research the premium domain’s history
Domains are valuable, so your domain 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 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.
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 names are available for purchase.
It’s possible it’s already up for negotiation, or may have already been sold before. If it’s not listed for sale, a WHOIS lookup can provide details about the current registrant (if not protected by privacy services) and the domain’s expiration date. This insight is valuable for understanding if the domain could become available or open for negotiation soon. Domain marketplaces like Sedo or Afternic are excellent resources to check if a domain is actively listed for sale by its owner.
3. See if there are any trademark issues
Before purchasing the 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 (for U.S. trademarks) or the Global Brand Database of the World Intellectual Property Organization (WIPO) for international trademarks 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 assess the worth based on factors like the extension (.com, .net), keyword relevance, and previous sales of similar domain names. Other popular domain valuation tools include GoDaddy’s Domain Appraisal, Sedo’s domain appraisal service, and Free Valuator.
5. Consider monitoring the domain for a while
If you have a bit of time, 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. Services like ExpiredDomains.net or tools within registrars like Namecheap can help you monitor expiring domains.
Part Two—Premium Domain Negotiation Time
You’ve selected a domain broker. Done your domain name due diligence. Now it’s time to kick off negotiations for a premium domain name acquisition. Steps 6-10 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 in negotiation 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.
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. Be prepared for a counter-offer whenever you want to buy a premium domain name
It’s rare for a premium domain owner to accept the first offer presented. 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 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
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 contact negotiations can take time, so it’s important to remain patient and professional throughout the process.
Avoid pushing too hard and always remain interested/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. These platforms facilitate transactions, often with automated transfer processes and secure payment handling, acting as a middleman between buyers and sellers.
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 drafts a formal purchase agreement.
Here’s an important tip—use an escrow service for the following reasons:
- Security: The escrow service ensures that the buyer’s funds are only released once the domain is successfully transferred from the selling agent, protecting both parties from fraud.
- Transparency: All steps of the process 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 be a game changer.
When using an escrow service, the funds are typically placed in escrow until the domain migration is completed and verified, at which point the payment is released to the seller.
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!
Premium domain acquisitions can be tricky, 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.