Protect your Brand with Defensive Domain Registration

Before we contact the owner and get into a negotiation, we want you to have a budget in mind. During our free consultation, we can go over the basics of domain appraisals and the quality you can expect given your budget. Like purchasing any big-ticket item, you first need to develop a number for the absolute highest offer you can give. To help establish a budget, have a look at www.Estibot.com . It is a free automated domain appraisal tool that is great for quick estimations. A word of caution, though – appraisals from Estibot are typically on the low end from between 50-75%. This is because Estibot factors in many sales that are from wholesale auctions, not retail pricing. Nevertheless, it’s essential to know the most critical metrics that weigh into a domain’s valuation:

• Length – Three and four-letter domains are typically the most expensive.
• Memorability and Spelling – Domains that are memorable and are easy to spell are generally worth more as they are more brandable.
• Age – Generally, the longer a domain has been registered, the more it will cost.
• Industry – Domains with popular-industry keywords are more valuable as they tend to rank higher on search engines.
• Universality – A domain name that could be applied to many businesses in many places.
• Similar domains – Look at names in the same industry with other similar metrics, and see for how much they have sold.

Once you have appraised your domain and have come up with your budget, you’ll be ready to move to Step 2. Please note: A decent domain name can be a big-ticket item. On the lower end, it will cost thousands of dollars. On the higher end, domains can sell for tens, if not hundreds of thousands of dollars. And like real estate, the best of the best can sell for millions or tens of millions of dollars. For more information on appraisals, check out our resources section: How are Domains Appraised?

Once we have a targeted domain, we like to visit the web domain name. If there is a functioning business on the web domain and their brand relies on it, the valuation will increase significantly. This is because we will need to factor in the fair market value of the domain and the time, energy, money, and resources the company will have to use to switch to something new. That being said, just because there is a website on the domain does not mean there is a vibrant business that owns it. Many companies are just clinging on, or are not even functioning. If it is an e-commerce related site, for instance, try to purchase a product, or look at the blog to see if there has been a post lately. Another thing to look out for is the copyright at the bottom of the page. Does it say this year or five years ago? If it is a placeholder web page, it is most likely not being used, which might mean you are in luck. Some people that own dormant domains are motivated to sell their domains as quickly as possible. However, we don’t know exactly what is going on behind that placeholder without contacting the owner. Perhaps the current registrant is about to launch a new product or service themselves. Or maybe they paid hundreds of thousands of dollars for the domain a couple of years ago for a project that never materialized. Many domains have changed hands five, ten, or even twenty times since their creation. Never assume that the current registrant is the original owner from 1995.

The first step is to perform a WHOIS search, which provides some information about the domain, including:

• Registration Date
• Who registered the domain name
• When the domain name expires
• Its registrar

Just keep in mind that the WHOIS is not what it used to be. Many registrars offer free or low-cost services to block the WHOIS information for their clients. In other circumstances, privacy laws have required registrars to prevent such information from being shared publicly. If this is the case, we will need to do some deeper digging!

Depending on what is found after performing the WHOIS search, we will determine the best method of finding and contacting the owner. Some owners do not want to be found, and it takes an exceptional level of effort to locate them to get their attention. This could be in the form of a firm cash offer, a handwritten letter, or even a road trip to their home or office!

When contact is made, and the response is received, it is time to negotiate. This involves not just the purchase price but all other terms of the sale. For example, how will the buyer pay? Who covers the fees to use a neutral third party that facilitates the transaction? How long will the transfer from the seller to the buyer take? There are many terms beyond purchase price that go into domain name transactions. We do not and will not miss any of them!

Multiple companies specialize in providing escrow services for domain purchase transactions.
Using a licensed and insured escrow company is one of the best insurance policies one could opt for.
If you have made it this far, you are ready to begin your domain acquisition journey. Let one of our Domain Brokers help you. Please give us a call.