A previous post gave some good advice as to how to choose a domain name. This post talks further on the subject of buying a domain name.
Maybe the domain name is not taken
If you’ve decided on a domain or several domains, first check to see if they are available. You can:
- Type the domains in the web browser address bar: ‘example.com’. If unavailable the website will appear: ‘http://www.example.com’. Sometimes you get a custom ‘does not exist’ dialog, likely from your Internet service provider, which tells you it may be available.
- Try PCnames or another ‘ajax domain search’ tool. These allow you to instantly check availability by typing the domain into the tool. It must be noted that, although super quick, these tools aren’t usually 100% accurate.
- The most popular method is to use the domain search tool provided by registrars. Simply type the domain into the search form to find out if it is available.
There are many such registrars, and prices for registration vary from $.99 per year for .info top level domains to $35 per year for a .com top level domain. You should expect to pay about $8-10 a year for a domain at most registrars.
Registrars all do one basic thing, which is to allow you to use the domain for your website for the amount of time paid for. You do not buy a domain per se, you lease it from the registrar. If you stop paying the yearly fee, you lose it. Other than doing this one function, registrars differ greatly as to customer service and functions which can be used for the various domains. You can find a list of top rated registrars on NamePros.com (Look at the top rated registrars with many reviews).
Of the registrars, GoDaddy is by far the most popular, although their clumsy site design and many ads make it difficult to register just the domain you want. Other registrars, like NameCheap, Moniker, and Fabulous, are excellent choices.
Don’t let your domain be held ransom
A shady tactic used by some less reputable registrars is domain tasting of searched domains. This is the practice of registering a searched domain that isn’t bought and holding it for up to 5 days to see if it is worth keeping. It is in fact a loophole in the domain buying rules that states that a buyer can return the domain if he changes his mind in less than 5 days. In the meantime, the shady registrar will demand a fee for the domain. The potential buyer thinks someone has bought their domain and that he needs to pay the fee. If this happens, just wait a few days while the domain tasting period ends and then check availability again.
The key point to remember is this: If the domain you want is available, buy it immediately. Do not wait to buy it in a couple of days. Although most registrars do not engage in this shady tactic, it’s better to be safe.
Domain name aftermarket
This is the term used for domains that have been registered but lost. These domain names are more likely to be valuable because the previous owner thought that it was a good name when he bought it and the domain may have traffic. The most famous marketplaces for domains that have been dropped are auctions.godaddy.com (formerly tdnam.com), snapnames.com, pool.com, and namejet.com.
GoDaddy auctions have some good deals if you know where to look. The initial page is usually filled with overpriced featured domains. These domains are not actually dropped domains but are owned and the current owner feels he can sell it at this price. You need to look at the ‘Expiring’, ‘Ending soon’, and ‘Closeouts’ categories. The ‘Expiring’ and ‘Ending soon’ categories include listings of domains that will soon be dropped and can be bid on, starting from $10. The ‘Closeouts’ category has the best deals. For $5 you can buy the dropped domain (not including registration fee).
Snap Names, Pool, and Name Jet are similar, although more expensive. The starting bid for expiring domains is around $70 and can go into the $100’s or $1,000’s if the domain is good. These sites do not own the domains. They find expiring domains and attempt to grab the name as soon as it is available. If you find a worthy domain name you can bid and the site will try to secure the name. You do not pay anything if you do not win, so it is a good idea to bid on all three sites, since it is impossible to know which one will grab the domain. If the site gets the domain, you will be apart of the bidding and the high bidder gets the domain.
This domain, dreamwebdesigns.com, was bought on snapnames.com for a little over $300 in a bid with one other person. After the winning bid, snapnames.com quickly registered the domain to one of their many partner registrars. Initially, you can’t choose the registrar, due to the nature of acquisition of dropped domains. But after a certain waiting period, I changed registrars to my registrar of choice.
Buying a domain from the current owner
You are unlikely to find a good .com domain available for the registration fee. All three-letter .coms are taken and most four-letter .coms are taken. Most words are taken in .com, .net, and .org and many two-word domains are unavailable. If you want one of these, you can check to see if it is available on sites such as SEDO.com or auctions.godaddy.com. You can type the domain name into the bar and if it is for sale often you will clearly see this.
SEDO is a very popular place to buy and sell domains. For descent names, however, you will often have to pay thousands of dollars. Many sellers have the idea that the domain they are selling is worth far more than it is in reality. Many domains for sale do not include a price, simply the words ‘Make Offer’. You may find a domain you like and bid on it. They owner may or may not answer back. The answer may be an agreement but more often it is a counter-offer. The counter-offer may be reasonable or may be outrageous, at which point you may counter-offer or end negotiations.
As an example of how negotiations may fail because of differences in opinions of the value of a domain, an attempt was made to buy a non-hyphenated version of a domain registered for the standard $9 a year fee. It is a fairly good name but slightly better is the non-hyphenated version. An offer was made to the owner for around $600 with no response (The domain was listed as ‘Make Offer’). Several times this was done, the offer being about that price. Finally the owner countered with $999,999, clearly an overinflated price. A counter was made for around the original offer of the high hundreds and the seller countered with $999,888. Only a few domains have been sold for $1,000,000 or more. Clearly, this owner doesn’t know the value of the domain and the negotiations were canceled.
You have to be willing to let a domain go if the owner does not want to negotiate. Most domains for sale are not worth the thousands or more the sellers initially want. This is a starting price, because starting low will make it very hard to sell higher. Look at lists of domains sold to see what you should pay, and don’t be pushed into paying much more than you can afford.