How to Buy a Domain Name That is Owned by Someone

For a domain investor, buying a domain name is second nature. Investors hand register domain names, purchase domain names via expiry and private auctions, and acquire domain names owned by others via private acquisitions. For people who aren’t in the domain name business, acquiring a domain name can be confusing, frustrating, and challenging.

When I want to buy a domain name owned by someone else when the landing page or website doesn’t provide information, the first thing I look at is the Whois record. Among other information, public Whois data provides the domain registrant’s name, location, email address, and phone number. Domain registrars like GoDaddy have Whois lookup tools, as do third party services like DomainTools. Oftentimes, the registrar where the domain name is registered offers the most detailed information.

Different Ways to Make Money Domain Investing

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When it comes to domain investing and domain investors, there are quite a few different business models to make money. Each business model requires a different strategy and different tactics that are often divergent. Choosing a strategy or multiple strategies is an important decision to make, and a domain investor’s strategy can change over time.

Some people have small portfolios of exceptional domain names with high prices to match. They may sell infrequently and are content to wait for the ideal buyer. Some people have huge portfolios of names that churn sales regularly. They use the cash flow to grow their portfolio. Some people don’t focus on selling but they monetize their domain names in various ways. Some people have hybrid business models.

Check Archive.org for Historic Pricing

This afternoon while doing some acquisition research and due diligence, I came across a domain name that is for sale. The “for sale” landing page looks somewhat dated, as if it was created quite a long time ago. Within the messaging was the asking price of the domain name along with some other (unappealing) domain names that the registrant also seems to own and wants to sell.

I then visited the Internet Archive – Archive.org – to get an idea of the domain name’s history, time on the market, and asking price history. Archive.org shows how different websites looked over the years. You can enter in a particular domain name, and you can see many entries from past days, weeks, months, and years.

Buying Someone Else’s Domain Name Can Become a PITA

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A little over ten years ago, I saw that a small business near where I grew up did not have its brand match .com domain name. It had a unique name, so I thought that was strange. A visit to the brand match name showed me why – someone in another country owned the domain name and displayed links in another language.

Since this local business is definitely the only company in the world with this particular name, I monitored the domain name via GoDaddy. Within a couple of years, the domain name expired and deleted. Because I grew up shopping at this business and appreciate what they do I backordered the domain name and won it.

‘I Expect the Price Will Increase Very Soon’

One of the neat sales tactics offered by Squadhelp is the price increase notification sellers can add to their landing page. Sellers who utilize this tool will show a message on their landing page that informs visitors the price will be increasing. This is a smart tactic from this innovative domain sales platform.

While I have not used Squadhelp, I agree that this can be a smart tactic. In fact, I manually use a similar tactic in my negotiations with prospective buyers. When discussing the price of a domain name, I will say something like this:

Make Offer Leads to “Dilution of Domain Value”

For many of my domain names listed for sale, I have a “Make Offer” option next to the buy it now price. Domain name pricing isn’t science for me, and if I miss the mark by a considerable amount, a prospective buyer may simply choose an alternative domain name. I rely on domain name sales to fund the majority of my business, so I would prefer to give someone the option to make an offer rather than pass over an overpriced domain name.

Darpan Munjal, Founder of Squadhelp (a branding agency with a focus on domain names), shared an observation that domain investors may wish to consider when listing their domain names for sale: