Advice

I regularly see people discuss the possibility of domain registrar front running. In fact, I’ve written about this topic before. By and large, I can’t imagine any reputable domain registrars doing this today for many reasons.

Front-running accusations often stem from someone searching for a domain name at a registrar, seeing that it’s available, choosing not to register it, and later finding it has been registered when they check again. Whois privacy complicates this because the actual registrant may not be shown. In fact, with some Whois privacy services, it can look like the domain name is owned by the registrar itself. In addition, default registrar landing pages can also muddy the waters.

My general preference is to register my domain names without Whois privacy enabled. The downside to that is my business phone number is exposed, and it leads to many spam phone calls. This happens frequently after winning domain names at auction and companies send emails trying to sell web development and related services.

One thing I’ve done in an effort to reduce the volume of spam phone calls is use Google Voice for Whois. I don’t forward the phone to my mobile number, so the calls go straight to voicemail. I check Google Voice on occasion to ensure I didn’t receive any phone calls or texts that need to be returned.

Lease to Own deals have become much more normal in the domain space. LTO deals give buyers the opportunity to use a domain name at a lower upfront cost, and it gives domain name sellers a source of consistent monthly income. There is some risk with LTO deals for a domain investor. I was asked about this today on X.

If a lessee engages in deceptive or illegal practices with the domain name – anything from phishing schemes, email spam, selling counterfeit or illegal products/services, or hosts other illegal activities on the domain name, there can be problems for the domain name and domain name registrant.

I appreciate being able to discuss the sale of a domain name with a domain broker representing a third party. Not only does this give me some insight into who the prospective buyer is, but it also reduces some of the friction in a negotiation.

The best part of working with a broker as a counterparty to a negotiation is the buyer has already been educated. A broker isn’t going to take on a buyer with unrealistic price expectations. The buyer is essentially prequalified to discuss a deal. The buyer may not have the full budget, but there will be much less tire kicking.