How Buyers Find Domain Names

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When someone decides to acquire a domain name, the process usually falls into one of three main paths: they have a brand already in mind and want to secure the matching or a similar domain name, they start their search from scratch using a platform to generate brand and domain name ideas, or someone reaches out to sell them a domain name.

In the first scenario, a buyer has already established (or is in the process of establishing) a brand name. They might be launching a company, introducing a new product, or rebranding an existing business. The brand name is already chosen, and they want to buy the matching .com domain name.

Thoughts on Domain Name Appraisals

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There are numerous automated tools that attempt to place a value on domain names. They use various sets of data, artificial intelligence, and machine learning to estimate what a domain name could be worth. Some sales platforms and marketplaces show appraisals on a purchasing or bidding page, which implies authority. Domain name appraisals are often treated as validation tools by domain registrants and dismissed as irrelevant by buyers.

Some of the most popular and widely used/cited domain name appraisal tools include the following:

Atom.com Featured Sales Include LTO Deals

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Over the last several weeks, I have been adding more domain names to my account at Atom.com. I have just shy of 250 domain names listed for sale along with some that are pending review. With another lease to own sale started last night, I currently have 4 LTO deals in progress at Atom. Two are .com, one is .AI, and one is .xyz.

Brokerage Agreement Should Detail Everything

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Over the years, I’ve witnessed and heard about many disagreements between domain brokers and clients. There have been accusations of double dealing, poor representation, frontrunning, and everything in between. Many of these issues could have been resolved or clarified with a signed brokerage agreement.

Domain name sellers and buyers who are going to work with a broker should execute a domain brokerage agreement that outlines expectations and requirements. I imagine every professional and legitimate domain broker will have a standard agreement that can be used and modified based on the situation. The buyer or seller should have an attorney review the agreement to ensure their interests are covered.

Check Price History on Acquired Domain Names

Timing is critical with domain name sales. I may have a domain name for 10 years, let it expire, see it picked up by another investor, and it sells within a week. It’s that idea that keeps me renewing domain names I might otherwise consider dropping. A domain name may not be in demand until that one buyer wants it. This business can feel so random sometimes.

One thing I’ve heard and probably experienced is that some domain name buyers pay close attention to domain name pricing. They will track a domain name over the years and hope to buy it at a better price. That sometimes doesn’t come, but they’ll periodically check on a domain name. If they see the price drop to a comfortable level, they may purchase it right away.

Don’t Delay Registering Trending Domain Names

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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.