Contact a Former Registrant for Due Diligence – Even for Auctions

Due diligence is an important aspect of buying a domain name. Whether a buyer is acquiring a domain name privately without the assistance of a third party, using a domain broker, buying a domain name via auction, or using an aftermarket platform, due diligence is critical to ensure the domain name acquisition is legitimate.

I don’t think auction platforms do much (or enough) due diligence on domain names that are listed for sale. I believe some confirm that the customer who listed the domain name is the registrant of said domain name, but I am not even sure if that happens for every domain name nor do I know if it happens with every venue. Even if this is true, a thief who stole a domain name and has possession of it could easily prove possession of the domain name, so this is not much help.

As part of doing due diligence, it can be helpful to contact previous domain registrants to track the history of the domain name. DomainTools’ Whois history tool is the primary tool I use to see the historical Whois records for domain names. I believe DomainIQ also has some historical Whois records as well. Google searching for Whois and the domain name may also reveal some (spotty) results.

Elon Musk on What it Took to Acquire Tesla.com

How much did Tesla pay to buy The Tesla.com domain name? Elon Musk might have just revealed the price.

Tesla Motors operated its business in TeslaMotors.com for a number of years. In February of 2016, it was widely reported that the company bought the Tesla.com domain name. The purchase price of the domain name was not publicly announced though.

Late last night on Twitter, CEO Elon Musk commented about what it took to finally acquire the Tesla.com domain name:

It is unclear if the $11 million figure was the actual amount Tesla paid to buy Tesla.com or if that figure also includes additional costs or terms (such as legal fees or if this figure includes stock in the company which could fluctuate in value).

Now that Mr. Musk has publicly discussed the acquisition, it would be great if the Tesla Investor Relations team clarified the purchase price component a bit. It would likely be one of the largest domain name sales of all time.

It’s Better for an Investor to Own a Domain Name

If you have been watching television during the last month or so, I am sure you have seen a Portal by Facebook television commercial like this one:

As a domain investor watching the advertisement, you probably noticed the clunky url for Portal by Facebook: Portal.Facebook.com. When you visit that url, you can see Facebook has branded its product “Portal,” and Portal has its own logo and brand identity. Unfortunately for Facebook, the company does not own the valuable brand match Portal.com domain name.

Portal.com does not resolve to an active website. A Whois search shows the Portal.com is owned by Oracle. Looking at Screenshots.com, I can see that there was once a landing page with an Oracle logo announcing that “Oracle has acquired Portal Software…

Ordinarily, when a domain name is

One Thing I Look at When Bidding in a Domain Auction

I am currently involved in a domain auction with a handful of bidders. I want to share a relatively common sense tip that can sometimes help me determine how much I am willing to pay to acquire a domain name.

There is about a day left in the auction, so I am internally trying to determine the maximum number I am comfortable paying. I checked a very similar name (plural vs. singular) to see how it is used and who owns it. I noticed that the similar domain name is listed for sale on a popular aftermarket website. That domain name has a buy it now price of a little under $2,000.

Some might argue the other domain name is more valuable than the name in auction. I could go either way on it, although a case could be made for either domain name. The keyphrase of the domain name in auction has has one extension registered while the comparable name has 5 of the most popular extensions registered.

If I would win the auction and price the domain name in the

# of Registered Extensions Can be Deceiving

When I am buying a domain name, one of the attributes I look at is the number of domain names registered with the same keyword in different extensions. This can be helpful to determine the amount of usage a particular keyword or keyphrase has. My thinking is that if a keyword or phrase is used by many different businesses and organizations:

  • The value of the matching .com is higher because the demand may be higher.
  • There is a greater chance the domain name would be considered generic or descriptive because of the wide usage (not a legal opinion).

This thinking may be a bit deceptive though, and I try to drill down further when I am buying a domain name, especially at auction.

This morning, I was doing some research before bidding on a domain name in auction at GoDaddy. I noticed that the two word .com domain name had been

Your Domain Name May Not Be Investable

I am almost always looking to buy good inventory. I primarily seek out great one word .com domain names, but I also regularly participate in auctions for generic terms in the .com extension that would make a good investment. People also regularly send me domain names they want me to buy. Unfortunately, the vast majority of them are not investable for me.

Just because I pass on a domain name buying opportunity doesn’t mean the domain name is worthless. There are plenty of names that are worth a few hundred or a few thousand dollars. Even domain names I can’t imagine selling to anyone can sell to the right buyer. When I pass on a domain name it generally means I can’t see the value in buying it with the hope of making money any time in the near future. My portfolio is filled with “flyers” that may or may not ever sell. I am not going to pay a premium price for these flyers though.

People try to sell a domain name to me on a daily basis. The vast majority are domain names I would