Escrow and Aftermarket Platforms Don’t Do Your Due Diligence

I am not sure why this is the case, but I think some people believe that using an escrow service like Escrow.com or an aftermarket platform absolves them of the need to do due diligence when buying a domain name. This is incorrect, and this thinking could be harmful.

When I buy a domain name, I use a variety of tools and insight to ensure that the domain name was not stolen and being sold by someone who doesn’t have rights to sell the domain name. I also use my instincts to determine if there is something that doesn’t seem right with the situation. There are quite a few ways that I determine that the deal is legit, but I do not rely on the escrow service or the aftermarket platforms to do it for me. I don’t believe either of these options were created to perform due diligence beyond cursory checks, and relying on them to do something important like is not a good idea.

If someone were to

Think About Your Prospective Buyer

I come across good domain names that are available for sale all the time. Some are private inquiries, some are via email sent from my corporate website, and the majority are at auction. When evaluating domain names, I think it is of utmost importance to think about who will be buying the domain name and then determining if there is enough of a margin to sell the domain name profitably.

One mistake I make on occasion is buying a domain name that looks very good on the outside but has limited profit potential when reselling. There are a number of professions that don’t seem to value domain names as much as others. A domain name may be an awesome exact match domain name for a specific field, but if people in the field aren’t big domain name users or a web presence isn’t all that important, the domain name may have less commercial value.

In highly competitive fields, an

Keep Alternate Spellings in Mind

Last week, I was bidding on an auction at Godaddy and ended up losing. The name could be worth more than the winning bid, and I want to share why I stopped bidding without revealing the name, since that might not be nice for the winning bidder.

The reason I stopped bidding was there is an alternative way to spell the domain name. It may have been good for branding, but it would have failed the radio test and would have likely lost half its traffic to the alternative. This domain name had a number and a word in it, but there are alternative spellings. For instance, if you heard the word “first” in a domain name, some people might spell it first and others might spell it 1st.

For this particular domain name, I think both

See Other Domains Before Inquiring

I want to share a piece of advice for those of you who opportunistically acquire good domain names privately. Check out whether or not the domain owner has other domain names of interest before sending your inquiry.

Let’s say you are in the market for good one word .com domain names and think Exclaim.com would be great for your portfolio (my company owns the name).  Before inquiring, it might be good to have a short list of other domain names the owner has so you can inquire about those, too.

When you are buying domain names on a one off basis, the domain name might be priced much higher than if you are buying a package of domain names. In addition, by inquiring about more than one domain name, the domain owner will likely be able to tell that you are a domain investor rather than someone who is planning to build “the next big thing.”

I regularly use tools like

Braden Pollock Shares Domain Buying Tips

I believe buying a domain name for a good price is likely the most difficult aspect of this business. Domain owners can be difficult to reach, and if you make the extra effort that others haven’t made, and you make a reasonable offer, you will probably have a higher close rate. In addition, companies that are successful in getting their ideal domain name may not have to settle on a different brand and may help prevent confusion for their customers.

Braden Pollock shared some good advice about buying domain names in today’s GoDaddy Hangout with Joe Styler and Colby Villa. He offered some advice on contacting domain owners, making offers that are fair, and getting a good price on domain names that aren’t listed for sale anywhere. The advice Braden shared can be helpful for people looking to buy domain names as investments, but particularly for people who want to buy a domain name for their business or for a startup.

If you have any questions you want to ask Braden or the team from GoDaddy, you are welcome to post them in the comment section here, or on the GoDaddy Google+ Hangout page.

Tip: Email the Old Whois Email Address

I have been looking into buying a domain name, and I opened a discussion with the owner via the current Whois email address. One thing I noticed is that a year or two ago, the email address changed while the other Whois information remained the same. On very rare occasions, this can be indicative of a domain theft where a thief controls the new email address unbeknownst to the real owner.

One way that I like to do due diligence is to send an email to the old email address found via DomainTools Historical Whois search. Typically, I will send a short email to the old email address confirming that the current email address is accurate and that the rightful domain owner is aware of the email discussion.

If I don’t receive a reply confirming this, I would