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When Bidding on an Auction, See Comps to Find Better Deals

One of my primary domain acquisition sources is NameJet auctions. I have found some good deals when buying on NameJet, and I am involved in many auctions each day. I want to share a tip that I use to help guide some of my purchases.

When I am bidding on an auction, I use comparable sales and comparable sale listings to help guide my purchase, in addition to my own gut feel for names. If I notice other recent sales have been for much more money, I might be willing to spend more on a particular domain name.

Comparable sale listings on marketplaces like Sedo and Afternic are also important data points to consider, and I will share my rationale with you using two of my company’s domain names as an example.

Stay In Touch With a Domain Owner

If you are really jazzed about a particular domain name that isn’t for sale, you should do your best to keep in touch with the domain owner in the event that circumstances change and the domain name goes on the market.

I’ve been looking to buy a particular domain name for several years. It’s not an amazing domain name, but it’s a pretty exceptional category defining domain name, and there are thousands of professionals in the field. The domain name has never been developed (or parked), and it is owned by an end user who thinks he will use it eventually, although it appears unlikely.

Every few months, I send the guy a

Include a Trademark When You Buy a Domain Name

A friend in the business told me about an exceptional domain name he had just acquired, and as we were discussing potential buyers, he noticed that the company had an abandoned trademark for the domain name. It was the exact .com trademark, and had it been live, it might have made a nice extra piece of intellectual property to include with a subsequent sale.

I hadn’t really thought about doing this before my conversation, but when you are buying a domain name from someone who has owned it for a while, it might behoove you to do a trademark search at the USPTO to see if that person happens to have a trademark. If there is an active trademark, be sure to include it in the deal.

One reason this is a good idea is

Dealing With An Expired Domain Name

 

I saw this tweet from ICANN Ombudsman Chris LaHatte yesterday, and I want to discuss the topic of the best way to approach a domain investor who has purchased or acquired an expired domain name. Although I generally give advice to domain investors, the focus of this article is advising domain registrants on how I believe they should best deal with an expired domain name that was purchased by a domain investor.

There are many reasons why domain names expire. To name a few potential reasons for why a domain name may have expired:

Don’t Miss Out on a Good Deal Hoping for a Perfect Deal

For many people I know in the domain business, negotiating a deal is almost as exciting as completing a deal. It can be exhilarating to get a buyer or seller to agree to a favorable deal, and when a negotiation takes weeks or months, the thrill of the actual deal may be lost by the time it comes to its conclusion.

Because of the enjoyment many people get from negotiating, it is very possible to lose out on a fair deal trying to get the best terms possible.

In a negotiation, I think it is human nature for the buyer or seller to want to get the absolute best deal possible. Even if a deal is fair for both parties, some people want to “win” the negotiation rather than reach a fair deal that is still good for both parties. In an effort to “win,” they might actually lose out on a deal.

While most negotiations

Heritage Auctions Acquires GameUsed.com

Earlier today, I mentioned that I thought the sale of GameUsed.com for $4,500 was a great deal for the buyer, and I might have bought it for that price had it been offered to me. After doing a Whois search this morning following my article, I see that the domain name appears to have been acquired by Heritage Auctions, the third largest auction house in the world.

If you aren’t into non-domain name auctions, you probably recognize the Heritage Auctions brand because of some recent domain industry news. According to an article a week ago on DN Journal, “Heritage Auctions (HA.com), the world’s 3rd largest auction house (trailing only Christie’s and Sotheby’s) has created a new division dedicated to domain names and intellectual property.” The division is being headed up by veteran domain investor Aron Meystedt.

Prior to the sale of GameUsed.com, which took place on Sedo, the domain name was owned by