Buying Domain Names

Bill McClure Offers Additional Insight on Bouquet.com Acquisition

Bouquet.comAt the TRAFFIC Las Vegas auction, Bill McClure purchased the Bouquet.com domain name for $30,000. When the website launched soon thereafter, he was kind enough to offer some insight into his purchase ย for inclusion in my blog post.

In the comment section of a blog post last week where the plural Bouquets.com domain name was offered for sale, there was some discussion about the Bouquet.com purchase and a few excellent questions were posed. Bill was kind enough to offer even more insight into the purchase, which I think is valuable given Bill’s successes online.

I think Bill’s insight is invaluable, and I thought it would be beneficial to create a separate post with the questions about the purchase and Bill’s replies to them. I know Bill is a busy guy, and I appreciate his taking the time to share this with us.

Is There Something Wrong With Contacting Owners of Expired Domain Names?

I know that Go Daddy, NameJet, and Snapnames are well aware of domain investors who reach out to the owners of expired domain names in an effort to purchase them before they go to auction. This probably annoys the auction houses and it has spurred a debate about this practice on forums and in private discussions.

The rationale for domain investors doing this is simple. The domain owner may not have realized the domain name was worth anything, so a lowish offer could get the owner to renew the domain name and then re-sell it to the person who inquired about it. The buyer would then get to purchase a domain name in private before others had the opportunity to bid on it. If others pre-bid on the domain name, the buyer would know that there is interest from other parties.

There are a few downsides to this practice. For instance,

Where Do You Buy Domain Names?

I was looking over my recent domain name purchases today, and I noticed that most of my domain buys in the last six months have either been private acquisitions or auction purchases, the majority of which were from NameJet. I was curious about where you buy domain names.

I set up a short poll below to ask where you are buying most of your domain names. I didn’t provide full details on each of the selections, so I broke them out below:

  • Hand registrations (new registrations from registrars like Name.com, Go Daddy, eNom, Dynadot…etc)
  • Domain auctions (NameJet, Go Daddy, Snapnames, eBay, Flippa…etc)
  • Private acquisitions (purchases directly from other domain owners via email)
  • Domain forums (buy now or make offers from DNForum, NamePros, DBR…etc)
  • Domain marketplaces (Sedo, Afternic, BuyDomains, Aftermarket.com…etc)
  • Domain brokers (Domain Holdings, Igloo, Media Options)
  • Other (anything I may have forgotten)

How to Do Due Diligence – Part One

I previously discussed the importance of doing due diligence before purchasing a domain name, and I want to offer some thoughts regarding how I perform due diligence. This post will cover aspects related to finding out about a domain name’s sale and listing history.

You’ll want to find out previous sales and previous sale listings to help with your negotiations. You might be prepared to pay $20,000 for a domain name, but if you saw it didn’t sell at TRAFFIC 2009 in the $5,000 – $10,000 reserve range, you know your offer is probably too high. Likewise, if you saw a name sold for $100,000 in 2010, you probably won’t have much luck offering $1,500 for it.

Here are some suggestions on how to find out if a domain name was previously sold:

Numeric Domain Names are in Demand

It seems like every domain broker is looking to get their hands on one type of domain name – numeric domain names. Every time I have a conversation with a broker where we are discussing domain names for sale, I am asked if I know of any good number names that are for sale.

From what I understand, the Chinese market is very big on number domain names. There is considerable demand for two number (nn.com), three number (nnn.com) and even four number (nnnn.com) domain names. I am not going to pretend

Domain Due Diligence: Previous Marketing

Before buying a domain name, it’s a given that you need to do your due diligence for a variety of reasons. The primary issue I want to discuss today is previous marketing attempts for the domain name. In my opinion, there are two reasons you will want to investigate how the domain name was marketed in the past: legal reasons and financial reasons.

Let’s discuss the legal issue first. For the sake of this discussion, I will assume the domain name that is being purchased is a descriptive keyword domain name. With most of these names, even the most commonly used terms, there are trademarks associated with them (think Apple). Although it’s clear that you can

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