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Buying Domain Names

Beware of High Annual Renewal Fees

Elliot Silver
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8

When I bought a handful of .XYZ domain names, I had a look at the list of premium .XYZ domain names to ensure I wasn’t going to face the decision of paying a high transfer/renewal fee or losing my initial acquisition investment. Domain investors who buy non .com domain names that aren’t ccTLDs or legacy extensions need to be mindful of the potential landmine that are premium renewal fees.

Marc Kohlbrugge shared a warning on Twitter after he purchased a domain name for $5,000 that had a $55,000 annual renewal cost:

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Last Buy of 2021; First Buy of 2022

Elliot Silver
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3

At the beginning of 2021, I shared my last purchase of 2020 (TimeoutProject.com) and first purchase of 2021 (LazyBastard.com). Neither of these domain names sold last year, but I’m still content with the purchases and the prices I paid. I am going to share the same thing this morning.

The last purchase I made in 2021 was NGFD.com in a NameJet auction. I like 4 letter acronym .com domain names, and the price was fair on this name. I priced it at $7,588 on Dan.com and will allow people to make reasonable offers or purchase it with a payment plan.

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Reach Out Before the End of the Year

Elliot Silver
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1

The end of the year can be a pretty good time to sell and buy a domain name. Companies may have extra money to spend, particularly related to marketing budgets. Individuals may be in a more jolly mood and may be more willing to fork out cash on a domain name acquisition. On the flip side, some companies are probably struggling and want to hit revenue numbers. Some people have probably spent more than they wish on holiday gifts and expenses.

Right now is probably a very good time to reach back out to rekindle a deal that didn’t make it over the finish line.

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Be Extra Vigilant About Stolen Domain Names

Elliot Silver
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1

It’s always important to do due diligence on the history of a domain name before buying it to ensure it is not a stolen asset. This morning, George Kirikos shared a warning on Twitter to advise people to keep an eye out for domain names that could have been stolen due to a recently found vulnerability:

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“Would You Sell…” is a Fishing Expedition

Elliot Silver
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4

When someone emails to ask, “would you sell X for $xx,xxx?” I look at as a fishing expedition. Some may also call it tire kicking, but people who ask about buying a domain name at a certain price are usually more interested in fishing for the right number rather than simply kicking the tires on a domain name. I know this because I sometimes do it when I am trying to buy a domain name.

Asking “would you sell…” is non-committal. If the domain registrant replies affirmatively, the person who inquired can say something like “I will get back to you.” This is contrasted with a direct offer that is something like “I would like to offer you $xx,xxx to buy X.” If the domain registrant agrees, that is pretty much like a handshake deal from my perspective.

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Info I Share in My Inquiry Email Signature

Elliot Silver
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1

When I inquire about buying a domain name, I do so through my Embrace.com email address. The recipient of my email may have never heard of Embrace.com before, but I believe there is some level of authority and trust with the Embrace.com brand name. Establishing trust is important to getting a deal done. I think emailing from my @embrace.com email is much better than from my @gmail.com email address.

In my standard purchase inquiry email, I include several pieces of information to further establish trust with the recipient. The information is passively included in my signature, and I think it helps to give background about me and show that I am a credible buyer should a deal be made. The information I include in my signature:

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