In the past few months, I've bought more domain names than I have in the past two years. These have been through marketplaces, via private deals and of course on NamePros. Throughout all of these deals, there are a few rules that I try to follow to minimize the risks involved with acquiring new domains.
I wanted to pass on this little checklist to you in the hope that you'll be able to use it as a reminder to always check everything thoroughly before handing over your hard-earned cash. Whether your deal is for $50 or $500,000, and whether it is for investment or development purposes, I believe that these are steps that you might find useful during domain acquisitions. If you have any suggestions of your own, by all means, mention them in the comments section below.
1. Trademarks
This is a fairly obvious thing to check, but sometimes it is overlooked. Does the domain name that you are about to buy contain a trademarked term? It can be a very easy thing to overlook; buying a domain containing the term "realtor," for example, is something that seems to occur fairly often among new investors who may not realize that it's a trademark.
A quick search on websites such as the USPTO or Trademarkia will help you to see whether there is any adverse risk to your next potential purchase. Visiting UDRPSearch.com can also help you to see whether any UDRP's have been filed in the past for similar domains or the exact domain name.
2. Is it Stolen?
Is the domain name stolen? Buying a stolen name can prove to be a nightmarish situation, and one that could lead to you losing your money. It can be difficult to spot a stolen domain, but there are a few things you can do. Please note that this is by no means all that you can do to see whether a domain is stolen - I cannot be held responsible for your acquisitions based on these tips!
Domain name blogs often post reports of stolen domains - especially those higher value names, such as three-letter .COM's and alike. Aside from blogs, stolen domain reports sometimes appear on forums such as NamePros, and you can always check WHOIS history (using a premium DomainTools.com account, for example) to see whether there has been any recent suspicious movements on the domain in question.
Unfortunately there is no authoritative website specifically for listing (and verifying) stolen domain names; perhaps that's a service that will come into the domain industry in the future.
3. Spelling
Before you acquire a domain name that may seem too good to be true, you need to ask yourself: is it spelled correctly? Common typos, certain IDN's, and misspellings can lead to wasted money with no real opportunity to resell the domain name.
A long time ago, I backordered ephiphany.com, thinking that this was the correct spelling. Of course, it wasn't, and I had to buy the domain name for $69. Needless to say, I dropped the domain a year later. A simple Google search would have saved me $69.
4. Is the Domain Blacklisted?
If you are looking to develop or park the domain name, or you are looking to resell the domain quickly, you might be interested in checking whether the domain name is blacklisted by Google and other search engines. If it is, the domain name (and its website) will not be indexed by search engines or may not allow you to distribute ads on them using services like Google AdSense.
I believe that domains can be entered onto the blacklist if a website has been created using questionable marketing and SEO methods. A simple check at BannedCheck.com can tell you whether your domain is blacklisted. However, keep in mind that cached data can cause results to be outdated, and therefore, it's best to confirm its blacklist status using multiple sites before concluding it is or is not blacklisted.
5. Check for a Previous Website
Has the domain name been developed in the past? Do a quick check on Archive.org. It's often interesting to see what the domain was used for before you acquire it, but it can tell you much more. If a company used the domain to host a website, then do a Google search for that company to check that they didn't leave behind any angry customers, who may contact you in the hope of finding the previous company.
Whilst reselling domains, I've had prospective buyers ask me what content the domain has hosted in the past. It's always good to know exactly what the domain name has been used for.
6. Research Similar Sales
It can be helpful to do your research on pricing before acquiring a domain name. Public data from websites such as DNJournal, NameBio and DNPric.es can often give you a good indication as to whether the price you're going to pay is reasonable - either as an investor or as an end-user.
For example, if you are looking to acquire 6N .COM domains, the latest craze among Chinese investors, then before buying any domains, it would be useful to check NameBio or Chaomi.cc to search for similar recent sales to determine whether your price is suitable and near the fair market value.
7. Security - Escrow Transaction or via a Marketplace?
How will you be paying for the domain name? Is the seller insisting on PayPal, or another such service? It's wise to agree to payment terms during negotiations for a domain name. I would personally recommend using an escrow company to cover any large domain acquisitions to ensure safety for both parties. It's a small price to pay for peace of mind.
If you are buying a domain name through a marketplace, do you know their procedure? Do you have to pay via their own escrow system? Are they reliable? These are all questions to take into consideration.
8. Reputable seller?
Is the seller reputable? If you are buying a domain name through a forum or from an individual within a private email deal, are they trustworthy? Do as much research as you can on the seller before agreeing to a deal. Use Google, Twitter, LinkedIn, forums, and anywhere else you can to find out whether the seller is reputable, and whether they have successfully closed any similar deals.
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If you have any other tips for successfully acquiring domain names, please mention them below.
I wanted to pass on this little checklist to you in the hope that you'll be able to use it as a reminder to always check everything thoroughly before handing over your hard-earned cash. Whether your deal is for $50 or $500,000, and whether it is for investment or development purposes, I believe that these are steps that you might find useful during domain acquisitions. If you have any suggestions of your own, by all means, mention them in the comments section below.
1. Trademarks
This is a fairly obvious thing to check, but sometimes it is overlooked. Does the domain name that you are about to buy contain a trademarked term? It can be a very easy thing to overlook; buying a domain containing the term "realtor," for example, is something that seems to occur fairly often among new investors who may not realize that it's a trademark.
A quick search on websites such as the USPTO or Trademarkia will help you to see whether there is any adverse risk to your next potential purchase. Visiting UDRPSearch.com can also help you to see whether any UDRP's have been filed in the past for similar domains or the exact domain name.
2. Is it Stolen?
Is the domain name stolen? Buying a stolen name can prove to be a nightmarish situation, and one that could lead to you losing your money. It can be difficult to spot a stolen domain, but there are a few things you can do. Please note that this is by no means all that you can do to see whether a domain is stolen - I cannot be held responsible for your acquisitions based on these tips!
Domain name blogs often post reports of stolen domains - especially those higher value names, such as three-letter .COM's and alike. Aside from blogs, stolen domain reports sometimes appear on forums such as NamePros, and you can always check WHOIS history (using a premium DomainTools.com account, for example) to see whether there has been any recent suspicious movements on the domain in question.
Unfortunately there is no authoritative website specifically for listing (and verifying) stolen domain names; perhaps that's a service that will come into the domain industry in the future.
3. Spelling
Before you acquire a domain name that may seem too good to be true, you need to ask yourself: is it spelled correctly? Common typos, certain IDN's, and misspellings can lead to wasted money with no real opportunity to resell the domain name.
A long time ago, I backordered ephiphany.com, thinking that this was the correct spelling. Of course, it wasn't, and I had to buy the domain name for $69. Needless to say, I dropped the domain a year later. A simple Google search would have saved me $69.
4. Is the Domain Blacklisted?
If you are looking to develop or park the domain name, or you are looking to resell the domain quickly, you might be interested in checking whether the domain name is blacklisted by Google and other search engines. If it is, the domain name (and its website) will not be indexed by search engines or may not allow you to distribute ads on them using services like Google AdSense.
I believe that domains can be entered onto the blacklist if a website has been created using questionable marketing and SEO methods. A simple check at BannedCheck.com can tell you whether your domain is blacklisted. However, keep in mind that cached data can cause results to be outdated, and therefore, it's best to confirm its blacklist status using multiple sites before concluding it is or is not blacklisted.
5. Check for a Previous Website
Has the domain name been developed in the past? Do a quick check on Archive.org. It's often interesting to see what the domain was used for before you acquire it, but it can tell you much more. If a company used the domain to host a website, then do a Google search for that company to check that they didn't leave behind any angry customers, who may contact you in the hope of finding the previous company.
Whilst reselling domains, I've had prospective buyers ask me what content the domain has hosted in the past. It's always good to know exactly what the domain name has been used for.
6. Research Similar Sales
It can be helpful to do your research on pricing before acquiring a domain name. Public data from websites such as DNJournal, NameBio and DNPric.es can often give you a good indication as to whether the price you're going to pay is reasonable - either as an investor or as an end-user.
For example, if you are looking to acquire 6N .COM domains, the latest craze among Chinese investors, then before buying any domains, it would be useful to check NameBio or Chaomi.cc to search for similar recent sales to determine whether your price is suitable and near the fair market value.
7. Security - Escrow Transaction or via a Marketplace?
How will you be paying for the domain name? Is the seller insisting on PayPal, or another such service? It's wise to agree to payment terms during negotiations for a domain name. I would personally recommend using an escrow company to cover any large domain acquisitions to ensure safety for both parties. It's a small price to pay for peace of mind.
If you are buying a domain name through a marketplace, do you know their procedure? Do you have to pay via their own escrow system? Are they reliable? These are all questions to take into consideration.
8. Reputable seller?
Is the seller reputable? If you are buying a domain name through a forum or from an individual within a private email deal, are they trustworthy? Do as much research as you can on the seller before agreeing to a deal. Use Google, Twitter, LinkedIn, forums, and anywhere else you can to find out whether the seller is reputable, and whether they have successfully closed any similar deals.
--
If you have any other tips for successfully acquiring domain names, please mention them below.
