Buying a Domain Name - end user
The domain name I want has been registered!
There are two courses of action which can be taken.
Firstly, you can reappraise your domain acquisition need. Are there other ways of expressing your idea through a domain name? I.e. find another domain name. Scanning through the sales boards may give you ample ideaâs for other suitable names, in fact when you have an initial concept or would like to stimulate your mind on topics, it pays to scan through them. Often they can prompt angles not previously seen before.
Secondly, you can approach the owner of the domain directly. The propensity of a domain owner to sell is dependant on many things. Generally straight out unsolicited inquiries tend to get rejected outright. Hence, if the name is important to you, then you should include an initial bid price in the email description.
It is always beneficial to actually look at what currently exists on the domain name address. If it's a fully functioning website, then purchase will likely be problematic requiring the purchase of the website and business!
Most professional domainers have their names "parked" to earn pay per click revenues (PPC) and as such tend to have a good appreciation of their domains value, but on the other hand are more likely to sell if the price is right.
If you find that your domain "Points" to a large sales site, then the domain will be for sale, it is just a matter of effective negotiation to purchase at a fair value.
What is a fair value?
Good question, there is an intrinsic value which is just the sum of the potential parking monies that the domain could expect to receive if it were parked. However, a domain is far more valuable if it matches your business name or product!
Because the determination of what is fair value is particular to each individual purchase case, each has to be considered on its own merits, there is more art than science in end use valuations!
As a domain purchaser however, never disclose your absolute need or intent with the domain. In fact it is best to appear to be a private individual looking to buy the name for personal use. It should be remembered that the seller is looking to gain the highest price possible, so any information about your potential to pay, or required use, is of importance to them.
Being less keen on a domain and being prepared to walk often puts you in a stronger negotiating position. Generally, domain holders do not get many solicitations for second line domains.
Be very careful about accepting the domain seller's comments about ranking or traffic that exists with a domain. This is easy to manipulate just as it is easy to do with a vehicles speedometer!
Actually doing the trade.
Assuming that a price has been agreed, then the next stage is domain transfer.
If you are dealing with a major sales site they will handle all these issues (There are other "non major sales sites" that you should treat as private individuals for risk purposes). However, if you are buying from a private individual in a different location/country, then you will need to use what is called an escrow service. An escrow service acts as independent agent that only releases money sent to it, once the domain has been transferred to you. The seller is protected as the money sits with the escrow, so the funds will be released on transfer. Through personal use, escrow.com is a useful platform for this. The Wells Fargo bank acts for this service so it appears to be a high quality service provider, obviously there is a small charge but this is in the order of 2.5% or similar.
Also to buy a name you must already have an account with a domain registrar. For simplicity our plan through the ufoorg.com can be used to facilitate this.
Please refer to your legal advisor where necessary - This does not constitute professional advice Copyright UFO.ORGTM (c) 2005
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