How Do I Buy a Domain Name?

Q: I'd like to buy a domain, but I discovered that it's already registered by a bulk domain buying company (just check negres.com). I tried to contact them but I have received no answer.

Do you know how much these companies charge in average for a domain? Or are they focused on the traffic and clicks and will not let it go?

Any recommended approach to bid for the domain?

A: This is a tough one because domain names, unless you have a legal claim on them, exist in a pure commodity marketplace. What I mean is: the value of a domain is defined solely by its perceived value to the buyer.

If you wanted to buy one of my unused domains (for example, "BABY.NET" which is for sale, actually) then I might ask $20 for it, or I might ask $200,000 for it, or, who knows, $2mil. What's it worth? Well, that depends. If you're a huge company with a massive marketing budget and are passionate about obtaining this exact domain then $500,000 might be a fair market price for it. But then again, maybe $100 would be more than it's worth.

Economics books talk about pricing strategies where you charge "what the market will bear", and you can see where in domain names, well, that's almost impossible to figure out without a specific buyer involved.

There's no third party, no standards organization, no reference point for what domains are worth. I've bought domains from others for $200 and I've paid $8000 for one domain. My most recent domain purchase, BLOGSMART.COM, was about $500.

I should note that I have never bought a domain from a scalper (some people call them "squatters", or "domain squatters") or domain resale agency, however: My impression is that domain resellers encourage domain owners to set unrealistic prices and hold out. For the individual domain owner who doesn't know any better, it seems like a good deal and if offers at lower price-points roll in, well, they're easily ignored.

Then, three, four or even five years later, the domain owners with dozens or even hundreds of domains suddenly realize that they really aren't worth much after all because it's clear at that point that the market isn't valuing the domain the way that the reseller is.

But even without that disconnect, domains aren't typically worth what you may think they are. To see what I mean, pop over to AfterNIC, one of the top resellers in this space, and browse their 'recently sold' and 'featured' domains lists.

A few tips on valuation, before we get there, though: '.com' are worth more than other top level domains, dictionary words are worth more than multiple word amalgamations (think 'car.com' versus 'myfavoritecartodrive.com'), and that domain names with hyphens are worth less than those without. Further, remember that if you get a singular name, you need the plural, if you get a hyphenated name you need the unhyphenated too, and so on.

Unsurprisingly, the closing bids for "tiny-treasures.com", "yourbetterhalf.com", "onenet.us" and "2EB.com" aren't very impressive, but there are a few that shine as particularly good domains: "america.org" (sold for $20,000), "maple.net" ($5,000), "x360.com" ($5,000), "itoldyouso.com" ($15,000) and "searchme.com" ($15,500). Based on that, "baby.net" should certainly be worth at least $20,000, don't you think?

I believe that the best domains change hands in private transactions, however, and that if you've a third-party involved, it will unquestionably complicate the situation.

Anyway, back to your specific situation, I would try one more email message to the domain owner, and if they don't respond, well, it's probably time to do some creative synonym brainstorming and come up with a different name entirely. If they respond, but are asking for far more than you're willing to pay, keep dickering: I've been surprised how quickly potential buyers vanish, when I'm just negotiating a price.

Good luck to you!

Dave Taylor is an internationally recognized expert on business and technical topics and is the author of 18 different books and thousands of magazine articles. His Q&A Web site is http://www.askdavetaylor.com/

---

Better Links Directory

Liberalization of in-Domains?

Communications and IT Minister Dayanidhi Maran has -as Hindustan Times... Read More

How to Win Expired Domains

Every day thousands of expired domain names come back onto... Read More

Public Domain Works Are Closer Than They Appear

Searching for public domain works can be a tedious job... Read More

Investing in Great Domain Names when They Come for Sale

Domain names are not just online identities anymore they are... Read More

Domain Name: Why Do You Need One Anyway?

I come across sites all the time that are obviously... Read More

Understand the Domain Name System

Ever wonder why DNS systems came into existence? Efficiency. Every... Read More

Why to Register md-Domains?

What is .md?.md is the web address that identifies you,... Read More

How To Boost Affiliate Profits Using Secret Domain Tricks

Want to increase your affiliate link click-through rates and profits?Then... Read More

How Do I Get My Domain Name Appraised?

What's your domain name worth?Perhaps it is better to ask... Read More

Domain Name Registration - Key Tips

Domain name registration is a necessary, easy, and strategically important... Read More

ICANN or I CANNot that is the Question

Well, it seems we should all be very busy registering... Read More

Cheap and Easy Domain Name Registration

Just like any business, your identity is very important. On... Read More

Detagged Domains

What is a DETAGGED domain name? We get asked this... Read More

How To Really Profit from Domain Names

Have you heard about domain names that sold for over... Read More

Domain Parking Explained

Domain names are being snapped up all the time so... Read More

What Questions Should You Ask Yourself When You Select Your Domain Name for Your Home Business?

So you want to be an Internet superstar, work from... Read More

Selling a .co.uk Domain Name via Sedo

Selling a .co.uk Domain Name via SedoThis is a recent... Read More

Choosing A Domain Name

--About Domain Names--Choosing a domain name for your web site... Read More

How to Conduct a Domain Name Search and Why Your Domain Name Matters for Long Term Branding

Creating a website is not just about designing your pages... Read More

The Power of Domain Names in Marketing

Purchasing your own domain is inexpensive and very effective for... Read More

Domain Names More Choices than You Think

When you are choosing a domain name you will probably... Read More

Choosing Your Domain Name ? Internet Marketing

This is actually an important key to your business and... Read More

Know How DNS Works

Domain name Servers (DNS) are an important but invisible part... Read More

Tips and Tricks To Getting Top Money for your Domain Names

Would you like to be that lucky person who sells... Read More

Domain Names and Longevity

It begins as an idea -- a company name, a... Read More