Domain Buying Strategies

domain buying strategiesBuying domains can be a very emotional process. To easily avoid making bad buying decisions in the heat of the moment, research your buys and develop a domain buying strategy before you initiate a purchase.

In Domaining 101, the domain trading and monetization experts at Protrada offer four tips when buying domains:

1. Be ready to walk away. Domaining is definitely a buyers market – which puts you in a strong negotiating position. There are always more sellers than buyers. And there will always be more domains you can buy if your current deal doesn’t pan out.

This may feel uncomfortable at first, because we’re used to paying sellers’ prices without question. But buying a domain isn’t like buying a gallon of milk. Domains are not commodity items, so you have the power to make an offer. Do your homework and know what is fair and profitable for you. If the seller turns your offer down, start hunting for a similar domain that you can buy instead.

2. Do your homework. When buying domains, you’ll want to know how much traffic the domain is getting, as well as how much revenue it’s generating. The seller should be able to provide these figures as measured daily or monthly.

A domain name news service like or can tell you what’s currently buying and selling. Make a list of sites that sold for $2,000 to $6,000. Focus your buying efforts on similar sites; they are likely to be solid sellers later.

3. Use escrow or work with verified sellers. Most domain listing services, auction services and backorder services verify their members. However, if a seller is too new to have feedback or if you contacted a seller yourself, use an escrow service to protect yourself.

With escrow, you’ll draw up an agreement that gives you an evaluation period. This protects you in the event that a seller’s claims don’t match reality. Most sellers will agree to using an escrow service. It’s a standard procedure and it protects the seller, as well, in case you don’t pay for the domain.

4. Beware of hype. Some sellers try to justify an inflated price by claiming that their domain has a lot of potential; others will say that a domain “brands well.”

But any domain has potential if you’re willing to do the work. Potential means that the buyer is trying to charge you for work that hasn’t been done. Branding is similar; domain names only brand well if you’re willing to do the work to build a brand.

Buying a domain is like buying a business. Business pros would advise you to buy a company based on its current value. Take the same approach when purchasing domains and then invest your time, money and effort into increasing the value once you own the domain.

What strategies do you use when buying domain names? Share your suggestions below! ~ Alex

Source: Domaining 101, a free e-book from Protrada. Download your copy here. 




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